Redding's Ups and Downs

I guess I'm not sorry if I'm all over the board.  Even at home, I have a hundred projects going at one time.  Umm, maybe not 100.  My family and real estate are my passion, along with the outdoors, birds, flowers, cooking, and more.  Please, if you have real estate questions let me know.  If I don't know the answer, I'll find out the answers to your questions.  If you're thinking of listing, now is a great time.  The reason??  Many people take their homes off the market during the holiday season, thus less listings.  And less listings, help sellers sell faster.  Plus, if people do not relocate from May to August, usually they will buy a home during the holiday season.  Plus I am a certified home stager.  Free if you list with us.  Onward!!

Hope your Halloween was perfect.  I have so much candy left over, I've already gained weight.  Fortunately, I bought very little of the varieties I like. 

Welcome, welcome rain!  Wish the snow level was a little lower to assure that we have a fabulous lake-filled summer in 2009.  We're so lucky to live in Shasta County.  Hope our surrounding mountains are covered with snow for the Christmas season.

Be sure to vote this week.

Did I say I'm all over the board??

Banks, asset management and loss mitigation companies are hurting our local buyers and our nation's economy.

Recently, after showing houses to our buyer, he found the perfect home. It was a short sale, meaning the list price is less than what is actually owed on the house. We wrote the offer on November 10th at 12:09 p.m. then called the listing agent. We were told there were no other offers on this particular house and to fax our offer to his office.

The listing agent had put in the MLS the following "private remarks":

"Short sale has been approved; lender will be able to respond to offers quickly"

Since then, we've left messages with the listing agent to call us and still have no return call, no email, no nothing. It's been 20 days. Makes us look like a you know what. Not good. It's frustrating and aggravating and it’s a waste of our time having to call frequently asking if he might "pretty please" return our calls. Maybe the lender is not communicating with him, so in turn that agent is not returning our calls, but now we’re not able to give the buyer any updates. At least we continue to call him.

This non communication regarding short sales and foreclosures is a huge problem and has happened to us many times this year. Multiply that by every county in our nation and every Realtor dealing with this. It’s a huge cash flow problem when these companies hold on to these distressed properties any longer than necessary.

Another example regarding a short sell home is one that we wrote a purchase contract on 6/17/2008. That's right, unbelievably mid June, almost a half a year ago. And the verbiage on the MLS read:

"This should be a quicker approval process".

Wrong!

It’s infuriating to our buyers and to us. With short sales and foreclosures skyrocketing, surely our banks, asset management companies and loss mitigation companies need to hire extra people to handle the overload. There are lots of people out there looking for jobs. It’s unforgivable when our client has waited almost six months for a reply. So if you want to buy a short sale, don't call us. We will become the thorn in your side when we cannot get a response from these companies. I’ve read that less than 4% of short sales actually close escrow. Gee, I wonder why. Some realtors, banks, and other asset and loss mitigation companies don't even care that buyers are waiting anxiously for answers. Nor do they seem to care if the listing agents they hire are doing a good job.

As Realtors, it is our fiduciary duty to to show buyers all homes that fit the buyer's needs, and we do. But we now tell our buyers up front the possible scenario, and we know the response time will be unbearable for most buyers. Meanwhile, our first time buyers could even lose out on the Federal housing credit of $7500, ending December 31, 2008, because the process of buying foreclosures and short sells took too long.

As Realtors, we have a huge responsibility to help our buyers. And if our buyers could get quicker approvals on offers, and the turnaround time on distressed properties were faster, we could help our nation’s economy grow stronger. Banks and mortgage companies could get back to lending so more buyers could achieve the American dream of home ownership.

Our ever changing economy makes it difficult for today's home buyers and sellers to understand the real estate market because it changes so quickly.  But they seek the facts, are connected to the internet, are on a mission, are smart, and like the independence of searching on their own.  

So where do we, as Realtors, come in?  For one thing, we can define the information that is difficult to understand.  We have changed from giving the needed information to deciphering it.  We're not just a dictionary.  Often, buyers and sellers are going at such speed to find facts about homes, they don't realize their search is narrow and does not see the big picture. 

Not all markets are the same in Shasta County.  Some areas are holding their value, and other areas are plummeting.  Real Estate is an ever changing event.  It throws most people into the world of the unknown unless they are seasoned in many real estate transactions.  Today's realtor needs to give you answers not questions, advise but not dictation.  But more importantly, agents need first to listen to your concerns and question.  And then not just listen to your words, but hear your thoughts.  

People don't really think about it, but I think a great realtor has a natural sense of humor to help you get through the maze, frustrations, and stress of buying and selling.   Bob has that gift, and yes, I do think it is gift.  Just yesterday he received a thank you card from one our buyers that said "can't thank you enough for your kindness and laughter."  Laughter while looking at houses, laughter after your home has been reviewed by buyers, even laughter while driving around just looking.  Laughter helps anyone get through a tough day.  A sense of humor is more important than you can imagine as we help you jump through hoops to get a transaction closed. 

Whether you are buying or selling, it's important to listen to a good agent regarding price point and market absorbtion.  Today there are 1651 residential listing in Shasta County  compared to 1987 last year.  We feel that when the number of active listings is around 1100, it is a more balanced market. 

