Archive for January, 2010

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From Cars to Baseballs: A ‘Home Run’ for Fremont?

By Cindy O'Leary | January 29th, 2010 1 Comment

The Situation:

  • NUMMI auto manufacturing plant: The imminent closing of the New United Motors Manufacturing plant (NUMMI) is fast approaching the March 2010 shut down date. This successful joint venture with Toyota and General Motors, a mainstay of manufacturing in Fremont for nearly 25 years, is coming to an end with the dissolution of the partnership because of GM’s bankruptcy issues. Since the prospect of other car manufacturers using the plant have failed, alternative uses have been explored by the City of Fremont and others. To date, no viable plans have solidified.
  • Oakland Athletics: In 2008, Fremont was also in the news as a contender for a new baseball stadium for the Athletics, currently in Oakland. The site originally proposed at the south end of the Pacific Commons shopping center at Highway 880 and Auto Mall Parkway was defeated by strong opposition from retailers in the center. Additional sites were also defeated by residents on the east side of Highway 880.

Turn of Events:

  • There is now a revived interest in reconsidering Fremont for a new, 36,000-seat stadium at the soon to be vacated NUMMI plant location. The proposed stadium complex would be within walking distance of the new BART stop which will be completed in 2014.

A major sports arena has a big impact on any community, both positive and negative. Here are some thoughts in both directions.

Pros:

  • Boosts local economy by providing hundreds of new job opportunities during construction and beyond.
  • Brings in needed revenue to Fremont city coffers
  • Stimulates businesses around new facility
  • Spawns new business and employment as a result of the new baseball stadium
  • Is a ‘feather in the cap’ for any city to have a major league sports stadium

Cons:

  • Traffic will increase on game days
  • Crime may increase
  • Additional costs to city for clean up, security and police
  • Funding of stadium still not resolved: private vs. public funding
  • If the stadium is not successful in increasing attendance for the Athletics, what will happen to the facility?

What is your ‘take ‘on a major sports arena in Fremont?

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Intero Insider: Is California Rebounding? Is It Really?

By Gino Blefari | January 27th, 2010 0 Comments

Last month, home sales in California were up almost 17% over November, and more than 10% over December 2008. This would indicate that progress is being made. Indeed, lots of people are predicting (as many do at the beginning of each year) that there will be a marked turnaround in market value and that things will do nothing but get rosier.

But there’s a problem that not a lot of people are talking about.

Raise your hand if you’ve heard of Strategic Mortgage Default.

No? Let’s talk about it.

Strategic Mortgage Default occurs when a homeowner, finding his home worth less than he owes on his mortgage, intentionally allows it to go into foreclosure. Let me repeat that: intentionally. Right or wrong, lots of people have done it. And many, many more are considering it. The thinking, typically, is that throwing good money after bad will just lead to … nothing. Many people believe that their homes will never again be worth what they paid for them. As such, they think, “Huh. No more property taxes, maintenance, insurance? That sounds good.”

In 2010, based on when many parts of California saw their real estate markets “top out”, many homeowners will have adjustments in their mortgages kick in. One saving grace here might be that interest rates are quite low, so payments mightn’t change all that much. But these adjustments, coupled with new taxes just passed in the state and the realization that their homes aren’t worth close to what they paid might be enough to have many people throwing in the proverbial towel.

While all of this might sound bleak, it would be naive to issue feel-good platitudes and not face the reality of the situation head-on. Strategic Mortgage Default will do its part to radically raise the number of bank-owned for sale in California. And there are lots already.

If you’re planning on selling your house this year, these homes — part of what we call “shadow inventory” — could play a big role in where you can, realistically, set your price. If you’re planning on buying, you’ll want to know how to position yourself to get the best price possible on your purchase.

Strategic Mortgage Default is going to be something you’ll hear more and more about in 2010. Like “short sale”, “REO”, and “foreclosure”, it’ll become part of the daily vernacular.

Pretending that the world is draped in sunshine and rainbows won’t solve anything. It might make people feel better for a while, but it won’t solve anything. Facing reality is the only thing that gets the job done. Your Intero Real Estate professional is ready to deal with reality. Let us know how we can help.

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Are Bank Owned and Short Sales Always a Good Deal?

