Real Estate Information Archive

HARRY'S COLUMN

 

TWO KEY QUESTIONS FOR PROSPECTIVE SELLERS

 

QUESTION #1:   Do I want to be "right", or, do I want to be happy?

 

Thinking of selling your home? If you are, the best thing you can do to expedite the process is to forget that it is "your home" and try to look at it as "just another listing", because, once it hits the MLS, that's exactly what it becomes. It will no longer be the place where you raised your children, where you planted that beautiful tree in the front yard, where you have all those great vacation pictures on the mantle. To potential Buyers, your home will be just another one of the 5,126 homes listed for sale in the MLS. So, with that in mind, the first key question you have to ask yourself is, "Do I want to be 'right', or, do I want to be happy?"

 

Let's look at how Mr. Right decides how to price his home.

 

"Just two years ago, houses just like mine were selling for $350,000. Therefore, considering appreciation, my house should be worth $370,000 today."

 

"Since we bought this house, we spent over $2000 on landscaping, over $1500 on new windows and over $2200 on a new paint job. That should be worth something".

 

"I'm not going to just "give" my house away".

 

Now, considering all of these facts, Mr. Right can decide to set his jaw and his asking price. If he does, considering the realities of today's market, he could easily wait two years for a Buyer. During those two years of treading water, he will probably hire and fire a series of Agents who just don't understand how "right" he is. Eventually the market will probably catch up to his expectations and he might get his asking price. However, by that time, the interest rate on his next home will undoubtedly not be today's 5 ¼%, but will probably be closer to 7 ½%, and the Seller of his new home will not be as willing to negotiate as is today's Seller. (Unfortunately for him, that's the price Mr. Right will pay for being "right").

 

Now let's look at how Happy Seller prices his home.

 

First of all, Happy Seller relies upon his real estate Agent to help him analyze the current market and set a realistic listing price. (Take a look at the latest sales and listing statistics, below. A good Agent should be an expert on pricing and on what's selling right now).

 

Happy Seller understands that, unless he can get potential Buyers to look at his home, it will not sell and, realistically, a competitive price is usually what determines whether Buyers even consider looking at a listing.

 

Happy Seller understands that reducing his selling price now in order to make his home more interesting to potential Buyers, will enable him to sell quickly and thus buy his next home at today's lower prices and at today's great low mortgage interest rate (currently 5¼%).

 

QUESTION #2: Do I want my home to sell now, or, do I want to tread water?

 

On August 30, 2009, RISMedia listed the cities that showed the most significant price reductions for their real estate listings from June 2009 to August 2009. Unfortunately, Colorado Springs was #2 on the list, recording 27% more price reductions for the listings in our MLS, for these three months. These reductions in listing prices reflect the fact that Sellers, rather than being guided by the advice of a knowledgeable Real Estate Broker when they list their homes, tend to overprice their listings. Then, when their homes don't sell, they begin to gradually reduce their asking price, until they finally reach a realistic market price.

 

The cities experiencing significant increases in percentage of listings with price reduction from June 2009 to August 2009 include:

 

Fresno, CA - 67% increase in price reductions

Colorado Springs, CO - 27% increase in price reductions

Kansas City, MO - 25% increase in price reductions

Oklahoma City, OK - 24% increase in price reductions

Albuquerque, NM - 22% increase in price reductions

 

The cities showing signs of recovery with significant declines in percentage of listings with price reduction from June 2009 to August 2009 include:

 

Dallas, TX - 42% fewer price reductions

Las Vegas, NV - 33% fewer price reductions

Louisville, KY - 33% fewer price reductions

Los Angeles, CA - 19% fewer price reductions

Washington, D.C. - 17% fewer price reductions

 

If you are thinking about selling your home, instead of wasting your time treading water, you will be better off taking the advice of an experienced Broker who can guide you in establishing a competitive listing price for your home right from the beginning. Utilize the services of a Broker who is constantly studying the sales and listing statistics for the local neighborhoods and who can assist you in selling your home by providing the "extras" that can motivate potential Buyers to select your listing rather than any of the other 5,126 listings that are contained in our local MLS.

