By Nick Zart,

Stating concerns about interest rates and housing affordability were the main culprits in the builder confidence slip this month.  I guess my real question is how representative is the builder’s confidence?  What is it really based on.  We had an over inflated market and were over-building so is a decline the end of the world as we know it or a readjustment to a normal market?

The real concern on everyone’s mind are the possibility of more Federal Reserve interest rates hikes.  This of course would make homeownership costs even higher. Ironically, the one aspect I am not happy with is that the Fed’s inflation-fighting moves have helped drive the rental market up and certainly in line to mimic the housing market over-inflated state we saw the last few years.

Calculated Risk’s excellent blog has ore numbers and graphs.  Please refer to it here.

By Nick,

Though the media would have us think there are no more bidding wars and multiple offers, I beg to differ.  At Robert Weil Associates, we have experienced a few in the last weeks.  Go figure!

It is important to make sure your properties are corrected listed and quickly put up on an MLS.  Too often companies keep their listings a week or more hoping to get an inside sell thus lessening the exposure you can get locally from the beginning.  Understand a listing.  Sure you will pay a commission for the service a person will put into selling your house in the best way possible.  If your property takes longer than 120 days, renegotiate or go elsewhere and get other advice.  Ask how many pictures will be n the MLS.  When it comes to pricing your property, look at comparable sales from the last month, three months and six months.  Why?  Prices have gone in every direction and breaking it down will give you a good idea of where and how far the market has come, then see what has happened in the last month to get a more precise idea of the general state of the market.

Always do as much homework as possible and find an agent you can rely on.  Ask around.

By Nick Zart,

The index of pending home sales was up by 1.3 percent in May.. However, it was 10.1 percent lower than May 2005.  The pending home sales numbers are based signed contracts in May, which were up since April, but was down 10.1 percent compared to May 2005.  These numbers are only pending sales of existing homes and normally close within a month or two of signing.

NAR’s chief economist concludes that the pending home sales numbers indicate a leveling out market.  On an average, the pending home sales index in the West rose 9.9 percent to 110.1 in May but down 12.9 percent from a year ago.

Again these numbers can be arranged in many ways to accommodate the bulls and the bears of the market depending on which side of the fence you are on.

Here is the original article.

By Nick Zart,

I usually make it a practice to collect all my device serial numbers for insurance purposes and in case they get stolen.  A good practice is also to check your mobile phone’s.  In case someone steals it, you can be sure your cell phone provider cannot stop it from being used and you will left with the only other solution to buy another phone and trapped into signing another contract.

Here is what you will need to do, dial star-hash-zero-six-hash ( * # 0 6 # ) and a fifteen digit code will appear on the screen. This is the unique serial number of your phone. Write it down and keep it safe. Should your mobile phone get stolen, you can
phone your service provider and give them this code.  This will avoid you costs and time.

By Nick Zart,

Bare with me for this long article but with so many people talking about foreclosures bargains, I decided to do a more in depth search on the matter.  According to some numbers, foreclosures are on the rise but in a predictable way.  Most people could see exotic loans would hurt them if interest rates rose.  As expected, they rose.  With that in mind, what does this leave us with?

With numbers that quote foreclosures up by 33 percent in April from a year ago is making some conclude foreclosure auction is the next big thing.  It is true for certain investors who understand the many legal risks of a foreclosure sale.  Any smart investor would be wise to pay for lawyers to navigate the legal entanglements of this market, title companies and do a lot of foot work.  Often enough, you get to see the property months after putting a lot cash down for a home you never walked in.  Truth of the matter is that the legal problems are not common, but when they happen, they can be catastrophic. 

Foreclosure purchaser are very aware of that and their fees reflect the risk they take.  I wouldn’t recommend investing in a foreclosure sale without fully understanding the legal risks. After paying for all the legal help and fees, you just pay the price of a normal home on the market.

Stories abound about not stepping in the acquired property after the lender has been paid in full, the owner trying to rent out, mortgage the property-tax free.  You must be able to access bankruptcy files, court orders, condominium financial statements.  Owners that do not pay mortgages often do not pay property taxes.
 
The bottom line is you need to spend extensive, time consuming researches and pay fees in order to find out if the property is free and clear of liens.  You also need to find out about the state’s law that might affect the transfer of the property.  Of course you are responsible for liens left-over in most cases.  One of the most likely risk is the equity of the property is encumbered by liens that were never found.  You need to do  very serious, in-depth search and use a serious title company with experienced lawyers, and then after that, determine if this will still be cheaper than buying a home on the regular market.  Remember that if you think you have a bargain, it might be because the second mortgage was foreclosed and the property is subject to the first mortgage.

Truth be told, there are some bargains and with enough legal knowledge, you can find a great deal.  I just shiver when people talk about foreclosures as if they talk about the latest supermarket sales.  At the very least, you should drive by the property and get a feel of the neighborhood.

This article told of some interesting stories.  Read it here.

By Nick Zart

I have read many stories about hotel key cards with personal information over the years but this one comes from the Pasadena Police Department.  I guess it gives it more credibility though anyone can really sign anything on the Internet and I have never scanned them to confirm this.  However, better aware than taken advantage.

A hotel plastic key holds the following private information:
a. Customer’s name
b. Customer’s partial home address
c. Hotel room number
d. Check-in date and out dates
e. Customer’s credit card number and expiration date!

When you turn them in to the front desk your personal information is there. Simply put, hotels do not erase information on these cards until they are re-issued for the next guest.  Can you imagine what a disgruntled or even a not-so clever employee could do with it?  It seems to be a god idea to keep the cards and destroy them.  Do not toss them in a public place, especially airports, etc.

By Nick Zart

CAR.org has some good articles and this one picked my interest as it is very relevant to what we are experiencing.  California’s real estate market has since last year and is forcing agents, brokers and real estate companies to rethink themselves and rethink their business model.  So far, so good.  Most agents probably rely on honesty and genuine customer care but negotiating the right price is where the strategy comes in very handy.

At Robert Weil Associates, we do things a little differently and always have.  This is what has brought us decade worth of amazing publicity as defining professionalism in real estate, amongst others.  When an agent brings in a listing, all other agents are invited together to view the property and along with comparables, get to estimate the price of the home.  It is a communal effort based on the experience of over forty real estate agents that have worked in the same office on an average of eighteen years, some over twenty-five years.  Our sellers feel very comfortable with this approach as it helps them set a more knowledgeable price.  However the problem some agents throughout Long Beach complain about are the challenges between seller’s high expectations and well-meaning Realtors.  The truth of the matter it is hard to face a couple that hods their house as their financial retirement and expect a lot more than the market offers.

One other method of selling a house is with a value range price.  The idea came from the mid 1990′s in Australia when Realtors took the seller’s asking price and what they thought should be a normal price.  They entertain any offers.  However, you can see the pitfall, buyers will always quote the lower number and sellers get offended.  Value ranging to me invites people to ask for the lower price and having you deal with lowering a seller’s expectation.

Ideally, one should get the listing, then set the price.  Setting the right price in the beginning is crucial to attracting good buyers and not ruin the home’s image. Sellers should turn to agents based on their industry professional knowledge and market expertise but they should never list with an agent an over-inflated price.  The most important thing is to get it right the first time.  Prices that are too high will cost sellers a lot of money, time and frustration, not to mention a negative image on the market.

Obviously, many sellers want top dollar without repairs.  At Robert Weil Associates, we are better able to handle this as all of our agent’s input help depict a better idea of the real market condition and help us price the right amount for the a home.

Read the original article here.