By Russ Boyd | January 25th, 2010 0 Comments

All home buyers have one thing in common: Everyone wants a great deal. The buying public seems to think that “great deal” equals foreclosure, short sale or bank-owned property. The truth is that these properties may appear to be bargains, but in many cases you could be buying someone else’s problems. So the real issue is whether the foreclosure, bank owned or short-sale property you’re considering is a bargain or problem. If you’re looking for a bargain property, here are some key issues to consider:


1. What is your time line for purchasing?
You may find the perfect short-sale property, and the seller may accept your offer. The challenge is that you don’t have a deal until the bank approves the short sale. At many large lenders, a single short sale processor may have hundreds of files to handle at one time. I’ve experience delays of up six to get an offer approved. The wait can be extremely frustrating and it can also be costly.

For example, months from now the offer made today you may be too high or to low. Also, interest rates are more likely to go up rather than down during the coming year. And, just because the seller has accepted your price, it doesn’t mean the bank will. You will have a better shot at buying a short sale where the bank has preapproved the sales price. It still may take a long time to close, but not as long as it would if the price was not preapproved.


2. Are you prepared to be in a multiple-offer situation?
You’re not the only one looking for a “bargain.” Many buyers are searching for distressed properties and the approval process takes so long, multiple offers are common. The sellers agent or lender will not tell you about the details of other offers.


If another offer comes in at a higher price and at better terms, the bank is obligated to take the best offer. If the property is a short sale, the seller’s signature on the document merely opens the negotiation – it does not finalize it. Furthermore, the seller/lender may continue to market the property even after they have signed a contract with you.

3. Ask the agent if the seller participated in the “Cash for Keys” program
The best candidates for good bargains are those properties where the sellers are still occupying them. Many banks have a program called “Cash for Keys.” This program pays the owners of foreclosure and short-sale properties money to keep the owner from trashing the property when they move out. It’s not uncommon for disgruntled owners or tenants to remove or damage appliances, plumbing and electrical systems. Cash for Keys is designed to minimize these behaviors.


4. Beware of tenant occupied and vacant properties
It’s never a good practice to purchase a property without doing a physical inspection. Also, be sure you have stipulated the right to make a final inspection prior to closing.  This is especially important with distress sales.  Also, if the property is tenant occupied be sure the contract states the property must be delivered to you vacant.  Trust me, you don’t want to be responsible for evicting a tenant.   Also, the longer a house stays vacant, the more likely it is that problems will develop.  Not only vandalism, but rats and mice are more likely to move into vacant properties. Rodents can chew through the wiring and generally wreak havoc with the home’s electrical systems.


5. Is the deal more important than your lifestyle?
A property can be a great deal in terms of the price, but is it worth it if it’s in a poorly rated school district or if you end up with an extended the commute? A “bargain price” won’t make up for a poor floor plan, airplane, train or traffic noise or the occasionally whiff of the sewage treatment plant? When you purchase, it’s important that you take all of these issues into consideration rather than focusing exclusively on the price. A property with any of these types of problems will be harder to sell in the future.

As you can see, it’s important to consider the price in conjunction with the quality and the convenience of your lifestyle once you move in.

Of course there are good distressed property deals out there. Nevertheless, don’t limit your search. Keep in mind that, depending on the neighborhood and price range, anywhere for 10 to 50 percent of the sales may be distress sales. This means that 50 to 90 percent of the available homes are likely occupied by owners that are maintaining their homes and in better neighborhoods. In the long run, they may be a much better bargain.


A true bargain is when you find a home in the neighborhood and price ranges that fits your lifestyle. A house you will be proud to call home.

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Intero Insider: Bringing A Little Clarity To The Mortgage Business

By Gino Blefari | January 20th, 2010 0 Comments

Since the dawn of time (or at least since financial institutions have been issuing mortgages to consumers), a shroud of confusion has lain over the process. Questionable fees, questions that don’t really have concrete answers, “best guesses”, and a morass of paperwork have been the norm in a business that ought to have been crystal clear.

As of January 1, 2010, much of that changed.

Under the Real Estate Settlement Procedures Act (RESPA), HUD has instituted rules and regulations that require all lenders to use standardized, simple-to-understand good-faith estimate forms. In addition, closing agents are now required to use settlement statements that show — in black and white — any differences between original estimates and actual costs.

