The Control, Alt, Delete Housing Market or It is what it is…

It is time for Brokers, Agents, Buyers and Sellers to come to grips with the new paradigm in Real Estate. Real Estate for too long has been just another trading platform for wealth acquisition. It is founded on an inflationary and ever expanding model of growth. More people in the market and more demand means higher prices and incentive to sell and buy ever more expansive and expensive properties until in the end you cash in your chips and pass the wealth on to the next generation to continue the cycle again. Upon reflection, isn’t this actually just a huge government sanctioned Ponzi Scheme? That is certainly how this last decade ended and it appears that we just cannot wait for it to start all over again. I have potential sellers ask me all the time (still!) “when is the market going to come back”. Ugh! I give them the math and say ok, your home has declined in value about 50% (in East CC County) so now your $1.6M home is worth $800k (or less sincefew are selling) and the historical appreciation is 4% per year. Do the math and it will be 8-10 years (or more adding in inflation) and your home will once again be worth $1.6M in real VALUE – When??

It is sad to see people’s life savings literally gone from their properties, 4 or 5 homes rolled into one and now vapor. I was showing a beautiful home on the Golf Course the other day to a dear older woman who wanted to sell her large home 30 miles away and move closer to her daughter. Last sale price 2006 – $1M even. Today’s list – $575K. The client was very nice and when we got to the house the owners were there (last time I allow that for awhile) and the wife who was losing her home to a short sale sat in the corner weeping. This is supposed to be  a win-win scenario, but now not so much. It is painful. I seem to be playing counselor as much as Realtor these days.

My point is that Sellers are hanging on TOO TIGHT and destroying their credit and their emotional health trying to stay in a home that is literally sucking the life out of them. It is what it is, now move on. Talk to an attorney and hit Control, Alt, Delete! Reboot!

The banks are NOT playing fair, they are simply doing what they do and making as much money as possible no matter the affect on people’s lives or the community. Expecting them to change on their own is like talking nicely to a hungry lion, while the lion may be curious as to your gyrations, you are still on the menu. Only 15% of all mortgages that fall inside the Gov guidelines for permanent modification have been approved.  I could tell you a dozen reasons WHY but it simply does not matter because it is NOT going to change. Accept it and reboot.

Hopefully we will never again get into such a fevered market and treat our homes as get rich quick ATM’s with window treatments.

We need to get through this glut of underwater houses and reset the market. In late 2009 I would have CLOSED the housing “market”, reset ALL home values through new appraisals (possibly using replacement cost), kept the people in their homes that could afford a fixed 5% / 30 year loan on that new value, forcing the banks to comply and in return giving the banks 50% of the appreciation up to the original value of the loan when ever the home sold next whether it be 6 months or 30 years. But again, this did not and will not happen so we MUST move on ourselves.

Buyers are hanging on an eighth of a point interest rate change or a few thousand here or there on a home that is already 50% below it’s pre crash high. In a few years you will still have a great home at a great price. People will always need a place to live, whether they rent or buy. Money and demand will always set the market. It is my hope that people will stop placing such a high value on bigger, better, higher and faster.  I had a (past tense at this point) a friend who wanted to buy a home in 2004 and stated that he would not buy any house unless he could “rip it” from someone. The “trader” mentality has got to stop. Move the market at any cost and then profit from whomever you can in any way you can. Ghandi said that one of the deadly sins is “commerce without conscious”.

Real Estate is a great place to start to reestablish a moral center in commerce. Sellers: Define your realistic goals from where you are today and move forward. If you can afford to stay, great! If not figure out when it is time to accept reality and do not go down with the ship. If you are a Buyer then determine what you really want for next 10 years or so and move forward. Find that house and buy it. If your time frame is less than 5 years, seriously consider renting. When you run the numbers on Rent vs. Own, you would be surprised to find that for many people, especially now,  it will NEVER be better to own. If you are a Realtor, do your own business reality check. Place value on what you do and then use your tools to move your own marketplace. This may mean rebating a portion of your commission to your Buyer to get the deal done. It may mean only working with people that will agree to show loyalty by signing a Buyer/Broker Agreement. Use technology to lower your costs and reduce the time needed to properly service your clients. If you are a Broker, consider what your model is telling you. Are you hanging on to the past or moving forward to the future? Do you embrace technology, new ideas, commission rebates to buyers and 100% commission to your agents or are you hanging on to the fancy office, low commission splits and insistence that your agents market YOUR name above theirs?

