If they are the builder - how is it not their fault?

Earlier today I saw a story from Florida about a major builder which identified defective drywall used in hundreds of homes (thus far).

http://www.justnews.com/news/20039942/detail.html

The builder seems to be responding both financially and in terms of the investigation. To me, their response raises more questions than it answers. I would like to know how this builder decided upon the "contractors and sub-contractors" it is now investigating. NOW investigating?

If they were not carefully investigated before, I would like to know how and why these firms were hired. Is Lennar a "builder" or are they really just a marketing agency?

All of a sudden it is not their company and is organizations they hire? This could then be a reason that the wrong materials were used in some instances. Shouldn't the "builder" have a handle on materials used throughout "their" built homes?

How dare they wait until AFTER lawsuits have been filed? Did they not check out every contractor and sub-contractor hired to build "their" homes?

We don't know yet to what extent this could impact the buyers (or tenants) in these homes that have been found in violation. Not to mention the loans on these properties, those that were purchased with the help of a Realtor, and countless others who could be impacted as this continues on.

This could be still another problem for banks and industry professionals. We don't know yet if owners or tenants are being forced to move or relocate over saftey issues, and how it could impact loans and credit. Yet, this is not related to the current economy, even though it could very possibly throw another wrench into a challenging and diffcult real estate and financial market.

Yet, this was not caused by banks, greedy lenders, or consumers with credit issues. It seems to be caused by a "builder" acting like a marketing company and hiring companies which were able to use the wrong material since nobody investigated when they should have.

It is tough enough for industry professionals to assist in the purchase or sale of a home. The safety of the home itself should never have become an issue. We should all be asking a ton of questions about new builder homes from this point forward. Worry about the credit of the potential buyer later.

And while we are at it, who inspected these homes????

How the local ATM could eventually increase your sales..........

Realty agents and lenders should take note of a story that broke in the Chicago area earlier this week when it comes time to contact or send a newsletter or reminder e-mail to current and potential clients. The story gives them and all of us a reason to check our nearest ATM machine, but it could eventually help you to get a sale or commission as well.

The story is about a woman in suburban Oak Forest IL who started a class action lawsuit against a local bank after she was charged $3 for using an ATM which failed to disclose that she would be charged a fee. It seems that if there is no sign on the ATM or electronic message on the screen warning of a service fee that it is then a violation of the Electronic Funds Transfer Act.

As a result, the Chicago Sun-Times reported that Marquette Bank preferred to offer a cash settlement rather than be subjected to additional legal fees to fight the suit, with a judge expected to rule in September. The reported settlement amount for this woman (and other users of that specific ATM) is supposedly $90,000. While I have a big problem with the law firm supposedly getting $27,000 of this money for its legal fees (I’d love to see documentation on the actual cost of filing this lawsuit!), that is for another discussion.

So now you are asking, “What does this have to do with me as a realty agent / lender?”. My answer is, nothing directly. My point here is that here was a woman consumer using her local ATM that figures to wind up with many times over the $3 she was charged, perhaps over $1,000, because she stepped up and complained.

I searched and did not find this story in other parts of the country, which I find surprising. But I was a realty agent or mortgage lender, I would be all over this story in communications with my current and potential clients in my database. It’s time they start checking the ATM machines they use to make certain there is a notice of fees involved. If not, there is now legal precedent which could bring them potentially $1,000 or more.

Even if they don’t find any ATM’s in violation, they will tell their friends about this. As a result, this gives these consumers at least one chance to mention and recall YOUR name and affiliation when they do. And doing this costs you nothing, while you get a group of people telling others that “my Prudential agent told me about this……”.

You might also suggest that if they can find a violation and collect a few thousand dollars they can put it into a home improvement to increase the value of their property for when the time comes to sell.

Trust me when I tell you this is better information for potential customers than negative statistics about last month’s local real estate market.

Now back to watching for stories that actually can help us all generate business in this real estate market………

Let's make them true "news" letters

I continue to subscribe to newsletters done by realty agents and mortgage lenders who are not (advertising / marketing) clients of mine from around the country. These can be an interesting resource for ideas (and columns). At least, they should be.

This morning, the morning of July 2, I received "my July newsletter" from a realty agent in Chicago. I have found his previous newsletters to be well presented even if the content has been inconsistent over recent months.

Thinking I'm going to truly see a "July" newsletter, I open it, and note that the first story is about home sales in April. Yes, April. I didn't check to see if it was April 2009. It didn't have to be. Geeez. This is July. I should have been reading about April during April or at the very latest within the first 10 days of May. Two months ago.

I take it this guy has nothing current and topical to write about for his "July" newsletter. He might have been better off not to send it out. The "lead story" was already outdated, no matter what the information it contained.

If I was a client of his, I would not be pleased that "my" agent is providing me with information that is no longer timely. I also find that a lot of the sales statistics we are bombarded with as it pertains to real estate is not pertinent either. I would let him know that I am interested in what is happening in the local market "today" and that I will start looking for someone who can tell me that on a regular basis. As it is, I preach about how realty agents do not provide enough information which is specific to local home owners, and examples like this only add fuel to the fire.

Why am I reacting so heavily to one newsletter from one agent that I don't even know?

There is an answer for that. In this marketplace, everyone associated with the real estate community needs to work harder in order to survive and hopefully thrive. Even one agent sending information from more than 2 months ago as their "current" newsletter gets a few people to think that there is no progress and little hope for the real estate market to rebound.

In all likelihood, based on its overall appearance, this agent is using one of those services that composes and sends the newsletter out for different agents around the region or around the country. My hunch is that this newsletter isn't just going out in the Chicago area today. But if I were a realty agent that was considered responsible for having sent this out, I would have already canceled this service and be putting out my own retraction.

My point of contention is that if this agent "doesn't have time" to compose his own newsletter, it would mean he is making a ton of sales. If he is making sales, THAT should be what his newsletter is all about. He should be describing elements of his successful sales (which can be done without naming names, etc.) and showing what a good month June was and what he hopes to accomplish during July. This would make an appropriate July newsletter.

If this agent did not generate any sales during June, he should not be going back to April for content. Frankly, this sort of newsletter could very well be a reason he did not generate sales, since he offers not one compelling reason to contact him today.

You see, I have no idea if he even got a sale during June, or if he made several and raked in thousands of dollars. Yet, I still don't know this minutes after reading HIS newsletter.

Earlier today, I took steps to bring two realty agents together from different parts of the country to try and bring a couple of properties to auction before the listings expire. My hope is that this story will result in another property being sold as a result of the listing agent's effort prior to the expiration date and from a winning bid solid enough that the seller didn't refuse it and move on.

