Club Chaos Agents - All Things Hollish, Wacked, and Jacked

I recently started a consulting business with my friend Jeremy Blanton to serve as a resource for those who want to learn more about using social media tools, and how to use them to bring in more tangible business.  So far, we've had a couple of webinars and we are planning for two more soon.  Attendance was solid at the initial sessions, and the feedback we received was overwhelmingly positive, with a handful of attendees signing up for further individual coaching.  

Thankfully for our students, my own learning curve with our new software hasn't been very steep, which has made things very smooth and easy.  :)  We're also in the process of setting up a brand-new website and blog for the company, both pieces of which have been provided free of charge to us from friends of ours.  What a huge blessing!  I hope that our new platform will provide a great place to collect and share information.

 

Our first webinar, "How to Chug Google Juice AND Get 15 Years of Fame", will be repeated on February 8th at 1pm Eastern: http://budurl.com/210consulting.  You can see a full description of this class here.

 

Our next webinar is entitled, "Cashing in on Your Social Media Investment", and we'll be teaching that one on Monday, February 15th at 1pm Eastern time (running time is about two hours total).  Essentially, we will cover how to build your social media strategy to increase your business.  As we all know, many people try social media networks but get sucked into the social end and forget the original reason that they joined.

 

 

We will be covering the following topics in a fun, laidback atmosphere:

 

• How to effectively listen to consumers 
• How to add valuable content to engage with those around you 
• Tips and specific tools that we've used 
• Some basic "etiquette" for Twitter, Facebook, and blogging
• Techniques for promoting a cause or event

 

Murphy's Law Can Be A Real B Sometimes... Got pets? Put the pets in the remarks section. Seriously...

Stephen, the Minion Blur will walk up to a 200 pound dog and get nose to nose to smile in its face. Noah, the Net Geek is the exact opposite and runs from barking puppies (LOL).

Took my boys to work today and as luck would have it the 2 family home I was waiting to show (in 18 degree weather) had tenants with dogs. Barking dogs... Hmm...

It would have been nice if the listing agent had made a note to "beware of dogs on the premises" in the remarks section as (1) there is no indication on the property that they exist, (2) some people are allergic and (3) in Noah's case afraid, but I digress and need to set up the rest of the picture of my Murphy-Day for you so you can get where I am coming from this evening. :-)

Have you heard of Murphy's Law? In sum and substance: Anything that can go wrong will... Wikipedia is building an interesting page on it and you can spoof around here for more info:  http://www.murphys-laws.com

I am happy to report that Murphy's Law is alive and well regarding my industry and ML managed to infiltrate my day in spades (LOL).

We can start with the fact that I had to make this appointment a week in advance because the tenants are not thrilled with having to move if the house sells. They have restricted access to their apartments to one hour a week once a week (only on Saturdays). Picking Saturday means my Jewish buyers and my 7th Day Adventists will never get to see this property. Ever. Psssst... Listing Brokers you may want to think about that. Seriously... When people give me the once a week crap I always pick Wednesdays because no religious group has national dibs on that day that I am aware of. :-)

I habitually confirm my appointments before I go because I have kids in tow and hate dragging them out if I do not have to. Family time matters to me so when I am walking out the door for my 1PM and you tell me I am not in your appointment book after your firm denied my out of state buyer access last week because you needed that one week notice and explained the restrictions very carefully to me, I freaked out over the phone because the idea of me having to explain why I didn't merit a jot in your appointment book set my teeth on edge. I apologize for raising my voice a few octaves. That happens when I get upset on behalf of a buyer being pushed through hoops and dissed when we go to great lengths to comply with your firm's rules based upon the sellers instructions and you still forget about me and my people.

It's a short sale, so tenants making it difficult for the landlord to show the property can be a real B when you are an owner going back and forth to court trying to stop a foreclosure with a modified loan and/or a short sale. Brokerage firms not putting Buyer's Broker appointments in their systems compound that bit of stress for owners who have to respond to the scene because of tenant drama. Buyers traveling great distances to view can be out of train/plane tickets when yours is the only property they want to see because they like the outside and work out their hypothetical offers in advance.

I was blessed to be squeezed into today's 2-3pm line up and expressed my gratitude and appreciation for being granted hypothetical access because I treat my buyers the same. 1100 miles or around the corner, my job is to get you in to view, crunch the numbers, do the comps and help you make an informed decision.