Whether you are a Buyer, Seller, Agent or Broker we all can act for the benefit of all parties and the communities in which we live. Our market and our way of life will be stronger.

Hit the Ctrl, Alt, Del buttons and reset the market and your thinking. Stop waiting for the Government or Wall Street to do it for you. Focus on the change you want and make it so in your life.

Marston

What a long, strange trip it’s been…

This is a renewal and relaunching of my real estate blog platform. Area Pro Realty-People’s Choice (APRPCOnline.com), DiscoveryBayGuide.com and Real Estate Agent Radio are my connections to my “sphere of influence” or SOI.  This blog is about my vision of how to co-create a better, fairer and more intelligent real estate marketplace that will benefit all of us.

I will present facts, figures and (I believe most importantly) a vision of our new market place that is both sustainable and based on integrity of conscious. Review my older posts and come back at least weekly, or better yet subscribe,  for updates on our market and how best to find YOUR place in this housing “market”.

There have been a great many changes in the Real Estate marketplace over the last few months. I will hit the highlights as they pertain to Buyers and Sellers. I am not going to dwell on what is wrong with the market or the industry because as the man said “It is what it is” and it is counter productive to focus on the negative. We will instead focus on our future as we co-create a new paradigm in real estate for Buyers, Sellers, Professionals and our Communities.

Marston

Commission Structures

I was approached today by a friend with some questions. It turns out that not everybody wants to read an impassioned discussion regarding disintermediation or the technological and social ramifications of Web 2.0. She just wanted to know how what Area Pro  Realty is doing for her today, in a nutshell.

Listing side commission is 2.0% based on final selling price on “traditional sales” limited only by a $3500.00  minimum. REO and Short Sale commissions are set by the Lenders who approve the sales and are split 50/50 with the Buyers (Selling) agent.

Typically this is 1.0% lower than “the going rate” for the listing side. On a $700,000 home, this saves the seller $7000.00. He can actually lower the price of his home to make it more competitive in the market and net the same or more at closing. Many (most) agents will negotiate commissions when pressed by the client to do so, but if  they will agree to lower the commission for some clients (because they are “better” negotiators) is it simply not the “right thing to do” for all?

We offer Buyer Commission Rebates of  1% of the Buyer’s Agent commission, paid to the Buyer at close, when represented by Marston Myers or other cooperating Area Pro Realty – People’s Choice agent, on the purchase of ANY BROKERS LISTING. This is only limited by the requirements or limitations of the Buyer’s lender, or the FHA or other Gov Housing lending agency. We have paid out tens of thousands of dollars of Buyer Commission Rebates. After all, the BUYER actually pays the commission in the end because the commission is built into the sales price of the home. Again, REO and Short Sale Commissions are set by the Lenders who approve the sale and are split 50/50 with the Listing Side. However, Buyers of these properties may still typically expect a .5% rebate of the final sales price at close of escrow or as limited by their own lending situation.

On a $700,000 home this rebate will put $7000.00 in the hands of the Buyer to help pay closing costs, buy-down his mortgage rate saving thousands per year in payments or just a nice $7000.00 check at close. Per our CPA, this is a non-taxable event for the Buyer and will merely lower the basis of the home $7000.00 at resale.

Why do this? Because it is fair to all concerned, sustainable, client oriented and (most importantly to me) removes the adversarial tension that exists between Broker and Client. Do some Realtors see multiple clients at a social event and pray that those clients never compare notes regarding commission? Yea, I’m pretty sure they do…

Real Estate commissions are all negotiable by law. Most Realtors want you to believe that in a tough market seller’s  should be paying at least 6% total because your home will be on the market longer and it will be harder for them to sell. What incentive are they offering BUYERS to purchase YOUR home? Marston Myers is offering BUYERS half of what the Seller is offering other AGENTS to sell their home.

Providing FULL SERVICE is mission critical. Without providing a robust full range of traditional and Web 2.0 services, lower commission means nothing!

I am simply “negotiating” upfront and publically for the benefit of MY clients and OUR community.

One last point, Area Pro Realty – People’s Choice does NOT “Discount” commissions! We are “Setting” fair commissions for our clients. If you can find better representation, better services or a fairer deal with any other Broker, than by all means take it!

Everything will be plainly stated in writing when we begin to work together. Please feel free to call me with any questions!

