Watson Jar Openers Can Prevent Swine Flu

It’s not only flu season, it’s double flu season.  Everyone is reading about the H1N1 virus, commonly known as swine flu, and they are concerned about how NOT to get it.

Well, if you are a Watson customer, you have probably been given a Watson jar opener in the past.  If not, they are available at every Watson office, free for the asking.

Over the years we’ve come up with over a hundred uses for jar openers, but you’ll be happy to know they also work to prevent the spread of swine flu.  Here are the top 10 ways:

1. Use a jar opener to open public restroom doors.
2. Put your cell phone on a jar opener instead of other surfaces to avoid picking up germs on your phone.
3. Use a jar opener to pump your gas.
4. Select your items using a jar opener in the grocery store.
5. Place a jar opener over open beverages in public places to avoid air born germs.
6. Avoid confusing drinks at a party by always setting yours down on a jar opener.
7. Give your baby a fresh jar opener for teething if the other one is dropped.
8. A jar opener makes a perfect cookie placemat when snacking at work or school.
9. If you have to sign something with a public pen, hold it with a jar opener.
10. Use a jar opener to grab the office coffee pot handle.

And if all else fails, punch two holes in a jar opener, tie on a string, and use it as a face mask.

 

Open Letter to a Bunch of People: Maybe You Shouldn’t Buy or Sell Right Now

This may get me into trouble but let me be honest – if you don’t HAVE to sell your home right now or you aren’t really committed to BUYING a home right now, then maybe you shouldn’t. 

Right now there are many people who DO have to sell their homes.  They have financial hardships due to job loss, illness, family situation, etc. and we’re doing our best to help them sell their homes and avoid foreclosure. 

That increased inventory is depressing prices and you may be disappointed when we tell you what the market value is for your home.  So you may want to wait until we have sold the homes for the folks who really need to sell.  Then prices will begin to rise again and you can jump back into the market to sell yours.

Buyers?  This is the best time in decades to buy a home.  Interest rates are low, homes are at unheard of prices, and there is a huge selection of available homes.  So if you are buying your first home, or taking advantage of an opportunity to make an important move for your family, now is the time. 

However, it really isn’t a good market in which to buy a home to flip quickly.  If you are trying to buy someone’s home for pennies on the dollar with the idea of making a huge profit by selling tomorrow, this isn’t the right market for you.  Buying a home that is a good value and holding on to it for some time IS a good idea.

The truth is that we are constantly learning more in order to be able to advise our customers about foreclosures, short sales, tax credits, deficiencies, etc.  For many of us, this market has been more fulfilling on a personal level than ever before because our services and ethics have never been appreciated or needed as much. 

We still want to help buyers and sellers who NEED our help.  If that’s you, then give us a call.

Why Are Designations Important?

Real estate is like medicine.  Neither is a static profession that once you learn it that’s all you need to know.  Both are changing daily.  You would not go to a doctor who got their degree ten or twenty years ago and never bothered to learn anything new since then.

So the same thing applies to real estate.  Real estate is ever-changing.  The real professionals in our industry are growing their skills and knowledge as the market evolves. 

For example, take the CDPE designation.  That stands for Certified Distressed Property Expert and in this market it’s probably the most vital designation to have.  One in eight homes in the United States is in some form of financial distress at this moment.

In the past, the average real estate agent typically did not handle pre-foreclosures, short sales and other complicated, financially distressed situations.  When they did have these situations, they had to rely on the advice of others on the process.  Now so many people are “upside down” on their mortgages that a good agent has to be trained and educated on how to help these owners.

A CDPE knows how to help a seller make informed decisions that can prevent foreclosure and minimize financial repercussions.  Knowing how to help a seller with a short sale, negotiate with the lien holders, and explain tax consequences to a home owner can make the difference in a person’s credit status for years to come. 

In medicine, when it’s serious, you call in the specialist you know has the training and expertise to cure you.  In real estate, it’s just as important to use the right specialist when your financial future is at stake.

Why You Should NEVER Try to Cut Your Agent’s Commission

Let’s look at commissions.  Unlike in most transactions in life, you only pay your listing broker a commission if the home sells.  If your doctor fails to cure what ails you, you still pay for his services!  But not in real estate.  You are only paying for a “cure”.