 

We pride ourselves on offering the most Innovative marketing tools to our clients. Our Job-Loss Protection Plan, our Competitive Market Analysis, our ability to assist local and out-of-state potential Buyers in selling their present homes, combined with our 37 years of providing relocation and real estate services to clients throughout the country, uniquely qualifies us to assist you with the relocation process, including buying and/or selling homes on both ends of your move.

 

 

WANT SOME GOOD NEWS?

 

On August 26, The Wall Street Journal reported that home prices in the major U.S. Cities rose 1.4%. According to InmanNEWS, this hints that a turnaround in the housing market is beginning. They also report that The National Home Price Index registered a 2.9% gain from the first quarter to the second, which was the first quarter-to-quarter gain in three years.

 

HOW ABOUT SOME MORE GOOD NEWS (but you already knew this)

 

The current issue of Outside Magazine, a publication dedicated to people who enjoy the outdoors, has rated America's Best Cities. This rating is based upon the city's cultural vibrancy, economic well-being and overall quality of life. They also ranked these cities by cost of living, unemployment, nightlife, commute time, access to green spaces, percentage of the population with college degrees, income level in relation to home prices, weather, quality and proximity to biking, running, hiking, paddling and skiing. And guess what ..Colorado Springs is #1. Here's their top ten list:

 

            1.         Colorado Springs

            2.         Seattle, WA

            3.         Atlanta, GA

            4.         Austin, TX

            5.         Boston, MA

            6.         Albuquerque, NM

            7.         Portland. OR

            8.         Minneapolis, MN

            9,         Cincinnati, OH

            10.        Charlotte, NC

 

(Editor's note: Cincinnati ????)

 

LATEST STATISTICS

 

Click here to see the latest sales and listing statistics in our area

http://www.salzmanrealestateservices.com/Agent_files/Listing-Sales%20Stats.8-09.pdf

 

To hear my latest podcast, just click on the icon at the top of this email and, please remember, I would be honored to serve as your Broker for all of your residential real estate needs.

 

JOKE OF THE WEEK

 

This year, taxpayers will receive an Economic Stimulus Payment. This is a very exciting new program that we will explain using the Q and A format:

Q. What is an Economic Stimulus Payment?
A. It is money that the federal government is sending to taxpayers.

Q. Where will the government get this money?
A. From taxpayers.

Q. So the government is giving me back my own money?
A. Only a smidgen.

Q. What is the purpose of this payment?
A. The plan is that you will use the money to purchase a high-definition TV set, thus stimulating the economy.

Q. But isn't that stimulating the economy of China?
A. Shut up.

Below is some helpful advice on how to best help the US economy by spending your stimulus check wisely:

If you spend that money at Wal-Mart, all the money will go to China .

If you spend it on gasoline, it will go to the Arabs.

If you purchase a computer, it will go to India.

If you purchase fruit and vegetables, it will go to Mexico, Honduras, and Guatemala (unless you buy organic).

If you buy a car, it will go to Japan .

If you purchase useless crap, it will go to Taiwan .

And none of it will help the American economy.

 

Q. This doesn't seem to make any sense

A. Shut up.

HARRY'S COLUMN

 

 

INNOVATION COMES TO real estate

 

This week, we will be in San Francisco attending a conference titled, "real estate Connect: Innovation, Change, New Ideas". Sponsored by Inman News ("Where Real Estate and Technology Connect"). This meeting is just one of the various publications, meetings and internet resources that enable us to keep up with the fast-changing real estate profession. "What's the big deal about changes in real estate?", you might ask. "You list. You sell. You close. You go home. What changes?". Well, just as in every other profession or trade, the practitioners who keep up with the latest trends, tools and practices are the ones who can offer the best service to their clients. That's why we are committed to Professional Innovation as a means of serving you better.

 

This conference will be the first meeting exclusively focused on the marriage of Innovation and real estate. In subsequent issues of our newsletter, we will pass along to you the new ideas and concepts we discuss in this conference.

 

By the way, to illustrate how Innovation is changing every facet of our society, you might be interested in clicking on this link. http://www.youtube.com/watch?v=jpEnFwiqdx8 .