Over 90% of people today, wanting to invest in real estate, usually start on the internet and spend time every day looking for answers to their questions. With the resources available on the World Wide Web, real estate information is now accessible for everyone. In this market, buying, selling, speculating, and developing real estate is easier, better, and faster than ever. Or is it? Often it is, but not always.

I epitomize today's consumer. I not only work hours on the internet everyday, I also spend time looking for information on whatever catches my whimsy at any given moment. Drives my husband nuts! Right now, I want information on choosing the absolute perfect reasonable gift for our four year old and six month old grandsons for Christmas. I'm also looking for the perfect recipes for fixing Thanksgiving dinner for thirty or so of our relatives. Any ideas?

How many times do I go to the internet for answers instead of just asking an informed person, which could possibly save me hours on the internet? Everyday. And why? Partly, I think, is because of today's mistrust of a real live person giving the answers. Plus, one person gives me just one opinion and on the internet I can get hundreds of opinions. Then I can come to my own conclusions, not someone else's. I like that.

This evolution of the way consumers think is real. As far as housing, Realtors no longer hold all the keys to the real estate kingdom. Anyone can find answers to real estate questions online. But remember, real estate decisions are very important. It's most people's biggest investment. So why do consumers spend hours online looking for answers to real estate questions? Why, when we probably already know the answers and could quickly respond to questions with just a quick email? Partly because of the mistrust, and I understand that. Why should I ask you to trust us, especially when that's how we earn a living? I can't. Although, time and time again, after hours, days, and months of searching the internet for answers, our new clients will say:

“We wish we would have come to you first, you would have saved us hours of frustration and time.”

Maybe today I should call Toys R Us and ask about the best Christmas gifts for our grandsons and maybe I could call the Kitchen Shop and ask the demonstration cook for their favorite Thanksgiving recipes. But I probably won't because I want lots of opinions on these topics. And truthfully, wanting information on Christmas toys and Thanksgiving recipes are for fun. They're not life changing decisions.

As a consumer, another thing I like about the internet is it gives me space and privacy. I love the space to be in my own world, without distractions and interruptions. (Our children are in their thirties and are on their own, yahoo!) Sometimes, I can forget the real world for a while, and sometimes I don't even answer the phone when I'm on the internet.

Today, I will be working on the internet plus I will be looking for answers to my simple questions regarding Christmas and Thanksgiving. Yes, I'm a great example of the evolution of today's consumer. And if you have important real estate questions, and want to search on your own, I understand. But do bookmark our web site. It's full of great information.  And please remember, real estate decisions you make today will affect the rest of your life.

     In case you were sleeping in...

First time buyers now make up 43% of people purchasing homes in today's market.  Wow!  First time home buyers are allowed a tax credit of up to $7500.  This program ends June 30, 2009.  Find out more!

Today, Veterans Day, I speak with appreciation for our soldier's service to our country.  We respect, and are grateful to you, for keeping our country free.  My father-in-law was in the Coast Guard in World War II, and my father was in the Air Corp, flying 35 missions in B17s over Germany.   

My husband and I were married 39 years ago, and when we came back from our honeymoon, his draft papers were in the mail.  He had tried to volunteer three different times, but the military wouldn't take him because of bronchitis.  But the war lowered standards.  They let him finish his junior year in college and four months later he was gone.  It was a long 18 months, but we made it, and perhaps it made our marriage stronger.  Because of our brave soldiers and veterans, I hope our 4 year old and 6 month old grandsons will not have a reason to have to go to war when they are older.  But if need be, I know they will do anything to protect our freedom. 

I cry every time I say the pledge of allegiance, and appreciate every soldier that has ever served.   Thank you.  

Everyday, Shasta County Realtors belonging to the MLS, look at the hot sheet to view new listings in the last 24 hours.  Good agents will also look at price changes, back on the market, or pendings.  We look, not only for our buyers, but also to see if there is any hint that our market is changing.  

I was shocked on Sunday to realize every new listing was a REO, or bank owned property.  Gave me that yuck feeling in the pit of my stomach knowing that home owners and even investors just lost their homes.  When will it end?

For buyers, there are some good deals out there and some foreclosure properties at bargain prices are attracting multiple offers.  Work with the best Realtor you can find.  And before you make an offer, make sure you're ducks are in a row.                                       

First, always get a proapproval letter, not a prequal letter, from a lender.  Preapproval means actually making a formal loan application, having your credit checked, as well as verifying your funds for down payment and closing costs, and validating your income and employment. The preapproval letter should always accompany your offer.

One of the main things buyers need to remember is to buy a home in their comfort zone, not a penny more.  Many lenders in past months and years have qualified buyers for much more money than they could actually afford.  We always ask our buyers to sit down a make a budget to find the amount they can comfortably pay each month for a mortgage payment.    

It's frustrating to buyers and agents today because most of the time when we call the listing agent of the REO property to see if it's still available, we get no return call.  So the buyers get soooo exited, go through the hoops so their agent can present an offer, only to find there's already several offers on the property.  So buyers often need to take a deep breath, and start the process all over.  

But when buyers are finally in their home, they will forget the difficult times, and will grin ear to ear when they cross that threshold.