So why would you want to cut the commission of the person who is responsible for successfully selling your home?  If your doctor prescribed a treatment that cured you of your illness and did it quickly, would you believe he is entitled to a lower fee because he didn’t have to work as hard?  Maybe all the education and training and experience he put in before he ever met you contributed to his ability to cure you quickly.

You may say, “But I only want to cut the commission by 1%”.  That’s not really what you mean.  You mean you want to reduce the commission from, say 5%, to 4%.  That’s actually a 20% reduction in the total dollars.  Do you want to take 20% less for your home?

Don’t forget that the listing broker also has to share the commission with the selling broker.  After the brokers take their cuts the agents are paid.  Out of their part of the commission the agent has to pay taxes, Social Security, their private health insurance, marketing costs, their business expenses, etc.

You don’t want your listing broker to skimp on marketing for your home.  Nor do you want them to skimp on the commission for the selling broker by de-incentivising them.

Sure, there are discount brokers out there.  There are also discount doctors.  If you need life-saving surgery, will you argue about the cost with the doctor?  Then don’t entrust the sale of your largest asset to the person who is willing to discount the value of the service they provide.  You will get what you pay for.

Having Your Home Shown is Like Going on a Blind Date

Remember the dating years?  You reluctantly get set up and then you worry about what it will be like.  You wonder what they will think of you.  Do you look like what they expected?  So you spend a little more time dressing and primping than normal.

Well, your home is going on a blind date every time someone schedules a showing.  Just like on a blind date, you only get one chance to make a first impression.  Did you ever have a blind date smile, only to see food stuck between their teeth?  The same thing happens when a prospective buyer shows up and the outside of the home is poorly maintained.

A blind date that didn’t dress appropriately for the date may make you rethink the idea of going to a fancy restaurant.  A home that isn’t clean and in good repair may make the buyer begin to make mental price reductions.

More evaluation goes on while on the date, just as more evaluation of your home takes place on the showing.  But the bottom line at the end is the same.  Did the blind date result in another date made or were the final words “I’ll call you.”?  Did the showing end with the scheduling of a second showing or a contract or did the buyer just say “I’ll think about it.”?

If you really are looking for a relationship, or looking to sell your home, you take the same care and attention to detail in preparing for one as you do the other.

Should I Buy or Should I Rent – What No One Will Tell You

In spite of that fact that as a Realtor® I should be encouraging everyone to buy, owning a home is not for everyone.  And, goodness knows, there are plenty of homes available for rent right now.

So when does renting make more sense?  Well, the biggest reason is money.  You need a stable income to own a home.  Not to just make monthly mortgage payments, but to pay property taxes, homeowners’ insurance, and upkeep.  That upkeep thing can run into money over time.

Upkeep is more than repainting on occasion.  It’s also having the air conditioning system serviced regularly, paying the plumber to unstop a drain, replacing the electrical outlet that stops working, etc.  Over time that also includes things like replacing the roof, repairing wood rot, redoing the kitchen or bathroom, and lots more.

But let’s put money aside.  What about timing?  How long do you really think you’ll be in one place?  To recoup your costs, you need to look not just at the cost of the home and your mortgage payoff, but also your closing costs when you buy and sell.  In an iffy market, you need to make sure you’ll be in one spot long enough for the home to appreciate in value to make it worthwhile.

Of course, if you are planning on calling this home for several years, your finances are in good shape, and you are ready for the responsibilities of owning, this is a great time to buy.  Interest rates are low, selection is good, properties are affordable, and there are tax incentives to help out.

So analyze your personal situation and if your life is too shaky, rent something.  If not, then jump into the market and take advantage of the best opportunity to own in years.

Can You REALLY Afford to Wait on the Market to Come Back Up?

There are people out there who recognize that if they sell their home right now they may not get the price they want.  So they decide to wait “till the market comes back”.

Unfortunately, no one knows for sure when that will be.  No one really thought prices would still be dropping today but in many parts of the country we have not yet hit bottom.

So let’s look at a possible scenario:

Let’s say you are a seller who wants to price his home at $200,000.  The agent feels the home should be at $185,000 (a 7% difference). 

You decide to wait till the market meets your price. 

