Archive for May, 2008
Is $ 5 or $ 10/ Gallon Gasoline Going To Kill Real Estate In Ventura County? Or Any Other Place?
May 25th, 2008 Categories: "Say What? Just Some Real Estate Talk
Gasoline at $ 5 per gallon? You have to be kidding!
What! $ 10 per gallon gasoline…..you must be plain nuts!
Well I was surprise to see gasoline pass the $ 4.00 mark and there is nothing to suggest that it will not go to $ 5. Ten $ may be a stretch but if we don’t get our act together that will be reached in a blink of an eye.
Without going into too much of a discourse there will be a significant impact to spending patterns. I am not talking about not ordering a pizza or anything like that.
And one can take years to address the causes of the fuel price acceleration. The blame game will cover demand, supplies, geopolitical events, speculation, social engineering and in-action in the development of our own resources.
Things are currently underway to undo the situation but time is needed.
The military is testing the conversion of coal to fuel for use on military aircraft, ships, trucks and whatever else is needed for military operations. The United States and China have the largest deposits of coal throughout the world. It will be used.
Do not be surprise to see restricted areas open for drilling. Watch for accelerated spending on nuclear plants and hydrogen applications. Wind mills and the like have limited energy application (especially for automobiles).
So what is the impact to real estate? None. However there will be changes.
There is that old slogan in real estate— ”location”, “location”, and ”location“. This will become extremely important in the short term.
Real estate spending patterns will change from buying in suburbia to buying in metropolitan areas. People will want to live closer to work, shopping and general entertainment activities.
Purchases of new furniture, kitchen items, perhaps remodeling will be put on hold. So this subset of real estate will suffer.
In the short term large cities will start to accommodate real estate buyers with more condos and apartments. Old building will be re-made. Prices will increase because the demand will be higher than supply (sounds like the quandary we have with gasoline).
Areas like Los Angeles have already started this drive and other large cities have been taking baby steps but soon metropolitan areas will be looked at as the place to live.
Such actions will reduce driving, will be close to people’s work, allow people to still do what they want to do but everything will be closer.
As prices increase and as supplies become limited suburbia will be moving into metropolitan areas until the fuel pipeline rights itself.
As with the spike of gas prices in the early 1980’s, things will settle out and as then real estate wherever it is will do well.
For your real estate needs give me a call.
Your comments are welcomed.
| Currently 1 Comment »
Monday Morning Coffee Break: Ventura County Real Estate Doing’s For Week Ending May 24, 2008
May 25th, 2008 Categories: Weekly Real Estate Activity In Ventura County
Ventura County real estate continues to show signs of having turned to the upside.
Over the last week there has been a decline in listings (inventory); sales continue to increase (although it slowed the last two weeks when compared to prior weeks); the number of days on the market for sold properties continues to average three (3) months; and the variance between list price and average sales price for sold homes continues to hover around -5.0 %.
Homes priced from $ 300,000 to the low $ 400,000’s appear to be selling the fastest. Conejo, Simi and Moorpark appear to be the highest sales area. Fillmore continues to show prices sliding downward.
The overall National real estate market as noted in referenced article, Quarterly Changes To United States Real Estate Landscape indicates some softening in a number of areas but California, Arizona and Florida continue to be areas of aggressive sell offs.
Close to home Santa Barbara County continues to have difficulties.
However the National real estate market shows appreciation growth of 2 % to 4% for most parts of the country. In fact the media is starting to print some positive articles about real estate in general. Compared to a few months ago this is a turn around. So it appears that with the exception of California, Arizona and Florida real estate is OK.
Fuel and food prices will exact a toll on real estate sales but overall it should be relatively small.
Mortgage rates continue around 6%. Banks continue to implement strict guidelines for borrowers who are refinancing or buying. 60% of banks have tighten standards on prime mortgage paper. Non-traditional and sub-prime standards have increased to 80%.
