Put that newspaper down......

Studies indicate that real estate advertising in newspapers has declined by up to 24%. And while many of the publishing giants are intimating that, just like the real estate market, this is a cyclical decline, others are learning quickly that those lost advertisers will not return. The shift is definitely toward online advertising - an easy, inexpensive and immediate way of reaching consumers. The advertiser also has more control over the ad copy, and can see a proof immediately, before it's too late.

But there is a bigger issue here for real estate professionals. At least for me and several of my colleagues. The media has ridden rough-shod over us for the past two years and so we are voting with our feet!

How many times have you seen the negative articles regarding the housing market, illegal real estate practice, stories about the decline of the real estate industry and then on the very same page an ad for real estate services? Why should the real estate industry contribute once cent to a medium that does not support our existence? There are plenty of positive stories to be found about the real estate market but these never seem to make it into print news.

With severely biased and unsolicited views, the print media paints a dark and gloomy picture of the housing and investment market. In the past, very few options for advertising properties for sale existed, but no longer! The real estate industry has a vast horizon of opportunity for marketing and we're changing our methods to meet the needs of our consumers. In this society of instant gratification, many buyers don't want to wait for already outdated print ads when they can access property information in real time via the internet.

Don't bite the hand that feeds you, Mr. Hearst.

Your listing has expired.....

Where have those 6 months gone? Your current listing has expired and you find yourself in the position of wondering what to do. Do you renew your listing with your current real estate professional, or do you interview other agents? Before you do anything, there are some crucial questions you must ask yourself.

Did your current agent return your phone calls promptly, or did it take a few days for him/her to get back with you?

Do you feel you were adequately informed about the market activity of your listing and what your agent was doing to promote your home?

What services did your current agent offer and which of those services do you feel you didn't receive?

What other services would you like to be offered?

What qualities do you require in your real estate professional and does your current agent posses those qualities?

I certainly cannot answer these questions for you but I can give you a real estate professional's point of view. One thing that absolutely irritates me (especially in this market) is the failure of other agents to return my calls in a prompt fashion. I have made several calls recently to arrange showings and half - YES HALF - of those agents STILL have not returned my calls. Those that do often make me feel as though I am bothering them. How do you feel when your agent returns your calls, if he/she does at all? Do you feel like you've interrupted their busy day or do you feel like you are the only client they have? Remember, you are the employer! That agent should be walking all over him/herself to return your call or, a novel idea, actually answering the phone when you call!

I've talked to many sellers when their listing contract expires and the first question I ask is what did your former agent do to market your home. The answer almost invariably is "I don't really know". I sometimes even hear "Once we signed the contract, I never heard from him again!" As the employer, the agent is responsible for reporting exactly what he is doing to get the job done (i.e., sell your home). If he's not willing to do this, he's probably not doing anything.

What services were lacking? Were there any services your former agent offered and didn't deliver? I like to begin a marketing appointment by asking sellers which services are important to them. Once I have made a list of the services they quote, I know I can always over-deliver! The standard services are easy; will your agent go above and beyond for you?

In short, at the end of your listing contract you have to analyze how you feel about the process to date. Are you satisfied or disgruntled? Remember it's not always the "name-brand" company that provides the best service.

Questions or comments? I welcome them! Have a great Sunday.

A foreclosure? Now what.......

So, you received a letter of Intent to Foreclose - otherwise known as an "acceleration" of your loan. Now what do you do?

First, contact a real estate attorney. I do not propose to be able to offer legal advice to you, but I can tell you that you may have some options.

Will your mortgage company stop the proceedings if your house is listed for sale? This is sometimes the case, especially with VA and FHA loans. It pays to find out. Also, if you do intend to list your house, make sure that the real estate professional you select has experience with pre-foreclosure properties.

If you think foreclosure is eminent, you should contact a real estate professional immediately, BEFORE you receive a notice of foreclosure and get your property listed! Again, this isn't the time to try to MAKE money, but at least pay off your loan to prevent a negative consequence to your credit history.

It's OK. Take a deep breath and do everything one step at a time. Remember that real estate professionals are here to help and hold your hand through the entire process. You're not alone!

Have a great Thursday.

What I'm hearing.....

Happy Wednesday, everyone!

I have been hearing from several of my colleagues that they are getting busier recently. I've already told you that I see things picking up as of late, and now I'm hearing it from others!

The problem is that with the increased activity in showings of listed properties, the sellers believe that the market has swung back to the seller's advantage and this is not so. Sellers must keep a level head at this point and realize that buyers are coming out of hiding because of the pricing of listed homes. This is NOT the time to raise your list price and try to make some excellent money.

