Recently I received a call from a woman who sounded a bit distracted on the phone as she began to explain why she was calling. As I listened to her story, it became abundantly clear why she sounded somewhat “foggy”. She had lost both her beloved parents and her brother within a very short period of time and she was in mind boggling grief. She had never had to deal with legal or real estate matters and now she found herself overwhelmed by the circumstances of her life.
Life altering events can leave a person in a most vulnerable state where decision making becomes almost impossible. It is during times of living in nightmares when the professional services of attorneys, accountants and realtors must be rendered with tenderness and attentiveness that leads to resolution.
In the event that life knocks you down and you do not know where to turn, you may hear well intentioned friends say “If there is anything I can do, just let me know.” In truth, it is just at these most difficult moments when the last thing you can think of is how to ask for help or what help to ask for.
If you can find a way to remember anything during so difficult a time, remember to ask for a referral to a professional. The time to think about who would be your trusted advisor is before something horrible saps your strength. It is most important to ask someone whom you admire for a referral for such time as you may need one. Who guided your friend or co-worker through dark waters and helped them find peace again? Keep that name or (names) handy because if you have no idea where to turn, the terrible times can become worse instead of better.
I have a lawyer in whose hands I place my children, my own legal matters and those of my clients and friends. I have trusted this kind and brilliant man for twelve years. I have a doctor in whose hands I place my health. I have an accountant who, like the other professionals I choose to keep in my life, tells me the truth and keeps my figures true.
The woman who called me in such a sad state had no such trusted advisor. What she had was a blind and desperate need to trust someone and her bottomless sorrow became even more difficult when all three fell far short of providing services or producing promised results.
These times have many folks counting pennies. Although the inventory of homes has begun to move through to closings, many homeowners have been exhausted from the housing challenge and many buyers are also exhausted from searching through the inventory. It is most important to find that special someone with whom you “click”. Lasting friendships with trusted advisors start with obtaining a name from someone you already trust. It is not unwise to interview several professionals before placing your life, your home or your peace of mind in their hands.
Although several months of unnecessary heartache befell the woman who called my office recently, life has changed yet again for her. There are now trusted advisors in place who will see her through the storm and she will never forget what it meant to be so afraid and be left out in the cold. She will also now be the one who will say to a friend in need some day… “ I have a name for you.”
Thursday, July 23, 2009
Thursday, June 25, 2009
Celebrate the USA…….
It is a little known fact that the American colonies separated legally from Great Britain on July 2,1776 and not on July 4th. It took two days for the Second Continental Congress to approve the Declaration of Independence during the American Revolution, hence our National Celebration “The 4th of July”.
In his letter dated July 3rd, 1776, John Adams, referring to the birth of our new nation, wrote to his wife Abigail “I am apt to believe that it will be celebrated by succeeding generations as the greatest anniversary festival. It ought to be solemnized with pomp and parade, with shows, games, sports, guns, bells, bonfires, and illuminations from one end of this continent to the other, from this time forward and forever more”.
Our superb experiment The United States of America is like none other in the history of mankind. Above all else, we have kept our promise to each other and to the world that we will preserve, protect and defend the basic right to live free from tyranny of any kind anywhere.
When we celebrate the history of our country, we remind the whole world that the right to live in freedom when threatened is worth any war that has ever been fought however dreadful the reality of the fight. The beacon of hope for which our Country stands continues to draw the world to our borders. As long as our collective view of the world remains steadfastly rooted in the spirit of the United States Constitution, we will right any wrong and overcome any challenge to our way of life.
If the Founding Fathers were observing the debates taking place between and among our political parties, economists and industries today, I suspect they might find that the more things change, the more things stay the same. We are all still “contributing” our ideas as we live in freedom under our precious Constitution. Some of our “ideas”, however, would have caused the Founding Fathers’ wigs to curl.
Centuries ago, there existed the “Debtors’ Prison” where those who could not pay their debts were sentenced. Not only was the debtor sent to jail, but he had to pay to be incarcerated. Imagine what our Founding Fathers would say about the “idea” that our lending institutions developed to create the tremendous debt under which we smother today.
During the housing and credit crisis of the past few years, Americans did not end up in Debtors’ Prison. They ended up in homes they could never afford and those lenders should now be in “Lenders’ Prison”.
The economic forecast for our Country is one of Recovery and it is on the horizon as evidenced in the most recent housing statistics today. Home sales are on the rise despite an inventory that remains high and home prices will likely begin to rise albeit ever so very slightly and over a prolonged slow period of time.
The sales of high end homes remain slow as the banks’ jumbo loan availability is significantly limited. The national inventory of homes priced at 750,000 and above now exceeds 40 months as compared with 18 months in 2007. Until the rates for these jumbo loans improve as well as the high end consumer confidence, high end properties will continue to remain on the market for longer periods of time.
Presently, about one in six homeowners owe the banks more than their homes are worth, but the economists report that most folks are current on their mortgages. The current unemployment rate is nearing 10% but the federal stimulus plan is intended to generate jobs before the end of 2009. It is still believed that unemployment will be high until 2013.
The rates will most likely remain low and the $8000 tax credit for 1st time homeowners will probably be extended beyond the 12/09 deadline.
Housing experts such as International Chairman and Co-founder of REMAX Dave Liniger, instruct that the health of the housing market is directly tied to 3 factors: affordability, interest rates and employment. He notes that there are “positive elements” in the 1st two factors, but that unemployment continues to be the “troubling wild card in the economic deck.” We will recover and we will learn from our mistakes.
Over two centuries ago on July 4th 1777, John Adams went out for a walk at night “for a little fresh air and exercise”. On the first anniversary of the Declaration of Independence, he was stopped in his tracks. All around him he saw the “whole city lighting up their candles in the windows.” Although the new Americans lacked the technological means to communicate their universal joy, it nonetheless abounded through out every home on every street in all the states of the union.
We Americans will continue to light the candles that illuminate the purest way of life the world has ever known. It is precious. It is worth the struggle. It will always be a cause for immense celebration.
In his letter dated July 3rd, 1776, John Adams, referring to the birth of our new nation, wrote to his wife Abigail “I am apt to believe that it will be celebrated by succeeding generations as the greatest anniversary festival. It ought to be solemnized with pomp and parade, with shows, games, sports, guns, bells, bonfires, and illuminations from one end of this continent to the other, from this time forward and forever more”.
Our superb experiment The United States of America is like none other in the history of mankind. Above all else, we have kept our promise to each other and to the world that we will preserve, protect and defend the basic right to live free from tyranny of any kind anywhere.
When we celebrate the history of our country, we remind the whole world that the right to live in freedom when threatened is worth any war that has ever been fought however dreadful the reality of the fight. The beacon of hope for which our Country stands continues to draw the world to our borders. As long as our collective view of the world remains steadfastly rooted in the spirit of the United States Constitution, we will right any wrong and overcome any challenge to our way of life.
If the Founding Fathers were observing the debates taking place between and among our political parties, economists and industries today, I suspect they might find that the more things change, the more things stay the same. We are all still “contributing” our ideas as we live in freedom under our precious Constitution. Some of our “ideas”, however, would have caused the Founding Fathers’ wigs to curl.
Centuries ago, there existed the “Debtors’ Prison” where those who could not pay their debts were sentenced. Not only was the debtor sent to jail, but he had to pay to be incarcerated. Imagine what our Founding Fathers would say about the “idea” that our lending institutions developed to create the tremendous debt under which we smother today.
During the housing and credit crisis of the past few years, Americans did not end up in Debtors’ Prison. They ended up in homes they could never afford and those lenders should now be in “Lenders’ Prison”.
The economic forecast for our Country is one of Recovery and it is on the horizon as evidenced in the most recent housing statistics today. Home sales are on the rise despite an inventory that remains high and home prices will likely begin to rise albeit ever so very slightly and over a prolonged slow period of time.
The sales of high end homes remain slow as the banks’ jumbo loan availability is significantly limited. The national inventory of homes priced at 750,000 and above now exceeds 40 months as compared with 18 months in 2007. Until the rates for these jumbo loans improve as well as the high end consumer confidence, high end properties will continue to remain on the market for longer periods of time.
Presently, about one in six homeowners owe the banks more than their homes are worth, but the economists report that most folks are current on their mortgages. The current unemployment rate is nearing 10% but the federal stimulus plan is intended to generate jobs before the end of 2009. It is still believed that unemployment will be high until 2013.
The rates will most likely remain low and the $8000 tax credit for 1st time homeowners will probably be extended beyond the 12/09 deadline.
Housing experts such as International Chairman and Co-founder of REMAX Dave Liniger, instruct that the health of the housing market is directly tied to 3 factors: affordability, interest rates and employment. He notes that there are “positive elements” in the 1st two factors, but that unemployment continues to be the “troubling wild card in the economic deck.” We will recover and we will learn from our mistakes.
Over two centuries ago on July 4th 1777, John Adams went out for a walk at night “for a little fresh air and exercise”. On the first anniversary of the Declaration of Independence, he was stopped in his tracks. All around him he saw the “whole city lighting up their candles in the windows.” Although the new Americans lacked the technological means to communicate their universal joy, it nonetheless abounded through out every home on every street in all the states of the union.
We Americans will continue to light the candles that illuminate the purest way of life the world has ever known. It is precious. It is worth the struggle. It will always be a cause for immense celebration.
Is Real Estate For You?
Last week I sat with a group of 7th grade girls in Georgetown MA and I asked them what they thought they would like to be when they grew up. Among the future professionals were a lawyer, doctor, veterinarian, two singers, two artists, three fashion designers, a teacher and a whole lot of "don't knows". It occurred to me that in all my years of asking the same question of children, I had never heard any youngster say that he or she wanted to be a Realtor some day.