Well, take a look at this pricing scenario. 

I tried to be conservative on everything.  I’m only suggesting a 5% potential drop in price between now and next year.  It could be more (as we’ve seen this year when no one expected prices to continue to slide) or it could be less.  I’m also forecasting an increase in price beginning next year of 2% a year.  It could be more but it could also be flat for several years.  

Using these stats, you’re looking at 2 ½ years to get back to today’s REAL value of $185,000.  But it will take 7 years to get back to the $200,000 that you think your home is worth today.  Do you REALLY want to wait that long?

Now this is only one possible scenario and I could be way off.  Opinions are like belly buttons – everyone has one.  Just know that there are plenty of folks out there who were waiting this time last year on the market to go up and now wish they had sold then!

Your Home Can Be Your Very Own Stimulus Package

Many people feel they buy a home and just like buying a stock, they let it sit around and hope it appreciates in value.  Well, if that’s what you have in mind, then buy a stock.  A home takes a bit more work than that.

First of all, normal maintenance is a must.  Wood rot has to be tended to, A/C systems must be serviced, and roofs need to be pressure washed professionally from time to time.  Lawns have to be weeded and fertilized and plants trimmed and kept healthy and size-appropriate.

As time passes, it’s important to make renovations that keep the home fresh and up to date.  Kitchens and baths become dated faster than any other parts of the home.  Replacing cabinets, counters, and appliances can be expensive but done properly the return on the investment can be good.

The right renovations can even make the difference in whether or not a home appreciates at all.

But don’t make the mistake of jumping in without first getting some good advice.  It’s easy to over-build a home for the neighborhood and then see none of the investment pay off in extra dollars.

Talk to the top Realtors® in the area to see what investments make sense.  Visit open houses in your neighborhood and model homes to see what is going on; then use that knowledge to create your own version of a stimulus package – one that you get to enjoy in the meantime.

Is a Short Sale a Magic Bullet for Sellers?

No!  Short sales are, at best, a less lousy way out of a really lousy situation.

When a homeowner owes more on a home than the home is worth AND has a hardship such as a job loss or transfer, a short sale may be the only way out, short of foreclosure and bankruptcy.  

The lender who holds the mortgage (and there may be more than one mortgage so there could be more than one lender) has the right to say whether or not they will consider a short sale.  Generally they will not give an answer, nor will they give a price they will accept, until there is a contract to buy the home.

So the first step a seller should take is to talk to an experienced Realtor® and possibly an attorney, to see what options there may be.  Some times the process has already deteriorated financially to the point that options are few. 

Even if the lender agrees to a short sale, they may decide to hold the seller liable for the difference, or “deficiency” amount.  Not only that, but even if the lender forgives the deficiency, the IRS may come calling later with a tax bill as though that forgiven amount were ordinary income.

The most important thing a seller can do is check out all the possible choices and all the possible consequences of those choices.  Then, armed with all the facts, they can move forward.

Can This Be the Bottom?

The media is all a-buzz with news that real estate is moving and we may have reached “bottom”.  They could be right.  Now what is the definition of “bottom”?

Are we talking the lowest prices are going to go? Do they mean sales are picking up?  Those may be two different things.  Just because sales are increasing does not mean necessarily that prices are also increasing.

What has driven prices down so sharply is the supply and demand problem in which we’ve had a huge supply and very little demand.  Demand has definitely picked up in many parts of the country.  But when prices pick up will depend on how much inventory there is to absorb until we get to a normal rate of sale.

For example, let’s say there are 36 homes for sale in a neighborhood.  In the last year only 6 have sold.  At that rate of sale it will take 6 years to absorb all the existing homes for sale, even if no new ones come on the market.  But if 4 of those homes sold in the last 3 months, then you can project a rate of sale of 16 per year, which gives you only a 2 year supply.

The higher the supply of homes to sell, the less likely home prices are to make a quick rebound.  But once the inventory is absorbed and the market stabilized, prices will begin to rise. 

So if you are a seller, take a look at recent activity in your specific market and decide if your area has turned the corner.  If you are a buyer, do the same thing for the area you want to buy in and decide if you can afford to wait.

Knowing the facts and current trends will help you make an informed decision!