Marston Myers
Owner/Broker

925-262-8128

Area Pro Realty – People’s Choice

Rent or Buy?? You mean FOREVER??

It is traditional wisdom and the mantra of the real estate industry that to BUY a home is your best long term financial move. In this turbulent market atmosphere it is time to review.

Why did you (want to) buy a home in the first place? When you think about buying a home do you analyze the home like a stock investment or do you focus on how it makes you feel. You know, your gut feeling. How many times have people said “We just fell in love with our home”? Not many people say the same thing about a stock pick!

Buying a home because you “love it” is fine! Just realize that is what you are doing. We have been programmed to buy a home, pay it off and live in it as long as we can or sell it and move into a larger home. Ownership conveys security.  A warm fire on a cold night. A green lawn  to play catch with our kids and pets. Marks on the kids doors as they grow. Growing equity as the home continues to appreciate. Security in our golden years.

How nice…..

According to these calculator links, it is possible that your best FINANCIAL investment is NOT to buy, but to rent – forever.

Go ahead, look at these calculators. If you rent for the rest of your life and invest the difference between renting and buying, you may be surprised at how much better off financially than you would be if you bought. Of course this is dependent on the specifics you plug into the calculator’s and your ability and discipline to invest wisely and consistently. Look at this calculator from Ginne Mae (Federal Gov).

Next take a look at the New York Times calculator. Remember to be realistic and use historical home appreciation rates. Obviously 10% per year appreciation on a purchase cannot continue forever.

If you Rent, the fireplace is just as warm, the grass is just an green and the growth marks on the doors cover up with paint. As long as you are there it is your “home”.

If you Buy after investigating all the options, you are doing so with the knowledge that you have looked at all sides of the question. In most cases, buying will prove to be better financial choice. Some will decide that for them, renting is best.

Do the math then search your heart.

There is a lot to be said for emotional security. Do not try to time the bottom of the market, you can’t. If you find a home that you “fall in love with” AND you can afford it AND you intend to stay in the home for 5 years or more, Buy it!

Wait a minute, isn’t that the smell of fresh apple pie cooling in the kitchen?

Marston

“Where to now St. Peter?”

 

“I took myself a blue canoe

And I floated like a leaf” …” Elton John – Tumbleweed Connection

 

Many people are feeling overwhelmed with the current state of the market and asking what to do. “It is what it is” as the man said. So how do we decide when to attempt to stay in our home and when do we make the business decision to sell now, take our Paper losses or Actual profits and move on? This is a complicated and emotionally charged question, especially in these uncertain economic times.

 

As a Broker and Realtor, I believe my highest duty is to give my clients and community the best information available, all the information. Then together we will try and make sense of it for each individual situation.

 

Here are some factors to use when determining what to do next.

 

1)      How long do you intend to stay in your local area? I am using 5 years as short term vs long term.

2)      How much do you currently owe on your home?

3)      How much is your house currently worth? (It is worth what someone is willing to pay for it, in this market, within 90 days or so.) Take out the emotion.

4)      How far below your homes high point is it in terms of percentage i.e. 10%, 30%, 50%

5)      When will this market “stabilize”. My definition of stable is less short sales and bank owned than normal re-sales (with equity). I believe late 2009 or mid 2010.

6)      When it does stabilize what will be the annual rate of appreciation going forward. Gone are the days of 20% per year or even 37% per year for deep water homes. (This is a good thing!)

7)      How many years will it take at that projected appreciation rate for you home to regain it previous high point value? Historical national average is around 4% per year over 30 years. Include factors like rising gas costs effects on your local area (commute costs, recreation costs, costs of goods).

8)      How much in actual dollars (after tax) will you spend on your existing mortgage(s) including projected resets for ARM’s will you spend over that time period?

 

Now you have an investment model. You will invest X dollars over X years for X gain on that investment.

 

Look at the answers honestly and realistically and make a decision. If you run those numbers and find that you will be investing say twice what your return will be then make your decision based on your brain and not your heart. Run a rent vs. buy calculator and play what if you invest the difference in other forms of investment. We will always have housing costs, but these costs need to make sense.

 

If you have a positive gain on your investment congratulations, you can relax.

 

I am always available to help you with an evaluation of your home and the market. If you would like some help in determining what to do next, please feel free to call on me to help you.

 

Marston

Looking for Armageddon and finding Mayberry RFD!

From the May Edition of the Delta Sun Times.

