As Thanksgiving approaches, we talk alot about the Pilgrims...Everyone obsesses about how the started the holiday and a big feast.

Do you know what I think about (because, of course, I'm a Realtor)? They invented first gated community in America!

• 1 and 2 room models
• Large kitchen conveniently located throughout whole house
• Expansive hearth/stove/range/microwave combination
• Natural stone flooring (lots of stones in all that DIRT)
• Wall to wall to wall to wall wood paneling
• VIEW from homes with windows
• Lofts
• Large backyards (lots 50' by 50')
• Small complex (just ninteen units)
• Security (eight to nine feet walls)
• Low Association dues (community service)
• Community bathrooms!

Plymouth Rock, Massachusetts

When the Pilgrims arrived at Plymouth Rock there was virtually an untapped plethora of lumber for home construction. While none of those homes still exist (photos are of replicas), historians surmise that wooden homes were built utilizing English construction techniques. Oak, pine, walnut and cedar were used to build frames. Clay, sand and gravel were used, as well as wood pins for fastening. At first, the roofs were thatched, but numerous fires lead lawmakers to prohibit that starting in 1627.

Most homes had dirt floors and later board floors. There was one central living room where everything happen: dominated by a hearth. Then, there were lofts where children and servants slept. There were very few windows and those had to be shuttered in the winter--the first settlers wrote home and encouraged prospective colonists to bring paper and linseed oil to use instead of glass. Glass did come eventually.

Colonist families averaged seven to eight children who were home schooled. However, by the time the youngsters reached six or seven years of age, they were put to work helping their parents.

Religion and civic accountability dominated the settlement’s social life--and laws prohibiting idleness kept everyone out of trouble.

If you would like to read more on your own about the Pilgrim settlement the links below were great resources.

http://www.mayflowerhistory.com/History/plymoth1.php

http://www.themayflowersociety.com/history.htm

1030 EAST 2ND STREET #12 , LONG BEACH, CA 90802 http://www.1030E2ndSt.com
$199,900   Bedrooms: 1 Bathrooms: 1 Interior Size: 650 sq. ft. Lot Size: 749 sq. ft. One of the best parts of Long Beach is the beach, you're walking close with this unit. Close to downtown, all the new restuarants, shopping and entertainment venues. This is a top-floor corner unit for maximum privacy and light. Pristine common grounds. Building was just repainted. Everyone is getting new double paned windows--ask the seller to buy some for you! Forced air heat and central air is available with an HOA approved unit. There's one deed garage space in a two-car garage under the unit with storage.

 

"El barato llega a ser caro"

 

That's what Judge Marilyn Milian of People's Court says -- she's always quoting her grandmother when she admonishes buyers for taking advantage of a deal that's really too good to be true.

 

In fact, my business partner Randy always tells me: "If it seems too good to be true, it probably is!"

 

Yet buyers are always asking me about FORECLOSURES, because they want a "deal."

 

Are there really "deals" in real estate?

 

Foreclosures are cheap -- or at least, they "look" cheap compared to other real estate prices.

 

So are foreclosures really a "deal?"

 

Here's the real scoop on foreclosures:

 

Yes, foreclosures are "cheap" in comparison to lots of real estate prices.

 

Banks want properties to sell fast.

 

So they instruct their listing agents to price the properties low, to get offers.

 

Banks are in the business of making money off of money.

 

So when they take back a property, they want to convert it into money as quickly as possible. Owning property is expensive... taxes, maintenance, insurance, etc.

 

However, the banks don't "give away" property, either... there's no money in that!

 

Yes, banks may take a loss--but they always try to get the highest amount the market will bear.

 

I know, because I do "Broker Price Opinions" for banks all the time.

 

When banks are marketing a foreclosure, they order these Opinions from local brokers and try to determine the fastest, highest price.

 

So while foreclosures are "priced low" -- they aren't priced "lower" than the going rate.

 

The market... supply and demand... the ability for buyers to get loans... inventory... it all goes into factoring any price.

 

Lots of houses on the market, you have to compete for the few buyers out there, you keep lowering the price to "win" the competition.

 

Therefore: You don't have to buy a foreclosure to a deal.