Sellers should refer to the following articles to guide them in the preparation of their properties before listing. These are:
- Brown And What Other Colors May Mean In The Home
- Fix The Little Things To Sell Your Home And Add Value
- Buyers Love Neatness
- Having Difficulty Selling Your Home? Try…….
For any of your real estate needs do give me a call. Have a safe Memorial Day.
Article comments are welcomed.
| Currently No Comments »
Having Difficulty Selling A Property? Try…..
May 23rd, 2008 Categories: Buyer and Seller Knowledge Center
Going Once; Going Twice; Sold!
The AUCTION.
During the down side of a market, auctioning a property could be the answer.
There are several variations of the auction form including time limits, minimum and maximum limits on bid prices and special rules determining the winning bidder and the sales price.
Maximum bid (I have heard it called and absolute bid but check on this) means that the property will be sold to the highest bidder (or sold at any price).
The minimum bid auction will allow the seller to pick the lowest price that it will be sold at.
Auctions are generally funded by sales commissions, paid for by the seller, but each auction house has some specific rules that should be understood before hand.
Staging.
Staging can at times move a property. The key to staging is simply to make a sellers property look better than competing properties.
It is important that staging be done right. And staging should take place before listing the property to get maximum impact.
However this does not mean that a home that has been on the market for a period cannot be staged. The problem with this property is that it will have a history. It is seldom that a potential buyer will view a home again with after-the-fact staging.
Staging rules are simple. Get rid of clutter, which covers a wide variety of items including the removal of furniture, knickknacks, personal grooming items in the bathrooms or bedrooms, kitchen cabinets neat, have the neighbors take care of any pets and the sellers gone while the home is being shown.
When one cuts to the chase anything that can be removed should be stored off-site or neatly in the garage (no high rises…..keep the boxes low so people can see the garage).
Be clean and neat. If you plan to remove something from the home after the sale, remove it now.
You want staging to show space.
Within this blog under Things You Should Know (see Buyers and Sellers Knowledge Center) there are two articles to support staging efforts. The articles are entitled: Fix The Little Things To Sell Your Home And Add Value and Buyers Love Neatness.
Seller financing.
If you are lucky you may find that your seller doesn’t owe anything on the property.
This can be very advantageous to both buyer and seller. With banks and lender exercising very strict rules in home purchasing this is an option to consider.
However the seller still must exercise due diligence and investigate the buyers credit worthiness and capacity to buy the property.
The advantage can be that the seller can have a secured note (against the property), the seller can be accommodating on the interest rate and can have a note for a limited period (usually 3 to 5 years) or for the long term (15 years or longer).
The seller, acting as the lender, will receive interest income and can offset a potential high tax burden.
The seller entertaining this method of sale should talk to an attorney to protect themselves and make sure that all of the i’s dotted and all the t’s are crossed. It can be a win-win for both buyer and seller.
Often the property will have a lien on it and most liens have a “due on sale” clause where the lender can force payment of the loan when the transfer of ownership is recorded. But ask your lender and they may surprise you by agreeing assuming you make timely payments on the lein. If you don’t ask you will never know.
Again the seller has to make certain that the buyer is credit worthy and is capable of meeting the note obligation made between the two.
Again talk to a real estate attorney to make sure everything is done correctly.
A 1031 exchange.
Common with commercial, industrial and land transactions it can be applied to residential properties.
The key to this type transaction is to find a buyer that is also interested in selling their property. If you are willing to take a property in exchange of yours to help promote a greater buying audience you will need to determine if the property satisfy both buyer and seller needs.
Generally this type of option works if:
- move up to a more expensive property.
- move down to a less expensive property.
This type of transaction can be very tricky so both parties should meet not only with a real estate attorney but also with their CPA or tax consultant. There can be tax consequences if there is an exchange of cash in the transaction (called boot).
William Exeter left me a comment which expanded on the world of 1031’s and I took the liberty of adding his quote to this article. He gives an expanded view of 1031’s which is significant.