Note to Readers: Yes I know it is a bit long and even detailed. This is about YOUR money. It is much simpler just to go along with the program than learn a new one. If you are the person that goes into a car dealership, picks the car (by color) and happily pays the price on the window sticker, you are excused from class. For full impact click this link and listen while you read. It will open in a separate window, click play and then click back to the first tab to read.

Looking for Armageddon and finding Mayberry RFD!

Warning; if you want to think “the market” is getting ready to “come back” or “take off” anytime soon. Stop reading! If you think that Real Estate, as a business model, is etched in stone and unchanging (or you want it to be), take a deep breath and hang on. If you want to get a glimpse of the paradigm shift that is taking place all around you sit down and hang on.

Do you sometimes feel that the Real Estate Industry and their spokespersons are like a 1970’s talking doll? Pull the string and it says “Now is a great time to Buy!” or “Now is a great time to Sell!” Now is a great time to (fill in the blank)?

Second homes are becoming less desirable for most people due to pure economics. Three Quarters of a MILLION Dollars is a lot of money for a home that you spend a couple of weekends a month in, yes? While a small segment of our population can and will always continue to acquire multiple residences, most will not. Why? The initial cost, decreasing appreciation percentages and costs of maintenance and insurance and better investment vehicles in the current and foreseeable future is the short answer.

The Market will “come back”, but it will NOT look like what we remember in 2005/06. 37% appreciation on deep water homes in DB for two years straight was simply not sustainable. A bulb burns brightest just before it burns out. Late 2009 “may” see some stability in the market. But first, all of the REOs (bank owned properties) and short sales must clear out of the inventory. The current “absorption rate” in DB is 3-4 times longer than the “normal” 3 – 6 months. The people that were in the buying pipeline that were “used up” 2 -5 years early due to teaser rates must regain there financial footing (many lost their homes to foreclosure due to recasting interest rates and eventually owing more (way more) than the house was worth as the prices declined.

The current Real Estate industry is in MAJOR flux! New business models are popping up all the time, all across the planet (yes, the planet and showing up here). There are a number of pieces to this shift.

1) Let me use an analogy to describe how the internet is affecting Real Estate. Remember maybe 5 years ago (or certainly 10 years), when you could not walk down the street without passing a travel agency or even two, complete with mannequins in hula skirts, and tons of brochures all at eye level for the taking? Now we cannot find a traditional brick and mortar travel agency without a GPS device. Don’t people still travel? How on earth does all this traveling happen without a brick and mortar travel agency? I will use myself as an example. When I want to go to Hawaii (with which I am quite familiar) I log on to the United Airlines website, book my flights, select my seats, print out my boarding passes, book my rental car and hotel as well all while sipping coffee sitting at home in my fuzzy slippers (sorry for the visual). No travel agent involved. But what if I want to (someday) go on a European cruise? I will STILL go on-line, Google my little heart out, look at on-line brochures, lots of pretty pictures and get a good idea of the where, why and how’s. Then I will call my travel agent, who works in her home office in Sacramento (no brick and mortar travel office and probably in her fuzzy slippers), and tell her or email her my wishes and ideas. She will then (PAY ATTENTION HERE) Filter and Guide me in my plans based on her LOCAL/PRODUCT KNOWLEDGE, book the travel that we decide on, handle the contracts and send me my documents. This is exactly what is happening in the Real Estate industry today as the population fully incorporates the internet into its daily life. According to NAR 87% of Buyers and Sellers begin their search for homes or agents on the internet.

2) Brick and Mortar real estate offices are an expensive artifact of a system in decay. If an office costs say $20,000 in overhead just for rent, lights, phones etc then that must be paid from commissions earned by the office. These commissions come from the commission splits from the agents in the office. Typical splits for agents are between 50% for a newer agent to 80% or more for a seasoned top producer. This is one reason the “traditional” model attempts to justify commission rates that were appropriate in the 1950’s and have been perpetuated ever since. Many new models eliminate the brick and mortar office AND the commission split allowing the agents to keep 100% of the commission earned. What the agent does with that commission is up to them. I choose to give 50% back to Buyers (typically 1.5% of the purchase price i.e. $9000.00 on a $600K purchase). I also choose to set a Listing Side commission of 1% instead of the typical 3%. All agents must disclose that commissions are negotiable. None of my clients seem to think that my commissions still need to be negotiated. Technology allows me to provide FULL service without the expense of a brick and mortar office. I have clients come to my home office often for conferences, signings or just as a home base while looking at homes. We look at homes from the water leaving from my dock. We usually meet at subject properties, Title offices and Mortgage Brokers (sometimes HOME offices). I pass these savings back to my clients, both Sellers and Buyers.