Hopefully my client could use that success story in her newsletter within a matter of days. It could help the real estate market one property at a time.

Rent to own - or rent to survive?

The “rent to own” scenario I have been preaching about for the past year has finally been gaining in strength, yet I continue to have some real estate professionals express concern to me about the negatives.

http://www.dailyherald.com/story/?id=300715

The above link is to still another story about how builders have begun to enter the foray. They see the same things I do. There are a number of potential buyers out there that have enough for a down payment and to handle a reasonable monthly mortgage, but do not have enough credit to get a mortgage or perhaps need a few more months to reach that point. But they would “own” now if not for those conditions.

Sellers have reasons to “rent to own”. Not only would a “tenant” cover their mortgage cost, but one with the desire and strong possibility of buying the property is going to take much better care of it on a day-to-day basis. In most cases, it frees up the seller to move elsewhere, whether a move up, down, or laterally.

Yes, I understand there are some risks on both sides. A “tenant” could suffer a job loss or a severe strain in this economic climate and have to vacate, thus resulting in the major expense of the current owner. An owner could suffer a similar economic blow and force a tenant out. Several realty agents I have discussed this with feel that these possibilities make a rent-to-own scenario too risky for them. I can understand that, even though the concern is really that the realty agent does not want this to reflect on their services if things go wrong. Yet, these same realty agents seem unwilling to negotiate an exit strategy into a contract.

If a rent-to-own tenant suffers a financial setback, he/she/they could have a 60 day out clause, perhaps forfeiting a deposit paid initially and designed to go toward eventual ownership. This would provide a period of weeks for the “seller” to either find another tenant or consider alternatives such as an auction for at least the balance of the mortgage. Depending on the amount remaining on the mortgage, there could even be room for the seller to then profit while being done with the property and yet give a fresh buyer a great deal. If an owner suffers a setback, the tenant would be covering the existing mortgage.

For builders, they see the value of having tenants in units which have already been built and cost money to maintain if no one is in them. As more of them take to this idea, it could mean the difference between builders staying in business or not to have tenants in as many of their already built homes as possible.

My message to potential buyers with credit issues is to strongly consider this possibility. Builders are worth checking with, especially since there is a likelihood of a new unit and fresh warranties. My message to sellers is to weigh the risks of being able to get out from under a mortgage and move on vs. staying in your current situation. And my message to realty professionals is to consider ways to make this system seem better so that you don’t lose your commissions to a local builder.

It appears there are potential buyers with the financial capability but without sufficient credit. In many cases, the financial capability could win out. For everyone.

What happens in California stays in California

What happens in California sometimes stays in California, and sometimes it doesn't. It is way too soon to tell with regard to The California Foreclosure Prevention Act that took effect last week.
The intent is to require mortgage lenders to prove they worked with the homeowner to make a loan modification before they can begin foreclosure procedures.

This is with all the best of intentions. Yet, already there are 2 schools of thought on this.
One is that it could provide enough options to make a difference and prevent some people from losing their home and somewhat reduce the number of foreclosures. This in turn helps to keep property values higher when an area has fewer foreclosures to pull down the average home price.

The other thought is that not everybody facing foreclosure can be helped enough to make a difference and that is only delays the inevidible while costing the owner facing foreclosure more time and money.

Similar measures have already been attempted in California over the years and, obviously, were not completely successful. This time around, people from other states will also be monitoring to see if there is any (or enough) positive impact on the marketplace over the next few months. If there is, look for other states to look into this.

Meanwhile, I have seen several stories and heard from a few different sources which are not endorsing many of the "loan modification" programs now being made available. It appears some are being started by people looking to make a fast buck at the expense of home owners too stressed out to take a serious look at the potential long term impact of a loan modification.

Whatever your feeling, it is important to note that consumers do not pay for a legitimate loan modification program if and when it really does make sense. There are some web sites and advertisements out there looking to confuse consumers into thinking they need to pay an up front fee to get a certain loan modification program. Not true.

Legitimate entities, such as some banks, offer a loan modification program with no up front cost since they understand that those in need to not have the funds needed to preserve their current mortgage. Keep that in mind.

You may have noticed that some lenders are now offering a 40-year mortgage in addition to the conventional 30-year. They make it look appealing for the short term by showing monthly savings sometimes as much as $200 per month above the 30-year. However, some 40-year mortgages require an upfront payment to implement. When factored out, it reduces the monthly savings. For example, a $2,000 fee to save $200 per month comes out to $167 per month for the first year. Do the math with those figures and it amounts to a $33 per month savings for the first year. Without knowing what mortgage rates will be like in 1 year.

If you respond by saying "but in 1 year I could refinance", you would be right, but you would also be faced with still another fee to refi. That assures you would have spent to save a bit more than $1 per day.

Note that this is only for the short term with a 40-year mortgage. For the long term, needing 10 more years to pay also serves to increase the amount of interest you would be paying on the property.

Put this all together and it shows why financially challenged home owners should explore other options besides a loan modification to prevent foreclosure and to hopefully maintain (or not decrease) their credit status.

It becomes time to not be concerned about a profit and to be concerned with getting the loan balance paid off. If the house is valued at $300,000, but there is $200,000 left on the loan, the distressed owner would be out of his/her/their obligation with a sale for $200,000. A potential buyer, and it only takes one, would be more apt to "steal" the home for $200,000 than to wait until the $300,000 asking price comes down to $250,000 in 3 months.

The seller frees up the obligation, and could then rent or live within their means for as long as needed.

With single family home auctions now available through which the seller has a right to refuse the "winning" bid, situations such as this are now possible.

Simply put, it does not need to cost any more to avoid foreclosure.

Real estate market musings..........

Upon reviewing more of the day to day real estate news stories of late, I am coming to the conclusion that the real estate market should actually be divided into 2 parts.

This reflects more on the mortgage side, but loans are a huge factor in determining the market, especially in today's credit crunch.

The 2 factions would be divided among those really looking to buy or sell and those who would like to refinance if and when conditions are right. People looking to buy are looking for the right home for their "right" price, and are not going hold off on the "right" deal because mortgage rates have risen within the past 2 weeks. Yet, it seems that too many people within and outside of the real estate community believe otherwise.

Those looking to refinance should be on high alert at the end of this month. The government is playing games with mortgage rates and that will probably continue for some time. They lower the rates to spur activity, and then raise them again to slow down the flow and keep those in the industry busy enough to survive (in most cases).