Mr. Exeter states:
“I wanted to follow-up on the comments about the 1031 exchange. The type of 1031 exchange that you have described is what we refer to as a two party swap where the two parties want each other’s properties and just swap or exchange the properties simultaneously.
This actually represents the smallest number of 1031 exchange transactions today. The majority of 1031 exchanges are now structured on a delayed basis where the taxpayer completing the 1031 exchange will sell his or her property to a buyer through a 1031 exchange Qualified Intermediary and the Qualified Intermediary ends up holding the net proceeds from the sale. The taxpayer will then acquire replacement property from another party through the Qualified Intermediary in order to complete the 1031 exchange transaction. We refer to this as a three party 1031 exchange.
You can also complete a reverse 1031 exchange where the taxpayer acquires his or her replacement property first.” (end of quote)
For your real estate needs call me.
Your comments to this article are welcomed.
| Currently 4 Comments »
Quarterly Changes To United States Real Estate Landscape.
May 22nd, 2008 Categories: National and Local Real Estate Appreciation Forecast
The pictures tell the story.
The just released Office of Federal Housing Enterprise Oversight (OFHEO) report has shown changes to the United States real estate landscape.
Currently the picture of the National real estate market looks like this:
Previous Office of Federal Housing Enterprise Oversight (OFHEO) pictured the United States real estate landscape as this:
The areas of California, Nevada, Arizona and Florida continue to experience an accelerated weakness since the last report. California and Nevada saw price declines of more than 8%.
Within California the weakest areas continue to be:
- Merced
- Stockton
- Modesto
- Yuba City
- Salinas
- Santa Barbara-Santa Maria-Goleta
- Bakersfield
- Vallejo-Fairfield
- Riverside-San Bernardino-Ontario
- Sacramento-Arden-Arcade-Roseville
- Fresno
- Madera
Merced, Stockton and Modesto have shown the sharpest depreciation for the same period reported last year of above -21% or greater. Home prices in this list of areas will continue to decrease significantly for the next several months.
Areas of continuing appreciation growth (above 5%) are Wyoming and Utah. Other States with the greatest appreciation are Montana, Texas and Alabama. Although it should be noted that Texas has cooled significantly since the last report.
Most of the United States will experience a growth rate of between 2% to 5%. Areas of Texas, New Mexico, Washington, Alaska, Montana, North Dakota and Oklahoma have cooled over the last quarter but will continue to appreciate.
Minnesota, Michigan and the northeast section of the United States appear to be turning upward.
The OFHEO report noted that the purchase only housing index fell 3.1% between the first quarter of 2007 and 2008 but prices for other goods and services increased 4.6%.
It is expected that with continued food and fuel price increases United States real estate will continue to the downside, offering foreigners more opportunities to invest in this country.
| Currently 2 Comments »
Pre-Paid Legal. What IF……
May 20th, 2008 Categories: Pre-Paid Legal Services
First and foremost let me state at the beginning that I am a real estate broker. So why (do you ask) am I writing about Pre-Paid Legal or pre-paid anything.
I came in contact with Pre-Paid Legal because I had to make out a Will.
Certainly one can do the same thing on-line with an array of choices but I recall someone telling me that if you screw things up it can be difficult to make it right.
So for me I needed the assurance that the Will was done right. Most people will feel the same way. Knowing that you have access to an attorney is comforting and there is the knowledge that the Will is done correctly. As a member of Pre-Paid Legal you will have an immediate discount of 25% for such legal services. Every bit of savings counts.
But as I continued to checked out Pre-Paid Legal I found another item that was of extreme importance to me and that was Identity Theft. This is a horrible on-going problem happening everyday to many unaware people.
Just imagine buying a home (buying anything) and finding out that your identity is being shared (of course without you knowing). You will be tasked to get everything cleared before the close of escrow and the likelihood of that happening is very small. You will have to put your life on hold, pass on the home purchase and clear your identity.
