The Real Estate Agent Blog

Craig Miller – REALTOR
Published on: April 4, 2008

As a real estate agent in today’s market (with such a large inventory of houses) it’s not about just sticking a sign in the yard, and whalla, the house is sold. There are so many other ways to advertise listings that I don’t even want to begin making a list of them on this post.

My real estate team, “Miller Team,” uses a solid marketing campaign. The advertising/marketing efforts put out by the “Miller Team” exceeds our client’s expectations.

The internet is the leading place to advertise real estate (as long as you do it correctly). Now, with connection speeds being super fast, it takes no time at all to upload multiple pictures. Me being the computer geek that I am, thought about how else can I use the bandwidth to help in advertising houses that are for sale? I have began an experiment where I’ll take a video recording walking through the house and upload it onto the internet. It’s still in it’s initial stage, not getting too much feedback from potential buyers.

Well, anyway, check out the first video. And if you get excited (I know I am!) then somehow let me know. I’m still trying to figure out exactly how I am going to make this video thing explode into existence. ENJOY!

Click to activate control, click again to play video.

Craig Miller – REALTOR
Published on: April 3, 2008

Hey there,

This is a follow-up post to “FHA & GSE Loan Limits Increase“, which was down and dirty, informative 1-paragraph post about the new mortgage limits.

So, what does this mean for you? (Just read on…)

Well, it means different things for different people, whether you own a home and are looking to sell, or in the market to purchase a home, or even if you are experiencing difficulty in paying your current mortgage.

Seller:
The loan limits being increased will only (currently) affect the homeowner who owns a house that is valued between the old loan limit amounts and the (higher) new loan limit amounts. But, every homeowner should, eventually, benefit from the new loans. Once the majority of homeowners start to benefit from the new limits, make sure you keep an eye on housing affordability, for that’s what will swing the market around.

Buyer:
The increase in the loan limits will allow a person in the market to buy a house, within the new limits, with a better mortgage. Basically, it is a buyer’s market, and this is the government throwing help to the people who purchased a home during the l-o-n-g seller’s market the nation had experienced. So, as house prices continue to fall, and loan limits have shot-up, this buyer’s market will end when housing affordability* reaches about 50%. Currently, housing affordability is around 15%. I’m saying, buyers and investors, do NOT wait too long to make your purchase, because the change happens between buyer’s/seller’s markets quickly.

Difficulty in paying mortgage:
It seems that with the number of foreclosures taking place and the new loan limits have made mortgage companies to work with homeowners who are having trouble paying their mortgage. I have heard many people who were in an ARM mortgage, or approved for short-sale status from being behind, or have for some reason couldn’t make their payments, get their mortgage re-evaluated to where their home would not get foreclosed on. I’d suggest you talk to your mortgage company before you start getting behind on your payments. If they won’t work with you, then go to another mortgage company for a re-fi. IF YOU NEED TO CONTACT AN ALTERNATE MORTGAGE COMPANY, IT IS VITAL THAT YOU DO BEFORE YOU GO BEHIND ON YOUR CURRENT LOAN!!!

Thanx,
Craig Miller

*housing affordability – determined by the number of houses a person can obtain a loan for that meet the needs of the individual. (craigism** – If housing affordability were to just stay at 50%, then there wouldn’t be a buyer’s or seller’s market. I wonder if the media would still find some way to put fear into the eyes of every homeowner and buyer in the country?)
**craigism – what I believe, personally, not politically.

Let me know that you have read this by posting a comment. I’m always looking for criticism, and comments make blogs more interactive.

By: Craig Miller
Published on: February 28, 2008

Hey,

The media is blowing everything out of proportion by throwing negative broadcasts at the public. Right now, the real estate market is seemingly down, but there is many areas around the country that have yet to see a decline in average house prices. I’m thinking positive, I’m also living the real estate industry as a Realtor, so read on, take a look at real estate that you’ve never seen before!

I attended Keller Williams Realty’s Family Reunion 2008 (an annual gathering of the KW family). Gary Keller, Co-founder and Chairman of the Board at KW, gave great informative speeches about the market. Not only did Gary speak about the market being on a down-swing, but also presented detailed graphs and explained that there has been worse markets in the past.

What I understood, from listening to Gary’s thoughts about the market, is that housing affordability (percent of people who can buy a house to fit their needs) dropped sharply. While housing affordability has been dropping for a couple years (now at ~15%) the average house price has drastically increased the last 5 years. The national average house price is $220k, when it should be around $186k. In 2003 the national average surpassed $186k (which is where it should be today).

So, what happened to increase housing costs 18% more than where it should be? I have some ideas… Construction companies, Reselling of homes with greedy owners (with the help of real estate agents), and Mortgage companies.

First, how has new home construction been doing for the past few years? Well, from studying real estate, I know that each passing quarter in 2007 meant there would be less new home sales, less building permits, and more incentives to home buyers. It seems construction companies could have either slowed home building sooner (to compensate for fewer new home sales), or could have discarded some upgrades in the houses they did build (to avoid offering “buyer bonuses” at such high values).

Now, lets look at how re-sales account for a portion of that 18% housing price increase. When the ‘average person’ goes to sell their home, they naturally want to get as much money as they can. Their home may actually be “the best house in the subdivision,” but, I can guarantee you, most of the time it won’t be. I hear experienced agents say “you used to just have to put a sign in the yard,” and that scares me a little, because how much more did they sell those houses for, which would in turn increase the local house values when using a Comparative Market Analysis (CMA’s are a quick, accurate tool used by Realtors to establish a sales price of a home). The percent of increase (or decrease) in the average house price varies between states, counties, cities, and school districts. Living, east of Atlanta, GA in Gwinnett County, as a Realtor I’ve noticed that a home purchased 3 years ago or more, will be listed (by an agent) at an increase of about 3-4% per year. The person with the ‘average house,’ who wanted more than what the house was worth, probably sold it for more than it was worth with the help of a Realtor, and therefore, enabled more homes locally to sell for more.

The mortgage companies also aided the seller’s in selling their homes, and I believe, it’ll be the mortgage companies who help the most with restoring the real estate market. Buyers looking for houses must have been like the wild roaming a jungle (Now it’s hard to believe that buyers exist). The mortgages the buyers received, were, first of all, too much of a loan, then started becoming 100% financing, and “oh, you can afford that house, have you heard of an Adjustable Rate Mortgage” (an ARM has a hand, and if you don’t get a promotion…). You get the point. Now, this will help the market because without all that creative financing, we wouldn’t have as many foreclosures. What needs to happen is that every house that gets foreclosed needs to sell, the quicker the better, no matter how cheap. The foreclosures will make houses that were too expensive to begin with, affordable to the person who needs it. And for whoever is facing foreclosure, need to realize that they cannot afford their home, they CAN sell it, maybe for a loss (talk to your mortgage company, they don’t want to have to sell it!!!), and get something smaller. The overall average house price must drop somehow, foreclosures will definitely drop the average a little, but at a big price for the ones who can’t avoid it. Of course, the community will be hurt when a foreclosure or three pop-up in a CMA, the next 6 months worth of home sales could be affected. All of this will return our average house prices to where they should be in the near future, the sooner the better!