My personal prediction is that the rates will drop again on Tuesday June 30th, and perhaps by at least 1/2 point. You can't go by what has happened to the rates in Junes past, just as I say the experts should not keep going by home sales statistics from years past either.

Those who have also been tracking the rise and fall of mortgage rates over the past 8 months would have noticed the reductions coming prior to holiday weekends. The first significant drop took place right before Thanksgiving weekend in November. It happened during the exact week that a lot of people were traveling, preparing for the holiday, and generally not ready. Those who were in position started taking advantage of the reduced rates, but it wasn't everyone.

Same thing happened during the Christmas and New Year period, and again in February prior to the Presidents Day weekend. It was after Memorial Day that the mortgage rates have risen to their highest in a while.....from their lowest in years.

Why June 30th? Because it is the end of the month and end of the quarter, which distracts from lenders and financial types dealing with closings on properties, and closing out their month of June and 2nd quarter. Not coincidentally, this date comes 2 business days before the business world shuts down for Independence Day weekend. (Most businesses are considering Friday July 3rd to be a holiday.) This would also be 4 weeks after the current rise in rates.

But for those who would purchase, again, I don't see mortgage rates being prohibitive even if a bit higher than during prior weeks.

Within the past 2 days, I have read articles and opinions from the rentals angle. One point of view says that because fewer multi-family unit loans are available it means that fewer new apartment units will be built, resulting in reduced inventory. The angle is that less inventory will result in higher rents for what is available, and that means many who would be renters might be better off to purchase.

The other side of that coin indicates the same circumstances could be better for renters. Entities which develop apartment buildings for income would stand a greater chance of obtaining one or more new construction loans for multi-family if and when their present holdings are full and producing demonstrated income. That would seem to favor keeping rentals at reasonable rates in order to have them filled. Thus, a "renters' market" if I may coin a new phrase.

As of today, I favor the "renters market" argument. There are plenty of vacancies in many cities for rentals. Look through your local real estate section under "Apartments" and you'll find some of those "1 month free" type of offers.

Regarding the housing market, I have been saying this for months and will continue. With housing prices dropping in many cities, the issue for many sellers is finding a qualified buyer. When that is the issue, it means that the price is reasonable and that potential buyers are trying to get the property, but do not qualify.

The problem I have with that scenario is that the potential buyer winds up "turned away" and then either goes elsewhere or stays put. Rent to buy could be the way to go. If that potential buyer didn't qualify for a loan, chances are they could afford the monthly mortgage on the property they are seeking.

Often times the potential buyer is turned down due to credit issues, and NOT because they don't have a reasonable down payment. I'm not saying it's easy, but I am saying I don't hear about much of an effort to make something happen so that buyer and seller can both move on.

Would you buy an "award winning" home?

My continuing search for positives and much needed creativity continued as I read the story in the Milwaukee Journal about Mayor Tom Barrett presenting the “Mayor’s Design Awards” for design excellence with categories based on design, environmental concerns, and architecture.

The story went on to name various buildings, some city owned, others historical sites, and others which are commercial that are being named and information about what was done to earn the honor. I came away thinking this is a good idea, and then wondering why I hadn’t heard about this before.

Next, I thought about how local real estate offices are supposed to know their community of service inside and out, and even if for selfish reasons want to see local property values as high as possible. The Design Awards in Milwaukee are for some city and some commercially owned properties. What about residential?

I’m sure there are some new condos and developments somewhere which are making a big deal about how environmentally friendly they are, or have an environmental improvement completed or about to be. There are others which take special pride in a garden or gardening arrangement. And the list of possibilities goes on.

Selling a condo in an “award winning environmentally sound building” would seem to be a plus for the listing agent and for the seller when this unit is put up against hundreds of other condos also available in this buyers’ market.

Various city and community leaders should be aggressively looking for anything which could accelerate local property sales. As we have detailed in past columns, each property sale generates thousands of dollars to people and companies (commissions, taxes, transaction fees, moving expenses, etc.) and brings money directly and indirectly into city coffers.

Before you wonder what difference an “award winning condo” or “award winning single family home” might make, start naming movies you have gone to see AFTER you learned that a film had been nominated or won one of the major awards. Yet, you didn’t go see it when it was playing down the street for weeks.

Let’s see if we can work together and develop a residential property awards program.

Home buyers and sellers are customers, too......

Whether real estate related or not I regularly follow various marketing related sources and columns as much as possible. I found the recent story about the Yelp consumer review web site finally beginning to allow business owners to respond to bad reviews most interesting.

In this age of road rage, high unemployment, and consumers who carry a grudge no matter what the circumstances that a business which receives a complaint or critical review had not been able to present its side of the story until now. Speaking as a consumer, this move could “save” Yelp. From time to time I see consumer reviews of products and services, and reviews of matters such as hotel room stays and the like. As a consumer, I find it helpful if I see a possible negative from a customer of a product or service I am considering. But I can’t help but wonder about the other side to the story. The consumer that wrote a negative commentary about a business could have stiffed that same business previously, but we don’t know that without the business having equal time.

What does this have to do with real estate? Little to nothing at this time. The column I read about Yelp got me to thinking. I don’t know of any “review” source specific to real estate transactions. Yet, for the vast majority of us, real estate is the biggest transaction(s) we make in our lifetime.

As a consumer, I have a choice of hundreds of realty firms I could list or buy a property through. I also have the choice of using a “discount” brokerage, an “assisted sale” service, or selling it myself. This is a very important decision. Yet, I don’t have a web site or source to go to for reviews about real estate transactions. Does this make sense? I can read what others in my community think about the local hardware store or about last weekend’s new movies, but I don’t know if they had a good or bad experience with a local realty company when they bought their home?

Personally, I have heard stories from all sides. Over the past 20 years, I have worked with realty companies on radio, TV, newspaper, phone, and internet advertising and marketing. I have presented to entire offices, realty agent expos, and at seminars. But I have also represented FSBO companies and publications, including interaction with the public (buyers and sellers), even though I am not a licensed agent and had no direct involvement in the transaction. So I know there are 2 sides to every story, just as I know there a ton of stories out there that it would benefit all sides to be aware of.

These days, consumers don’t know who to trust when it comes to a real estate transaction. I see where there has been another set of state court rulings about realty companies tacking on an additional “administrative fee” at closing that mysteriously was in addition to the promised commission to that realty office. Not every realty office has been doing this, but I have no way of finding out which ones are. It is enough work for buyers to deal with additional fees and costs associated with getting a mortgage done, let alone having to deal with it still again on the property side. I’m not saying that all realty companies are ripping off sellers, but I am seeing instances of this going to court, and there is a percentage of people who won’t take the time and effort to bring it to court over a few hundred dollars.