 

A seller who wants to and has to sell, will lower their price, too--including a seller who owes more than the house is currently "worth" (scroll down to my entry on Short Sales).

 

Also, banks have layers of decision makers.

 

So when a bank sets a price and terms... there's not a lot of room for negotiations. Once the bank decides on a price, they have researched and confirmed to their satisfaction that the price is right, so there's not a lot of room for changing the institution's mind... there's SOME wiggle room--because there's probably a "range" where a bank can okay without more research and approvals, but the bank usually goes with it's best price right out of the gate to get the deal done.

 

Regular sellers are deciding for themselves what time and money is worth... so you could "low-ball" a seller and if they HAVE to move or are TIRED of waiting, they might lower their price for you.

 

In addition, many banks don't want to do repairs, wait for contingencies, or pay for "extras." In fact, some banks have their own purchase contracts where what a buyer would normally have in terms of time and conditions are not an option... For instance: in a California Association of Realtors contract, buyers usually have 17 days to inspect the property and not risk their deposit. One contract I've seen recently only allows the buyer 7 days to have a home inspection and AUTOMATICALLY puts the deposit "at risk," if buyer doesn't cancel before the deadline.

 

Finally, foreclosures may require extensive repairs.

 

Some foreclosures are still in good condition -- but I've seen some pretty beat-up foreclosures.

 

Here's the rationale:

 

If you don't have money to make house payments, you probably don't have money to make repairs--and if you did, would you repair a property you are losing? or save the money for a rental deposit?

If you are "losing" your home, you might not have money for a cleaning crew or some people might even be bitter on their way out the door.

 

The most EXTREME case of a foreclosure needing repairs was a home I showed last month.

 

All but two of the doors were gone. The countertops were gone. The toilets were pulled right off the floor and missing. Some of the light fixtures and faucets were missing. The house was nicely remodeled, but I think the people who remodeled the house felt like they improvements were "theirs" and just removed them!

 

The house was priced really "cheap" -- but you would have to buy a lot to just live there... (unless you could live without toilets).

 

Some foreclosures will have newer flooring and new paint.  And some will just be dirty.

 

So my conclusions, as a busy Realtor in this market?

 

1. Buy with a Realtor.

We can run numbers on foreclosures and fair market sales to help you get the best price the market will allow regardless. If we're dealing with banks, we can speak their language. If we're dealing with resident/owners we'll help you research that sellers situation so that maybe you can negotiate a price you think is a "deal."

 

Either way buyers do not pay for their agent's commission. Sellers pay agent's commission.

 

2. Foreclosures are priced low, but may require some work.

 

3. Foreclosures "pressure" the market to lower prices to compete... so even if you look at non-foreclosures, you are liable to get a competitive price.

 

4. Right now most foreclosures are "listed" on the MLS -- there is no "inside track -- no "special list" -- no "certain way" to buy a foreclosure. Many of the foreclosers available are sold through traditional and conventional means, but Realtors, such as myself.

 

I've been on those websites that say "foreclosure" listings, etc. There's nothing there, that I can't find on my own, being a Realtor.

 

5. Use Randy and me as your agents: Randy has been around through a couple of real estate cycles and knows how to negotiate with banks. Randy is a broker so he has 25 years of experience in real estate contracts and have overseen more than 7500 real estate transactions. I show about 40 properties aweek, so I am keenly aware of the local inventory, price trends, condition. Also, I complete approximately 100 Brokers Price Opinions a month, so I know what banks are analyzing in terms of value. We can help you make a deal you want!

 

Let's go find a deal!

 

 

488 W. Ocean at Long Beach Blvd   google map   yahoo map

360 W Avenue 26 at Broadway   google map   yahoo map

14746 Betty Jean at Clark   google map   yahoo map

If you're looking around for a house right now, to take advantage of the lower prices, you're going to run into "Short Sales." There's a lot on the market in this area.

When the mortgaged amount on a house is higher than the current market value of the house... a sale will be "short" the amount owed. Someone buys a house for $400,000 last year. They have to sell, but the house is only worth $380,000 right now. That means the borrower should have to pay "$20,000" to sell or that the sale will be $20,000 short.

 

Many sellers won't have the extra money to pay when they sell. Many sellers in this position are being forced to sell because they HAVE to move or their house payments may be going up.