We periodically read all of the stories and the hardship faced by people whose identity was stolen. It is a heart wrenching, traumatizing violation of them as a person. And it is always surprising. How did it happened? Why did it happened? What went wrong? Who did this?
I know of a man who had his identity stolen. He is different today. Don’t get me wrong he is still a very nice person but he has changed. He is extremely cautious. He changed because of this event and it makes him angry.
Banks and credit card companies first look and listen to people of identity theft and then treat them as though it was just a story and are of limited help. It’s your problem; not theirs.
People who suffer with ”identity theft” are in no-man’s land. They are tasked with getting everything cleared up and usually they are on their own.
These people are extremely mad (my friend was mad everyday as well as he/they should) and then they find that they are viewed not as a person violated but as something else. It is a situation in which they are tasked with proving themselves innocent while the institutions view them as guilty.
With Pre-Paid Legal an individual has options.
The first is that one can choose a restoration which with the help of a designated company steps will be taken
- to assist in organizing the details;
- educate you on the process;
- immediately contacting fraud centers within the Social Security Department (if needed), the Post Office, Equifax, Experian and TransUnion.
In addition a review of public records, credit accounts and a sundry of items is undertaken none of which any of us know about until we have to do it ourselves.
Imagine getting assistance
- with law enforcement;
- check clearing houses;
- Department of Motor Vehicles;
- notifying work and collection agencies;
- contacting all of your creditors;
- and find out if these credit card companies extended you more credit based on the misuse of your identity information.
I personally would not know where to start but having a service that is in my corner is helpful. But most certainly it does not take away the pain and time to get everything resolved.
A further review of Pre-Paid Legal indicated that while Will preparation and Identity Theft were options, there were other items that could be considered such as:
- contracts and document reviews;
- get phone calls or letters written on your behalf for any subject matter;
- legal consultation;
- IRS audits;
- trial defense if you or your spouse are named in a civil or criminal action filed in court;
- motor vehicle services and host of other items which can be had at reduced rates.
Most of us will instantly say “we don’t need any of these things”. And that is true UNTIL we need them. For instance:
- How many people today need a Will or need a Will updated?
- How many people have signed a contract wishing they had somebody that could review the contract before signing?
- How many people have had problems with an insurance claim?
- How many people have had trouble with a warranty on a product?
- How many people need help to collect child support?
- How many people paid a bill they knew wasn’t theirs or thought unfair and belatedly inflated?
- How many people are there they have received an inaccurate credit rating?
As mentioned in the beginning I am a real estate broker and the protections that one can get from Pre-Paid Legal are certainly items that can save real estate buyers and others from surprises.
Another facet that I like about Pre-Paid Legal is that an individual has an option of using this venue as an income source by becoming an affiliate.
I mentioned Identity Theft and to be sure today one hears advertised services by just mentioning someones name such as Rush Limbaugh or Hannity or whom ever.
These most certainly should be reviewed and compared.
But the thing I liked about Pre-Paid Legal is that the person that talked to me about Pre-Paid Legal is close by. I could physically see them and listen and become educated of the process.
Your personal and family requirements are the most important factors that have to be considered.
I am not an insurance person but when a young man or woman tells me that they are going to buy life insurance I ask why? Mind you I am not against life insurance but when a person is very young I would think that disability insurance would be the more important to the individual and the family.
The chances of getting hurt is higher than passing away. The same is true for the services from Pre-Paid Legal. We don’t need them now but later we are glad to have them.
Visit Pre-Paid Legal and find out for yourself the protection that your can buy or the income option that can help you in your daily lives.
Simply click on www.prepaidlegal.com/hub/johnduffner and you are on your way.
| Currently 2 Comments »
Blog Mastermind….My Thoughts!
May 20th, 2008 Categories: Blog Mastermind
A few months ago I decided that I wanted to start blogging, thinking that it would help me in my real estate business. I had seen a few other Realtors blogging and heard about it so I thought it would open more doors for me.
