Are we selling furniture now?

We have all seen/heard the commercials, because every town seems to have a furniture store that wants us to know, “THERE WILL NEVER BE A BETTER TIME TO BUY FURNITURE.” “THIS WEEKEND ONLY, WE ARE CUTTING PRICES TO THE LOWEST THEY HAVE EVER BEEN.”

While driving to an appointment today, I heard a similar statement on mortgages and realized that mortgages and homes are being marketed the same way. I mean, hasn’t the mantra for both businesses been “prices are down”,” rates are down” and we know “this won’t last.” Isn’t it obvious by now that we don’t know how long it will last? (These economist study it all the time.)

We do know that rates are down and home prices are down, making it less expensive to buy a home.

We do know that inventory is up, and that means options.

We do know that the mortgage interest deduction currently saves money on taxes.

We do know that most people find a sort of satisfaction, from owning rather than renting.

We do know that there is a floor plan and style for every taste and if it’s not available someone will be willing to build it.

We do know that for most, multiple families in homes not really designed for that lifestyle, is a short term solution.

We do know that our population is growing. (I wonder, is the population growing faster since people have less money to spend on out of the house entertainment?)

There are lots of reasons to buy a home, but not because this is your last opportunity. Talk to a real estate professional that understands the reasons people buy homes and the drawbacks, and can make them clear to you. Make good real estate decisions.

For you real estate and mortgage professionals out there, just remember, we shouted that prices and rates were down last summer and it surely wouldn’t last. Well, we were right, they are lower now. Yet there were good reasons for many folks to have bought homes in the last year. By the way, don't forget, when we sell homes we do help funiture sales.

Be great and remember your comments are very much apprteciated.

Speaking of HUD

HUD had a National “Real Estate Broker Webinar” this past week. In this webinar, they announced some significant changes to the way they will be doing business going forward and the plans for implementation.

Changes included:
• Longer period for owner occupants to bid on homes before investors may bid. 10 days to 30 days.
• Ability to list on any day of the week.
• A single national site for searching for HUD homes, that allows all consumers to see what all agents will see.
• Additional listing brokers creating additional marketing for many properties.
• Earnest money to be submitted with the contracts and made out to HUD.
• Changes to agent compensation.

These are overall thought to be good changes and many are long overdue. Unfortunately the announced time frame is already not being met, at least not in our area. This may cause some short term confusion, so make sure your agent (ALL HUD BIDS, MUST BE MADE BY A HUD REGISTERED AGENT WORKING FOR A HUD REGISTERED BROKER) is on top of the changes and their implentation.

I WANT THIS HOUSE FOR LESS!

I was recently told that I needed to convince a seller, through their agent that a home was over-priced. When that is the case, I feel that I do a pretty good job of selling the right arguments. However, whether it is truly over-priced or not, chances are it will remain that way on the market.

Some observations from 14 years in real estate:
1. Sellers don't change their mind about the value of their home. They may acquiesce to the market, but if they do, they feel cheated.
2. Buyers don't change their mind about the value of the home they are buying. If they negotiate up, they almost always feel like they should have gotten it for less.
3. Most people buy for emotional reasons, logic takes a back seat.
4. Sellers have agents that usually study the market, and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
5. Buyers that are represented, have agents that usually study the market and have an idea of the value of the home. Those agents are often proud and don't like to hear that they made a mistake.
6. Agents need to present information to their clients and let them make the decision.
7. Buyers that chase value, often find it.
8. Buyers that chase deals, in a market where there is competent representation on the other side, seldom find them.
9. Buyers that chase deals, often get no value.
10.REALTORS® subscribe to a code of ethics that includes “honesty” and “truth.” Most REALTORS® take it very seriously.

There are others, but the most important thing to remember when making an offer is that everyone has information and has come to their own conclusions based on their thought processes. Those thought processes are usually a mix of logic and emotion, and are often dominated by the emotional side of the equation.

I always welcome your comments.