Pigs Get Fed….. Hogs Get Slaughtered!

Wow! What a headline! It should bring some kind of attention from some of you. No, this is not a recipe. I guess you can tell I am from the south with this headline also. Someone told me this back probably 2 years ago. He is wiser than his years and yet I did not listen to him.

Now, let’s discuss the meaning. This is about GREED!!!!!! Pigs get fed, Hogs get slaughtered. Well, if you are selling your home and are expecting a huge profit in today’s market, then you are a HOG. Offensive you think? No, I do not intend to be. Let me break it down. Normally, in a real estate transaction, earning a profit of $15k-$30k was the norm. Operative word there WAS. Now we have heard of these huge profits ($70k +) that are to be gained and we also feel we need to earn these huge profits.

We (meaning all of us) have been using our homes as ATM cash machines to finance things we want; improvements to this home and to pay off our bills. Therefore, this increases your mortgage, line of credit or equity line that needs to be paid off in a sale. Therefore, this decreases your “bottom-line”. But keep in mind, you have been fed all along by this home and you need to really factor all of the benefits your home has provided you. Now those of you who really want to sell, you are probably a pig and realize earning any profit in today’s market is huge. And you get fed, move on with your life. Many hogs end up slaughtered! They get offers on their home and continue to decline them. They start off at $250k, get offers of $200k, turn them down and a year later that very same listing is $170k. Imagine if they only would have taken that offer 8 months or so ago. They would be done with the stress of trying to sell their home, they would of been fed and continued on. Then, there’s the monthly payment factor. Whatever offer you get Mr.Seller, always take into account your monthly expenses on that property and times it by 7 (for 7 months, average time on market) and then take that amount minus it from the lowest fair amount you will consider to take for your property and list it at that price. Either you want to sell and get fed, or put your property on the market and be a hog and make these monthly payments, etc… and get slaughtered at the end of the day because you end up taking close to 20% lower than the number we just discussed. It is up to you.

Your Realtor can only advise you on listing price. You hold the key. Your professional should tell you the truth and give you facts on the comparative market analysis. But, if you direct that Realtor to list at an unreasonable price, do allow that Realtor (as long as they advised you of the true market value from the beginning) an opportunity to market your property until it does get sold. Remember, this is our profession. We do it to make money; so we invest a lot in order to try to sell your home. Give us an opportunity to do our job. And to Realtor hop, (go from one realtor to another) will only frustrate you. This is a partnership. You both are trying to go towards the same goal.

As in any relationship, COMMUNICATION is the key. Talk to your Realtor at least 2 times a month. Lowering your price is not a sign of weakness. It is the sign of the times and shows you’re looking to fed and not slaughtered.

Dawn Dell
2006 REALTOR OF THE YEAR
863-381-0400
www.sebringfloridarealtor.com

Expert Smxpert! Who are these so called people?

Well, the news continues to do it. These people get on the TV, Radio & Internet (or if a dinosaur) Newspaper and tell us about our economy, our livelyhood and everything else. They claim to be “EXPERTS”, just may I ask, “Where did they get their degrees of Experts????’ I am curious because I have yet to see that class being offered in my local college. Plus what are the criterias? If that is the case, then I am an expert. Of what you ask, all of it. Trust me, I can give you an opinion on anything and I guess I can claim to be an expert.

Where am I going with this you ask??? Well, here we go, Real Estate. They claim the bubble had to burst, how long did that take? Here in Central Florida, over 2 years and we never went to the ceiling cap, anyway. The bubble finally did BURST. But now it must hit rock bottom. The media will not be happy until all of us have hit rock bottom. These so-called experts are now telling us that the economy is still in for a rough haul. But they still want us to spend our money for Christmas and are speculating that the consumers will wait until the last moment and over spend to impress people we do not even care about but want to impress. This is the media’s way of controlling us.

It is time we took control of our own destiny, Stop listening to these so called Experts, turn the TV off, especially if they are telling about this doom and gloom. Remember this is job security for them. If they do not have bad news, they feel they have no news to report; so only bad news is good for them. So, if you really look at this from our perspective, then you may want to agree with me.

Now is a great time to buy propertyl interest rates are low, the feds are asking banks to work with buyers to help them get into a home, and prices are really negotiable. Realtors are hungry and sellers are getting desperate. This is a great time to buy. Now I really have a unque situation. I am in Central Florida and the projections are in, (by these so called experts) that the first wave of the baby boomers will be retiring this year; and where do you think they want to be?? Florida? or Wisconsin? Let me just say this,,,, the sun is shining and we are desirable. Where I live, it is 1 1/2 hr from each coast, basically 2 hours(OR LESS) from Miami, Orlando, Tampa, Naples, Sarasota, Ft Myers, Pt St Lucie, and some of the best beaches in the world. We are south of the freeze line, we have many beautiful fresh water lakes, lots of agricultural land, and we are still under the average price.