As part of my monthly marketing I had been writting a monthly real estate newsletter which I mailed off to my clients and/or potential clients. As other contacts were made I would add them to my mailing list.
Mailing and the cost of mailing my newsletter was starting to get to me. That is when I began to look around to see what others were doing, with a focus of reducing my business cost and perhaps expand my audience.
Then I got to musing …..since I am writing why not put it on the Internet and let other see what I am writing. Expand my horizons. I was really looking for feed back.
Writing the newsletter, while rewarding to me, lacked feedback unless I called somebody and asked “Well….what did you think of the last newsletter?”
So this blogging adventure for a person who is 70 something may be looked upon as an old guy going nuts who isn’t going to be around much longer so let the old guy do his thing…..it will give him something to do and he will stay out of trouble.
Well all of that is true but I like new challenges, I like writing (for myself mainly) and I still like to learn and I like to share what I know. I think I just might help somebody out there……wherever there is.
A number of years ago I decided I wanted to learn how to sail. My wife thought I was nuts because I always get sea sick. But off I went and learned how to sail and yes got sea sick quite often.
Where do you start?
I started by typing in the word “blog” in the Internet search section. I wanted to know what blogging was about; who uses it; why did they use it; was it going to be fun or was it something that would be great today and gone tomorrow.
The very first thing I did was to look at the definition. It read that a blog (web log) is a website usually maintained by an individual with regular entries of commentary, description of events or other material such as graphics and video.
Well this certainly filled the bill for me. I was doing this via a newsletter and other marketing material so my change was simply one of delivery. E-mail was going to be my post office.
I began looking at ”blog” sites. That was an adventure in and of itself and one can find out real fast that you have to put a fence around what you are interested in because if you don’t you will be in the land of “oz”, asking ”Why am I looking at this?????”.
My first realization was that I did not want to build a site from scratch nor did I want a free cookie cutter site . I don’t have the patience to build and I refrain from cookie cutter items because eventually I want to make lots of changes and find that I am limited.
I love to fly fish. But I do not have the patience to make my own flies.
Buzzing in the back of my head I began to realize that maybe someday I may want to make money with my blog site. Oh yes I saw all the advertising of making making 5 or 6 figures monthly income. There are people that do but I want to make enough per month to meet any cost of the blog. (But if 5 or 6 figure income presented itself I certainly would not turn it down).
Investigate, investigate and investigate.
Blog Mastermind (www.blogmastermind.com) was one of the e-instructional sites that roused my curiosity (another was Mastermind Pros: www.mastermindpros.com) and a few others but these two stood out in my mind.
Style was the difference. I liked the way Yaro Starak presented his material and the implication that it was easy to learn if one put some time into the doing. One would call it a soft sale.
I had my blog site built for me. Then I focused on making it work. Because of the style of presentation that is when I signed up for Blog Mastermind program and it was the best thing I have done. I knew absolutely nothing, a novice who felt that he could really get the hang of blogging, have fun and do something constructive.
The weekly e-lessons (this is a 6 month program) are approximately 20-25 minutes in length and one has access to a library of additional information all free. The lessons cover the building of a blog, content development, how to develop traffic and how to make money. Content, traffic and money were my focus. Certainly a lot of book work was made simple and useful.
I realized that the lessons re-introduced me and are centered on how to run a business: plan, analyze, manage, resource control and have the right tools. Add to this the drum beat of testing, measuring and monitoring your blog (work) activities specifically looking to increase traffic flow and your other resources. Also one quickly finds out the importance of developing and maintaining an e-mail list.
The lessons are designed so an individual can succeed. One could not ask for anything more. All that is needed is to take the time and do it.
Ah….the forum. It is suggested repeatedly that individuals participate in the forum group, which I have not done. I have yet to warm up to forums. Later I may change my mind but today I tend to stay out of forums. Simply a personal preference.