I say that it’s about time.

One of the major problems leading to the mortgage crisis that began in late 2007 and which continues today was the fact that many borrowers didn’t fully understand the terms of a mortgage. Now with standardized good-faith estimate forms, which are easy to understand, are being used with all lenders and allow people to compare loans and legitimately shop around for the best deal.

When you ask, “How much does this loan cost?” someone should be able to answer the question. It’s a question to which there should be a concrete answer. Now, most fees cannot increase from the time of the original estimate. Those that can cannot, increase more than 10%. Any increases over and above these levels will have to be covered by the lender. No ifs, ands or buts.

The new forms don’t fix everything, of course.

One thing that the new good-faith estimate does not show consumers is what their monthly payments will be under the terms of a mortgage, nor the funds that they need to bring with them to settlement. It is imperative that buyers have this information, so that they can effectively prepare for what lies ahead.

If you’re thinking of shopping for a mortgage this year — and there are certainly many, many reasons to do so — be sure to talk to your Intero Mortgage lender, your tax advisor or your Intero agent, so that any and all questions you may have are answered before you get to the settlement table. The good-faith estimate forms may have made it easier to compare mortgages, yet within our economy the lending criteria has become more strict and harder to decipher. Now it’s more important than ever, to not only choose a competitive lender, but choose the lender you have the utmost confidence and trust in.

Be informed yet be well guided.

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With Rates at Historic Lows, What’s Next?

By Russ Boyd | January 19th, 2010 0 Comments

You already know that what the Federal Reserve does with interest rates has a huge impact on the housing market.   I’m Russ Boyd and what you might not know is that the Fed influences housing prices in another significant way—through its purchasing of mortgage-backed securities (MBS)—and now the question is that when the Fed stops buying those securities in the near future, how will it affect the housing market?
Some background will help explain what is going on. Let’s start with a definition. An MBS is a group of mortgage loans that are pooled together and sold as a bond.

Part of a Pool

It is easy to understand how MBS come about and how they work. When you go to a bank or mortgage broker to borrow money to purchase a home, the home is collateral, and your mortgage—the promise you’ll pay principal and interest each month—is the anticipated cash flow the lender receives from you.
That bank or broker then sells your loan to an entity that aggregates your loan with a bunch of other loans into a big “pool” of various types of loans with various maturity dates (fixed, adjustable rate, one-year, 30-year, good credit, bad credit, etc.) The aggregator then issues these pooled mortgages as bonds, the MBS, which promise investors an attractive stream of interest payments.
Who are these aggregators?
They are government sponsored entities (GSEs). One large group is the Federal Home Loan Banks (FHLB), a private corporation made up of 8,100 member banks. All of the member banks must own stock in FHLB in order to participate in its loan program.  Other GSEs, which have become household names are Fannie Mae, Freddie Mac, and Ginnie Mae
To recap,  an MBS is a pool of home loans sold as a bond. And we know who issues them: government sponsored enterprises such as Freddie and Fannie, etc. So, how does this help us understand where real estate prices are going?

Easier to Get a Home Loan

Well, most banks have neither enough money, nor any desire, to hold a large number of home loans for an extended period of time. Absent a place for the banks to sell them, as many of us found out over the last year, it then becomes difficult for us to get a new loan. Thus, the MBS market is currently providing us all with an important means of loan supply, albeit indirectly via our bankers and mortgage brokers. The easier it is for banks to sell our loans to MBS aggregators, the easier it is for us to get a home loan. The more difficult it is, the harder (and more costly) it is for us to get a mortgage.
When the entire financial system found itself on shaky ground the housing market was affected big time. Anticipating a big increase in homeowners defaulting on their mortgages, investors no longer wanted to own their existing MBS, let alone buy newly issued MBS.
With no buyers for those securities, the GSEs couldn’t sell them or issue more. As a result, the supply of mortgage loans all but came to a screaming halt.
To the rescue came the Fed. Last November, as part of its efforts to get the economy moving again, the Fed announced it would buy $500 billion in mortgage-backed securities. In March of this year it raised its target to $1.25 trillion, and it has followed through on its pledge.  These purchases have undoubtedly provided much needed liquidity to the MBS market and helped keep the long-term mortgage rates at historic lows.