My point is that there should be at least one source for consumer reviews of real estate transactions, but the realty offices involved should also have the opportunity to respond.

Almost 3 years ago I was one of the sellers of a multi-unit investment property and was not able to choose the realty agent I would have preferred. This agent did well at a couple of things, but also, in my opinion, screwed up on another which delayed the transaction and cost me an additional legal fee. Even knowing people on the inside, I realized that taking the time to complain to the brokerage or realty association may or may not have accomplished anything. I am 99% sure I wouldn’t have benefitted financially from doing so, and these matters remain internal. Yet, if I had a “public” place to show the documentation I had about the mess-up, I would put my side of the story against anything that agent could show in defense, and let the public make their own intelligent decision about whether or not to use her services.

For the thousands of properties which have sold within the past month, there are thousands of good and bad stories about the services rendered to make them happen, with thousands of dollars at stake. I’ll admit it took me seeing the story about a consumer web site not related to or specific to real estate to make me realize the need.

My “to do” list now has another entry. To work on getting a “real estate transaction review” source in place and to do it soon. I’m sure almost every current and past home owner has a story (whether especially good or bad) about a realty agent or company to share. Meanwhile, thousands of realty agents and companies also have a response or defense ready, if only they had the opportunity to defend themselves. I’d like to get “future” home buyers and sellers to that information.

Please share yours at ideas@firstin.com .

What high end home sales could mean for you......

The near future of the real estate market is a significant, if not the most important, concern for the majority of us. Yet, there doesn’t seem to be enough being done about it which could have a more immediate impact.

As a sports fan involved with real estate related marketing and advertising every working day, I continue to see how statistics can be used to make practically any point or argument seem valid. A baseball player could be leading the league in hitting, but if he only gets 2 hits in his last 20 at-bats, reporters will write about how much better other players on the team have done in that same stretch. It is another version of the “half empty – half full” concept which now seems to dominate real estate news.

I saw a story with information from The Warren Group stating that in the Greater Boston area, a total 174 luxury homes (priced $1,000,000 and up) were sold during the 1st quarter of 2009 alone. This should have been a much bigger story. I found this amazing and quite a positive. If more than one “million dollar mansion” per day has been closed, loaned upon, and sold, over a 3 month period in this economy, this shows me that some banks are willing to make significant real estate loans, buyers can qualify for them, and that motivated sellers can move a property at ANY price. After all, these are the toughest properties to find buyers for. To me, this information should be splashed across the front page, used in advertising and marketing materials from the leading real estate companies, and anyone within earshot of the local realty associations should be aware of this.

But, as things go in this “half full half empty” era, the Boston Herald story goes on about how this total is about half of what it was compared with a year ago. Boom. The air goes out of the balloon faster than a speeding bullet and more powerful than a locomotive. Here is the story:


http://www.bostonherald.com/business/real_estate/view.bg?articleid=1172800&srvc=rss


I’m not here to attack the reporter. He is not the only one. But the negative publicity and the lack of fighting against it by people in the industry has got to stop for the sake of the economy. Seeing the number of high end homes that have sold in one part of the country this year should be an “OMG” story. Instead, it is shot down before you finish reading it.

This represents at least $175,000,000 into a regional economy. Realty agents, lenders, title company employees, appraisers, attorneys, and others, have been or are about to receive commissions or payments as a result of this business. The municipalities, counties, and state have generated significant tax dollars. It’s the feel good story of the year.

Instead, this story comes off as if it is another example of a terrible real estate market. Say what??

My home is not on the market right now. If it were, unfortunately for me, it would not be anywhere the million dollar range. Probably less than half of that. And if my home was sitting on the market right now at less than half that, I would be doing some research today. I would be finding out how many million dollar homes have sold in my area this year. If I find out it is averaging better than 1 a day (such as in the Boston area), I would actually be upset. Heck, even if it is 1 sold for every 2 days, that is pretty darn impressive.

Who would I be upset with? My realty agent, that’s who. I would ask her how there could be X number of qualified million dollar home sales during the time she hasn’t sold mine for less than half of that.

If your home is on the market, especially if it has been on the market for some time, a little bit of research could provide you with a lot of ammunition.

The prize is right? Not so fast............

As much as I encourage creativity in this real estate market, not everything I see quite fits the bill. Even though I applaud the realty agent profiled in this Dallas Morning News article:

http://www.dallasnews.com/sharedcontent/dws/classifieds/news/homecenter/realestate/stories/0508dnbusfreebies.3cce5f4.html


I’m not convinced the prize is right. I completely understand the concept of someone buying a high end home being rewarded with another high end gift. However, the gift should fit.

(For those who did not check the link, the story is about an agent who is offering an expensive car valued at more than $30,000, “free” to the buyer of a million dollar mansion.)

The article goes to the extent of quoting the agent as saying that if someone truly does not need the car she is offering, she would replace it with something else. If there is going to be an incentive of this magnitude (which I encourage), then have the incentive fit the purchase in the first place.

Instead, the article reveals how a local car dealer has donated the expensive car in return for the publicity and the agent admits doing this to call attention to the listing. She doesn’t realize how this could backfire on her.

Chances are either the reporter who wrote the story or some other reporter will do a follow up check in a few weeks. What if the house still hasn’t sold? With the way the media publishes negative real estate statistics all the time, one story about “the house that didn’t sell even with a car given away” would cast that agent, and perhaps the property along with it, in a negative light.

Then suppose somebody buys a $500,000 property through that agent. Don’t think that buyer won’t be asking for a car valued at $15,000 - $20,000 or another major incentive. Heck, let’s be honest. I know I would. If she is giving an incentive for only one listing, it leaves any other buyers she serves with something they would perceive as a lot less.

In addition, I would think that someone who can afford a million dollar plus mansion probably doesn’t need another car at the moment. A car would be a great incentive for a first-time buyer, but that is not economically feasible. My point is that the incentive needs to fit the property and the agent representing it. This does not.

If I needed to sell that million dollars plus property and use a significant incentive to do so, I would make sure the incentive goes with the house and directly benefits the buyer. For example, I would use that $30,000 of incentives toward things like a one-year gardening contract, one-year pool maintenance, a maid/butler or driver service, or for a contractor to help with room changes for the new owner.

This type of incentive not only makes life easier for the buyer, it serves as a one-year “reminder” about what that realty agent did. Face it. Referrals from million dollars plus home buyers go a long way in any economy. And would be a lot more effective than when that buyer is sitting in the auto repair shop waiting for the latest problem with their new car to be fixed.