3) Sellers pay the commissions, right? NO! Buyers ultimately pay the commissions for both sides of the sale because they are built into the price of the home! The commissions are paid out of the Sellers net proceeds, which is why this myth perpetuates. Yet Buyers have NO direct mechanism to negotiate the commission (they are ultimately paying) to their (Buyers) agent. Commission is offered by the Listing Broker to cooperating Brokers to bring Buyers through the MLS system (the original purpose of the MLS). Some states or MLS’s have been sued by the Dept. of Justice for attempting to limit commission rebates to Principals’ to the transaction. When I REBATE commission to a Buyer or Seller it is 100% legal, allowed by lenders (with some limits) and protected by the DOJ case law. This is completely different from giving a “finders fee” to a non-principal to the transaction which is and should be illegal. When MLS’s or agent lobbying groups or PACS try and push these limits through, who do you think they are protecting, and why? (Hint – a) its not the consumer and b) money). If I were to change the system, the Seller would pay the Listing Side commission and the Buyer would pay the Buyer Side commission, separately as part of the closing costs. Scary thought, what do you think the actual cost of the typical commission is to the Buyer when included in the purchase price and amortized over 30 years? $600K @ 6% total comm. @ 6.5% interest over 30 years = $81,918 total including $45,916 in interest. Hmmmmm…

4) AGENTS – get your Brokers License as soon as you have the required two years experience! A good tech based Brokerage will have more training and accessibility than the average brick & mortar operation. The Brokerage/Agent model is broken. Traditional brokerages are in business to make money for the owners, period. The agents that are required by law to “hang” their license are nothing more than tools to collect commissions from Buyers and Sellers for the brokerage. I was actually told by an office manager years ago that they would usually hire anybody new because the stats show that every new agent has 4+ sales in them due to friends and family. After that if they do not produce they fill the seat with another “newbie”. The Brokerages collect their “split” from the agents merely for the right to conduct business. Years in the business does not matter, experience does not matter; an licensed “agent” must hang his license with a Broker and cannot, by law, work for any other brokerage. As a Broker a person is prohibited by law from working “for” another Broker(age) only “with” another Broker(age).  Getting your Brokers license does not mean you cannot be covered under Brokerages E&O insurance on a per transaction basis. An agent’s liability is just as high whether an “agent” or an independent “broker” when committing illegal acts. E&O insurance is inexpensive when compared to paying a huge split on every deal!

Area Pro Realty is a great example of this new paradigm. There are other good ones as well. A small monthly fee is paid in return for a complete technology suite ready to plug into instead of trying to design your own (and constantly update it). 100% commission to the agent, 0% split. Tools include training, technology and support. The agent/broker associate is now truly promoting him/herself as a BUSINESS, not a surrogate for a Brokerage.

One more point. All Brokerages must have a “Broker of Record”. This Broker, more times than not, is NOT the OWNER of the Brokerage, with some notable exceptions. The Owner’s are not required to hold any license whatsoever, let alone a Broker’s License. The Broker of Record is there to meet a legal requirement (in CA) and act as a buffer for the business if the business is sued and/or the Broker’s license is suspended or revoked due to some actions by the agents. If this happens, the Brokerage just pays some other person with a Broker’s License to step in and be the Broker of Record so business continues uninterrupted.

If the Internet has created a Brick & Mortar Armageddon, then WHY is (mainstream) Real Estate more like Mayberry RFD then Jericho? (Jericho is the TV show about a post apocalyptic town starting over.) Simple answer really. Follow the money. The major Brokerages have invested MILLIONS of (YOUR) dollars building and maintaining a system to make themselves money. They invest heavily to lobby and maintain the status quo forcing agents to pay them to just to practice under their license and therefore maintain pressure on high commissions. Some Brokerages are limiting or denying their agents use of Blogs to build there own business. The theory seems to be to prevent their own agent from competing against them and forcing them onto the Corporate Blog in order to continue to build the Brokerage (not the agent doing the actual work or having actual ideas). We have not even touched Web 1.0 vs 2.0! Static information pushed at you vs interactive and blended content with actual information that you really need. I was at a Broker’s breakout session for a MAJOR Realtor.com (oops)  website. They actually extolled the Broker’s to buy up the available zip codes and other area specific products and sell them back to the agents in their office both as a revenue stream and because “if the agents purchase these themselves, they can go anywhere with them and you lose control”.