There are a plethora of TV shows depicting law enforcement. There are more medical shows than one viewer can ever see. Reality TV shows have saturated the networks and shows about the supernatural are on the rise. There are game shows, forensic detective shows, and anti-terrorist shows, but with the exception of real estate "tips" shows, there is no show that centers on the profession of the Realtor.
I think the- entertainment industry has a lot to learn about the heretofore untapped wealth of human interest stories that are; behind every door the Realtor opens.
In practice, real estate has far more to do with developing relationships than it has to do with structures, acreage or properties. Every - possible life event or set of circumstances that can happen to an individual or family has direct bearing on the Realtor who holds the key to the home and becomes a member of the family.
I suspect that most Realtors had little idea what the profession entailed until they began practicing. Even with my background as a nurse/attorney, I learned early on-that there is far more involved and required of the Realtor than bringing parties to the closing table.
The Realtor who is called to the home of an elderly seller whose spouse has just died has a lifetime of memories and minute to minute sadness to address beyond obtaining the square footage of the rooms. In addition, it may be most important to determine what support systems if any the distraught seller has to draw upon during such period of uncertainty.
Divorcing couples will often require the services of a Realtor in order to sell the marital home. These are generally not happy times for families engaged in the process of separation and it is not uncommon for the Realtor to be privy to emotions that range from sadness to rage. Moreover, the Realtor is often scrutinized by little eyes and ears whose lives are torn and it can be heart wrenching to be the subject of their gaze.
So multifaceted can the personal, practical and legal needs of the entire family be during such tumultuous times, that a new Divorce Certification Specialty has emerged within the profession. (The first and as far as is known only Divorce Certified Realtor in New England is located at this office. You may call for contact information.)
The Realtor who approaches the front door of the home he or she listed and finds the door unlocked or ajar has a judgment to make right there on the spot. We caution our Realtors to return to the car and telephone the police immediately for the safety of the Realtor as well as the protection and safety of the clients. There are too many stories of Realtors and or clients who have been the victims of violent crime while engaged in the practice of real estate. at other professional advertises the times, dates and address when the door will be open to a home? The professional Realtor is trained how to avoid and prepare for such circumstances.
On a lighter note, Realtors have opened bedroom closets and have come face to face with apparatus usually found in adults only locations. It has also been the case that the adults were found wearing the apparatus during a scheduled showing they "forgot about".
Sellers report the presence of ghosts to Realtors who would then require that flood lamps be provided for any after hours' showings.
When the seller neglects to secure the cage lid before leaving the home, the six foot boa is more than capable of greeting the Realtor and a prospective buyer at the front door.
Should your water; break during your visit to the Open House, the Realtor will time the contractions till the paramedics arrive.
I believe that one day I will ask the question "What do you want to be when you grow up?" and I will hear "I want: to be just like the Realtor who made a difference in the lives of my family and me."
There are a plethora of TV shows depicting law enforcement. There are more medical shows than one viewer can ever see. Reality TV shows have saturated the networks and shows about the supernatural are on the rise. There are game shows, forensic detective shows, and anti-terrorist shows, but with the exception of real estate "tips" shows, there is no show that centers on the profession of the Realtor.
I think the- entertainment industry has a lot to learn about the heretofore untapped wealth of human interest stories that are; behind every door the Realtor opens.
In practice, real estate has far more to do with developing relationships than it has to do with structures, acreage or properties. Every - possible life event or set of circumstances that can happen to an individual or family has direct bearing on the Realtor who holds the key to the home and becomes a member of the family.
I suspect that most Realtors had little idea what the profession entailed until they began practicing. Even with my background as a nurse/attorney, I learned early on-that there is far more involved and required of the Realtor than bringing parties to the closing table.
The Realtor who is called to the home of an elderly seller whose spouse has just died has a lifetime of memories and minute to minute sadness to address beyond obtaining the square footage of the rooms. In addition, it may be most important to determine what support systems if any the distraught seller has to draw upon during such period of uncertainty.
Divorcing couples will often require the services of a Realtor in order to sell the marital home. These are generally not happy times for families engaged in the process of separation and it is not uncommon for the Realtor to be privy to emotions that range from sadness to rage. Moreover, the Realtor is often scrutinized by little eyes and ears whose lives are torn and it can be heart wrenching to be the subject of their gaze.
So multifaceted can the personal, practical and legal needs of the entire family be during such tumultuous times, that a new Divorce Certification Specialty has emerged within the profession. (The first and as far as is known only Divorce Certified Realtor in New England is located at this office. You may call for contact information.)