In addition, this type of incentive could be used by the agent for any property she sells, even with a time limit. Her “June special” could be that you get a one-year maid or cleaning service with a condo purchase. That just might push the buyer on a tight budget to move a few days more quickly when they can save even a couple thousand dollars over the course of the coming year while enhancing their “new” home.

There are better ways to “drive” home sales!

How the toddlin' town can do better

The Illinois Association of Realtors released some first quarter 2009 statistics late last week. Like many other local and state realty associations, they released too many. It certainly is not the fault of the realty associations that the real estate market is so challenged, but I again stand by my opinion that their "half empty" approach is not helping matters any.

Borrowing from their just released statistics for the Chicago area, they announced that first quarter home sales dropped more than 26% when compared with a year ago. The median sales price just for the city also dropped more than 26% from last year to this. This information was prominent in the major newspapers and news sources throughout the Chicago area within hours of its being released.

How does this information stimulate activity in the market?

Frankly, it doesn't. Thousands of potential sellers in one of the most important local economies in the USA have just been told the large percentage of a sales reduction compared with a year ago, and could think that those that did manage to sell did so because they sold for a lot less than they had hoped. In most cases, potential sellers also become potential buyers. At least they could be if their motivation wasn't stripped by statistics.

If a news organization or an entity representing another form of large consumer investments (competing for dollars with the real estate market) were to discover and announce this, it would be understandable they would want to discourage people from investing in real estate. But this information, once again, comes from within the industry.

The Illinois Association of Realtors could and should have used their information more strategically than they did. That is their job, rather than pointing out negative statistics just as prominently.

Here is what the Association should have reported, since they have the official statistics to back this up:


"The latest Illinois Association of Realtors statistics, released on Friday, show that 10,306 single family homes and condos were sold in the immediate Chicago area during just the first quarter of 2009. With sales averaging more than 100 homes and condos per day during the January through March period, the median price within the city limits finished the quarter at $216,000. Yet, with suburban homes and condo sales factored in, the area's median price is now at $187,500. The median price is the price at which half of the homes sold for more and half sold for less."


Let me try this again. What the Association actually put out included their statistics about sales and prices dropping more than 26% compared with last year. Not only are those negative and not necessary statistics, but they compare with just over 1 year ago before the economy took its still current turn for the worse.

People looking to buy or sell a home or property don't always care about what happened over a year ago in terms of making decisions today.

Let me add that I am not picking on the Illinois Association of Realtors. Most if not all of the associations have been doing this month after month. Because of the size of the Chicago area, I am merely using this as still another prominent example.

If I were a realty agent, I would be screaming bloody murder to the association(s) I was a member of, demanding to know why negative information keeps getting put out there to a confused public.

Remember the saying - "Good news travels fast". If only the people leading the real estate industry would.

If you could, would you live near Land Shark Stadium?

Imagine seeing an ad for a home for sale “near Land Shark Stadium”. You might not have to anymore.

Land Shark Stadium??? I heard about this and I thought about the hysterical sketch on the early (and funny) days of Saturday Night Live with Chevy Chase knocking on apartment doors and "eating" the residents who opened the door for his "Land Shark" costume. Then I saw this in print, and thought that maybe a reputable news operation had picked up a story from The Onion.

But, silly me. This could happen within hours of writing this. It seems that name is now the name of a beer. This could be the name of the same stadium the Miami Dolphins have played in for years. The stadium I still refer to as Joe Robbie Stadium, since that's how it was introduced and Joe Robbie was the Dolphins' owner who got it built.The same stadium that right now technically isn't named for the team that plays in it (Dolphin Stadium and NOT Dolphins Stadium). The former Underwear Stadium (whatever). The same facility that cuts off beer sales at half-time and had to implement a "family section" so that kids attending a pro football game would have a safe harbor. Let alone that it is not and has never been in Miami.

Next, I thought about how this stadium name will make property and home owners in the area feel. Will it present an added challenge to sell a home or commercial property near Land Shark Stadium?

Think about it. This publicity also begins less than a year after more shark attacks near Florida beaches. While it is hard to name a percentage, it is safe to say a portion of potential home buyers in the Miami – Ft. Lauderdale corridor come from the northern cities as second homes or homes to retire at. The Southeast Florida market has had its share of challenges in today’s real estate market as it is. I have recently spoken with several regional mortgage lenders who tell me they continue to stay away from advertising in and pursuing the Miami area.

Sports fans are the ones who will react in whatever way (humor, sarcasm, etc.) to Land Shark Stadium any minute now. I just don’t see it being a favorable reaction toward the area. Granted, this stadium is actually so isolated from civilization in South Florida it really won’t make that much of a difference, but unless people have actually been there, they don’t realize this. The local government will point out that they receive the tax portion of the millions of dollars paid for the stadium naming rights, and that it will add to the economy. While that may be true, I happen to think this name could take away from the local economy long term as it could negatively impact the local real estate market.

Meanwhile, there is something to be said for picking up a piece of an historical building as the highest bidder. But this is a highly unusual story. It seems that several items from the original Chicago Stock Exchange Building, including a cast and wrought iron elevator enclosure panel and leaded glass ceiling panels with values estimated to be in 5 figures. The Louis Sullivan designed building was completed in 1894.

What makes this unusual? The building was demolished in 1972 in Chicago, yet this auction takes place (on June 2) at The Rockefeller Center in New York City. The Associated Press story quotes an official of Christie’s as saying they could not reveal how the auction house got these items.
Seems to me there is a very interesting news or investigative story in the making. How do in tact parts of a building demolished 37 years earlier suddenly appear for auction? What happens to expensive parts of demolished buildings?

Speaking of demolished buildings, did you see the NBC News report on Tuesday about the demolition of a group of homes in Victorville, CA?

It seems that the city determined it was more economically feasible to bulldoze a group of homes that were not completed rather than spend the money to complete them. The video showed pile after pile of debris. Once everything is cleared (and at who’s expense?), the space could remain a series of empty lots for months if not years.

My first reaction is that city officials didn’t see the story about the Florida investor who purchased several unfinished homes for under half price, and spent a portion of his savings to finish construction, leaving him with a huge profit margin whether he rented or sold the brand new houses.

In other words, the Victorville demolition is another example of the lack of creative thinking about today’s real estate market. You can’t tell me that no one would have shown up if the city officials and others associated with the project held an auction. An investor or investment group could have done the same thing. But start from scratch on a series of vacant lots? It could take several years of waiting, and that is a lot of lost potential revenue for the city – and for those still employed in the real estate community.