 

If you are a distressed seller, the lenders may allow you to sell the house and accept the "short" fall of the amount owed.

 

It depends...Lenders and mortgage companies are more scientific about calculating market value than regular sellers who dream about a high sales price and imagine their house is worth "more" even in a declining market climate. Lenders evaluating a short sale use comparables and broker price opinions (where a local real estate agent, not involved in the transaction, gathers information about the appr. value) They have to be more realistic when they're crunching numbers. Financial institutions tend to understand that market conditions are what they are, so with appropriate evidence, they reconcile that prices are down, even if they don't "like" it.

 

If you're buying a short sale, you can be sure that you are buying at basic, approximate market value... probably not too inflated, but probably not at a "foreclosure" price. Foreclosures are discounted maybe a bit further because now the lender actually owns the property and is paying "carrying" costs. Lenders usually want to get rid of property they own fast because there's no income and they have to pay property taxes and such. Also a foreclosure is vacant and maybe there are some repairs and cosmetics needed, maybe the foreclosure required some kind of eviction so maybe the door was slammed hard on the way out. In some neighborhoods, foreclosures have boarded windows, etc.

 

So the good news is that you probably won't have be be afraid of "over-paying" for a 'short sale' and owners are usually nice to their houses, especially when they want to sell --

 

For the buyer, a short sale works pretty much the same way that a normal transaction between buyer and seller works -- EXCEPT it takes so much longer!!!! Lenders and banks have "layers" and "systems" that an offer must travel through before it can be "approved" or "accepted." Depending on the lender, how may sellers looking for approvals at any given time, how many people the file has to visit, how many file handlers are on the job... just getting the offer accepted could take weeks.

 

Once the offer is accepted, things will move along as normal--it's just getting that dang thing approved!

 

If a seller is selling "short" -- maybe they haven't been able to make repairs? Maybe there is no money to make repairs during escrow if a home inspection uncovers an issue. Once the price is negotiated, adjusting it or expecting

 

Sometimes the lenders will want a "quick" escrow because there's an expiration on the approval. (Ironic? you'll wait for weeks and they want YOU to hurry up!)

 

Also, some short sales are listed "below" market value, to get offers. Therefore, keep in mind -- the lender may only approve a "higher" than list price, so you may not be getting the "deal" you hoped for.

 

If the property IS a good "looking" deal... chances are you'll be competing with other offers. You'll have to have a great financial presentation to impress a lender or seller who doesn't want you to fall out of escrow. Therefore, you'll want to be "pre" qualified for a loan and know how you're going to pay closing costs or fees and be able to "prove" that to the seller and or lender involved with the property.

 

Quick commercial for me! If you want to take advantage of short sales or foreclosures! Please use an agent, namely me or my partner BECAUSE -- we have been through all types of sales and can really help you avoid the pitfalls. while maximizing the benefits of each!

 

Also, if you have any questions about Foreclosures, Probates, Auctions, Short Sales, etc. PLEASE EMAIL ME!!! I would be happy to answer you questions personally or in the Blog!

Since 2000, I've been with Century 21 Sparow -- then it was Century 21 Sparow-Shoreline -- and now it's Century 21 BEACHSIDE!

 

The Beachside thing requires a "move" across the street however!

 

My new office address is:

6265 E Second St.

Long Beach, CA 90803

 

Everything else is the same -- EXCEPT:

 

We have more in-house power! Beachside has more advertising venues, more offices throughout the Southland, more agents... it's supposed to be a great thing for me to offer you in the way of improved service.

 

And, in case you're interested, I'm closer to the Albertsons and it knocks off 30-seconds drive time to office.

 

More later! K

 

 

It was an 80's teen movie hit. Ferris Bueller was a lovable high-school con man who talked his girlfriend and best friend into cutting school. Throughout the day, hookey for the trio becomes an adventure that leads to self-discovery, an expensive Ferrari being wrecked, and the continued frustration of Ferris' principal and Ferri's goody-two-shoes twin sister to "catch" and expose him.

 

While the movie was set in a Chicago and Ferris' home located in a suburb, the actual house is in Long Beach, California.