I sent a text to the buyer that our schedule had changed, canceled where we should have been at 2pm, fed my kids and took off to get lost in the streets until it was time to show the property. To amuse my boys since I killed their 2 pm playdate, I handed them cameras and let them shoot out the car windows. Guess what we saw?

Isn't it gorgeous? We love fire engines and had no idea how it would affect our appointment to view today. We can start with the mild gripe that the people who promised to be there between 2 and 3 pm left while I was parking my car three doors down from the house. We saw them pull off in two vehicles but had no idea it was them until we read the house numbers. Hmm...

I knocked, I rang, but no one answered. My 8 year old became upset because he loves exploring houses and thinks being a mini-Realtor-in-training is mad cool. He had an expectation to be greeted warmly and peek into how the other half lives but instead was left shivering on a stoop that needed minor repairs. He saw the people leave just as I had so of course the echolalic speech started with him repeating there was "no one home, lets go home." Being anal retentive and always determined to engage him in conversation, no matter how brief, I had to keep explaining that we can't leave our buyer, we have to wait.

Back to the car we go to call the Listing Broker's firm and inform her/them no one was home. She says she'll call me right back. Cool. I sit in my car with the shorties while we watch three cars arrive and six people walk into this home. I call my buyer wanting to know where she is. She's lost. No problem. I have time for her to catch up with me because people are arriving and leaving. I see another broker showing the property. Listing  Broker calls back and says the owner is parked around the corner in the drive. Knock and ring on the front and side entrances. Someone will let me in. Cool...

While having this brief conversation a fire truck pulls up. My kids get real excited. Lights are flashing. Firemen are streaming out. We're wondering where are they going while we snap a few pictures. They enter the listing. Oh crap. I let the broker know a half dozen fire fighters have just entered her listing. We're both incredulous... We have no idea what is happening.

People pour out of the house. Hmm... More fire trucks materialize... I'm thinking, I could be watching Netflix, hugging a blankie with my kids instead of wondering if the place wll burn down before my buyer sees this house. I am praying that this is not going to result in serious damage or someone being hurt. The suspense is stressing me out to no end. I realize I may have to shred the binder sitting on my dashboard (LOL).

It doesn't burn down ten minutes later. Yay! The hoses never come out. Doing the snoopy dance! I'm excited because my buyer really likes the outside and has been speculating with me as to the condition of the inside of this property. We can't wait to see it but don't want to go near it while fire fighters are inside. The wee people and I wait, and wait, and wait... What the heck are they doing in there? Are they using extinguishers? I start to freak out again (LOL). Eventually, the fire fighters trickle out. We watch the fire trucks slowly roll away. I suddenly realize my buyer is missing in action (LOL).

We get out of the car and immediately regret not being warm and toasty. We march up to the front door to ring the bell and knock. The top floor gentleman lets us in and promptly locks his apartment door never to be seen or heard from again by us. Noah is bummed out because we can't get in. He's not used to having a door closed in his face unless it's Stephen slamming the bathroom door during the toilet wars (LOL). We do hear a TV and a dog barking behind the door, so Noah decides it is definitely time to go home because he realizes we're being ignored in a strange hall.

I talk my 8 year old into giving me five minutes to show my buyer the first floor apartment. We knock. The landlord opens the door and Stephen strolls in and starts exploring the living room while Noah executes a backwards broad jump back into the hall upon noting another dog.

Being in a cage does not matter. It's a dog. It is barking. Barking means threat. He has clamped onto the banister and I can't pry his fingers off. Little Dude is stronger than I am when he gets upset (LOL). My buyer goes to tour the place with Stephen and the landlord. The landlord and tenant have a conversation that gets heated while we are all there that triggers my buyers making a hasty retreat. Visions of evictions and landlord/tenant court are materializing in our heads... Bummer... I need a two family delivered vacant. I need a two family that provides unrestricted access to view. I feel bad because it didn't work out even though this place is minutes from the highway on a quiet street, has a lot of potential and is a corner property.

Who knew one argument, a MIA tenant, two dogs and a half dozen fire fighters could blow optimism right out the window.  My buyer has kids. I have kids. Watching a child negatively react to a jumping, barking dog can make parents go into protective mode and not feel safe because we zone into how they feel about a home.

Got pets? Put the pets in the remarks section so we know who needs to be left at home and who should not see your house to begin with. Seriously... I have buyers who can't stand cigarette smoke too so you might not want to dismiss this little ditty too quick out of hand. Smells and noise affect some people in the most peculiar ways...

 

 

Foreclosure Avoidance Counseling Is Free From HUD So Why Are You Paying Fees For This?