The Realtor who approaches the front door of the home he or she listed and finds the door unlocked or ajar has a judgment to make right there on the spot. We caution our Realtors to return to the car and telephone the police immediately for the safety of the Realtor as well as the protection and safety of the clients. There are too many stories of Realtors and or clients who have been the victims of violent crime while engaged in the practice of real estate. at other professional advertises the times, dates and address when the door will be open to a home? The professional Realtor is trained how to avoid and prepare for such circumstances.
On a lighter note, Realtors have opened bedroom closets and have come face to face with apparatus usually found in adults only locations. It has also been the case that the adults were found wearing the apparatus during a scheduled showing they "forgot about".
Sellers report the presence of ghosts to Realtors who would then require that flood lamps be provided for any after hours' showings.
When the seller neglects to secure the cage lid before leaving the home, the six foot boa is more than capable of greeting the Realtor and a prospective buyer at the front door.
Should your water; break during your visit to the Open House, the Realtor will time the contractions till the paramedics arrive.
I believe that one day I will ask the question "What do you want to be when you grow up?" and I will hear "I want: to be just like the Realtor who made a difference in the lives of my family and me."
Tuesday, June 9, 2009
How Can The Market “Come Back” If It Never Left?
This morning a young gas station attendant noticed the real estate signs in the back seat of my car. He was very excited as he said “The market is really coming back!” Although the market never left, I knew what he meant as a consumer who learns what he can from the news media. The market consists of a property, a seller, and a buyer period. Properties are bought and sold every day everywhere. Factors such as the economy, supply and demand may affect the market, but the market itself goes on like “Old Man River”.
One key point that appears to be misunderstood by many consumers is the fact that the increase in market activity does not mean increase in home prices. It means increase in the number of homes that are being sold now. Home prices will increase again, but those prices will not be increasing anytime soon. “Real Trends” (http://www.realtrends.com/) is a resource upon which Wall Street and the Real Estate industry rely for accurate research data. The CEO is Steve Murray who found that the prices of 2005 will not be seen again until about 2020. “Standard and Poors” estimates that the price of a property purchased in 2003 has returned to about that same value right now in 2009.
During the height of the market in 2005, a listing Realtor could hang a Purchase and Sale contract out the car window and buyers would chase that car down the street in bidding wars to entice the seller to accept over-asking prices for the high priced properties. In the years that have followed that hay day, the inventory has increased with over priced properties that have languished on the declining market for longer periods of time. In addition, as a direct result of the irresponsible lending practices over the past several years, we have seen the tidal wave of short sales and foreclosures that have contributed to declining prices.
The pricing overall has been corrected and homes are more affordable now than ever. The very low interest rates and tax credits for first time homebuyers have enticed consumers to act now, hence the increasing market activity of homes being purchased.
If your present home no longer meets your needs, price it intelligently, not “hopefully” and it will sell to a buyer who will purchase it intelligently not “dopefully”. One of the most common concerns voiced by sellers is “I don’t want to give my house away and then have to pay too much for the house I buy.” The market exists and continues across the board. All home prices were high in the hot sellers’ market, and all prices began to fall in the buyers’ market. If you sell at a lower price than you had hoped for, know that the seller of the home you wish to purchase has had to do the same with you.
Another common concern voiced by sellers is “I don’t want to put my house on the market until I know which home I will be purchasing.” The key to a successful move is to focus on the sequence of events that must take place for the most successful outcome. Unless you are able to carry two mortgages until your home sells, you must sell your home before you can purchase another. Being on the market can be very stressful for a number of reasons, so here are some tips to navigate from one address to the other and minimize the stress. You must have a plan.
Put your property on the market and price it intelligently with your chosen trusted advisor.
Looking for the right home can be a full time job. Work with your trusted advisor to narrow your search and save countless hours.
Be sure you have an updated pre approval letter from your lender.
Have a contingency plan in place in the event that your home sells before you find your next one. (Selling your home is the biggest hurdle and it should be a cause for celebration, not concern.) Many folks can rent storage and stay with family. One other increasingly popular option for that “in between” time are short term rentals at major complexes and huge hotel townhouse accommodations for relatively affordable costs. These interim accommodation places are on the rise in response to the growing need of consumers. (Ask us here at the “Crossroads” about discounted rates that a major hotel chain offers to our clients who use our name).
Know that when you put the cart before the horse, you will inevitably walk into the house of your dreams only to find that it will be purchased by another buyer who took that leap of faith and got his property sold first. No seller wants to wait until you sell your property when there is a ready willing and able buyer standing next to you at the open house.
The market is not “coming back” because it never left in the first place. Take that intelligent leap of faith and know that every home sells at the right price and time without exception. Good luck and we’ll be here to take that leap with you!
One key point that appears to be misunderstood by many consumers is the fact that the increase in market activity does not mean increase in home prices. It means increase in the number of homes that are being sold now. Home prices will increase again, but those prices will not be increasing anytime soon. “Real Trends” (http://www.realtrends.com/) is a resource upon which Wall Street and the Real Estate industry rely for accurate research data. The CEO is Steve Murray who found that the prices of 2005 will not be seen again until about 2020. “Standard and Poors” estimates that the price of a property purchased in 2003 has returned to about that same value right now in 2009.
