How Realtors Sell Their Own Homes

Click on the title to link. This is an interesting article about whether Realtors sell their own homes for more than their clients, and, if so, what they do to do so.

The article says:

Most people have heard of the well-publicized statistical evidence that that when real estate agents sell their own homes, they tend to keep them on the market longer (by about 10 days) and get a higher sale price (by about 3%) than when they sell homes for their clients.

The article does point out the fact that the folks who wrote a book about this conclude that it must be greed on the Realtors part (in essence) because the additional commission is so little that they figure why bother getting a little higher price for a client. That's quite the leap, don't you think? That reminds me of this time I saw an elephant at the zoo, and, of all things, a pink crayon on the ground by their cage. I naturally concluded that there must be pink elephants then. Oh, wait...

That's the same stupid logic that the author of the book has taken. Let's take the facts instead of jumping to ridiculous conclusions.

1. Whose the seller the Realtor is dealing with when they sell their own house? That's right, themselves. I think they now best their own tolerance for risk, and what they will or will not take. When dealing with clients, all you can do is present the facts and let the sellers make an educated decision. One of those facts will be that they could turn down offer X in the hopes for another 3% (let's just use the same percentage the book says Realtors make more of when selling their home). I don't know many people who would jump at that offer unless they were hell bent on a certain price.

2. With knowledge comes power (or so they say). The job our any Realtor (or lender, for that matter) is to educate people so they can make the best possible decision for them. However, that is not always easy. People hear what they want to hear. So I could tell you that you should probably reject this offer and wait for a better one. But that does not mean you are going to listen to me.

Anyways, there are more that we could go on with. The bottom line is this...I have no doubt that Realtors make more on their homes than their clients when they sell. But that because they know the seller better than anybody else (themselves), and they know exactly what to do because they do it for a living (hence the fact that their homes are also on the market 10 days longer; they trust what they know). I'm not saying you need a Realtor to sell your home. But if you use one, then make sure you work with one you trust 100%. Get referrals, do not work with those you run into at an open house.

We work with phenomenal Realtors. If you need their services than the place to start is here with us so we can get you with one that we know will treat you like you should be treated. So give us a call.

Foreclosures At Rock Bottom Prices

Click on the title to link. This is another article on purchasing foreclosures. If you are in the market to buy a house then you will be hard pressed to not at least look at some foreclosures (or short sales). Be educated and read this article.

Why Your First Home Shouldn't Be Your Dream Home

Click on the title to link. I am not sure that many people would really ever say they are buying their "dream" home when they are buying their first home. But this is an interesting article with some good points. The funniest thing about this to me...the picture. How many first homes look like that?

Dream of Home Ownership Fading?

Click on the title to link. Here is a sad article about how many folks are thinking they will never be able to own a house. We think most of this is because people do not understand their options. When you here nothing but bad news about real estate in the news then it is going to ware on you. However, many of those who think it is unreachable just do not understand the process and what they can do.

If you are in that boat, or know somebody who is, then let us know because we can sit down and at least show you options. You have to window shop before you can buy. The first step to that is to see what stores are even open for your business. Make sense? We are here for you and anybody you may know.

Mortgage Reality Check

Some of you may have seen this on ABC News. It is a good video about the difficulties of getting a mortgage now-a-days with all the new regulations, and stingy banks. Now is, without a doubt, the most frustrating time we have seen in 9 years to obtain a mortgage. We hae always told our clients that lenders do not lend in logic, they use guidelines that often make no logical sense. The problem now is many of they have transitioned into the illogical. Not only do they use strict guidelines they are now venturing outside of the guidelines and asking for stupid things (and we mean really stupid sometimes). And often, unfortunately, it is due to laws that our terrible Congress has passed that are intended to make it "safer and easier" on you the consumer. Instead it has done the exact opposite (typical).

All of this said, you have to be careful not to let this video (and our statements) prevent you from pursuing a mortgage. There may never be another time when the perfect storm hits like it has right now. What is the perfect storm? Increadibly low rates and a dismal sellers market. You can get more house for the dollar than ever before. So from a purchase stand point it has never been better.

The same applies to refinancing. Yes, getting a mortgage can be (will be) a pain in the butt. But (no pun intended) rates are so low that you just cannot pass them up. We have seen our fair share of stupidity by lenders and law makers. However, we are here to help you navigate through the rough waters. This is why it is important you work with somebody who has your best interest at heart. You can work with a bank, but you have no buffer to help you understand why they are needing what they need. And you have nobody there to walk you through it. We often explain to people up front what issues may arise because we have seen it so much. Surprises come, no doubt. But if we can anticipate most of the garbage thrown at us all then it makes for a much smoother loan. That's our role for you.

6 More Hurdles for Home Financing

Click on the title to link. We changed the title of our post just slightly from the article to reflect the fact that the hurdles listed in the article are really six more hurdles. They are the major ones indeed, but there are so many that you could practically write a short book about it.

The bottom line? If you have not got a mortgage in a couple of years then you need to know that this is not "business as usual" anymore. In fact, it is so ridiculous sometimes that it can be maddening. We deal with it everyday and it is insanity what some of these lenders deem necessary. About the only thing left to analyze is urine samples. And don't put it past our current government to move in that direction (kidding, mostly).

Regardless, rates are insanely low. We just keep waiting for them to go up, and they keep going down. Obtaining a mortgage before could be unpleasant because of the dope you were working with. Now it can down right lead you to craziness UNLESS you are working with someone you trust. Now, more than ever, it is critical that you work with someone who is referred to you, or can really show you how they work. If they cannot do that then run. We are here to help walk you through all of this, hand in hand. That is the only way you will have a smooth and understandable process.