So, I'm chilling in Home Depot the other day buying paint for my apartment when this woman who reads my blog walks up to me and starts asking about a referral to a company to counsel her on how to avoid foreclosing on her home. She tells me she's been contacted by a few firms who got her info from court records and wants to know what to do. I don't know what to do because I don't know why they contacted her and/or their relationship to her lender. I have never heard of the firms so I have no opinions about them, just a general question:

Why are you going to pay fees for "Foreclosure Avoidance Counseling" when you can get that free from HUD?

It appears none of the commercial companies that contacted her bothered to tell her that. I figure since I helped her in the paint isle I might as well pass along the info to the rest of my readers. If you are struggling to meet your mortgage payments you ought to consider hitting the government websites to discover what your options and rights are. When you are done with your overview and think you understand the process, feel free to hire the professional of your choice to help you with your issues if you believe that is the correct route for you to go. If you are a do-it-yourselfer, then educate yourself and be prepared to live with the choices you make.

Don't be afraid to ask for help but do be cautious when people start contacting you out of the blue because your home makes a commercial distressed property list.

Go to the US Department of Housing and Urban Development and read up on President Obama's comprehensive Homeowner Affordability and Stability Plan (HASP). There is a lot of free government info to point you in the right direction (plus your lender can send you info if you ask them directly). You shouldn't have to automatically pre-pay money so someone can send you their abbreviated version of what the government says. You are free to pay for what ever you want, but before you pay anyone anything, educate yourself so you can understand what it is you are paying for.

Here's the HUD New York page listing Foreclosure Avoidance Counseling providers and each state has their own list. I know that I wold be pissed off if someone sold me regurgitated government pamphlets I could get by clicking on a couple of Internet links in HUD.gov or the Federal Housing Administration. Research before you buy to try. Just sayin...

 

 

Not every potential home buyer will buy a home in Sacramento this year, regardless of how much a buyer may yearn for a home. How do I know this? Because I speak with first-time home buyers who want to buy a home nearly every day. I listen to their wants and needs. From this information, I determine whether these buyers are realistic and motivated. See, a buyer can possess all the motivation and determination in the world, but if a buyer is stuck in fantasy land, the odds of buying a home are dramatically reduced.

I try to be non-judgmental. I know that buyers are not professional real estate agents and don't possess intimate knowledge of the market. Part of my job is to educate buyers. Especially those who rely on Zillow or other websites that provide inaccurate information. Armed with knowledge, a buyer is then able to make an informed decision.

A few weeks ago, a buyer called to say she was unhappy with her agent because she wasn't getting results. Since agents are generally in the real estate business to make a sale, it was entirely possible the problem wasn't the agent. The buyer asked if I would research a particular short sale home in Elk Grove. Her agent had shown her the property. She had not made an offer nor signed an exclusive buyer's broker with this agent.

I called the listing agent. The agent had 5 offers, several of which were all-cash offers, and those all-cash offers exceeded the list price of $400,000. As with many short sale listings, the price was artificial and below the comparable sales, priced to drive multiple offers. I know the main reason that some banks reject short sales is because many offers are too low, so a lowball offer was not going to fly. Not to mention, it makes little sense to compete in these types of situations if a buyer is unwilling to offer over the listed price.

The buyer asked if she could buy this $400,000 home for $300,000. I explained all of the reasons why this type of approach was not going to work. Even if all the other buyers vanished by the time of short sale approval, leaving this buyer in first-place position as the lone survivor, the bank would not take that type of offer. On top of which, this home was was highly desirable and unique -- which means those other buyers aren't going away.

A few days later, the buyer emailed me to confess that she had gone back to see that home again with her agent. She was so overwhelmed with desire that she wrote an offer on the spot for $300,000. She asked if I would still work with her and show her other homes while she waits for an answer from the seller. I know, beyond a shadow of a doubt, that the buyer is not buying this home.

Now, I am not in the business to swipe other agent's clients. There's enough business in Sacramento for everybody. I had explained earlier how real estate agents work and why this buyer should decide which buyer's agent she wants to hire. She told me she really liked her agent but did not feel her agent could perform.

I suggested she stick with her agent. I didn't drop this buyer simply because she wrote an offer with her agent, although loyalty is paramount. I also didn't drop the buyer solely because she promised to work with me and failed to live up to her promise; although, I prefer to work with buyers who keep their word. This buyer performed contrary to her own best interests. I was forced to turn her loose because she could not, would not, did not listen to my advice.