During the height of the market in 2005, a listing Realtor could hang a Purchase and Sale contract out the car window and buyers would chase that car down the street in bidding wars to entice the seller to accept over-asking prices for the high priced properties. In the years that have followed that hay day, the inventory has increased with over priced properties that have languished on the declining market for longer periods of time. In addition, as a direct result of the irresponsible lending practices over the past several years, we have seen the tidal wave of short sales and foreclosures that have contributed to declining prices.
The pricing overall has been corrected and homes are more affordable now than ever. The very low interest rates and tax credits for first time homebuyers have enticed consumers to act now, hence the increasing market activity of homes being purchased.
If your present home no longer meets your needs, price it intelligently, not “hopefully” and it will sell to a buyer who will purchase it intelligently not “dopefully”. One of the most common concerns voiced by sellers is “I don’t want to give my house away and then have to pay too much for the house I buy.” The market exists and continues across the board. All home prices were high in the hot sellers’ market, and all prices began to fall in the buyers’ market. If you sell at a lower price than you had hoped for, know that the seller of the home you wish to purchase has had to do the same with you.
Another common concern voiced by sellers is “I don’t want to put my house on the market until I know which home I will be purchasing.” The key to a successful move is to focus on the sequence of events that must take place for the most successful outcome. Unless you are able to carry two mortgages until your home sells, you must sell your home before you can purchase another. Being on the market can be very stressful for a number of reasons, so here are some tips to navigate from one address to the other and minimize the stress. You must have a plan.
Put your property on the market and price it intelligently with your chosen trusted advisor.
Looking for the right home can be a full time job. Work with your trusted advisor to narrow your search and save countless hours.
Be sure you have an updated pre approval letter from your lender.
Have a contingency plan in place in the event that your home sells before you find your next one. (Selling your home is the biggest hurdle and it should be a cause for celebration, not concern.) Many folks can rent storage and stay with family. One other increasingly popular option for that “in between” time are short term rentals at major complexes and huge hotel townhouse accommodations for relatively affordable costs. These interim accommodation places are on the rise in response to the growing need of consumers. (Ask us here at the “Crossroads” about discounted rates that a major hotel chain offers to our clients who use our name).
Know that when you put the cart before the horse, you will inevitably walk into the house of your dreams only to find that it will be purchased by another buyer who took that leap of faith and got his property sold first. No seller wants to wait until you sell your property when there is a ready willing and able buyer standing next to you at the open house.
The market is not “coming back” because it never left in the first place. Take that intelligent leap of faith and know that every home sells at the right price and time without exception. Good luck and we’ll be here to take that leap with you!
Thursday, May 28, 2009
MERCURY RETROGRADE AND YOU………?????????
This week I heard from two different friends who do not know each other. Many aspects of their lives have been in chaos for much of May, and they called for a friend’s “ear”. During our respective conversations they both noted that “Mercury has been in retrograde” and they attributed much of the turmoil to that phenomenon. While I don’t know a lot about the planets, as a “child of the universe”, I tend to keep an open mind toward phenomena I don’t understand. This morning a client called to discuss a delayed closing. He said he was not surprised that the “glitch” had occurred with the buyers because “Mercury had been in retrograde”.
During times of trouble, it is our collective experience to seek solace or resolution in something greater than ourselves. As the Broker/Owner of a Real Estate company with several Associate Realtors who are responsible for the well being of each and every client, we find ourselves smack dab in the middle of one of the most challenging housing markets of the century. Being able to navigate through choppy waters is critical to bringing “our first class passengers” home safely. While there is no substitute for professional skills, experience and knowledge, I wonder what effect there may be to “Mercury Retrograde” periods on our lives. If it has any bearing on real estate, or even if our clients believe it does, it warrants exploration.
Briefly, Mercury is the closest planet to the sun and it can only be seen at sunrise or sunset. Astronomers note that while Mercury travels in a forward motion, there are times during the year when an optical illusion causes it to appear as if it is travelling in reverse, hence “Mercury retrograde”. Those for whom this phenomenon has great significance note that the Stock Market crash that occurred in October 2008 happened while Mercury was in retrograde. In addition, the presidential election of 2000 occurred during the retrograde period and the winner could not be declared for weeks.
Usually, the effect of the Mercury retrograde period is aggravation. Electronic equipment is said to break down for no apparent reason. (This morning, an Attorney and I discovered that his home and law office equipment had been “bouncing back” emails for no apparent reason. I must admit that my own computers have had their “quirks” this past several days and our very best IT man is at a loss.). While there may very well be a reason for several cell phone failures this week as well, I do not as yet know what it is. Forgetfulness, loss keys, typos, misunderstandings, irritability, flukes and general chaos are said to be standard operating procedure during Mercury retrograde periods.