 

Exteriors of the home and the infamous "chase" scene at the end of the film (where Ferris is trying to get home before his parents find out) were shot in a higher-end neighborhood called Virginia Country Club.

 

The traditional "look" of the area and it's proximity to Hollywood probably made this a highly convenient choice. However, regional trees -- like the familiar-to-California Eucalyptus--were a problem. The then resident of the house said a big tree in the backyard had to be "disguised" during filming. 

 

I don't have too many details on the actual house because it last changed ownership in 1993--before the multi-listing system and tax records went "internet"--but I do know that it's a 4900 sq. ft. house on a little less than a half acre: seven bedrooms, five baths, a pool, and it was built in 1928. Just an average Country Club Home...

 

The area is adjacent to the Virginia Country Club and Golf Course -- named Virginia, by Col. Chrales Rivers Drake, who was proud of his home state. The golf course (which was the city's first) was original located closer to downtown and the old, now gone Virginia Hotel. Then, it was moved to Recreation Park on the Eastside, before it was moved to it's current location on Long Beach's North West.

 

While the movie was very popular in it's time, it's now a "classic" and appears "timeless" in it's appear. Even my oldest son who was born the year it was made (1986) loves it and relates.

 

It starred Matthew Broderick and Jennifer Gray, children of famous actors, who were dating at the time. Matthew is probably most recently known for his role in The Producers--a Broadway musical. He's married to Sarah Jessica Parker (Sex in the City) and they have a son.

 

This was not the only film shot in this 'hood. Come back in a few days to see more!

 

Reference sites: 

 

 

 

After spending 8 years as a TV housekeeper, you'd think that Tony Danza's real-life house should at least be clean AND now it's for sale! Internet sources say that the TV star's Sherman Oaks pad is on the market. (Just so I wasn't proliferated gross gossip, I did check the tax records and the house belongs to the Danza family with the same first names as Tony and his wife--so I'm thinking it's at least probably true.)

 

Rumor has it that the couple is split after more than 20 years, their home in the San Fernado Valley is currently listed.

 

Danza's perhaps most famous for his Who's the Boss '80s TV show. He was "discovered" in a New York gym, training to be a boxer when the late '70s TV hit Taxi was being cast. (Legend has it that the producers "renamed" the show's character 'Tony' because the young fighter was so inexperienced they were afraid he wouldn't remember his "character's" name while "acting."

Since the '80s, Danza's appeared on several more TV shows, toured with his cabaret act, did a 2-year stint as a talk show host, and when I was in Vegas last month, I saw that he is starring at The Paris in an abbreviated version of the Broadway musical: The Producers. (I checked on that, too, he'll be there through early Feb.)
 

So what is a TV stars house like? Other than it's priced at more than $6-million and it's in a gated community, it's seemingly "normal:" not highly pretenious, just huge at 6778 sq. ft. (That's like a whole lot size in most neighborhoods here in Long Beach/Lakewood.)

 

The house was purchased from the late Robert Urlich (Vegas) in 1996 after the Northridge earthquake for about $1.5 million. Then, the Multi-listing entry says it was "completely rebuilt from the ground up."

 

It's on 2.3 acres in Longridge Estates. There's a guest house, pool/spa, gym, tennis courts and a batting cage.

 

Remember, I am licensed to sell all through the state and have sold from South Orange County to Malibu--so if you wanna buy, I'm your buyers' agent! Call or write and I'm thinking roadtrip to the Valley!

Sources:

Home buyers say they want:

 

That's according to statistics released by the National Association of Realtors in October's Realtor magazine who surveyed buyer preferences.

 

Even if your home doesn't have any of these qualities, it's still important for you to know what matters to buyers--ESPECIALLY important to me, while buyers have an increasing number of houses on the market to choose from.

 

It helps "position" your home against the competition. I know which features to push "up-front" on marketing materials...

 

And it helps YOU to know which improvements to emphasize when the remodeling "itch" starts twitching...

 

You can add central air to upgrade your home, you can have a home theater system installed.

 

Of course, you can't "create" a larger garage...but you can invest in a storage system for maximizing space and organizing what's there. (photo comes from: www.garageenvy.com)

Likewise, if you don't have a "walk-in" closet in the master bedroom, you can look at space-saving organizers.