 

LOCAL real estate ACTIVITY IS BACK

 

Ever since March, our weekly column has emphasized that our economic indicators were saying, "Now is the time to buy". Well, in the past five days, we have seen the ultimate demonstration of that prediction becoming a reality. It has been a long time since I have been as profitably busy as I have been during the last week, and this week is just as busy. In the past 5 days, we have negotiated three accepted contracts, all with pre-approved mortgage loans. In two transactions, there were multiple offers involved. In one case, the buyers received full, list price: in another, our client received more than the listing price. Two of these Buyers were professionals relocating to the area. It's obvious that Colorado Springs is an attractive destination for professionals from all over the country and it's also obvious that local real estate activity is back.

 

It's interesting to note that Buyers are expressing more reluctance to consider foreclosures and short sales, primarily because lenders offering these listings are not responding in a timely manner. Not only are lenders slow to respond to the original offer, but they also tend to be negligent in meeting the various performance dates specified in the contract. As a result, we have had prospective Buyers tell us not to even consider showing them these listings.  

 

The $8000 tax credit is proving to be a worthwhile incentive to Buyers. And Sellers who price their homes correctly are getting offers much more quickly.

 

CYBERHOMES MARKET FORECASTS - A TREMENDOUS TOOL FOR OUR CLIENTS

 

After researching many companies that provide "Mega" data support on individual properties, we decided to affiliate with CyberHomes. Since announcing that affiliation, we have received rave reviews about the Market Forecasts that we have provided to our clients. These analyses of specific homes are typically 9 pages long and contain very detailed information about the property involved. Some of the information contained in these reports includes:

 

            Aerial view of the property

            Satellite map of the neighborhood

            General facts such as estimated value and assessed value

            12 month market forecasts of homes for sale in the neighborhood

            12 month distressed property predictions

            Your ZIP code median sales price vs. sales volume

            Neighborhood sales and lending facts (within ½ mile)

            housing market risk for your ZIP code

            Distressed homes in ZIP code vs state figures

            Unemployment rate in your ZIP code

            Buy/Sell indicators for your ZIP code

            Mortgage delinquency/ deterioration in your ZIP code

            Neighborhood foreclosures and bank-owned properties

            Recent sales activity in the area

            Forecasting number for homes for sale in the area

            Etc., etc., etc.,

 

We have arranged, for a limited time only, for our readers to receive an introductory, discounted price of $7.99 for these reports. If you would like to receive one of these market forecasts on your home, or on a home you might be interested in purchasing, please let us know and, upon receipt of the $7.99 fee, we will have it emailed to you. (Please note that these reports are available for homes throughout the nation, not just in Colorado Springs).

 

           

FINALLY .

 

I                                   I would like to thank all my readers for the referrals they have sent me. They are much appreciated.

 

And remember, I would be honored to serve as your broker for all of your residential real estate needs. If you know of anyone who is moving in or out of the Pikes Peak region, keep in mind that, with over 35 years of providing relocation services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move.  

 

                                    Also, if you have any friends and/or business associates who might be interested in receiving our weekly newsletter, please send us their email addresses. We will be happy to add them to our mailing list.

 

And, don't forget to click on my recent podcast. There's a link at the top of this newsletter.

 

 

JOKE OF THE WEEK

 

After getting nailed by a Daisy Cutter, Osama made his way to the pearly gates. There, he is greeted by George Washington.

"How dare you attack the nation I helped establish" says Washington, and slaps Osama in the face.

Next, Patrick Henry walks up. "You wanted to end the Americans' liberty, so they gave you death!". Henry punches Osama on the nose.

James Madison comes up next, and says "This is why I allowed the Federal government to provide for the common defense!" and slaps him upside the head.

Osama is subject to similar attacks from James Monroe, and 68 other people from the surrounding crowd. Finally, Thomas Jefferson picks him up and "perp-walks" him back toward the gate where he is to be judged.

As Osama awaits his journey to his final very hot destination, he screams - "this is not what I was promised!"

An angel replies "I told you there would be 72 Virginians waiting for you...
What the hell did you think I said?