Home Sales Slide at 40 Year High

Click on the title to link. There is also an associated video you can view that, for some reason, we could not embed.

The New Mortgage Process

You have probably been hearing and seeing alot in the media about the new Good Faith Estimate, as well as continued rumbling about the appraisal process. All of these processes promise to "protect the consumer".

Well, not only is it not doing that, but it has made the process far worse. If you thought the process was confusing before then you have not seen anything yet. On top of that, lenders are so strict with their underwriting due to continually evolving guidelines that it is making it challenging to get even the perfect borrower through. We have always said that logic does not exist in our business. I am not sure there is another level to that, but it sure seems to be the case as we have transitioned from no logic to illogical.

What's the point? Be prepared. Don't buy into anything or anybody that tells you the process is better. It's not, and you need to be aware of it. But that is why we are here. We are your buffer between sanity and insanity. You can at least find comfort in that.

An Invisible Threat to Home Values

Click on the title to link. This is a good article for those looking at buying a house right now.

Details on the New, Extended Tax Credit

Click on the title to link. As you probably know by now, the Feds have extended the tax credit. Additionally, they broadened the net to include existing homeowners who meet certain guidelines. Read this helpful article to get the "down low".

How Much House Can You Afford?

Click on the title to link. This is a good resource for you. Just keep in mind that we have all sorts of resources for you on our regular site, www.MyPremierAdvisors.com.

Tax Credit Deadline Looms

Click on the title to link. We don't have a whole lot to say that we have not alreay said. If this does not get extended you should know two things:
1. You need to find a house no later than mid Oct. If you find one later you may be OK, but we would not risk it. Underwriting times are going to extend longer due to an increased rush at the end.
2. If this is not extended the housing market will drop like a lead balloon.
Hang on, here we go...

Another Housing Slump?

Click on the title to link. This is one of the reasons we believe that if the Feds do not extend the First Time Buyer tax credit the market will fall off a cliff. It will not be a gradual decline. It will be steep and fast. Again, we are not big on the government poking their big nose in, but they got one out of however many right; and it is an important one at this point.

A Fight Is Looming

Click on the title to link. This is an article we have been waiting to see. It is regarding the battle being waged over the $8,000 tax credit that is set to expire Dec. 1. You should know this by now, but if you are a first time buyer (have not owned a home in the past three years) then you get a dollar for dollar credit of $8,000 on your taxes. We content that this alone is responsible for the real estate market doing so well. We also contend that if this is not extended then the market is going to do an immediate nose dive.
The article talks about the skeptics who say this is something benefiting people who would have bought anyways. Although that is certainly the case for some, these skeptics have no clue what they are talking about because they are not in the "trenches" everyday like we are. These are the same people who are supporting the disastrous "cash for clunkers" program. They are clueless and have no idea what they are saying.
Take it from us, this credit is getting people to buy homes who would not have otherwise, or they may not have pushed up their time frame to take advantage of this credit. If this credit is not extended then you watch, the real estate market is going to dive. At the very least, it should be extended as is. We are not sure how we feel about NARs (National Association of Realtors) proposal of making it $15,000 for any buyer because the of the cost. It would be another costly government program, and the madness has got to end somewhere. But one thing is for sure, if that did happen the real estate market would go through the roof because those who would not have bought and/or sold before would be in to take advantage of it.
Take it from two guys who are anti-government involvement (for the most part), they got this one right. Let's see if they keep it right, and listen to those of us who actually do know what we are talking about.

Should You Buy A Foreclosure?

Click on the title to link. Although the points in this article are mostly valid and good, buying a foreclosure is a wise move as long as you know what you are getting into. That is, that you are going to have to be patient with the lender and just know you may not get all your "demands" met because they don't roll that way. But, by all means, take advantage of a good deal when at all possible.

Starter Homes

ABQ is still, and probably always will be, a great place to buy your first home. Click on the title to link to an article that goes through 125 cities where this is the case also.

Real Service

We talk with clients often about the inward reality vs. the outward perception. Simply put, this is the tension between what you say you are vs. who you really are. So for a business, if I say that I have the best service in town then what are the things internally that will consistantly deliver to that end. This is something sorely lacking in our industry as lenders constantly over promise and under deliver.
We received a quick thanks from a client today and were compelled to share it. We have created many internal systems that ensure we over deliver. Plus, we just have an amazing team of people whose desire is truley to serve. We are here for you and anybody you may know needing a mortgage.

My husband and I wanted to thank you for your excellence in processing all of our loan documents especially considering the time constraints. Thank you and your lovely wife for the bread. We had some this morning and it was so delicious.
Thank you and Kimberly also for all that you do and we will certainly refer you to our friends and neighbors for their home mortgage needs.
Thanks again.

Tax Credit Effect

Click on the title to link. There is no doubt the tax credit is driving the housing market right now. Homes in ABQ under 200K are going pretty fast, especially the remodeled ones on the east side. You have until Dec 1 of this year before it ends.

Top 5 Home Buying Blunders

Click on the title to link.

Mortgage "Relief" Frustration

Click on the title to link. Did people expect a government originated "rescue" program to be smooth and easy? It is so rediculous what they want you to do to actually, possibly qualify for these "programs". Mainly, you must become late on your mortgage. So I guess those paying the mortgage, but struggling greatly, are screwed. It is like most government programs...good idea on the surface, but horribly executed and thought through.