During the month of May, the Mercury retrograde period was from 5/7/09 to 5/30/09. While the level of real estate activity increased palpably during this spring time with lowest rates and housing prices, so did the level of anxiety among clients with whose lives we Realtors become intimately involved. So many folks were living as if all 52 cards had been tossed in the air and they had no idea where they would land. Many of us Realtors spent additional hours assuring and reassuring our clients this past month. (Many of us spent hours assuring ourselves despite the increasing business!).
The next Mercury retrograde period is due 9/7/09 to 9/29/09. If the Mercury retrograde phenomenon has meaning for you, you may want to call now to list your property while the planets are lining up in your favor. While there is no substitute for professional skills and knowledge, this sure footed Capricorn would prefer to keep chaos to a minimum.
During times of trouble, it is our collective experience to seek solace or resolution in something greater than ourselves. As the Broker/Owner of a Real Estate company with several Associate Realtors who are responsible for the well being of each and every client, we find ourselves smack dab in the middle of one of the most challenging housing markets of the century. Being able to navigate through choppy waters is critical to bringing “our first class passengers” home safely. While there is no substitute for professional skills, experience and knowledge, I wonder what effect there may be to “Mercury Retrograde” periods on our lives. If it has any bearing on real estate, or even if our clients believe it does, it warrants exploration.
Briefly, Mercury is the closest planet to the sun and it can only be seen at sunrise or sunset. Astronomers note that while Mercury travels in a forward motion, there are times during the year when an optical illusion causes it to appear as if it is travelling in reverse, hence “Mercury retrograde”. Those for whom this phenomenon has great significance note that the Stock Market crash that occurred in October 2008 happened while Mercury was in retrograde. In addition, the presidential election of 2000 occurred during the retrograde period and the winner could not be declared for weeks.
Usually, the effect of the Mercury retrograde period is aggravation. Electronic equipment is said to break down for no apparent reason. (This morning, an Attorney and I discovered that his home and law office equipment had been “bouncing back” emails for no apparent reason. I must admit that my own computers have had their “quirks” this past several days and our very best IT man is at a loss.). While there may very well be a reason for several cell phone failures this week as well, I do not as yet know what it is. Forgetfulness, loss keys, typos, misunderstandings, irritability, flukes and general chaos are said to be standard operating procedure during Mercury retrograde periods.
During the month of May, the Mercury retrograde period was from 5/7/09 to 5/30/09. While the level of real estate activity increased palpably during this spring time with lowest rates and housing prices, so did the level of anxiety among clients with whose lives we Realtors become intimately involved. So many folks were living as if all 52 cards had been tossed in the air and they had no idea where they would land. Many of us Realtors spent additional hours assuring and reassuring our clients this past month. (Many of us spent hours assuring ourselves despite the increasing business!).
The next Mercury retrograde period is due 9/7/09 to 9/29/09. If the Mercury retrograde phenomenon has meaning for you, you may want to call now to list your property while the planets are lining up in your favor. While there is no substitute for professional skills and knowledge, this sure footed Capricorn would prefer to keep chaos to a minimum.
Thursday, February 19, 2009
GO SHINE SHOES
About forty years ago my grammar school aged brother owed 11 cents on an over due library book that he found under his bed. When he asked that my Father “give him the money”, my little brother received his first lesson in financing. With his shoeshine kit under his arm, he set out for the barber shop to earn the money he owed his “lender”.
It is family folklore today that my brother has been debt free since his shoe shining days, but he is one of the rare folks who can make that claim.
Last night the housing package to the Stimulus Plan was unveiled to the country and the mixed reviews will be debated for a very long time. While the economic experts, industry leaders and elected officials have been meeting and holding court with each other over the housing debacle for a period of time, Realtors have been meeting with and holding clients’ hands for a far longer period of time. We know first hand in our own homes and in our clients’ homes that something HAD to be done…even if the plan to help homeowners who can not pay their bills is unfair on its face to those homeowners who have paid their bills….and it is.
In short, 9 million homeowners are going to get a break with their mortgage debt and many more millions of homeowners will not.
“But, Daddy, Bobby’s parents didn’t make him work for the library fine.”
Putting all debates aside, the cold hard facts are that our country’s lenders loaned money to anyone with a pulse for several years. Those folks were all on borrowed time because they could never pay back the loans and tidal waves of foreclosures have been hitting the beaches and driving down the values of all homes everywhere. IT MUST STOP.
In my days as a nursing student, I remember being completely disgusted one day in class when we were taught that live leeches were actually placed on infected wounds because they ate up the dead tissue and promoted healing.
Sometimes it takes a jar of live leeches to clean up a festering wound and save the patient.
The inventory of properties MUST be moved. Increasing the inventory with more foreclosures MUST NOT be allowed. The way to move this inventory and unclog the plug that has “stopped up” the whole world is to make it possible for homeowners to STAY IN THEIR HOMES, for buyers to BUY HOMES, for lenders to LEND RESPONSIBLY.