What I was looking for and what I finally signed up to do was to find a vehicle that would teach me something about blogging. The price of $ 77 per month appeared reasonable and as best as I could judge was in the ball park of other e-lessons which went as high as $ 99 per month.
I looked at this expenditure as an investment in myself allowing me to work the number of hours per week that I felt comfortable, with the option to make money. The key to me was that I had options.
One of the items stressed in the program was to test, test and do more tests. I did not test the e-lesson program. I simply read about other e-blog programs and decided that Blog Mastermind suited me.
If this were a product, like a can opener, I most certainly would have tested it out but it was more of an educational service and testing I concluded would be difficult.
Once into the program I felt a tinge of being overwhelmed. Too much for a beginner. The terminology and use of words took me a minute to get used to. But there were avenues to help. Yes the forum and of course an extensive library.
I mentioned the extensive library that is offered and for a new comer it is great but also there is a lot of information. If you are like me you have to ponder what is useful to me now. What isn’t.
A mature blogger would think they hit a gold mine. Everything is there. And one can take advantage of the library at any time. It is like a kid being in a candy store.
I think if I were asked for an improvement it would be to divide the system into smaller entities like learning how to swim at the YMCA/YWCA. I would start with lessons for the minnow class and work my way up to the whale class.
Blog Mastermind e-lessons gives one an opportunity to learn blogging, understand what it entails to make it sustainable and what one has to do to make money. If the steps are followed one should do well but it all depends on the individual.
In my case real estate is my focus so I will look at items that generally are real estate related specifically mortgage financing and escrows because these will be benefical to my clients.
Affordable…..yes at $ 77 per month. For some it could be a stretch but overall even those that have to buckle up to meet the cost, eventually they should get their money back if interested in using the blog as an income source. The money spent is an investment in themselves.
Visit Blog Mastermind and see for yourself. It will be worth the time. Simply click here and go: http://www.blogmastermind.com/affiliates/index.php?af=783498
| Currently 2 Comments »
Brown……and What Other Colors May Mean In The Home.
May 18th, 2008 Categories: Buyer and Seller Knowledge Center
When selling a home the first thing most people are told is to ”paint” it.
When one looks at a new home, first impressions focus on the paint.
So when it comes to color, most will see the color “BROWN” or cousins of brown in a home.
Color influences our emotions, actions and response to other people.
In general brown (in a home) covers an array of colors: sienna, bay , sand, wood, auburn, chestnut, nut-brown, cinnamon, russet, tawny, chocolate, tan, brunette, fawn, liver-colored, oak, bronze, terra-cotta, toast, umber, cocoa, coffee, copper, ecru, ginger, hazel, khaki, ochre, puce and puce (this listing was found in an article by Jacci Howard Bear).
Beige is the chameleon, taking on the warmth of brown and the color of white. Other shades of beige used in the home include buff, camel, oatmeal, tan, sand, biscuit, cream and mushroom. But it is brown.
So why brown? One word—–Earthiness.
As one reads about brown they will read words such as steadfastness, simplicity, friendliness, solid, dependable.
When used with it cousins (tan, taupe, beige or cream) brown coveys the feeling of warmth, honesty and wholesomeness. Brown is closer to nature or being closes to “natural”. It can stand out or it can be sub-due.
Brown circumvents problems that other colors may have. With its’ variation of shades it conveys different meanings and can stand out significantly. When used in a large area the quantity and placement can deliver a powerful symbolism.
When used in various shapes and in combination with other colors, brown combinations tend to be easy to accept.
For instance the color blue is said to be calming and many believe that it brings peace and keeps bad spirits away. Therefore blue often times is suggested as a color for the bedroom. However if over done blue can dampen ones’ spirit. I like blue but I do not think it is a color for me in the bedroom.
Talking about colors influencing other people, I recall reading about painting visitors sports area pink. It is thought that the pink color (especially bright pink) decreases the opposing teams energy.