From a billboard to a new home??

Did you ever hear a news story or learn something which catches your attention, only to have a reaction that is totally different from everyone else’s? Well, it happens to me a lot, actually.
I read the recent A P story about an out-of-work professional that spent several thousand dollars for a billboard along a busy Connecticut expressway to promote her “hire me” website, http://www.hirepasha.com/hirepasha.com/Resume.html .

The story went on to detail how she got the idea from someone else who had done a similar thing in the Midwest. I found it a natural that her background has a sales and marketing slant. More importantly from the standpoint of my work in real estate advertising and marketing, the next fact in the story got my attention even more.

This woman went on to reveal that she used the thousands of dollars for the billboard from money she was saving to buy a home. It was as if to say “There goes my chance to buy a home”.

If I was a realty agent in that area, I would have jumped all over that billboard. Why? Because with all of the inventory available in this buyers’ market, I have to believe I could have found her a “rent to buy” situation within a matter of hours. Without needing the big down payment she was saving up for, I could have gotten her into a home, and made one of my sellers (or a colleague’s) very happy.

Next, I would have interviewed her about putting her sales and marketing expertise to work for me. Let consumers respond to her billboard and find out that she has been hired by (name of) Real Estate and already has moved into a new house because of (name of agent)’s expertise.
I would then put her to work generating referral fees for me. Next, I would issue a Press Release that I have hired her to do marketing and generate revenue for my real estate business, and let the community know that she is available to do the same for non-competing businesses. She could work from an office space in her brand new home. And live happily ever after.

It seems as though I am seeing more of these “What he/she is doing to get hired” stories in the media. Those are more inspiring than the negative home sales statistics being released by realty associations.

The right moves by a buyer and an agency..........

It looks as though creative ideas are finally coming back to the marketplace, and it is certainly much better to comment about some of those instead of the negative statistics being needlessly generated from within the real estate community.

I was glad to see a story about a family in Memphis taking matters into their own hands. As many of you know Memphis has been among the most suffering of real estate markets over the past couple of years. This story is about a family man wishing to purchase a house to live in via an auction and getting a good deal. But he doesn’t need to move, so he would only take a good enough deal or not buy. He realizes it is a buyers’ market.

Why doesn’t he need to buy? Because he already has a house for his family and is meeting the mortgage payments. But he sees the value of buying while the getting is good, which pumps more into the economy and he sees how it would put him in the position of strength.

That is because he knows that he would be able to rent out his current home. There are a ton of people out there who can no longer qualify for a mortgage due to credit problems even though they could likely afford one. This should leave him enough flexibility to rent out his current home for the amount of, or perhaps a slight increase over, his current mortgage.
By doing so, and by purchasing another home to move into at a bargain price, this man will have lowered his monthly mortgage payment, significantly increase his net work (by owning 2 homes), and set himself up nicely for the future. Once the market bounces back, he could potentially make a very nice profit on the home he purchased at a bargain.
He could also offer a “rent to buy” option for the original home and begin the road to a profit ahead of schedule. Based on the scenario I describe above, being able to offer a “rent to buy” could be more beneficial. A rent to buy tenant will take much better care of the home compared with a 6-month or 1 year lease tenant.

This is exactly the type of story we should be seeing a lot more often than it seems like we are.
Here is the link, if you’d like to see for yourself:

http://www.myeyewitnessnews.com/news/local/story/Foreclosed-Homes-Go-Up-For-Auction-In-Memphis-Area/rPi1Vx9-jEiVsVN4bQFkMA.cspx

From the industry side comes another version of an idea that for some reason hasn’t taken off yet. People don’t go shopping for real estate by going to the local realty office. Yet, very few realty offices are in high foot traffic locations. I like what CondoOutlet is doing in the St. Johns Town Center in the Jacksonville Florida area.

They have opened a 10,000 square foot real estate showroom with 2 “life sized” condo models. This is in a major shopping center. (This company is not a client, by the way.) While I am not here to promote a single realty company, I mention this because I applaud their strategy.

Over the years, I have been in literally hundreds of real estate agency offices. But maybe 2 or 3 of them in a location with any degree of significant “walk-in” possibility. With the price of gas being what it is and has been, and open houses seemingly always around the same times, this opportunity to be convenient to the public should not be overlooked any longer. That is, to reach the public that hasn’t already found a way to benefit by the current real estate market!

A true test of local real estate markets

It is a part of just about every day for me to read up about some local real estate markets and get the good, the bad, and the ugly. Mostly, as you can tell by several of my comments over the past few months, I get frustrated at the realty associations pushing out negative statistics while they are supposed to be promoting activity in the market.

Finally, I have found an article that is indicative of what we SHOULD be seeing when it comes to local news real estate reports. It shows me that the reports about how sales have dropped in whatever city compared with last year are spreading negativity, and to a point that the market isn't pie-in-the-sky either.

http://www.coloradoan.com/article/20090421/UPDATES03/90421021/1002/rss

That is the link to an article by a reporter in Ft. Collins, Colorado. It discusses realty agents, buyers, and sellers seeing differences in supply and demand within a few miles of each other. Ft. Collins is not exactly a 'major league' city in terms of size. Yet, a town of this comparably small size is experiencing fluctuation on the local market.

This story represents solid reporting. Even in the era of homes selling before they hit the local MLS, it was location, location, location that made the difference. A few red hot zip codes could reflect desirability and activity over an entire big city.

My point is that if a community the size of Ft. Collins has this much variation in terms of hot and cold buyers and sellers, there are probably thousands of stories along the same lines in the top 50 largest cities around the country.

I wish every realty agent and especially realty association board members and staffers would take note of the above linked story and do some serious digging into the "pockets" in their territory and farm areas.

Let's be able to compare the supply and demand against what is going on right now in other parts of the community - and not making it sound negative by comparing against last year's statistics.

Serious potential buyers, for whatever reason, were likely not looking to buy a year earlier. They probably don't care about home sales statistics from 12 months ago when they are looking now. What they do or would care about is which nearby neighborhood has the best value for them right now.

Local housing information can be used to spur the local real estate market.

Finding the real estate resources...........

I was having one of those “If only I had…..” moments this morning when catching up on real estate related news. For as much time as I spend feeling like a preacher when talking to current and potential clients about ways to make the current real estate market advantegous, as well as friends and family, I could have been a contender myself.