 

The one thing in the research that puzzled me was a separate showers in the master bath? I'm sorry, if you can share a room and share a bed--why is having your own "dedicated" shower an issue? Sinks, yes, with toothpaste and whiskers... but, I need some help with the showers?

 

Any buyers out there that can explain that one?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Before I start "blaming" people for the mortgage/housing market "crisis" -- let me share with you my own personal philosophy and a quote foist on my own family ad nauseaum .

 

"Less blame. More responsibility. Guilt doesn't fix things, actions do." 

 

So why am I writing about "who's at fault?"

 

You have to go to the leak before before you can stop the flood!

 

So this morning, on MSN.com, there's a headline: "How to fix America's Mortgage Crisis" -- so, I want to know!!!!? I'm a Realtor!

 

The article is by Liz Pullam Weston, "The Web's No. 1 Personal Finance Columnist."

 

She says that originally "people" blamed the borrowers -- they should have known that they couldn't really afford houses... they had weak credit scores, poor histories, no downpayments... they were being unrealistic and greedy!

 

(I don't know if I agree with those people--I'm reporting here.)

 

But Weston writes that lenders had a lot to do with the "mess" which is now lowering home values as foreclosures increase.

 

She says that subprime lenders were altering facts and "hiding" fees. Weston points to allegations against Americaquest, which is now defunct.... She also asserts that loan brokers were arranging very risky loans, then pushing the loans off to let the investors deal with the "payback."

 

I cannot speak from experience, because (knock on wood) to the best of knowledge NO ONE I've sold a house to is losing it to foreclosure or short sale right now. However, I am meeting this "victims" on the backside and trying to help them...

 

So how do we help? What's the answer? In the end, the article didn't really give me the "solutions" or "answers" I hoped for... it says that lenders should straighten up. I agree. (And, I also note that many of the "guilty" ones have probably gone out of business.)

 

Weston, also, suggests that there should be mandatory counseling for sub-prime borrowers ("sub-prime" being loans that are offered to individuals that don't qualify for "prime" rates. They pay a bit more for their mortgage because it's a bit "riskier" for the lender.) I think that if you're a responsible lender: YOU SHOULD be "counseling" your clients...

 

I still don't think I understand the answer for "fixing" this--even though, that's what the headline promised!

 

But, I believe that information is power, analysis leads to understanding and that is where the creative process for solutions begins...

 

If you'd like to read the article: here's the link.

 

PS, if you have the answers COMMENT!

Is dumb or smart to buy right now? Last time, I posed the question is it dumb? (see previous entry) -- and the analyst aol.com used said: could be.

 

Shortly after I posted the "dumb" side, a Wall Street Journal columnst, who writes "Fiscally Fit" answered my question as well! Only she says it could be SMART to buy -- (PS, I did say in that last post that I thought it could be smart, too, but I don't think she was copying me????)

 

I qualified my "it could be smart" with various scenarios. The columnist: Terri Cullen gives us two of those "smart" examples:

 

Here's what she says:

 

 

I see some very "desperate" pricing out there right now! I see prices maybe $50,000+ less than what properties were selling for last year... If you can get a favorable loan and you're expecting to hold the property for several years, until the market is appreciating again, you could find a very affordable home in a popular area.

 

Last week, I closed a sale for a buyer where the last sold comparable in the complex went for $739,000 and my clients bought for $615,000--plus received they received some concessions.

 

In July, my buyers closed on a house that appraised from much more than the contract price.

 

Both of these buyers are planning on staying in their home for more than five years... but if that's what you're planning... now could be the time to go?

 

If you want to read the whole article, here's the link: http://online.wsj.com/public/article/SB118893182671117143.html

 

The column also says, that if you're not sure about when you'll have to move and can't afford a fixed rate loan...maybe you ought to stay on the fence right now.

 

So let me know what you think? or write and ask questions!

 

 

 

Through a random act of carelessness (the dude that totaled one of my cars)

...and Toyota's faith in the real estate market (giving me a car loan), we have a Prius this morning.

 

Whenever I'm making a major purchase, I always try to pay attention to how I perceive (and survive) the process. How do I reach certain conclusions, what makes something appeal to me more than something else, and how do I judge value?