Even my cats would agree.

Photo: Elizabeth Weintraub, from left to right, Pia, Pica and Brandon

Life With Wee People: To Paint Or Not To Paint

Ever try painting your apartment with curious kids around? Can't get much done with Stephen the Blur Minion sticking his hands where they don't belong. His fave thing to do? Touch the wet wall and wipe my clothes (LOL). Noah is really cool because he likes to paint and is very good at using the roller. Stephen is another experience. He likes chasing us with the paint rollers. I have to keep pausing then sticking us in the shower so the only thing I have managed to finish so far is "applesauce" on the inlay door panels and "banana cream" on the radiator and window sills. This is going to take a while... I need a break. Time to go outside. :-)

We're going to the park so the shorties can get some fresh air. Stephen has not been feeling well and ran a temperature on Friday. Noah refused to go to school without Stephen and since they were both snotty I let them stay in bed most of the day. You'd think I'd have made progress painting the bathroom but every time I cracked a can of custom colored latex primer they'd both bounce up ready to help. Of course I let them (LOL). :-)

We have to show houses later today. I figure a break would be nice and an excursion to the park would be a good test run to see how Stephen is feeling about running around for an hour. If he curls up on a bench and/or lays down on a slide I am canceling all of my appointments and going back home. If they climb like monkeys then I'm going to have a good work day. It's too early to tell if we will be roaming the streets or hugging the blankies. When the boys don't feel well we usually cuddle up and watch TV. If we do go back home the only question remaining is to paint or not to paint... I have sundance yellow, jasmine white and dried palm to spread all over the walls. I would love to get that done by next week end. I have canvas that need to be hung. I'm working on several portraits. :-)

 

Don’t be CASH POOR – CASH is KING

 

 

FHA loans have been used more in recent years. Many have talked negatively about FHA loans because of their high default rates as of lately. Don't be fooled by chatter that is not backed up by fact and why this is happening.  Please read : Should we ABOLISH FHA loans?

One of the main myths that I wanted to dispell in this blog post is that you don't need 20% to buy a home in today's real estate market or that you need a 720 credit score. These are bad myths and rumors. You can read about it here : Credit scores/FICO scores - I need a 700 credit score?

Yesterday, I wrote a post about comparing a FHA mortgage to a Conventional mortgage with 20% down. FHA loans vs Conventional loans - A real comparison with 20% down. - Overall, it all comes down to the borrowers needs and goals. Yet not all loan officers dig this deeply. Usually because the focus is lost when the borrower wants to know the mortgage interest rate and fees. More on that in a post on Sunday.

 

 

 

Please read these links before moving forward (the next 3) : It’s extremely important

 

Please read this question about why my conventional rates are so much higher :  Someone's question to why my conventional rates are so high.

My response : Just a basic response to why the conventional rates are much higher.

And proof that it's not just me.. all lenders need and have to follow the same pricing hits. Conventional PRICING HITS

 

 

What is the big fuss of putting 20% down other than you don't have mortgage insurance? Here is my chart from yesterday.

 

Loan comparison of 20% down between FHA loans and Conventional loans

SCENARIO # 1

 

 

 

 

 

 

 

 

 

 

 

In regards to scenario #1, this is great if you have 20% down. But is it? Please read why going with a conventional loan with 20% down still might not be your best option. 20% down comparison between FHA loans and Conventional Loans   Hint: Goals - 

 

 

Dropping the down payment by 1%, making it 19% down and not 20% down.

Scenario # 2

 

 

 

 

 

 

 

 

 

 

 

Scenario # 2 - There is no large difference except that your monthly mortgage payment is lower on a FHA loan when putting less than 20% down. **Conventional mortgage insurance is not standard as it use to be. Meaning that these figures could change depending on the insurance company, the fico score, and in some cases, where you purchase the property.**

 

 

Loan comparison of 10% down between FHA loans and Conventional loans

Scenario # 3

 

 

 

 

 

 

 

 

 

 

 

As you can see, when you put less than 20% down, and depending on your credit scores, FHA mortgages will be much cheaper in the monthly mortgage payment. I give a better description and understanding of the differences in this blog post : 10% down comparison and understanding the upfront mortgage insurance on FHA loans vs conventional loans.

My whole point to this post though is about cash, cash savings, and reserves. And in today's economy, cash is king. Let's look at it this way.