As stated brown symbolizes the earth, order and convention. Here is a listing of what other colors symbolize:
- red: action, confidence, courage, vitality. Tiger Woods often will wear red something on the final day of a golf tournament. A show of confidence. Red is said to stimulate the appetite therefore one may see restaurants use this color for decorating.
- pink: love and beauty. Pink is said to be a tranquilizer. As mentioned above sport teams sometimes paint the locker rooms used by opposing teams bright pink so their opponents will lose energy.
- orange: vitality and endurance. Orange is a color used most often in water wear and safety clothing.
- gold: wealth, wisdom and prosperity.
- yellow: wisdom, joy and happiness. A study showed that jails painted yellow had inmates that lost their tempers more frequently and babies cry more in yellow rooms. Yellow legal pads is said to enhance concentration.
- green: life, nature, fertility, well being. This color has now become the standard when one addresses conservation, ecology and earth warming. It is stated that people just before appearing on TV will sit in a “green room” so as to relax.
- blue: youth, spirituality, truth, peace. When one is planning to be interviewed for a job most consultants will recommend wearing blue to the interview because it implies loyalty. Studies have shown that people are more productive in blue rooms. Gyms painted blue are typical for weightlifters.
- purple: royalty, magic, mystery.
- Indigo: intuition, meditation, deep contemplation. But many people believe that indigo can be a negative color and has to be adopted narrowly.
- white: purity and cleanliness. White is the color of brides symbolizing innocence; other countries view white as the color for mourning and is used extensively at funerals. Doctors and nurses wear white to imply sterility.
- black: death, earth, stability, submission. Black is used in fashion because it makes people appear thinner. Also villains wear black.
- gray: sorrow, security, maturity.
So brown is used extensively in the home because it tends to circumvent many of the issues of culture, symbolism, and shapes.
For more information on colors the reader should view the following articles:
- Color Psychology by David Johnson
- Emily Gems (joyful crystals and gemstones: http:www.crystal-cure.com/color -meaning)
- Color selections from Jacci Howard Bear (http://desktoppub.about.com/cs/colorselection)
Your comments are welcomed.
| Currently 1 Comment »
Monday Morning Coffee Break: Ventura County Real Estate Doing’s For Week Ending May 17, 2008
May 18th, 2008 Categories: Weekly Real Estate Activity In Ventura County
Basing continues. The next few weeks and months will be frothy with expectations one day and doldrums the next.
National economics will be more visible at the local level. Much has been written of the high food and gas prices and the increase in these areas will have an impact on real estate. Diesel is near $ 5.00 per gallon and that is having a toll on truckers. Is $ 5.00 gasoline just around the corner? What will people do when and if gasoline should get upward to $ 6.50 per gallon.
One could expect some serious mind changes both political and environmental if this occurs. But whatever changes occur will not alleviate the short term hurt.
Locally the coming of early summer will take a small toll on real estate. People will be re-directing their attention to vacation spots, which I suspect will be minutes from home rather than days or weeks. The Ventura County beach area will be crowded this year.
We are lucky in Ventura County because many people are within 15 minutes to 25 minutes (or less) from the ocean. Many Ventura County families will opt for the local beaches more this year than last.
From this weeks chart it is evident that home listings have been decreasing which is both good and bad.
Good because inventory is going down (still has to go down further but the direction is right). Bad because homes that had not sold (expired listings) have been taken off the market. These sellers have decided to wait out the real estate downturn and wait for their price.
The actual sales for the period of April 17 through May 17, 2008 has also shown a decrease. This is the first tangible indicator that food and fuel prices are now starting to impact real estate locally. First time home buyers will become non-existent until the market normalizes.
People who want to buy have elected to wait. “Good” deal or no-good deal, most buyers are willing to pass until they feel good about the economy.
Today we are at cross currents. The economy in most peoples minds is going to get worse. This is wrong because the economy is now starting to show positive upward growth. Be prepare to see significant upward pressure on wages at all levels and all occupations.
