Time Can Cost You

Click on the title to link. This is an interesting article about the potential money lost if you wait for the market to "bottom" before buying. The money lost here would be in the form of a higher down payment because of an increased home price. The bottom line (no pun intended) is don't get greedy. The market is so down that now is the time to buy a house. And with rates as low as they are, it is the perfect storm (as we have said before).

If you need a Realtor then you need to call us first. Do not use somebody unless they are referred by someone you trust.

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.

Hidden Victims of the Mortgage Mess

Click on the title to link. I am not sure how "hidden" these folks are, but the article is referencing those who are underwater on their house and are not in foreclosure. This certainly is a huge problem since it may take years for those homes to get back to what they were (depending on many things).

10 First Time Buyer

Click on the title to link. This is a good article about first time homebuyer mistakes that can really affect your search for a house. Read through it and share any questions you may have with us.

Should You Buy New?

Click on the title to link to this article. Relating Albuquerque to this article, I would say it is not as clear cut as they may present it. There are certainly benefits to buying a new house, just like there are benefits to buying a new car. But there are just as many benefits to buying used. Especially in Albuquerque, do you want to be on the west or east side? If you buy new you will, most likely, be way on the west side. Values are much slower to increase on new construction on the west side, and you get the lovely landscaping of dirt!

All that said, I am not pushing for one to buy used and not new. Just remember there are always two sides to every story.

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.

August Home Maintenance Tips

Click on the title to link to a nice little article about things to do around the house (especially outside) for the month of August. We are all about practical also!