This is the time to price your house fairly, to seek good advice from your real estate professional and weigh the pros and cons of each offer you receive. Buyers will not compete over your property - there are 4 others out there just like yours. Concessions as far as paying the buyer's closing costs, first year of insurance or making necessary repairs may be in order.

Be smart. If you want out of your current house, you must play nicely with the buyer. And if your real estate professional tells you that you are in the driver's seat, find someone else who will tell you the truth.

Here it comes.....

Wow! This week has really gotten away from me. Sorry I haven't posted since Tuesday, but it's nice to know people are interested in what I'm saying from all the emails I received.

I'm working with buyers and it's only proving to me that people are ready to buy now! School will be back in session toward the end of next month and buyers want to be settled in their new homes before then.

I will offer a bit of advice to buyers - especially first time buyers - and I think I've said this before. Make a list of things you MUST have in your new home and things you would LIKE to have. When your agent sends you properties to look at via email (hopefully he's doing that), weed through the properties using your list. You don't need to see everything that's on the market, you just need to see the right houses. If you have 16 houses on your list, narrow them down to the best 5. I know buyers feel like they are going to miss the next best thing if they commit to one property, but you know what you like when you see it. And if a particular home meets all of your criteria, that's the one for you.

Your agent should be able to offer you advice while looking at properties. He or she can put into perspective the pros and cons of each property and relate them to the things you have told him or her about your perfect home. For instance; "well, this does have the large bedrooms you like, but you said you needed room to store your RV and this home definitely does not have that. You wanted a swimming pool and this home doesn't have one, but it does have the fireplace you wanted and it's in a great neighborhood."

Trust your instincts and don't confuse yourself by looking at too many homes. Make notes while you are looking at each one because you will surely forget which one had the wall to wall carpet and which had the tile when you get home that evening.

Ask to see your favorites for a second time and look at them with a more critical eye. Before you know it, you're ready to make an offer. Talk to your agent about the offer - you'd be surprised what types of deals are being made in this market.

As always, I'm here to answer your questions. I hope everyone enjoys their Sunday.

It's worse elsewhere.......

National headlines tell the tale of the record number of foreclosures in this country, with California leading the pack. The impetus for these court actions stems from the variable rate mortgages so popular in the last few years and those 3 and 5 year fixed rates expiring. Many are finding they can no longer afford to live in their homes.

It is for this reason alone that there are several bargain properties available to buyers. Homeowners are willing to sacrifice profit for peace of mind and it's the buyers that are winning. Still, gun-shy consumers are only sticking one toe in the marketplace. The investors see a change happening in the economy, and the last three days of historical high closes of the stock market are evidence.

With an election year quickly approaching, 2008 may show us more conservative numbers in the economy - reflecting a "wait and see" approach to the change in government. It is imperative consumers realize the coming storm and get into the market now. With more oversight of the mortgage industry, buyers are increasingly protected against fraudulent practices and can be assured of the lowest rates.

My advice is to come down off the fence.

Open House today.......

From 1-3pm I will be hosting an Open House at 1316 Riverview Drive in Tarpon Springs.

The home is offered at $375,000 and is an incredible bargain for the intelligent buyer. With 5 bedrooms, 2.5 baths, 2 car garage, wood-burning fireplace, HUGE pool under a screened lanai, hardwood and tile floors and almost 1 acre of land, you can't help but fall in love with this home.

You'll be happy living in the Sunset Hills area of Tarpon Springs. You will be within walking distance to both Tarpon Springs gulf beaches, all three schools and in a neighborhood which boasts million-dollar homes.

Make a LANDMARK decision today and come see me at the open house. You won't be sorry.

What other evidence is needed.......

And more of my prediction comes true!

Any of you who watched the national news last night saw most channels leading with a story about an historical day at the stock market. The Dow closed at a record high and the reason? Investors plunging tons of money into the stock market. We know as the stock market goes, so goes the real estate market!

What other signs are necessary?

It's happening.......

Does anyone remember that on the 4th of July I said things were going to start happening in the real estate market? If not, scroll down a little and read the post. Well, call me psychic!

I've had an increase in activity over the past few days, an increase in referrals for buyers and my mortgage friends are telling me that loan applications are starting to appear again. So I want to encourage everyone who has been on the fence about buying or selling to make your move before the Fed starts raising interest rates like they say they are going to.

Remember I'm always available if anyone needs advice or wants to use this forum as a sounding board. We've stuck out the market this far, and we're not going anywhere anytime soon!!!!!

Have a great Wednesday.

But I don't like the paint color......