National news agencies have been reporting a 4% increase in new “start up” building and building permits. A further review of this data however suggests that these permits are for apartment and condos, not single family homes. But the news is good for real estate.
Real estate people that I have talked to in Las Vegas over the week are starting to get a smile in their voice so it appears that area is starting to come out of its down cycle.
Freddie Mac and Fannie Mae have rescinded some of the guidelines imposed a few weeks ago about loans via zip code. Upward of 65% of banks had been opting out of real estate mortgage lending but it appears that this is starting to unwind.
Loan standards are going to be exacting but banks and lending institutions are becoming more favorable to individual new home or refinancing requirements.
Welcome to the lazy days of summer.
Your comments to this article are welcomed. Call me with any of your real estate questions or needs. I will be glad to help.
| Currently No Comments »
Fix The Little Things To Sell Your Home and Add Value.
May 15th, 2008 Categories: Buyer and Seller Knowledge Center
Finding inexpensive ways to improve the looks of a ho
me which is being prepared for market or is already on the market can be a great value adder.
If you are handy it simply means taking out the tool kit and doing somethings that make the property look better.
If your are not handy, professionals certainly can be of assistance.
Refinishing. Kitchen cabinets, kitchen appliances, bathroom appliances.
In the kitchen for example replace that old faucet with a new one. Refinish the cabinets, add new new door handles, replace old lighting fixtures.
Do the same thing in the bathrooms. Caulk is cheap. Do it. Replace the toilet seat. Seal the toilet. If the bathroom floor is dated perhaps you can consider installing a new flooring on top.
Sometimes one can replace a tub and shower combination quite inexpensively. Cheaper than replacing perhaps the tile around the shower.
Consider adding closet systems to expand storage. Wire, wood and laminated systems are available and offer a range of storage options. Also when buyers look into the closet (which they will) it will be orderly…..that is a value to the seller.
Keep in mind they have these storage systems available for kitchen cupboards. If you can use them. They can increase storage capacity and bring order to the cupboards. And they do not cost a lot of money. Some assembly may be required.
All those wires that may be frayed or hanging in the rafters in the crawl space, attic or garage. Bundle them. Better still have a professional look at and perhaps replace the wall switches; replace the ceiling fan especially if it is noisy. All of those unsightly mechanical things have them fixed.
Do make sure that the electrical wall outlets work.
Entry doors to the home. A new paint job does wonders. A new door handle and lock set makes things stand out. It tells the potential buyer that you care (pride of ownership).
Not an inexpensive item but one may want to consider replacing the standard everyday water heater with a tank-less system. On an older home this most certainly will be an eye catcher. With utility cost climbing anything that suggests savings is a plus for the home and for a sale. But do your homework. It may not be worth the expense in specific geographic locations. Just a thought.
Your comments are welcomed.
| Currently 4 Comments »
Recipe: Beer-Steamed Clams.
May 13th, 2008 Categories: Recipes
2 pounds live, little-neck clams, cleaned
1 1/2 bottles dark beer (example: London Porter)
2 bay leaves
juice of one lemon
1 loaf of crust bread
Sauce:
1 stick unsalted butter
4 cloves garlic, crushed
2 tablespoons fresh parsley, chopped
Salt to taste.
Preparation
1. Place the clams in the bottom of a clam steamer or deep boiling pot. Add the beer to completely cover the clams, then add the bay leaves and the lemon juice. (PS. You may want to open another beer for yourself to drink while cooking).
2. Cover the pot and bring the beer to a boil. Steam until the claims open (3 to 5 minutes).
3. While the clams are steaming, melt the butter over low heat. Add the garlic and saute for 1 minute, then add the parsley and salt to taste.
4. Remove the clams from the heat and discard the liquid, as well as any clams that have not opened. With a slotted spoon, place the clams in the sauce. Serve with crusty bread.
Recipe source: AARP, May & June, 2008.
| Currently No Comments »