We are Florida’s best kept secret. So… I am not letting these so called experts get me down. Instead I see light at the end of the tunnel. Highlands County is where we are and I know it is the best place right now. The experts have nothing on this. So … if you want a great deal, give me a call at 863-381-0400 and I can help you get on your way to living the good life. And remember when those so called experts start to tell you what is going on, remember what I am telling you; we are all experts and we can learn from our mistakes. But if you do not make mistakes, then your can not learn. So if you’er living a life and not just sitting there worried about what is happening next, then you are your best expert. Live, Love. Laugh and Learn.

Choosing a Realtor to List your Property!!!

Prior to listing your home you should do some home work yourself.

First, look around your neighborhood and see if a certain Realtor specializes in your area; if so definitely contact that Realtor (regardless if you use them or not) and see what they have to say.

Second, look at the local advertising and see who is going to aggressively market your property.

Thirdly, ask around and see if someone recommends a Realtor they have recently done business with and possibily hear their story.

Then you should get at least 2 opinions of price from your local professional Realtor. This will let you know if you are thinking in the same price range as what the real market value is. Remember, if these 2 professionals come in with a very different price range, you need to get a third opinion.

Some Realtors have to meet a “quota” of listings in order to stay at their office. So this would be a reason for a Realtor to over inflate a listing price, just to get the listing. This is called “Buying a Listing”, and this does no good for either the seller or the Realtor. Instead, the seller usually gets frustrated with the Realtor and Realtor is frustrated because they took the overpriced listing in hopes of catching a fish (another story) and then the realtor could possibly talk the seller into excepting a lower price; but in reality the seller could possibly have sold a lot earlier if they would of listened to the lower priced Realtor. Remember.. “don’t punish the honest Realtor for giving you fair market value”l they are only doing their job.

Sometimes Realtors offer “staging” services. This is done usually on a case by case basis. In some homes staging is needed. I know, I have found homes with minimal knick knacks and furniture do sell quicker. Most buyers do not have the imagnation to see themselves in a home that has too much of the sellers personality. De-clutter!!!!

Clean Clean Clean, and refresh the landscaping and a little paint goes along way. Ask the professional what you should do to make your home more appealing.

Of course in the old days, I am told LOCATION LOCATION LOCATION was the main 3 ingredients to real estate. Today it seems to be PRICE PRICE PRICE; so be smart and interview several professionals and price your property right!!! Happy Selling!!!

Correction Curve

The housing market is going to experience what I am calling the “Correction Curve”. Think about it, what the bank will finance is really what the market will bear unless we have a frenzy market again and CASH buyers inflating the market (that is a whole other subject coming soon).

If the property is being purchased with a mortgage, then the bank requires an appraisal. An appraisal is really only one opinion with a calculation of other factors. These main factors are other sales within the market area and homes that are close in comparison to square footage and actual year built.

Right now in this market there are foreclosures, investors getting out of a bad investment at any cost to save their credit, short sales and true sales at true market value. Once these properties close escrow and are recorded, these sales are then used in the calculation process of an appraisal for a loan.

If a purchase contract has been accepted by a buyer and seller at a price higher than the appraised value, the buyer has a “loop hole” out of the contract in the financing clause. Property must appraise at mortgaged value, so make sure when writing an offer on a property to consult with a professional Realtor on how to get you out of the contract if it does not appraise at full purchase price (again another subject for another time, coming soon).

Once several properties have closed at lower than market value, the values in general decline and in an inflated market this will create a correction of price therefore a “Correction Curve.”

What this can mean to you as a seller: you should absolutely consult with a professional in your market place and get a fair market value.

If you really want to sell, I am finding there are buyers at the right price, but if your intention is to “test the market” or “fish for a buyer” than now is not the time to put your home on the market (unless of course it is priced at fair market value). Marketing your home with a professional is only to your advantage. Use their expertise and also, it literally cost you nothing unless the home is sold.

Now for the buyers, I have mentioned this before, never has there been a better time to buy (of course except to prior to 2003), buyers are getting great interest rates, a huge inventory to pick from, and now the “Correction Curve” price is all in your favor – being able to buy a home at a better than fair market price.

So.. if your looking to buy or even do I dare say INVEST, go for it. Get with a Realtor and start looking at the market and making offers, you never know what might be accepted.

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