 

I want to remember these thoughts and feelings when I'm helping buyers look for a house...I want to be helpful and sensitive when others are making a major purchase.

 

So our first step was to decide on what car to buy.

 

Now, I've learned something very important from my clients!

 

I've worked with dozens and dozens of couples: straight, gay, young, old -- some are no longer together. But, the ones who are still going strong the next time they call me, have performed the same dialogue while deciding which house to purchase. And it always goes something like this:

 

One: "Honey, what do you think?"

(Listen, listen)--this is the major part

Second: "Honey, what do you think?"

(Listen, listen)--very important

 

Then, either one or both say: "Well, if you feel that strongly, I can make it work."

 

I swear, I just heard this exact dialogue this morning!

 

Some people say it louder than others. Some just do it with facial expressions and nods...but pretty much, the same thing happens every time with the couples who have lasting relationships.

 

Since I want to stay married, our conversation on which car to buy went something like this:

 

Me: "Honey, what do you want, you drive that car the most."

(Listen, listen)

Honey: "Is that okay?"

Me: "If you feel that strongly about it, I can make it work."

 

But to be honest, while I was smiling and nodding, I was thinking:

 

20-grand for a car?!? My dad had four Cadillacs that never cost that much-- added together!

I hate buying cars, the dealers try to rip you off!

Car payments!

Battery powered cars? Does it come with a remote so our five-year-old can play, too?

 

Then, I found out that one of my clients had one...

 

This guy is really, really smart. I helped him buy and sell a property. He researches everything thoroughly, he analyzes, he contemplates, he listens, he observes and he re-analyzes. In fact, he got me using comparison spread sheets on Excel with other clients.

 

So I'm thinking -- Do the right thing, God smiles.

I didn't fuss about the car, I'm validated.

 

Then, I did some research on my own: a federal income tax break, a significant savings on fuel, good resale value and a Buzz Lightyear dashboard.

 

Finally, my older kids told me their dad thought the car was stupid -- That cinched it. If my ex-husband didn't like it, I had to have one!

 

Then, my broker told me if I didn't want to haggle with car dealers, I should email about forty stores in the area with details on the exact car I wanted and let them bid online.

 

This is something my dad used to do with letters (if you remember what those were, you had to use stamps and wait days for an answer!)

 

So we email about forty dealers -- got some responses like:

 

"I can't give you a price now, you'll have to come here," or,

"Please call me on the phone and we'll talk about it."

 

But about five or six wrote back with hard numbers

 

Of those five or six there were at least a gap of $3000 ---

 

So I called the lowest bid and I asked if he had the car in stock.

 

When he said yes, I told him I was coming with a check and a loan pre-approval and I didn't want to haggle.

 

He told me: "I'll have the paperwork and the car waiting."

 

And, you'll never guess what happened when I got to the dealership!

 

He had the car waiting, full of gas and the paperwork all filled out -- with the exact price and terms we'd talked about on the phone.

 

He didn't try to upsell me on any "extras," "warranties," or "service contracts." (I'm not going to divulge his name because he'll probably be in trouble with his boss!)

 

He explained all of the paragraphs of the contract so I understood the terms. He gave me all my paperwork and explained to me what each piece meant.

 

Then, he sent me out the door with the keys.

 

So what did I learn from the car buying process that I can relate to real estate.

 

1. Do your research and be open! I wouldn't have thought of a Prius -- I was just being a good wife -- but I ended up being very happy.

2. You'll have to pay for certain things -- you're never going to get a Lexus for a Kia price (legally, I imagine)... quality, accessories, safety...all has it's price.

3. Haggling is not necessary--negotiate, yes -- but when you're at the going value...you're there-- if you don't want to pay, be happy with what you are willing to spend.

4. Being a good sales person is doing what the buyer wants... not upselling, jumping in with an unwarranted opinion, pushing too hard, etc.

5. Listen...

 

So I'm committed to giving my clients the same kind of service! Please let me know if there are other ways to improve --

 

or if you want a ride!

 

(The car is silent! At stop signs it actually turns off! You start it with a push button. And you don't need keys! So cool.)

 

K

 

If you want to enlarge the picture below, just double click.

