What Can We Expect For 2009?

We are very optimistic about real estate in 2009. The markets of the past few years have set this year up to be one of great healing and activity. The market slowdown of 2006, the crawl of 2007, and the economic roller coaster ride of 2008 all have served to bring Buyers and Sellers to their senses. We believe 2009 will be a year to stabilize, recover, and move forward.

Our reasons for optimism are plenty. We have the “Perfect Storm” Market for a Buyer. Interest rates are at a 37 year low with the potential for government-directed further reductions in the near future. There are many homes to choose from in most market segments and most of the deadwood, exorbitantly high priced properties, has been removed or is so out of touch with reality that it doesn’t confuse the market anymore. This is good for both Buyers and Sellers. The many overpriced listings of unrealistic Sellers previously served only to confuse other Sellers and cause Buyers to wait for the market drop. Well … the market has dropped, and most Sellers have adjusted their expectations to where they are closer to reality.

Entry level housing is currently available for payments that aren’t much more than rent with little or nothing down given the marvelous interest rates. Many first-time home Buyers are looking and acting right now before the market gets traction. They are delightfully surprised with what they can buy and how affordable it really is today.

At the other end of the market, the just, or soon to be, retired folks will soon be coming to grips with their stock portfolio losses, generally touted in the media at 40% for most of them. They are/will realize that the home they wanted to buy has also dropped that much percentage-wise, and is pretty close to the being the same percentage of their total net worth that it was when they panicked, picked up their marbles, and went home to wait and see what was going to happen.

While Sellers have gone through a tortuous 18 month steady decline in their home’s market value, for the Buyers their stock loss was “instant”, 30 days, or so. BAM! It was, of course, unbelievable. Then it was real … then really real. As they recover from their shock they will be ready to take action, and we believe real estate will be the preferred investment avenue of choice for those looking to mitigate their losses and to protect their economic future.

Our Advice: Real Estate prices are generally around where they were in 2003, and the stock market is around where it was in 2003 - they are about on par with one another. The entire world is working to remedy the economic situation. With that much positive intention it only makes sense that the collective consciousness of the Nation, now one of panic, denial, and inactivity, will change to one of positive expectation and decisive action. As it does everyone will breathe a little easier and the fun and joy will return to our industry.

This is the year of the solution and you can be a part of it. The rebound will come later, but we look to a recovery in 2009 that will establish a new foundation for our market. Get off the sideline and into the game – its where the action is!

When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781- 5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com

It’s Time To Be Thankful.

Being humble and grateful is a beautiful and fulfilling manner of life, and periodically it is good to simply be thankful. It is that time of year when Americans express their thanks with, and through, the holiday of Thanksgiving. In that traditional spirit we are thankful for the opportunity to express our thanks, and, perhaps, some that you can also identify with.

We are very thankful for many, many things including: the continuing favorable interest rates; the assorted Home Retention Programs being developed and the spirit in which they are being formulated; Buyers that are boldly venturing forth and buying with confidence; our fellow real estate practitioners that are continuing to help Buyers and Sellers gain and maintain perspective to navigate in these interesting times; the high standard of the real estate practice in our area; USDA Rural Development 100% loans that provide wonderful opportunities for home Buyers in our community; the opportunity to help people with our real estate knowledge and experience.

We are very thankful for the prevalent Volunteer Spirit found throughout the Carson Valley that results in so many special things; for our friends’ conspiracy to nominate Jim so he received the Carson Valley Chamber of Commerce “Unsung Hero of the Year” award; for the generosity of our community towards worthy causes even in trying financial times; for the local business community and their continued efforts to provide goods and services; for our Tiger Family; that we live in a free country; that if we don’t like something about our life we can change it; that if we like something about our life we can keep it; that we have so much to live for.

We are very thankful for this great Valley we live in – the natural beauty and the wonderful people; the wonderful life changing opportunities for our children and families; that the Youth are still and always important in our community; that families are important as is community itself; that Values are respected and a way of life for most; that people still stop to help one another; that in our community people still say hello to strangers with a smile.

Our Advice: Be thankful and grateful for your health, your family, your friends, and your community. Be a shining example of gratitude and be thankful for what is … not resentful for what isn’t. Our wonderful Valley gives us a wonderful quality life to enjoy while the real estate market cycles … as it always has and always will. Enjoy it now… every day… and be thankful for it. These are the good old days… be thankful we can share them together.

Together lets move boldly into the future and continue to generate many things to be thankful for. Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, www.carsonvalleyland.com, 775-781-5472. http://www.carsonvalleyland.com/ email us at carsonvalleyland@hotmail.com

My Agent Won’t List My House At My Price … Why?

Sounds like you have an astute business person for an agent… congratulations. We have often discussed the agents that will list at any price because they are either: a. ignorant and thrilled to finally have a listing to work on, or b. they are going to take the listing and beat you up week after week for a price reduction. The smart agent knows that an overpriced listing won’t sell, and ultimately it will have a detrimental impact on the Market and the property itself.

The matter is actually more involved for the savvy agent, the good business person that understands not just the mechanics of the industry, but the fact that it is, indeed, a business. Despite the perception of the uninformed public that all a listing agent does is put a sign in the ground and put the property in MLS, there is a lot more to it. When a homeowner signs a listing they agree to pay the agent a selling fee when the agent has performed … not just procuring a Buyer, but actually closing the escrow with the Buyer.

When an agent lists a property they are committing to a substantial financial investment. In our particular market area, Northern Nevada, Just taking a listing actually costs the agent around $2,000 of hard money… without the extra stuff. Then there are ongoing monthly carrying costs in the neighborhood of $400 per listing. That figure will vary according to how many listings the agent carries and what his monthly operating costs are, i.e.- if an agent has ten listings and a monthly base cost of operation of $5,000 his monthly cost per listing is $500. If it takes six months to sell your home, a neutral market (not Buyer or Seller), the carrying cost is $3,000. The agent’s cost is now $5,000 without a guarantee of any return. If you have a $300,000 home and their side of the fee is 3% they will gross $6,000. Now you know that the net is only $1,000 for their personal expenses, i.e.- taxes, house payment, food, utilities, recreation… life.

Some agents might take a listing for the sign placement if you have a highly visible property. That is an old school thought for there are fewer sign calls these days with the proliferation of the Internet in our industry. If your agent is taking the listing too high you might be an unwitting victim … and so is the agent. They are only fooling themselves as to their actual benefits of the listing, and they aren’t serving you well.

Our Advice: Even in a traditional office where agents don’t pay as many direct costs, they still pay as their broker receives a larger portion of the selling fee. Many agents, regardless of their fee-split arrangement, don’t know they are in business. Be careful with such an agent when considering them to list your home. If they can’t manage their own finances properly how careful will they be with yours… your money… when it comes time to negotiate on your behalf and to protect you through the escrow process that is fraught with financial traps?! There is no “let’s just try it”, or “they can always make an offer” since marketing times have gone from a week to nine months on average. The costs and risk are just too high to put your hook in the water on a whim.

An agent must protect your property and investment as well as their time and financial expenditures when they take a listing. The art is to price it right – to get you the most possible in a reasonable period of time. Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, 775-781-5472, carsonvalleyland@hotmail.com, www.carsonvalleyland.com