Two hundred billion dollars will be given to Fannie Mae and Freddie Mac for such purposes as refinancing mortgages and lowering rates. Seventy five billion will be used to modify mortgages into smaller payments so that 9 million homeowners can STAY IN THEIR HOMES. Even without equity in the home, there will be refinancing possible now.
Some specifics include incentives for both the lender and the homeowner to come to the table and rewrite a deal with which both can live. There are additional incentives for the lender and homeowner to enter into a better deal BEFORE the homeowner is late on payments.
Our Constitution remains the greatest experiment in the history of the world and no matter what fix we get ourselves into, we will have the shiniest shoes on the block as we get ourselves out.
It is family folklore today that my brother has been debt free since his shoe shining days, but he is one of the rare folks who can make that claim.
Last night the housing package to the Stimulus Plan was unveiled to the country and the mixed reviews will be debated for a very long time. While the economic experts, industry leaders and elected officials have been meeting and holding court with each other over the housing debacle for a period of time, Realtors have been meeting with and holding clients’ hands for a far longer period of time. We know first hand in our own homes and in our clients’ homes that something HAD to be done…even if the plan to help homeowners who can not pay their bills is unfair on its face to those homeowners who have paid their bills….and it is.
In short, 9 million homeowners are going to get a break with their mortgage debt and many more millions of homeowners will not.
“But, Daddy, Bobby’s parents didn’t make him work for the library fine.”
Putting all debates aside, the cold hard facts are that our country’s lenders loaned money to anyone with a pulse for several years. Those folks were all on borrowed time because they could never pay back the loans and tidal waves of foreclosures have been hitting the beaches and driving down the values of all homes everywhere. IT MUST STOP.
In my days as a nursing student, I remember being completely disgusted one day in class when we were taught that live leeches were actually placed on infected wounds because they ate up the dead tissue and promoted healing.
Sometimes it takes a jar of live leeches to clean up a festering wound and save the patient.
The inventory of properties MUST be moved. Increasing the inventory with more foreclosures MUST NOT be allowed. The way to move this inventory and unclog the plug that has “stopped up” the whole world is to make it possible for homeowners to STAY IN THEIR HOMES, for buyers to BUY HOMES, for lenders to LEND RESPONSIBLY.
Two hundred billion dollars will be given to Fannie Mae and Freddie Mac for such purposes as refinancing mortgages and lowering rates. Seventy five billion will be used to modify mortgages into smaller payments so that 9 million homeowners can STAY IN THEIR HOMES. Even without equity in the home, there will be refinancing possible now.
Some specifics include incentives for both the lender and the homeowner to come to the table and rewrite a deal with which both can live. There are additional incentives for the lender and homeowner to enter into a better deal BEFORE the homeowner is late on payments.
Our Constitution remains the greatest experiment in the history of the world and no matter what fix we get ourselves into, we will have the shiniest shoes on the block as we get ourselves out.
SMOOTH SAILING
The market and the economic stats that affect it have many folks wringing hands, scratching heads and afloat in a sea of uncertainty. We may all be in many different boats, but Captains attempting to navigate through choppy waters without a trustworthy Pilot and an accurate chart is a frightening and foolhardy endeavor.
To avoid ending up in the fog and on the rocks, you must be as well informed as possible.
Real Trends is a publication that tracks valuable stats for both Real Estate professionals and consumers. Steve Murray is the publisher of that well respected resource and the most successful real estate giants of the industry rely on his findings. I recently attended a summit for all New England RE/MAX owners where Steve Murray was guest speaker and the data he shared is invaluable to all Realtors and real estate consumers.
What can we expect for home values in 2009? The best we can expect is that the home values stay the same as they were in 2008, that is, no appreciation and no depreciation. (Buyers, buy that home you’ve been dreaming of NOW). The height of the sellers’ market wherein home values soared during the sub prime debacle was in 2005. Home values have depreciated steadily since that time and we will not see those values again until the year 2020.
When we apply that data to individual consumer circumstances, the Captain now has a Pilot to navigate through the choppy waters. Here are examples of real estate circumstances and the strategies best applied by a trusted Pilot.
1. FACTS:“Russ” owns a beautiful home in a lovely area in town. He wants to sell his home, but he would like to wait until “the prices come back”. He thought that he might rent the home until “the price comes back” to what his neighbor got in 2005. He owns another beautiful vacation home that he loves and he has given thought to purchasing a smaller property in a nearby town rather than own two large homes.
STRATEGY: If Russ waits till the price of 2005 “comes back”, his home will be another decade older and if he rents it during the “waiting period”, it will have the additional wear and tear that comes with rental territory. He will also have the additional carrying costs of repairs, maintenance, taxes, and all that is attendant to being a landlord for many years while he “waits”. It is likely that the large home he considers renting will depreciate further. If he sells it now at market value, he can purchase the smaller property at market value and the real estate transaction can be a “wash”. That which you sell “low” is offset by that which you buy “low”.