I've heard it before - and I would guess so has every other agent in the business. You take a buyer to a home you know is perfect for them and they say "Oh, the paint is hideous! This one is a definite NO."

This may be a sign that the buyer is not serious about buying and is looking for an out in an otherwise perfect property. But it may also be a more serious condition; lack of vision.

Buyers must ask themselves what they absolutely must have in a home and the list should be comprised of things like the number of bedrooms, bathrooms, kitchen size, location and distance to schools. Then buyers must ask themselves what things they can overlook or change easily in a home such as wall color, flooring, or landscaping. While we know these things can help the buyer form their first impression of the home, the buyer must take into consideration the structure of the home after the initial shock of fuscia walls, a dying yard or dated shag carpet.

Does the home have everything the buyer requires? Are they looking for a four bedroom and this home only has three? Sometimes that fourth bedroom is a "want" and not a "need" and can be overlooked. Is the home in a gated community or a non-deed restricted neighborhood? Which do the buyers prefer?

If you have a good foundation and the house meets your needs, it's the one to buy. Anything that needs to be done cosmetically to a home only represents the buyer's personality and taste and should be seen as an opportunity to make that home their own.

Remember, the time to buy real estate is yesterday.

Have a great Tuesday!

Department of Justice vs. NAR......

I received the following email last evening:

"Can you explain what the suit of the National Association of Realtors by the Department of Justice is about?" I can explain this in one term; anti-trust.

Here is the long and short of it. Traditionally, a property listing is "owned" by the licensed broker of the real estate firm. As each real estate agent works as an independent contractor under the broker's license, the broker has the final say as to how a property is marketed, etc. With the advent (and subsequent near collapse) of the discount brokerage business model, the internet presence of these brokerages became important since their incomes did not support mortar and brick offices.

As these discount brokerages started to flounder, they sought ways to increase their business numbers by showing the general public that they were still popular. Their solution? Begin advertising other brokerage listings on their websites, thus leading the public to believe they actually "owned" more listings than they did. Their defense in this strategy was that these properties were listed on MLS (Multiple Listing Service) and could be accessed by any brokerage at any time anyway. Plus, they contended, they were offering the public a way of searching the MLS through their own websites and consumers who utilized this service were going to see these properties anyway - don't we all want to make a sale? And doesn't everyone benefit from this? The answer is no.

The National Association of Realtors stepped into the forray and issued a policy allowing brokers to opt-out of Virtual Office advertising of listings by competitors. This means that the broker has the right to say that he does not want his listings accessible by the public through another broker's website. At first blush, this may seem like it's unfair to the seller. Doesn't the broker want his listings exposed in as many arenas as possible and isn't the restriction hurting the seller. No again. In fact, this policy is protecting the public trust.

Imagine you are a seller and you are researching firms to handle the sale of your home. You obviously start with the internet. You pull up ABC Realty and see that under their "listings" tab, they advertise over 1800 listings. Hey, they must be really good! Then you pull up Large Franchise Real Estate's website and see that they offer only 210 listings for sale. It must be because LFRE charges a higher commission than ABC that more people are opting to work with ABC. Wrong. ABC may actually only have 5 listings of their own and are advertising 1795 listings from their competitors. But you decide to work with ABC and find down the road that you are paying to advertise your own property, you are handling phone inquiries about the home, you are manning the open houses, you are negotiating the contract and you can't reach your broker by phone.....but you're only paying 2% commission for this luxury! When you realize the folly of your decision, you want to cancel your listing contract with ABC Realty, but find that you have to pay them a fee to withdraw your listing! Of course they are working against you! They've tricked you and taken advantage of your trust.

I work hard not only to obtain but maintain my listings and I don't think it's fair for a discount broker to take the credit. I don't believe this is against the interest of public trust, and by no means limits competition. Let ABC Realty go out and get their own listings by telling the consumer all of the services they offer...oh, that's right; they don't offer ANY! So they have no confidence in their own business model, want to use the fruits of labor of other companies, and want to sit back and collect their commission check at closing without having to get their hands dirty! Sounds like anti-trust, but on the part of the discount broker.

So now the Department of Justice has filed a suit against the National Association of Realtors saying they have limited competition by not allowing blanket permission for anyone to advertise any listing on his/her website. Please recognize that the Department of Justice is also involved in the petition of the federal banking industry to enter the real estate business by offering brokerage and property management services. While the law sides with the real estate industry in blocking this permission, it seems to me the DOJ has found a way to make the industry look like a villain by saying " Mr. and Mrs. Public, do you SEE that the association of realtors wants to control the Multiple Listing Service? It should be a public utility!" Well, my answer to that is, if the public wants access to the MLS, they should pay for access just like I do! The MLS was created as a way for brokers to have access to up-to-the-minute listing information instead of waiting for the MLS book to be delivered each week. It is a tool we as an industry developed and use as a convenience to ourselves. I certainly believe that my listings should have as much exposure as necessary, but with my permission. I take pride in the services I offer my clients, and I want to ensure that any company promoting my properties will offer the same level of service.