 

 

Loan comparison – Conventional loan w/20% down vs FHA loan w/10% down

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall, there is no true correct answer. It first must come down to how comfortable you are in your finances. But here is a clear indication that just because you put down 10% more, which is an additional $30,000, doesn't mean your payment drops as signficantly as many of you might think. (this will vary depending on loan amounts) Don't get me wrong, saving an additional $186.71 a month can be huge. But at the same time, you could keep $30,000 in your pocket instead. If you want to try and compare apples to apples, just take the difference out of the monies that you saved from your 10% down payment. Set aside $11,200 in a seperate account to lower your payment. It would still leave you with $18,794 now, after closing. 

One word of advice.... you don't have to try and pay down your mortgage as soon as possible.  Yes, this is a good security blanket for so many. But you also don't know what the future holds for you.  Besides, you could take $10,000 of your money left over and invest it in several areas that would give you a better return of 7% to 8%, especially since you are paying 5% on your mortgage. But you would need to speak to a financial consultant about this.

 

 

Summary : No matter how much cash you have or don't have, this is how your loan officer should help you understand your mortgage and financial situation. Cash can be king and be useful in unknown emergencies. Don't always fall for those commercials that scream, "don't let the banks rip you off, learn how to pay off your mortgage quickly".(you don't need these programs, such as the mortgage accelerator programs... you can do this on your own)

On another note, I am not saying that your loan officer needs to show you this exact breakdown. But it's more than just about the best interest rate and or fees. What is the best program for you based on your goals and the mortgage program. I will be talking about this over the weekend. Stay tuned. 

Knowledge is Power... And don't forget that you can still put down 3.5% with FHA loans, as opposed to conventional loans needing 5% to 10% down.

 

 

Disclaimer :  The rates are examples in today's market, aren't any form of advertising, and aren't for solicitation of new business. It's merely to educate the consumer. And the spread shown in these examples are real as in the profit margins for both sides, in order to compare apples to apples. The conventional rate also includes the penalty for the 659 credit score and down payments. This is because of the large pricing penalty for the credit score.

 

 

 

For more FHA loans vs conventional loans comparisons :

• FHA loans vs Conventional loans - A true numbers comparison with 5% down -  12-20-08 -Using a 710 credit score
  

• FHA loans vs Conventional loans - A real comparison with 5% down - 11-15-08 - Using a 659 credit score
  

• FHA Loans vs Conventional Loans - 20% down - A Rude Reality Check -  04-03-09  - Would you believe that FHA loans could be cheaper even with 20% down?  Come see why and how.

• FHA Loans vs Conventional Loans - 5% - 4 comparisons that you need to know - 05-02-09 -Comparing a FHA loan against 3 types of conventional loans with different types of monthly mortgage insurance. Guess who won while still using a 679 credit score.....

• FHA loans vs Conventional loans - Knowing the true comparisons - 07-10-09  - A great comparison with a 679 credit score and 5% down.  This example will still show that even with a better than average credit score, that FHA loans are still better in many cases.

• FHA loans vs Conventional loans - Things you need to know with 10% down, especially in regards to Condos - 09-19-09 -

 

Donw Payment Series - A Must Read -

• FHA loans vs Conventional loans - A real comparison with 20% down - Part 1 of 3 - 01-28-10 - Not much of a difference, unless you stay in the house for more than 5 years. Hence why a loan officer should be talking about your goals. So very important, yet many dont ask.

• FHA loans vs Conventional loans - Don't be cash poor!! - Part 2 of 3 - 01-29-10 I want to show even a bigger difference if you put less down. And even if you decided to put less than 10% down, because cash is king now. You can't predict even next week. And keeping in mind of some misleading rumors, that you need more than 10% down to buy a house.
  

• FHA loans vs Conventional loans - Get a bang for your buck - Large down payments aren't always the best way - Part 3 of 3 - 02-03-10 - Some great examples of having cash left over and not really affecting your monthly mortgage payment. And that you will have cash left over for emergencies. Keeping in mind that cash is king.

 

 

• Make sure you know about the NEW FHA loan changes : FHA loan changes for 2010 & why they changed. Reasons for these FHA changes and when they go into effect.

• And sellers, don't listen to your agents on how bad FHA loans are.

 

 

 

                    

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- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- Mortgages -

 

Experience & Knowledge at its BEST !!!

 

 

_________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For more information about the 2009 Tax Credit for First Time Homebuyers : 2009 Tax Credit

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

 

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

 

 

This is the 4th Video in a series dedicated to helping Realtors (and other small businesses) master various aspects of marketing themselves online.  I hope you learn something you can use. Here is a Summary of the other 3 Videos so far:

 

Twitter Made Easy for Business (Part 1 of 3 - 'Listening')

Twitter Made Easy for Business (Part 2 of 3 - 'Engaging')

Twitter Made Easy for Business (Part 3 of 3 - 'Tweeting')

 Be on the lookout for many more How To videos to come! 