 

HARRY'S COLUMN

 

GREAT NEWS !!!

  

This week, Fred Crowley, Colorado Springs Senior Economist for the University of Colorado at Colorado Springs reports that El Paso County is pulling out of the recession. Jobs, housing numbers, car sales and the return of Fort Carson soldiers are some of the economic indicators that point to an emerging economy.

 

Crowley's comments reflect the findings contained in the Quarterly Updates and Estimates, published by the Southern Colorado Economic Forum, Volume 8, Number 1, July 31, 2009.

 

According to the report, real wages are expected to increase for several more months and building permit numbers are steady. Car sales are rebounding because of the Cash for Clunkers Program and sales tax revenues should see a spike because of the new troops at Fort Carson.

 

Crowley had predicted that the local economy would bottom out during the last quarter of 2008 and would begin to emerge during the first quarter of 2009 and the new report confirms that his prediction is coming true.

 

The Business Conditions Index now stands at 79.09, up from its March value of 70.4, a 12.35% improvement since March. The Business Conditions Index is a measure of 10 seasonally adjusted local economic indicators, including building permits, enplanements employment, sales tax, car sales, foreclosures and wages.

 

As our readers are aware, we have been predicting a dramatic improvement in our local real estate market by the third quarter of this year and this latest report supports that prediction.

 

This Quarterly report also includes a very informative section, "Coping with Economic Conditions, a Business Survey". We were honored to be a participant in this survey which included such topics as: Perceptions of the Economy, The Effects of the Recession on a Business Owner, Expectations about the Stimulus Package, etc. We think you will find it interesting.

 

Our community owes a debt of gratitude to UCCS for all of the research, time and expense they put into the preparation and dissemination of these reports.

 

If you would like to receive a free copy of the 23 page Quarterly Report, please email me your request at Harry@HarrySalzman.com and we will forward a copy to you.

 

Here's an added thought..There's an old saying that, in a recession, the two best ways of protecting your assets are gold and real estate. Well, that being the case, and considering that the "experts" are predicting runaway inflation next year, it looks like NOW is the time to consider acquiring rental property. The present Real Estate climate (low mortgage interest rates, motivated Sellers, large inventories, etc,) represents a great opportunity for savvy Buyers to protect their assets against inflation by investing in some high-quality rental properties. For that reason, we will feature more information about investment property opportunities in the next issue of our Weekly Update.

 

By the way, be sure to listen to our latest podcast about the current local market. The link is available at the top of this Update.

 

Finally, if you are interested in learning more about our emerging local economy, you should attend the upcoming 13^th Annual Southern Colorado Economic Forum presented by the College of Business and Administration of UCCS at the Antlers Hilton Hotel on Oct. 30^th, 2009. Be sure to make your reservations ASAP, to insure that you get a seat. In recent years, this event has been a "Sell Out" and many people without reservations have been turned away at the door. For more information, click on www.SouthernColoradoEconomicForum.com.

 

 

 

INNOVATION OVERLOAD

 

We are still recovering from an intensive week of seminars, workshops and demonstrations at the Inman Connect SF09 Exhibition in San Francisco. Over 1700 professionals attended this event, featuring over 45 educational sessions, plus a huge Trade Show, loaded with ideas. (We were the only participant from the Pikes Peak region). This whirlwind convention explored the Innovations that are now sweeping the real estate profession. Some of the topics explored were: The Open 3D House, 10 New Tools and Technologies, What Millions of People are Doing Online and Why it Matters to the Real Estate Industry,

 

While it was encouraging to learn that our recent offerings of the Job-Loss Protection Plan for Buyers and the Complete Market Surveys for Prospective Buyers fitted right in with the most current trends in our profession, it was also challenging to learn about all of the other new techniques for providing better services to our clients. It's really amazing to see how technology is changing our entire profession.

 

(If you would like to learn more about our Job Loss Protection Plan, or our Complete Market Survey, please give me a call, or contact me at Harry@HarrySalzman.com)

 

And, please remember, I would be honored to serve as your broker for all of your residential real estate needs.

 

Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move.

