Mike’s Real Estate Show

I teach a class on interpreting statistics from our local Multiple Listing Service (MLS) for Keller Williams Realty which is MY company. I ran the number of bank owned properties currently on the market or “REO’s”(real estate owned). I found some interesting numbers. The amount of short sales on the market is under 5 months and the amount of homes being sold makes up 25% of our monthly sales. A “balanced” market is usually at 6 months of inventory. With REO’s you are at 5 months which indicates a “Seller’s” market!! We are seeing multiple offers in the REO marketplace. The prices are hitting a point where they are being snapped up! I’m going to post an interesting article from Brad Bollinger from the NorthBay Business Journal where Brad says this just MIGHT be the bottom in Sonoma County. We shall see!

To all agents or contractoprs that might have a property waiting for a percolaton for this year.. you just missed it. Unless we get some good heavy rains it will be February of 2009 before you can even start a percolation test.  Amazing that is closed so early.

Vernal Pool Technologies, LLC The Wetland Guy (Biologist) www.WetlandServic= es.com Nathan@WetlandServices.com Homes and Acreage Realty Nathan Botwinik  (Broker Owner) www.Homes-Acreage.com Nathan@Homes-Acreage.com 475 Noonan Ranch Lane Santa Rosa, California 95403 Office: (707) 569-9404 FAX Line: (707) 569-9488 ***************************

“The last thing you need are unbudgeted financial obligations cropping up hours before you take possession of your new home.”

Whether you’re looking to buy your first home, or trading up to a larger one, there are many costs - on top of the purchase price - that you must figure into your calculation of affordability. These extra fees, such as taxes and other additional costs, could surprise you with an unwanted financial nightmare on closing day if you’re not informed and prepared. Read the rest of this entry »

Gee, never heard that one before! This is a common lament and an age old question. Find another home to write on. In our market I see some killer deals and those which are still “hoping” they can get what they “need” which is NEVER a pricing criteria. Here’s a strategy you may wish to employ. Find three properties which you would like to purchase. Have your Realtor/Licensee write THREE CONTRACTS and then have Him or Her present your offer IN PERSON to the SELLER!! Write this into the offer! “Subject to offer being presented to Seller by Buyer’s Agent”. Then when your Realtor/licensee presents this offer SHOW the other two offers to the Seller. Keep this as your “ace-in-the-hole”. The dialogue is, “My Buyer’s first choice is your home. However, he is keenly aware of pricing in this market. He feels that the downturn and his price offering will protect his down payment. He is willing to move forward immediately. However, he has instructed me to show you these other two offers on properties in this price point. He needs an answer on this property tonight. If not he has instructed me to present the next offer.”  I have used this for “shock value” as it tells the Seller they are NOT THE ONLY property on the market and adds immediacy to the deal. Give it a shot and be prepared to move on! I had one friend of mine who did the same thing but he took it to a new level of arrogance–he literally ripped up the contract in FRONT of the Seller to drive home the point!  Hardly “win-win” but it gets them back to the table!! (Course he has a copy in his briefcase!!). Go get ‘em!

In Sonoma County, California we  now have an interesting twist on determining the property tax rate. The 1% of the sales price as per Proposition 13 has been the norm and it is NOT a complicated system. You pay $500,000 for a rural property and your yearly taxes will be $5,000 per year. But this is being challenged as prices fall dramatically in some areas due to “Short-Sales” and the huge inventory of REO’s, our Tax Collector here in Sonoma County is NOT allowing some of these “steal deals” as they feel they are not valid sales between a willing buyer, willing seller but were closed under financial distress and duress. So if a consumer gets a screaming deal of say, $300,000 on a home that last year market value equaled $400,000, the Assessor is NOT allowing 1% of the $300,000 but is fiddling with the tax base and adjusting HIGHER. Read the rest of this entry »

Whenever I hear the ranting of someone convinced the market is destiend for a 50-60% correction, I’m oft reminded we have late night TV info commercials out there for the sleep deprived. I figure they are not thinking very straight as they ARE sleep deprived and send away for the tapes, CD’s,Courses from the latest and greatest real estate “GURU”. Sleep deprivation makes them utter  statements such as home prices will seek out “Historic norms” but give NO reference as to where this data originates or just what “norm” is! . But if you want to be a smart investor but wish the advice of a “Guru”  choose the RIGHT GURU!
I recommend the writings of John T. Reed and his real estate guru expose site. Here it is. Bookmark it! 
 

http://www.johntreed.com/Reedgururating.html

Activity not what it should be on your House now for sale? Here’s a list of suggestions which I have borrowed from many top flight pros in our industry:

1. Open Houses during school drop off time and school pick-up time. (If you’re near a school).
2. Poll all other agents who have a similar priced home and ask THEM how their activity is.
3. Do a reverse prospecting function on the MLS to see who has a buyer in this price point.
4. Pull up every agent who has SOLD a property in your listings area for the past year. Send them an email or call.
5. Open Houses during the week.  Twilight Open House when folks are coming home!
6. Craig’s List–run it under different headlines

Read the rest of this entry »

  Many of you are facing the possibility of foreclosure. Find below links to answer many of your questions with links to articles and tips for homeowners facing financial difficulties.  

1. “How To Avoid Foreclosure” by the U.S. Department of Housing and Urban Development (HUD):  http://www.hud.gov/offices/adm/hudclips/forms/files/pa426h.pdf  Yes, I know these are long but they get you right to the information you need rather than going through the whole site.

2. “Tips for Avoiding Foreclosure” also by HUD:  http://www.hud.gov/foreclosure/index.cfm

3. “List of Approved Credit Counseling Agencies”  by the U.S. Department of Justice: http://www.usdoj.gov/ust/eo/bapcpa/ccde/cc_approved.htm

4. “You Can Avoid Foreclosure and Keep Your Home” by FHA : http://www.fha.gov/foreclosure/index.cfm

5. “Mortgage Payments Sending You Reeling? Here’s What to Do” by the federal trade commission: http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm

6. “Questions and Answers on Home Foreclosure and Debt Cancellation” by the IRS: http://www.irs.gov/newsroom/article/o,,id=174034,00.html

 I had a listener to the show email me asking about the following: