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.

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.

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.