 

JOKE OF THE WEEK

 

In line with all of the current discussion about health care, we thought you might want to review the following list of:

 

Things You Do Not Want To Hear During Your Surgery,

 

Could you stop that thing from beating? It's throwing my concentration off..
What's this doing here?
I wish I hadn't forgotten my glasses.
Sterile, shcmerile. The floor's clean, right?
Anyone see where I left that scalpel?
Don't worry. I think it is sharp enough.
Darn! Page 47 of the manual is missing!

Ya know, there's big money in kidneys. Heck, the guy's got two of 'em.
Better save that. We'll need it for the autopsy.
Bo! Bo! Come back with that! Bad Dog!
Wait a minute, if this is his spleen, then what's that?
Hand me that....uh....that uh....thingie.
Oh no! I just lost my Rolex.

HARRY’S COLUMN

CONSISTENT MARKET IMPROVEMENT IN COLORADO SPRINGS 

After two complete quarters of fully-recorded and closed real estate sales activity in 2009, we note that every month has shown increases in both the average and the median prices of homes sold in our local market.(Only April showed a negligible decline). For your information, we are including a chart which shows these figures for each of the separate areas in the Pikes Peak market..

 

	Median Sales Price	Median Sales Price
Area	Dec.31, 2008	June 30, 2009
Black Forest	$255,000	359,617
Briargate	281,000	285,000
Central	130,250	130,000
East	164,000	164,000
Manitou Springs	235,000	313,500
Northeast	189,950	210,000
Northwest	288,500	282,500
Northgate	313,500	333,500
Powers	188,000	194,000
Southwest	254,500	225,000
Tri-Lakes	337,450	369,000

 To further emphasize that the real estate market is now on the way back up, we reference a recent article from Inman News, titled, “Home Sales Show Third Month of Gains.”

 "Existing-home sales rose for a third month in a row in June, and prices may stabilize in many areas by the end of the year if inventories continue to decline, the National Association of Realtors said today.

Sales of resale homes, including single-family homes, townhomes, condominiums and co-ops, rose 3.6 percent from May to June, to a seasonally adjusted annual rate of 4.89 million units -- virtually the same as a year ago, NAR said.

At that rate of sales, the 3.82 million homes on the market represented a 9.4-month supply, down from 9.8 months in May.

A six-month supply of homes is generally considered a healthier balance of supply and demand, but the "raw inventory" total, or number of homes on the market, is down 14.9 percent from a year ago.

A Wall Street Journal analysis of housing fundamentals in 28 major real estate markets during the second quarter showed considerable variation in inventory, ranging from a high of 18.1 months in Chicago to just 2.7 months in Sacramento, Calif.

"If we can keep the volume of sales above the level of new inventory, prices could stabilize in many areas around the end of the year,” said NAR Chief Economist Lawrence Yun in a press release."

Give me a call to discuss the great opportunities now available for prospective home buyers.

2009 HOUSING OPPORTUNITY PULSE SURVEY

The June 30 PULSE Survey of the Top 25 Metropolitan Statistical Areas, published by the National Association of Realtors, emphasizes that now is the time to buy. NAR’s seventh pulse survey reveals that despite improved affordability conditions, eight in 10 Americans still consider having enough money for downpayment and closing costs to be the biggest obstacle to buying a home.

The survey, which measures how affordable housing issues affect consumers, also found job security concerns to be the highest in seven years of sampling. Two-thirds of Americans think job layoffs and unemployment are a big problem; eight in 10 cite these issues as a barrier to homeownership.

The telephone survey of 1,250 urban and suburban adults in the top 25 metropolitan statistical areas was conducted for NAR by by American Strategies and Myers Research & Strategic Services for NAR’s Housing Opportunity Program. June 30 PULSE Survey of the Top 25 Metropolitan Statistical Areas, published by the National Association of Realtors, which emphasizes that now is the time to buy

Some key results include:

·     Eight in 10 Americans (82 percent) still consider having enough money for downpayment and closing costs to be the biggest obstacle to buying a home.

·     Two-thirds of Americans think job layoffs and unemployment are a big problem; 83 percent cite these issues as a barrier to homeownership.

·     83 percent of Americans still believe buying a home is a good financial decision.

·     Three-fourths of those surveyed also believe now is a good time to buy a home, a number that has increased steadily the past two years.

·     The number of those who feel buying and selling activity has stabilized or stayed nearly the same has grown significantly, up more than 44 percent since last year.

·     The majority (58 percent) report that activity in their market has slowed.

·     Regarding home sales, nearly eight in 10 say it’s harder to sell a home in their area today than it was a year ago, despite the fact that nearly three-fourths of respondents say home prices are less expensive.

·     Foreclosures remain a real concern among survey respondents. Slightly more than half (51 percent) say foreclosures are a big to moderate problem in their area.

·     The rate of foreclosures is generally seen as stabilizing; 41 percent say the rate of foreclosures in their area is about the same as last year.

·     Ninety-two percent of respondents said neither they nor members of their immediate family have experienced a foreclosure in the past year, yet it is still a personal concern for many. One in five respondents said they are very or fairly worried that they will have difficulty making their mortgage payments over the next year.

·     Thirty-two percent say it’s a big or moderate worry that they, or a member of their family, may have their home repossessed or foreclosed because they are unable to pay rising monthly mortgage payments.

·     In 2008, more than half of respondents (54 percent) were open to the federal government taking a more active role in overseeing mortgage and lending practices – the number dropped this year to 47 percent.

·     Forty-two percent of Americans believe the country is back on the right track, more than double the number last year (16 percent).

SALZMAN’S JOB LOSS PROTECTION PLAN CAUSES STIR IN INDUSTRY

In the PULSE article noted above, the NAR notes that “Two thirds of Americans think job layoffs and unemployment are a big problem. Eight in ten cite these issues as a barrier to homeownership”. This concern on the part of many prospective homeowners is the reason why we decided to offer our “Job Loss Protection Plan”, to our clients. We invite you to call us to discuss this innovative program.

 And, please remember, I would be honored to serve as your broker for all of your residential real estate needs.

 Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 37 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move.

 JOKE OF THE WEEK

 While walking down the street one day a US senator is hit by a truck and dies. His soul arrives in heaven and is met by St. Peter at the entrance.

 ‘Welcome,' says St. Peter. 'Before you settle in, we'll have you spend one day in hell and one in heaven. Then you can choose where to spend eternity.

 And with that, St. Peter escorts him to the elevator and he goes down, down, down to hell. The doors open and he finds himself in the middle of a green golf course. In the distance is a clubhouse and standing in front of it are all his friends and other politicians who had worked with him. Everyone is very happy and in evening dress. They run to greet him, shake his hand, and reminisce about the good times they had while getting rich at the expense of the people. They play a friendly game of golf and then dine on lobster, caviar and champagne. Also present is the devil, who really is a very friendly & nice guy who has a good time dancing and telling jokes. They are having such a good time that before he realizes it, it is time to go. Everyone gives him a hearty farewell and waves while the elevator rises...

 The elevator goes up, up, up and the door reopens on heaven where St. Peter is waiting for him. ‘Now it's time to visit heaven. ‘So, 24 hours pass with the senator joining a group of contented souls moving from cloud to cloud, playing the harp and singing. They have a good time and, before he realizes it, the 24 hours have gone by and St. Peter returns.

 ‘Well, then, you've spent a day in hell and another in heaven. Now choose your eternity. ‘The senator reflects for a minute, then he answers: 'Well, I would never have said it before, I mean heaven has been delightful, but I think I would be better off in hell. ‘So St. Peter escorts him to the elevator and he goes down, down, down to hell.

 Now the doors of the elevator open and he's in the middle of a barren land covered with waste and garbage. He sees all his friends, dressed in rags, picking up the trash and putting it in bags as more trash falls from above. The devil comes over to him and prods him with a pitchfork. 'I don't understand,' stammers the senator. 'Yesterday I was here and there was a golf course and clubhouse, and we ate lobster and caviar, drank champagne, and danced and had a great time. Now there's just a wasteland full of garbage and my friends look miserable. What happened?

 ‘The devil looks at him, smiles and says, 'Yesterday we were campaigning....Today you voted.'