Behind the Higher Rates

O.K., let’s get back to the original question: What’s next? Well, just as it has been with interest rates, the Fed has been transparent about its intentions toward MBS. It has said it will stop buying MBS once it fulfills its commitment of buying those $1.25 trillion worth of bonds. It will complete that purchase sometime during the first quarter of next year.
That means that, sometime within the next five months, the Fed will be withdrawing a prop under the housing market.
What remains to be seen is how other investors react as the Fed slows—and then eliminates—its purchase program.
My expectation: As the Fed pulls out, private investors will demand a higher interest rate for such securities—to compensate for their concern people will continue to default on their mortgages—and thus long-term mortgage rates will rise. The real question is how fast and how high.

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Earthquake Preparedness in Los Altos and Los Altos Hills

By Dawn Thomas | January 18th, 2010 1 Comment

The Bay Area hosts a number of major fault lines.  The San Andreas fault is only a few miles away, and 3 major faults traverse the town of Los Altos hills – the Berrocal fault, the Altamont fault, and the Monta Vista Fault.   Recent earthquakes here in the Bay Area and in Haiti serve as a reminder that we always need to be prepared for an earthquake.

Here’s a quick checklist of actions you and your family can take to be prepared in the event of an earthquake affecting our towns:

  1. Hazard Hunt – walk through your home to confirm tall or top heavy furniture is secured,  loose objects are stored so that they don’t become flying missiles, and escape routes are likely to stay clear in the event of an earthquake.
  2. Water Heater – when you bought your house, one of the many real estate disclosures confirmed that the water heater was properly strapped.  If you have replaced it since then – make sure it is still properly strapped to the wall!
  3. Utilities – make sure everyone in the family knows how to shut-off the gas and water lines if needed.  Where are the needed tools stored?   Does everyone know where the electrical breaker box is located?
  4. Disaster Supplies –Spot Pizza may not be able to deliver after a major earthquake – so make sure you have what you need!  Assemble water, food, first aid kits, clothing, bedding, tools, medication, and other emergency supplies that your family may need for 3 to 5 days to be self-sufficient.
  5. Meeting Plan – identify an alternative to your home  (if needed) for your family to meet after an earthquake.  Perhaps a neighbor’s house or a Los Altos landmark.
  6. Radio – When requested by the cities of Los Altos and Los Altos Hills, local volunteer amateur radio operators will activate an emergency 2-way radio communication network.  This will link public schools, local Red Cross shelters, police, fire, hospitals and other emergency services.  Disaster information and emergency instructions will be announced on commercial radio stations.  Does your radio have fresh batteries or a hand crank?
  7. Communication Plan – Stay off the phone as much as possible. Identify an out-of-state relative or friend for all family members to call to report their location and condition after an earthquake.  Setup a plan for that person (not you) to relay the news to other friends and family.
  8. School Plan – check the emergency plan at your children’s school.  Authorize a trusted neighbor or relative to pick up your child if you are not available.
  9. Pets – make sure your pet  has a current  ID tag.  Is their leash or carrier accessible?  Make sure you have 3 to 5 days of food and water on hand for them too!
  10. Vital Documents – are your vital documents organized and stored in a fire-proof safe?  Make sure they are ready to “grab and go” if needed.
  11. Get to Know Your Neighbors – consider organizing a neighborhood group to support one another during an earthquake or other emergency.  Contact the Los Altos Police Department for information on the Citizen Corps Council and organizing your first meeting.
  12. CERT Me – In the case of a major disaster, emergency support will be scarce.  Consider becoming a Community Emergency Response Team (CERT) member.   The Los Altos Police Department offers CERT training that is open to everyone  with priority given to Los Altos residents.
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Confessions of an REO Buyer’s Agent

By Marcy Moyer | January 18th, 2010 1 Comment

One of the great things about being a Realtor is that the profession is always changing. Every year I try to figure out what is on the horizon for this world and how I can get involved in what is new. Despite the relatively few number of REO properties in my market area, they do exist and I have had clients interested in properties that are REO, banked owned and being sold through the multiple listing service. This has lead me into a world that is sometimes more bizarre than Wonderland and definitely harder to understand than astro-physics. But as I said, I love learning new things, and this past year has been nothing if not educational. So here is a summary of what I have learned.