 

Get Social with me on Twitter & Facebook: 

 

---------------------------------------- ©2010 - AmazingVideoTours.com - All Rights Reserved. How to design your own Twitter Background is brought to you by Charlotte's Premier Real Estate Home Video Provider for Realtors, and other individuals with property to sell, lease, or rent. A departure from the old fashion 360 Virtual Tour, Amazing Video Tours takes online property marketing to the next level.

While I was researching short sales in Sacramento for a client this morning, I noticed my MLS profile needed an update. So, I clicked on it to make the change. At the very bottom is a place for additional languages. I typed in Klingon. Well, I don't really know any Klingon words, so I erased it and typed Pig Latin. Hit the Save button. Apparently, Pig Latin is not a recognized language because MLS would not let me save it. Those MLS programmers, always looking out for practical jokers, I guess.

The listing my client asked about is a short sale home in East Sacramento. It is listed for, let's say, $399,000. This buyer can't go above $350,000. He wanted to know if he could buy that short sale for $350,000. Lots of buyers these days seem to think we are in a buyer's market. I suppose they have difficulty interpreting the market because newspapers and TV yak constantly about foreclosures and short sales. But with falling inventory (we've lost about 2/3rds of our inventory over the past couple of years) and rates below 5%, it's a seller's market in many Sacramento neighborhoods.

I researched this East Sacramento short sale. Looked up the owner's name, which sounded familiar, in Realist. Googled the owner. Yup, the owner is a real estate agent. And the owner / agent works at the same company as the agent who listed this short sale. I read the owner's blog. The owner / agent talked about not really understanding short sales nor believing that they close. Those are all bad signs.

Then I looked up the owner / agent's sales production in MLS for last year. The agent qualified for Master's Club. Doesn't appear to be hurting financially. I ran the name in the tax rolls. The owner / agent owns quite a few other homes in Sacramento. It would appear that the owner / agent may not have a hardship and may not understand that a hardship is generally required to do a short sale. I could be wrong, but I'm probably not.

Well, maybe the owner / agent's real estate buddy has short sale experience? I entered that name as a listing agent into a search for all sold properties from January of 2009. Not a short sale among them. I can tell by the DOM. If the listing agent has never closed a short sale, that's a red flag because the listing agent controls the entire transaction.

I have sold several homes in this particular three-block area, some of which were my own listings, so I know it pretty well. Well enough to know that the market value of that home is more than $399,000, so the bank will probably reject offers at list price. This means a lowball offer won't stand a chance.

I presented this information to my client and asked: "Do you really want to buy that East Sacramento short sale?" I have a feeling he's going to say Ixnay.

It is an inviolate tenet of real estate. When selling a property, one must determine whether it is more important to sell a property quickly and possibly accept less money, or to hold on for a longer time to get a higher price.

And one can statistically estimate for a seller what those time frames might be for different pricing points. By analyzing the overall days on the market against final sales prices one can generate a representative are market survey.

This method of analysis can also be used by potential buyers that are holding out in an effort to purchase the best property at the LOWEST price?

The technical term is how long it takes to sell a property is known as the “absorption rate,” and it is probably the best indicator of how long a buyer might wish to hold out when considering a purchase.

Very simply stated, the absorption rate is the number of statistical weeks that it takes to sell a property in a particular price range. If the absorption rate is low, holding out probably won’t help much.

However, a very high rate can be an indicator to take a bit more time finding just the right house or to offer less money for a “settle-for” property. It is a true supply and demand indicator.

So whether one is selling or buying real estate, market statistics can be very helpful tool for making a correct business decision.

Because good statistics can save you time OR money!

With plenty of REO and other distressed properties that do not have the utilities turned on, late showings in the winter can be a challenge.

Not only is it very cold inside the properties, if you are out in the country in the middle of the woods it can be very, very dark.

I carry an LED flashlight for such occasions. It discharges a bright, eerily blue light that casts a surreal beam of antiseptic illumination that allows for safety and a piece by piece interpretation of the property.

And whether or not a potential purchaser can assemble the jigsaw puzzle and form a cognitive conclusion regarding the property is still a matter that is yet unproven. It could have been a total waste of time.

But it sure was a lot of fun!