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| Why I Write This e-Letter |
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The reason many people don't know what to think about real
estate agents is because agents know things about which most
folks haven't a clue. When I first moved to New Orleans many
years ago, neither did I! In fact, I told my agent, and I
quote, "I believe nothing of what you tell me and only 50% of what
you show me". He was horrified! And quite rightfully so
because he's an agent of great integrity and
talent.
Before deciding to live in New Orleans, I owned a very
successful sales and marketing firm, and wrote the company
newsletter. Its one purpose was to educate our hundreds of
clients and help them make smart decisions.
That's the sole point of this e-letter. My ambition
is to educate buyers and sellers, help them feel
comfortable with the process, assist them with making good
decisions, and to maximize their real estate experience.
This e-Letter is dedicated to buyers and sellers, the people
whose best interests I place above my own.
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Buy A
Double Make Some
Money!
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$169K buys you this great double in Broadmoor. Very Good
Condition. Fully rented at $850 a side. Very easy
to maintain.
This cute, over 2000 sq.ft., Victorian Double has 2 bd and 1
ba per side, and it's in Very Good condition. One side
rented at $850/mo. to a long term adult renter. Other side is
open for rent, or live-in. Big Lot!
Here's a Broadmoor Duplex with 3 bd and 2 ba per unit.
Giant yard. (subdivide?) Very Good condition. Both
units rented for $1250 a month.
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What's Going To Happen?
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Everyone asks pretty much the same range of
questions. How long will this Real Estate down-turn last;
will it come back like before, and, is this a smart time to
buy or sell?
Right now, we're all members of the same family
cooling our worried heels in the financial ICU waiting
room. The doctor comes out and tells us they've stopped the
bleeding. The next day we're told there's another
problem...and so it goes. But the Gov't has learned
from the huge mistakes it made in 1929 causing the Great
Depression. Massive infusions of cash, lowering of interest
rates, and the temporary nationalization of major institutions
seems to be helping us avoid that catastrophe. We'll
survive this mess...it will simply take time to sort out the
details.
On the real estate front, according to those in the
know, the bottom will arrive nationally, sometime in mid
'09. But in New Orleans, where foreclosures are
low, more big drops in home prices aren't anticipated.
Sure, sales are somewhat slower, but homes that are priced right
are selling. (If your home is in very good condition
and staged properly, and not selling, it's priced too high).
But there's a very different story coming from other parts of
the USA. The disasters in California and Florida come to
mind. We've been spared that indignity.
Residential Real Estate, in the long term, has
always shown itself to be a wise investment. But there are a
number of national economic issues that need to be repaired
before there's a return to a more "normal
market". Also, the issue of more stringent credit
requirements will slow the growth curve because not everyone,
(unlike before), will qualify for a loan. But once the bottom is
reached, the recovery will begin, and prices will start their
inevitable march upwards.
Though you might be scared stiff by the national
economic jitters, it's a great time to get the home you
want. Don't forget, though you might have to sell your house
for less, the home that you want to buy
is, coincidentally, selling for less! For
Investors, investment rentals provide a hedge against low returns
from a battered stock market, low yield Bonds, or CD's. While
virtually all property has been devalued to varying degrees and
reasons, in New Orleans, all is far from gloom and
doom.
The people who can get hurt the most are those
"cashing out" on the big home they've lived in for years, and
then buying something much smaller. Why?
Because higher priced homes have been hit the
hardest, and well located, smaller homes in good
condition, have taken a softer hit. The converse is
also true...say you live in a 200-300K home, this is a spectacular
time to trade up. Why? Because you're in a more
active, less devalued, segment of the market and the higher priced
home you want to buy has been hit much harder. You'll save a load
of money by "buying up" now. And for credit-worthy
first time buyers with a few bucks to spend...the entire
country is on special! Buy now!
Though many of us Americans will be
serving a slightly leaner bird this Thanksgiving, one fact
remains clear...there is nothing that exceeds the blessings of
life, and having family and friends. I wish you, and
yours, all happiness during this most important
celebration of thanks for the bountiful gifts of
life.
As ever, I remain at your service.
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Hire An ABR Certified Agent To Help You
Buy Your House!
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The vast majority of home owners
have virtually no hesitation when it comes to hiring an
exclusive agent to sell their home. So, one must wonder why there
is any buyer hesitancy to hire an exclusive, ABR certified, buyer's
agent to help them find the property they want, and to
help negotiate the best possible price and terms for the
purchase?
When you hire an ABR certified buyer's agent, they can do more
for you than uncertified agents, and it takes less time to find the
right home than if you worked with multiple agents.
When you exclusively contract with a buyer's agent to help you
find a home, that agent is able to freely search the entire
market of available homes, including For Sale
By Owner.
When you hire a buyer's agent, that agent will work as
hard for you as the best sellers agent, would work for their
clients.
A good buyer's agent can save you a lot of money in ways you
might never have thought about. Contract examination, product
knowledge price determination, negotiation, and helping you to find
the best lender...just to name a few.
Any quality buyer's agent will interview you thoroughly to
determine exactly what you want/need, and make their upmost
effort to bring homes for your consideration that meets your
criteria.
A variety of Buyer's Contracts are available. I suggest
six month contracts, and one where the buyer isn't directly
responsible for compensating the agent. Compensation would
come from the proceeds of the sale based on negotiated
compensation with a FSBO, or as per the advertised commission
offered by the seller in an MLS listing. I also recommend
that should the performance of either party not be up to snuff,
that either party could terminate the contract. Finally, I would
require that the buyers agent did not work with more than four
buyers at a time.
Look for agents with an ABR certification. An ABR,
(Accredited Buyer Representative), means that the agent has been
specially trained to work with buyers. This is a distinct
advantage, because less than 10% of agents, nationally, hold this
important certification.
The point is this, when you hire a buyer's agent, you are
getting the full focus and attention of that agent.
Hiring a buyer's agent will give you a much better chance of
finding exactly what you want faster than working alone or with
multiple agents. This is proven fact, so when you start
thinking about buying a home, hire an exclusive buyer's agent,
one with an ABR, to save you hassle, time, and
money. It's the smart thing to do.
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The cost of money has been
fluctuating between the low and mid 6% range for some time.
No immediate change is anticipated, and local lenders have
plenty of money...right up to 95% of loan value for credit worthy
clients. Some lenders have the ability to lend 100% with a 1st
and 2nd mortgage, and other special programs...but ya gotta
ask! For those with credit and liquidity issues, FHA or VA
are alternatives; only 3.5% down is required with FHA.
But right now, it's all about credit ratings. If you want to
buy a house, and money is tight, I suggest that you do not buy a
thing on credit before you close on your home. Lenders
run yet another credit check right before the act of sale.