1. Most new buyers have absolutely no idea how to go about buying a bank owned property and have the unsubstantiated notion that the bank will be so grateful to have any offer they will go 30% less than list price, regardless of how low the property is originally listed. Here is my version of the story: Banks generally list the properties 10-20% below similar properties in the neighborhood with the hopes of getting multiple offers. Most of the REO homes in the bay area sell between 5% under and 20% over list. Many of the properties that sell under list price have been purchased by all cash buyers even if there was a higher offer with a loan contingency.

2. Speaking of contingencies here is the order of preference from the bank for financing: cash, conventional loans, FHA, VA loans. No loan contingency will get the banks attention. I did manage to get my VA buyer an offer accepted but he lost out on a number of properties first because of cash offers. Also, the condition of the property requirements for FHA and VA loans are so stringent that many REO properties do not qualify. It is a little easier to get a condo or town home to get thru the condition contingency, but the owner occupancy rate and delinquency rates sometimes derail the process.

3. Inspection contingencies were always the norm because the banks provide no disclosures or reports. Unfortunately this leads to a very high percentage of transaction falling through. Banks definitely prefer no inspection contingencies, so a buyer who inspects before making an offer will have an advantage. This means if you find a home you really want that is bank owned it is a good idea to give the most generous offer you are comfortable with and inspect the house ahead of time. It costs some money, but it is important if you are in a multiple offer situation. I had clients beat out 12 other offers on a very rare bank owned property in Palo Alto by presenting an offer with no loan or property contingencies since they did their inspections before making the offer.

4. If you do need to get a loan, many of the banks will ask you to get pre-qualified with their own bank or with a preferred lender. It is almost impossible to use a mortgage broker for your pre-approval letter so be sure to have a pre-approval from a direct lender and then get the pre-qual from the bank’s preferred lender. Some banks, like Bank of America or Chase will give the buyer some incentives if they use that bank to purchase the house. I had one client who was buying a foreclosure from Countrywide. They agreed to use Countrywide for their loan and when it came time for the appraisal, the appraiser said Countrywide could not lend on the house that they had just foreclosed on because it needed a new roof. I know it seems ridiculous, but I promise I am not making this up. The good news for my clients was that since they could not buy the house from Countrywide with a Countrywide loan without a new roof, Countrywide agreed to put a new roof on the house. Not only that, but the Countrywide appraiser said their house was worth less than my clients had offered and less than what the previous Countrywide appraiser said, so Countrywide agreed to lower the price. I am not convinced any of this would have gone my client’s way if they had used a different lender.

5. Patience is a virtue. You may hear something in a few days and it may be a few weeks after you submit an offer. If you do not get your offer accepted you may never hear back from the listing agent. It is unlikely there will be any phone calls unless your offer is accepted. E-mail is the best way to communicate with an REO listing agent. Some REO agents are using Twitter to update the status of a listing, but I have not found that to necessarily really be up to date. One Friday afternoon I got a call from a listing agent telling me my client’s offer had been received and he thought we would get an answer on Mon. This was a home that had received 13 offers, but I knew if he called me it meant we had a very competitive offer. If you do hear back the first contact may be a “counter” which is just a worksheet asking if you want to make your offer better. You can do that, or re-submit your original price and terms. After that, if your offer is “accepted” it just means they have accepted your offering price. You will get an addendum that negates most if not all of the terms you wrote into your offer and changes them to the terms the bank wants. You can accept the addendum or counter things out. If you are in a multiple offer situation and you counter out some of the terms in the addendum another offer may be considered, or they may stick it out with you.

6. Once in contract, the listing office will generally stop treating you like Public Enemy Number 1 and the staff will take over. At this point it is in everyone’s best interest to get the deal closed so they tend to be pretty co-operative. The most important thing is to follow the timelines for contingency removals and closing. If closing is delayed the buyer will have to pay a per diem charge, usually $100-$150 a day. It is not worth fighting it, you won’t win, and the addendum will say the bank can cancel the contract at any time for any reason. I had a transaction where the title company delayed the close by 4 days because they could not get the HUD 1 statement right. This was a title company chosen by the bank, but my client had to pay for them so my client had to pay the 4 day late fee.