Looks like it is time to circle back to an idea presented to me just over 20 years ago that didn’t materialize at the time. Maybe this will get you to think about this as well. This will not sound like a real estate marketing idea but stick with me.

Years ago when I had more time to devote to it, I was in a fantasy sports league with a group of 11 other guys aged between 25 and 40. That was back when I would constantly have to explain what a fantasy league is and does. About half of the group had gotten together for lunch one day when one of the guys said he heard about some land nearby that was about to be put up for sale. He went on to wonder to the group about what could happen if 10 of us would each put up $5,000. That would give us $50,000 as a down payment on a million dollar commercial property.

This happened to be around the time I was starting to get involved with a client looking to market a technology feature to real estate offices. (This turned out to be the springboard for what I have been doing ever since!) I thought that was an interesting idea, especially since someone I knew was making his living from managing family owned commercial properties and he had plenty of time to travel and enjoy his life.

As it goes with a group of casual acquaintances, the “group of friends” idea didn’t make it past a first meeting. Even though I have thought about it from time to time, it is a challenge to find enough people trustworthy enough to do this, let alone enough that would have a few thousand dollars to do this.

Personally, one of my investments is in a real estate syndication, but I don’t have any hands-on involvement even though I have seen a small profit in the past couple years. But now I’m kicking myself for not pursuing that sort of thing over 20 years ago, and then looking to move up the ladder. That’s how success in real estate starts. Do something like that and then buy out others in the group, or use the partnership success as a springboard.

Now I fast forward to today. This is totally pie-in-the-sky, but the story from Boston about Normandy Real Estate Partners buying the John Hancock Tower in Boston for $660.6 million dollars. Not that I would have been in a partnership with that much in capital. It’s more what they accomplished than the amount.

Upon further review, it turns out that the John Hancock Tower was about to go into foreclosure, and the property was being auctioned to attempt to prevent that foreclosure. Since much of my time now is being spent looking for single family homes and investment properties to go to auction, it shows the tremendous opportunities that real estate auctions are bringing.

In case you weren’t aware (and I wouldn’t expect anyone to know this off hand!), the Hancock Tower in Boston was sold to the ownership group that avoided foreclosure as recently as 2006. Less than 3 years ago the (now) previous owners bought it. For $1.3 billion dollars. To translate, this real estate partnership bought one of the most significant properties in a major city and “saved” more than a half-billion dollars.

To put it mildly, there’s no way I can kick myself for missing out on that deal. It’s not like I could have written a check and bid a few hundred thousand more for it.

The point is that it got me to think that there must be some lesser scale Hancock Towers out there, if only I and a group of others could be ready when they are found. Those of you with some money to invest might want to think about others you know in the same position and the power of group resources. And those of you in the real estate community might want to think creatively as well. What’s that saying? It’s not what you know, it is WHO you know.”

Pizza and the real estate market

As much as everyone else, I got a chuckle out of the story from Cincinnati about somebody finding the online promotional code for a free pizza from Domino's and spreading the word to the point where local Domino's wound up giving away more than 600 pizzas in less than one day.

But if you are a realty agent or a mortgage broker/lender, my suggestion is to stop chuckling and start taking action when you hear about something like that in time. In this instance, a Domino's official supposedly got wind of this "not supposed to have been used" code being discovered and they were able to pull it after a few costly hours.

If I were a realty agent and found out about this, I would send out an e-mail to my client base ASAP to alert them to the possibility of a free pizza and which site to go to before it is too late.

Why, you ask?

Think about it. It is really all about marketing. Chances are a percentage of the people you send it to will e-mail you back or call you to thank you for letting them know, and/or to ask how you found out. I am here to tell you that is some valuable information, and it is exclusive to you.

Suppose even one or two people find out in time and GET a free pizza. It is because of you and they will thank you. More importantly, you know that they frequently monitor incoming e-mail and are prepared to act. Think about that when you SELL or even book your next listing. Chances are you will get some "thanks anyway!" responses over the next 24 to 48 hours. Let's say your "immediate client list" has 50 e-mail addresses on it.

Even if your result is, say, 20 (and that's less than half) people responding in some form to your helpful "alert" within a couple of days, you now have a personal and exclusive list of 20 people who will open e-mails from you. Keep that in mind when you have a listing that is hours away from hitting the MLS and being seen online. That is why you ask!

If you are a mortgage broker/lender, having a similar list of people who will definitely check your e-mails can be very handy when rates next take a dip, which seems to be every week of late.

Heck - an agent or lender could offer to take the family out for pizza to review their current situation against the other financial opportunities out there.

Every business day I contact and consult with realty agents and mortgage brokers/lenders looking for low cost ways to attract immediate business. It can be done, whether with cheese or sausage.

If you didn't refinance yet.............

If you did not yet refinance, and conditions have been such that you would have benefitted in some way, you need to keep some changes in mind if and as you revisit the possibility in the weeks to come.

Fannie and Freddie have added what they call "loan level price adjustments" which take effect on April 1st - no fooling. It looks like the only way to avoid these extra fees is to have a FICO score of at least 740, and that isn't easy in today's economic client.

Yet, it could depend on which lender you would use. It is believed that some lenders (and we don't know how many or how few) already have incorporated these "extra" fees into their costs during the first quarter. While doing so likely cost some borrowers more than it should have, this does mean it is possible that a quote of costs you may have recently received could include these figures.

Thus, if you are planning on contacting one or more lenders about doing a re-fi in the near future, please clarify about the impact on these additional fees. If it could cost you a few hundred dollars more than you anticipated to get a re-fi done, factor it out against your total and actual monthly savings.

I have also heard about some lenders increasing their underwriting and processing fees by as much as $300 to $400. On one hand, I can understand this because many lenders have to work harder to put loans through because of the new credit concerns and restrictions. But on the other hand, the lenders need these loans in order to survive and a reduced profit is a lot better than none at all.

My point is that if the new costs and additional fees were to, for example, result in an additional $1,200 cost, you could look at it that it is really costing you an "additional" $100 per month over the first year. If you are refinancing to save, say, $150 per month, your savings would really be equal to $50 per month for your first year. Is it really worth it?

On the other hand, I have heard too many "I'm going to wait and see what happens" stories from both consumers and lenders over the past few weeks. My fear is that too many people will wait an additional 6 months or so to refinance to THEN start saving a couple hundred dollars per month. But in waiting, they paid the "extra" $200 per month (total $1,200 using this example). Add another $1,200 for the additional fees just described, and a borrower could, in effect, have paid $2,400 more because they waited. Probably not enough to offset the lower rate they waited for.

By all means, check with different lenders and examine everything you are being quoted.

