Is Media Controlling The Real Estate Market?

All people see and hear right now 24/7 is how bad the real estate and mortgage markets are. The news makes it sound like the world is coming to an end.

Well, because many in the mortgage industry gave mortgages to people who couldn't really afford them or to people who won't be able to afford the adjustable rate mortage (ARM) increases when their initial rate goes up, we're now seeing a large inventory of foreclosures on the market nationwide. Many sub-prime and Alt-A mortgage lenders are closing their doors.

Countrywide Mortgage today announced that it had to open up an $11.7 Billion credit line to sustain operations. That's big news!

So, what does all of this mean to you?

Here's a few of my observations:

• If you want to purchase a home, now is a great time to do so. There's a lot of inventory for sale. You need to make sure that you meet with a reputable mortgage consultant BEFORE you start looking for homes, because with fewer mortgage products available, you want to make sure you know which mortgage program works best for you.
• If you are currently in the middle of buying a home and your mortgage is in the process of getting approved, keep in constant contact with your lender to make that everything is OK. If the lender is selling your mortgage to another company who will be funding your loan, make sure that lender isn't in financial trouble. You NEED to have a 'PLAN B', just in case your loan doesn't get approved because the lender shut their doors.
• Keep a close eye on your credit. Good credit scores today are vital when getting a mortgage and homeowners insurance. Have your consultant help you determine what you need to do to improve your credit score. Always pay your monthly bills on time, even if you pay them a little early before the due date to make sure they don't arrive late and the company reports you to the credit bureaus as LATE!
• If you're thinking about getting a home equity loan or a line of credit, STOP! Don't do it to get a consolidation loan for your cars and credit cards. You may end up with a loan that's more than what your home is worth. You're going to need to suck it up and curb your spending a bit, because some people are taking out a home equity loans to pay off their credit cards, etc and then they continue spending and increase their credit card balances again. They didn't solve anything. They just made matters worse. Before you decide to get a home equity loan, buy Dave Ramsey's book: 'Total Money Makeover".
• Marketers and advertisers everywhere want us consumers to 'spend, spend, spend'. Don't fall for it. It appears that we're living in an era of "Instant Gratification". Well, our national average credit card balance of over $9,000 per person is proving that very belief.
• If you want to sell your home, make sure that you give yourself enough time to sell it. You may get lucky and sell your home quickly, but in many areas, it's taking six months or more to sell. Your home must be in top showing condition. I show homes all of the time where the sellers are killing their chances for a sale, because their homes are in average or below average condition while others are just messy and their homes show poorly.
• The real estate market was so good in recent years (2003 to mid-2006) that now that we're seeing a more normal selling cycle, sellers aren't used to it. We've been spoiled.
• Homes and condos ARE still selling!!! Be patient! If you don't have to sell right now, look at all of your options before making that decision. Review a market analysis (which I can prepare for you) to see how many homes would be your competition. Now is not the time to 'test' the market or to be over-priced.
• If you currently own a home and were to hear that your lender has shut down, don't panic. Keep making your payments. Eventually you'll end up making your payment to another company, who can't change the terms of your mortgage. If you ever receive a letter that says to make your mortgage payment some where else, always call your current mortgage company to make sure that you're supposed to change where you send your payment to...otherwise it could be a scam!

My best tip for you right now is to turn off the news more often, read the newspaper less and focus more on your family and strive for achieving your goals. I've often told people that "how well your life is going is really just between your ears". There's nothing wrong with shutting off the outside world (TV, cable, internet, magazines and newspapers) and enjoying the fruits of your labor with your family and friends.

I am repeating my request to you. If you ever have questions about real estate, mortgages, finances, etc, please call me for professional or just some friendly advice. Some people make poor and costly financial decisions, because they didn't bounce an idea off some else before taking action. I'm here for you. Don't ever think I'm too busy for you. I'm not. Like Andy Griffith once said on his TV show ~ "Just call the man."

Life is short!

Y.O.L.O. ~ You Only Live Once!

Online Request Comes From Client Referral!

I received an inquiry today on my CincinnatiRealEstateHelp web site from someone wanting to purchase a condominium. Mary (an alias for privacy) wanted me to call her this evening (as sometimes people can't receive calls at work) and I did. After speaking with Mary for a little bit, she mentioned that she had been referred to me by one of her co-workers, Susan (an alias for privacy). I asked her "WHO?" and she told me. It was one of my clients, who I think the world of. Susan was an absolute pleasure to represent as I was able to help her find a great condo. She also wrote one of my best client testimonials and I really appreciated that.

Well, Mary told me how my Susan said that "I'm the Realtor she needs to work with." I will honor her request and do my best to help her find a condo that's right for her situation. Now I have two people I need to make sure I take care of and do a great job for.

I also told Mary that I don't push people, they can buy on their timeline and I recommend the pros and cons of different properties (just like if I were considering that property for myself).

In fact, I've invited her to our next free Home & Condo Buyer Class and she obliged.

After I hung up the phone at 9:29pm tonight, I called my client, Susan and thanked her. She was very appreciative and thanked me for all that I had done. I will keep her posted on Mary's progress.

Thanks, Susan (wink! wink!), for placing your trust and confidence in me to recommend a friend.

Happy 13th Birthday, Bryan!

Our son,Bryan, is now a teenager and driving won't be too far behind! Oh no, just 2.5 more years!!!!