 

"Existing-Home Sales Plunge in March"

 

That's AOL's top story on the Money and Finance page today...

 

Then, it says: "No sign of recovery..."

 

So what's the good news?

 

1. It's a buyers paradise! I have a couple of clients who started looking for a home last year and they were "stuck" in some less popular areas because of their price range. Now, the same price range lands them in them in the hip hoods!

 

2. All of those improvements should pay off now! If you upgraded your home to increase its value -- you will probably sell faster in this market place. Where all like homes in a certain location should be equal -- those homes in the best condition with added benefits (new windows, newer roof, remodeled baths and kitchens) will probably be snapped up first!

 

3. Win/Win is back in style. Buyers and sellers are negotiating again! Now, buyers aren't leaving the transaction feeling beat up and bruised! In the hey-day of the recent boom...seller's were calling all the shots, multiple offers were allowing them to sell to the highest bidder and bend all of the terms in their favor. Now, both parties have a chance to share the spoils which makes for great attitudes and smoother transitions!

 

So, if you're a buyer -- shop! If you're a seller, keep your expectations reasonable about how long it should take to sell and what you will actually receive.

 

The good news is I'm still in business...and the slower pace might give us more time to get to know each other?

 

There's been a lot of concern about what's going on in the real estate market lately...

Below are some recent quotes from analysts that are positive!

“You’ve got demographics that are overwhelming. There are 78 million baby boomers, their kids and minority home ownership has grown to about 50% from 40% in the last ten years. Interest rates are near historic lows, unemployment is under 5% and, overall, the economy is good. So, I think the long-term outlook for real estate is solid.” Jim Gillespie, CNBC.com. “Coldwell Banker CEO: Now Is Best Time to Buy a House,” March 27, 2007. Click here for article and related video on CNBC Squawkbox.

“It's unlikely homebuyers will be able to resist interest rates dropping another half a point, while home prices are also dropping. Also, the see-sawing stock market could be reminding home buyers of the volatility of investments. At least in a home, they won't feel the rocking motion of prices.” Blanche Evans, editor, Realty Times, “Existing Home Sales Show Surprising Gain. Will It Last?”  March 26, 2007. Click here for full article. 

"Overall, home prices should rise slowly this year, and many buyers have an opportunity now that was only a dream during the five-year boom. NAR President Pat Vredevoogd Combs, Realty Times, “Existing Home Sales Show Surprising Gain.  Will It Last?”  March 26, 2007. Click here for full article.

And, for my two-cents, not because I'm an expert, but because it's my blog!

If you look at real estate prices over the years...people who bought in the 1970s, 80s and 90s have seen hundred of thousands of dollars in gains since their purchase.

When you are willing to invest in a home or a property that you can keep for several years, chances are that it will appreciate.

Those people who bought in the 70s rode out the slumps over the decades and saw significant value increases.  

"Turning" houses: buying and reselling quickly, is risky. It takes impeccable timing and involves many economic circumstances out of your control to align.

Bue, investing in a home, enjoying the immediate tax benefits and experiencing gradual long term appreciation has proven over history to be a valuable investment.

Right now, there are some sellers anxious or desperate to sell--they have to move or they're loan payments are going up. Now,could be a great time to negotiate some sales prices under last years!

 

Does investing money in your home "pay off?"

 

For instance, if you remodel or add on?

 

Every year Realtor magazine does a special report where they determine an average COST of remodeling and the approximate VALUE you receive at resale.

 

Here are the numbers for our area:

 

A minor kitchen remodel:

Cost in Los Angeles: average $19,555

Value at resale: $20,081

Cost recouped: 102.7%

 

Bathroom remodeled:

Cost in Los Angeles: average $14,731

Value at resale: $15,013

Cost recouped: 101.9%

 

Family room Addition:

Cost in California: average $88,371

Value at resale: $72,247

Cost recouped: 81.8%

 

Adding a second story:

Cost in California: average $122,085

Value at resale: $123,969

Cost recouped: 101.5%

 

Replacing windows with vinyl windows

Cost in California: average$11,768

Value at resale: $11,338

Cost recouped: 96.3%

 

There is some very specific criteria that went into these numbers -- so these are just very general ideas...but if you'd like to see the whole article or ask specific questions...Write or call me!