So the public will have to decide. As the discount brokerage business model fails because the public has already decided - that they want actual service for their dollar - they are clinging to the lifeboat for help. I strongly support free enterprise and competition, but the competition should be real; not perceived.

I enourage you to tell me what you think. This could be a fantastic discussion forum. I promise to respond to each opinion.

Lend me your ear.....and an arm and a leg......

Surely everyone has seen the reports of the stricter guidelines imposed on the sub-prime mortgage market. The sub-prime market was a savior for those borrowers who were credit challenged or couldn't verify their income on paper (???).

The new guidelines call for less "no documentation" loans and for the lenders to go a few steps further in verifying that the borrower can indeed handle the repayment of the loan in the future. Makes sense, doesn't it? I mean, one of the reasons we are experiencing historical foreclosure figures is because many people got into a sub-prime loan a few years back and now it's time to pay the piper. Some borrowers have seen their monthly payments increase by as much as 50%! A few obtained loans without escrow accounts for taxes and insurance, and when those bills come due they can definitely break the household bank.

The "teaser" rates presented to these borrowers were dangerous. I have sat at many a closing table when the mortgage broker couldn't be found because he/she had lied to the borrower and this was only discovered at closing. "What do you MEAN my interest rate is actually two points higher than what the broker said?" And so, buyers at the closing table are forced to decide: complete the sale and close, or risk legal ramifications for walking away from the table. It is a heartbreaking dilemma - especially after I had warned many borrowers about using mortgage brokers or "correspondent lenders". But I won't go into that right now. Suffice it to say I have not had good experiences with mortgage brokers but that I don't believe they are ALL evil.

So, what is a buyer to do in this market when he has less than perfect credit? First, make sure that all the rates, monthly payments and escrow reserves are presented to you WAY before the closing date. This avoids any surprises and still gives you time to shop around for a better deal.

Second, if your new loan includes a pre-payment penalty, SHOP AROUND! This means the lender wants to ensure they recoup their interest before you refinance or sell and if the pre-payment penalty period is longer than 2 years, something is wrong.

Third, realize that if you are being pressured by statements such as "this is the ONLY way you are going to get a mortgage in your situation", you should move on. You may not be a sub-prime borrower to every lender. Don't worry about your credit report taking many hits while shopping for mortgages - this is allowed within a two week period without negative ramifications.

In short, if it feels wrong, it is. If you have a good and trusting relationship with your realtor, as him or her to recommend a lender with a good reputation. Remember, you are the customer and you should feel like everyone is working FOR you, not against you.

Mark this day on your calendar......

First of all, Happy Fourth of July (and Happy Birthday to me!).

I want you to mark this day on the calendar because I am declaring this the day the real estate market starts its upswing. That's right....you heard it here first! And here are the reasons:

- Mortgage rates are still at historical lows, but they will be rising soon according to the Feds. It's time for buyers to lock in those great rates. It's also time for people to get out of their adjustable rate mortgages and perhaps find new homes.

- Prices have come down as far as they are going to. Many sellers are going to be withdrawing their properties from the market because they will NOT be willing to take a loss just to sell their homes. The prices you see are the prices you are going to get.

- Florida will be voting in January on the proposed property tax reform. Whichever way the vote goes, people will want to buy before the end of the year due to probably changes in the way we pay property taxes.

- In the past 3 weeks, I have personally seen more sales occurring in this area than in the past 6 months. I think people are finally waking up to the fact that this is indeed a "normal" market and they've stopped buying the bill of goods that the media is trying to sell.

I personally predict that buyers are going to be coming out of the woodwork now - especially before school begins in the fall. There is NO reason not to buy, unless you believe the media who has its own agenda tied to the Department of Justice and their wish for large banking institutions to enter the real estate business (but that's another post for another time).

There are some fantastic bargains to be had right now, but I don't think this will continue for long. So mark my words!

NOT the worst market......

Historical records show us that 2006 and 2007 are actually NOT the worst real estate markets. That distinction goes to 1976 when appreciation was down 34%.

With mortgage rates steadily climbing, it is the time for those of you thinking of buying to take the plunge and just do it! I know everyone is waiting for prices to come down even further, but there are some fantastic deals out there and they'll be gone before you know it.

The time to buy real estate is yesterday.