In the book “8 Simple Secrets for small business owners” by Steven Hilferty and Tom Leal, one of the cogent rules is “If you can plan (or can see) your products own demise, than you can be the one to build the NEW one”. Amen!

I have simply set new rules for my clients and MY business. I have set a new standard of client care and I am not alone. If you go to www.bloodhoundblog.com or simply Google “disintermediation” you will get an eyeful. Pure Internet models are short on service and the old style brokerage houses which are long on commission and big on promoting themselves (as opposed to the agents actually doing the work) WILL be replaced by LOCAL, INDEPENDENT Brokers offering FULL Service with FAIR Commissions thereby actually benefiting their communities vs executing a previously profitable business model.

Kind of like living in Jericho, wearing fuzzy slippers…

Marston Myers

Broker Associate – Area Pro Realty

Loan Limits Up, Interest Rates Down, Short Sales Sideways (Oh My!)

Reality Check Number 1
 “The Feds have approved raising the conforming loan limits – soon it will be raining Buyers!” In a word WRONG! Yes the conforming loan limits appear to be heading up to around $725K or so in high cost areas (yes like CC County – this is driven on a county by county basis) BUT that does not mean that the banks will either agree to do so or they may add a surcharge onto a loan above the current $417K effectively negating the limit increase. Just because it is “conforming” does not mean the risk has been lowered! Even Fannie Mae and Freddie Mac do not have to play along! Plus this may be a TEMPORARY increase, about a year. So what does this mean today? To the Seller it means do not turn down a solid offer based on potential limit increases and more potential buyers. To the Buyer it means make your best deal now and do not delay thinking that if you wait you will get a much lower rate. There are simply too many “if’s” involved. The banks may raise the rates even though the loan is “conforming”. If you re-fi into the “new” rate you will pay fees and possibly penalties plus incur PMI if that takes you below 20% down payment.

Reality Check Number 2
 Over on one of my daily read consumer blog sites I keep seeing the same question posed by “Buyers”. “How much lower than asking should I offer on a home in _________?” Other “Buyers” usually give a numerical answer such as 5% 10% etc. Gee (I say smugly to myself) if the house is already priced 20 percent over market than the Buyer will only end up paying 10% over market. Perhaps the home will not appraise at the Buyers accepted offer price and the Seller will simply refuse to sell at the appraised price. (This is not just hypothetical – trust me). Now the Buyer has wasted from a few days to a couple of weeks and possibly missed what they were really looking for. Buying Real Estate is not (no really, NOT) like standing at the Craps table yelling COME ON HARD 10! (I have personal experience from the Seed Foundation Casino night on that one!”) A Buyer MUST evaluate all the data. As I am a major proponent of consumers having access to all the information, the caveat is that they must then have a professional filter and guide them through all the data. So please avoid the temptation to simply look at an asking price and assume that you can buy that home for _____ % lower. The rule of thumb (in a normal market) is that a properly priced home will sell within 3% of it’s asking price. BTW – The same theory applies to WebMD.com. Check out all your symptoms, look at the treatments but talk to the Doc before anyone cuts!

Reality Check # 3

I got a call the other day on one of my listings from a Buyer who was out driving around. He wanted to know if the home was still available and some of the details. His next question was “is this a short sale or REO (bank owned foreclosure?”) When my answer was “no, it is simply properly priced for this market” we were done talking. His assumption was that if the Sellers were not “in trouble” than this house could not possibly be a “deal”. How wrong he was. Some sellers bought there homes a number of years ago – say 8-15 years and did not spend the next decade using their home like an ATM with nice window coverings. Some have actually paid them off! (Shocking but true – I have seen them!) These Sellers are selling now for the usual reasons (retiring, closer to kids etc.) and in some cases still doubling their money selling “below” market and the home is beautiful to boot! My point? Shorts and REO’s are not always such a great deal! Many of them need major work and virtually all have deferred maintenance. The Banks do not make either of them easy, and may take WEEKS just to get an answer on your FULL PRICE offer (which they are under zero obligation to accept)!

If you are looking for a HOME – now is a great time to look. There are always great deals, but you need to LOOK and not ASSUME!

Marston Myers