2. FACTS: “John and Penny” had their home on the market last year for $525,000. They have homes in two other states and their intent was to sell their large Massachusetts home and purchase a smaller one to maintain a presence near their grandchildren. Two offers came in at about 480,000. (The buyers would likely have come up to $495,000). The sellers were insulted. They had spent a great deal of money adding improvements to the property and despite the downward trend of the market, they would not reduce their price and they came off the market.
STRATEGY: The property is now worth about $450,000 and “John and Penny” have joined the ranks of homeowners who want OUT NOW. Anyone can put a property on the Multiple Listing Service. The key is to get you OFF the Multiple Listing Service for the MOST amount of money in the SHORTEST period of time. With very few exceptions, the stumbling block is the PRICE. The home must be priced just a bit UNDER fair market value because it’s not enough to be a “good” deal. With high inventory, you are in the best position to sell when you are the “best” deal in town. Fair Market Value is determined by comparing a property today with properties that have sold months ago. In a declining market, the savvy Captain and Pilot price the home conservatively and capture the most amount of equity as quickly as possible by doing so. (Multiple offers are born of correct pricing.)
This Pilot advises all Captains that no matter how choppy the water, we can avoid ending up in the fog and on the rocks by charting an aggressive and intelligent course that is based on accurate information. Pilots do not operate from fear of the unknown. We operate from understanding the facts, knowing what we can and can not change, and applying that wisdom to protect our passengers and crew. This Pilot wishes all of you Smooth Sailing.
To avoid ending up in the fog and on the rocks, you must be as well informed as possible.
Real Trends is a publication that tracks valuable stats for both Real Estate professionals and consumers. Steve Murray is the publisher of that well respected resource and the most successful real estate giants of the industry rely on his findings. I recently attended a summit for all New England RE/MAX owners where Steve Murray was guest speaker and the data he shared is invaluable to all Realtors and real estate consumers.
What can we expect for home values in 2009? The best we can expect is that the home values stay the same as they were in 2008, that is, no appreciation and no depreciation. (Buyers, buy that home you’ve been dreaming of NOW). The height of the sellers’ market wherein home values soared during the sub prime debacle was in 2005. Home values have depreciated steadily since that time and we will not see those values again until the year 2020.
When we apply that data to individual consumer circumstances, the Captain now has a Pilot to navigate through the choppy waters. Here are examples of real estate circumstances and the strategies best applied by a trusted Pilot.
1. FACTS:“Russ” owns a beautiful home in a lovely area in town. He wants to sell his home, but he would like to wait until “the prices come back”. He thought that he might rent the home until “the price comes back” to what his neighbor got in 2005. He owns another beautiful vacation home that he loves and he has given thought to purchasing a smaller property in a nearby town rather than own two large homes.
STRATEGY: If Russ waits till the price of 2005 “comes back”, his home will be another decade older and if he rents it during the “waiting period”, it will have the additional wear and tear that comes with rental territory. He will also have the additional carrying costs of repairs, maintenance, taxes, and all that is attendant to being a landlord for many years while he “waits”. It is likely that the large home he considers renting will depreciate further. If he sells it now at market value, he can purchase the smaller property at market value and the real estate transaction can be a “wash”. That which you sell “low” is offset by that which you buy “low”.
2. FACTS: “John and Penny” had their home on the market last year for $525,000. They have homes in two other states and their intent was to sell their large Massachusetts home and purchase a smaller one to maintain a presence near their grandchildren. Two offers came in at about 480,000. (The buyers would likely have come up to $495,000). The sellers were insulted. They had spent a great deal of money adding improvements to the property and despite the downward trend of the market, they would not reduce their price and they came off the market.
STRATEGY: The property is now worth about $450,000 and “John and Penny” have joined the ranks of homeowners who want OUT NOW. Anyone can put a property on the Multiple Listing Service. The key is to get you OFF the Multiple Listing Service for the MOST amount of money in the SHORTEST period of time. With very few exceptions, the stumbling block is the PRICE. The home must be priced just a bit UNDER fair market value because it’s not enough to be a “good” deal. With high inventory, you are in the best position to sell when you are the “best” deal in town. Fair Market Value is determined by comparing a property today with properties that have sold months ago. In a declining market, the savvy Captain and Pilot price the home conservatively and capture the most amount of equity as quickly as possible by doing so. (Multiple offers are born of correct pricing.)
This Pilot advises all Captains that no matter how choppy the water, we can avoid ending up in the fog and on the rocks by charting an aggressive and intelligent course that is based on accurate information. Pilots do not operate from fear of the unknown. We operate from understanding the facts, knowing what we can and can not change, and applying that wisdom to protect our passengers and crew. This Pilot wishes all of you Smooth Sailing.
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