If you are lender, be sure you explain the new fees and their impact on potential borrowers so that you don't leave them disappointed. If you are a realty agent, you might wish to help your client consider the merits of refinancing vs. a downsize or lateral move for greater monthly savings in this economy. Doing that could produce either an immediate or long term sale for you.

Agents and Clients Should Give Feedback

I always encourage my clients who are realty agents to get as much feedback and input from their clients as possible. Yesterday’s post about potential buyers not seeing the vision of making changes or improvements themselves in order to further a good deal on a home drew a couple of nice responses from clients.

One of my clients reminded me that not everybody they work for is as verbal or expressive about their likes and dislikes when it comes to house hunting. I responded that sometimes the agent has to take charge of the situation and ask good questions to get the concerns out. Sometimes it can be done by making a suggestion at a key moment.

A simple “I think that living room would look better with a lighter color” would hopefully spark a “I was thinking the same thing!” or “Actually, I thought the color worked well”. Presto. Now you have a good idea of what color(s) most appeal to your client. And so on.

If you are showing a home to a potential buyer, within minutes of leaving (and before arriving at the next home if it is a multiple showing) you should have as much feedback from the potential buyer, positive or negative, as you can.

Or, if you are looking at homes with your agent, you might also get some feedback from one who knows. I saw nothing wrong with asking my agent questions like, “I liked that sliding door to the patio. Do the other homes we’ll be looking at have that?”. As a buyer, I want the expertise of someone who has seen other homes in the area so that I can compare as well.

To me, the buyer and the realty agent should view each other as an important resource. I have even helped one client to develop a checklist for potential buyers to directly indicate what they like and don’t like about each house they see during the hunt.

The next step is to distinguish between a concern which could be controlled and one which cannot. I wrote yesterday about my wife and I not even wanting to look at a unit next to a power line and with an access road not having a stoplight out onto a very busy road. Even if the unit itself was a bargain and had the features we were looking for, I would have still had those obstacles in the way. Since I can’t remove power lines and build a stoplight, that was out of my control.

Yet, seeing an obvious boys bedroom in a house that would be for girls should not present a challenge. If everything else checks out and the price is right, I wouldn’t let a paint job on a couple of rooms stop me from a purchase.

The potential buyer and the agent need to think this way throughout the process. If you really like a house but estimate you would spend $3,000 to make the changes you want, it might compare favorably against paying $5,000 more for a house you don’t like as much overall.

If you are the buyer, make your decision based on a number of factors. If you are the agent, use good comparisons from your local experience to help make that decision. Maybe we can all work to reduce the “no hurry – the house will be there” approach that is bogging down the market.

Seller Decisions & Their Impact (or lack thereof)

One of the business techniques I have used successfully over the years is to look at a situation from the point of view of everyone involved, no matter what their part or role in a decision being made. I can learn a lot by taking the time to do that, and nowhere is this more true than in all of the real estate related marketing I do.

The story I am about to comment on did not involve anyone I know or represent. It is a good one to apply my theory to, in another attempt to revise the mindset of the current real estate market. I read about a property manager for a residential realty firm in the Midwest. They were representing and managing a long vacant house for sale due to an owner relocating for a new job.

It seems the home had what was considered to be unusual and bright colored carpet in its master bedroom and bright colored paint, including a bright pink for one, in each of the other two bedrooms. The property manager decided to replace the “rare” colored carpeting and have the other two bedrooms repainted with neutral colors. The story says that shortly thereafter, the firm received two offers on the property. Two more than the previous months with the replaced color scheme. This story was, of course, designed to make the listing realty firm look good, and to show how they both maintain and sold a property.

Now comes my theory of looking at this from all points of view – as I see it. If I were the seller, and was told about the paint and carpet jobs (since I’m not sure who actually paid for it!), I would ask why this wasn’t done right after I moved out. The agent is trying to look a hero for making the decision that made a difference and drew offers. So why did this decision take so long to make? I would think my agent would already have this knowledge and input before the house is put up for sale. If that were me, I would expect the cost of the carpet and paint to come out of the commission, since the delay of this “decision” meant a delay in my getting the house sold.

If I were the agent, and hadn’t known to suggest the carpet and paint changes at the outset, I would agree to have the cost of the changes come out of my commission. I would think that now seeing proof that the appearance of details such as paint and carpet make a significant difference in an empty house will make me a lot more in commissions in the future by now knowing to do this.

But now we move on to if I were the buyer. This is where I shoot holes in the whole story. If I liked the house enough and it was priced right, I wouldn’t care if the carpet was purple polka dots. If I wanted it and a reasonable offer was accepted, I would simply get bids and choose carpeting and/or paint jobs that I want, and have that done myself. I feel that I could do better by hiring who I choose and staying on top of it to get it done. Thus, if it is true that people really were not buying this home because of unusual or bright carpet and paint colors, then those early potential buyers may have missed out on a good deal.

When a home is being shown while the sellers still occupy it, potential buyers both know and are reminded that they would have their own furniture in each room and not to judge by what is currently there. Then why should the carpet and paint be treated any differently?

I would also assume that these potential and the eventual buyer had representation by a realty agent. This tells me that either the home wasn’t priced right, and that is the real reason it didn’t sell sooner, or the buyer realty agents missed out on an opportunity for a faster sale by not pointing out that paint and carpet can be done before moving in. I truly hope it was really the price and this “story” was slanted to try to make the realty firm look good, which it shouldn’t.

Going back 3 years to when my wife and I were last looking for our home, I always made it a point to share the good and bad about each home we were shown with our realty agent. There was one unit we drove to and didn’t even go inside because it was right next to a power line tower. Another where the reason we wouldn’t buy is because the only access road into the development fed into and out of an always busy major street, but there was no stoplight. I said if we couldn’t get in and out of there in morning rush hour it wasn’t worth the hassle.

At the home we eventually bought, we talked about what changes and improvements we wanted as soon as we bought. The paint wasn’t one of them, but if there had been a weird color, we would have handled that.

What I am getting to here is that there is a lot of blame for this one property to have taken a long time to sell, considering it went vacant due to a professional move. A potential buyer could have gotten a good deal and had some paint and carpet work done. The property manager wouldn’t have had to wait months to then make a decision that “helps” the sale. The seller doesn’t care what happens to the house as long as the sale is made.

This is not about the one realty firm, however. It is the lack of aggressive thinking and the “How can we make this happen?” attitude. It is not only “the economy” as a prime reason why the housing market is in the shape it is right now. Maybe a brain stimulus would benefit even more than the economic one.