So if you still think an REO is for you I say go for it. You can get a house for less than market value in some neighborhoods, and in others REO’s may be one of the only options. Just go in with your eyes open, thick skin, and a lot of good humor and patience.

If you have any questions or just want to commiserate feel free to contact me.

Marcy Moyer
Intero Real Estate Services
marcy@marcymoyer.com
www.marcymoyer.com
650-619-9285
D.R.E 01191194

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A Better Way To Do A Short Sale

By Marcy Moyer | January 15th, 2010 0 Comments

A Better Way To Do A Short Sale

In the past few years short sales have been long, frustrating, and undependable. The sellers had to prove they were desperate  in order to qualify for a short sale. The listing agent had to spend hours trying to figure out who was able to make the decision and whether or not the documents were even received. They buyer’s agent had to wait endlessly for an answer while his or her buyer threatened every day to bail. The closing statistics for short sales have been estimated at 10-30%. Many people felt why bother?

So why should you bother? For some reason banks are getting on board with the idea that allowing a seller to do a short sale is a better deal for them than foreclosure. In general banks get 45 cents on the dollar for a foreclosed home and 75 cents on the dollar for a short sale. It has taken a long time for the banks to get on board with short sale approvals, but short sales are now getting approved and some banks have started trying to make the process more efficient.

Bank of America, who has taken over Countrywide is now using a platform called Equator.com for their short sales. This platform started as a method for asset managers to process bank owned properties with realtors and is a very effective method for all parties being able to see in real time where the file is and what else needs to be done. As anyone knows who has dealt with a Bank of America or Countrywide short sale, it can take a month after an agent faxes the short sale package to the bank for the bank to upload it onto their system. Now it is uploaded directly on the site and everyone knows it is there. Everyone will always know where they are in the process so no more allocating 3 hours a week for follow up per file.

Wachovia wins the prize for the best short sale system. Twenty five percent of Wachovia loans are 60 days or more past due, so they have decided to encourage more short sales. They have a system that will get the sale approved and closed in 45 days or less. Underwater means that more is owned on the home than the home is worth. Some estimates put the number of underwater homes in this country as high as 50%. Given those stats, Wachovia has made a decision that if someone wants to sell short they will consider it. This is not to say they will just give a home away, but if a home has $700,000 of loans on it, and it is now worth $500,000, Wachovia will, at times, let someone buy it for close to $500,000 and might consider forgiving the other $200,000 debt, and do it in a reasonable amount of time. Plus, they will even give some sellers that qualify for this program up to $5,000 for moving expenses.

Wachovia bought World Savings so this applies to World Savings loans as well. Wachovia was acquired by Wells Fargo but as of now Wells is not doing the same thing with short sales. Hopefully this program with Wachovia will work well and spread to not only Wells Fargo, but to other banks as well.

If you have any questions about short sales, or other real estate related questions please feel free to contact me.

Marcy Moyer
Intero Real Estate Services
marcy@marcymoyer.com
650-619-9285
www.marcymoyer.com
D.R.E. 01191194

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Intero Insider: What’s In Store In 2010?

By Gino Blefari | January 13th, 2010 0 Comments

After two solid years of unmitigated distress in the real estate market, 2009 gave us some positive signs that we’ve seen the worst of it and that, while it’ll be slow, recovery has started. It was the year in which prices seem to have hit bottom and began to stabilize.

But what’s coming in 2010?

One of the biggest stories of 2009 was the Federal home buyer’s tax credit. The credit likely spurred the real estate market along, as buyers were anxious to take advantage of it. But the credit’s been expanded, and it now has a benefit to current homebuyers, should they choose to move up to a higher-priced home. With many of those homes at prices that are, comparatively, very low, 2010 could be just the time to make the move.

2010 could well show marked improvements as people clamor to take advantage of the credit before it expires in the Spring. Though small increases have been seen in mortgage interest rates, they are still at historically low levels. There is wide speculation, however, that these rates are nearing their end. With heightened demand from buyers and housing inventory on the decline, 2010 could very well be THE time to buy.

There could be great news for sellers, as well. While it’s not likely that we’ll ever return to the feverish seller’s market of 2005 & 2006, increased buyer demand will likely help to ease the losses that many sellers have taken in the past couple of years. It’s probable that many neighborhoods will start to see some increases in their prices. These gains will be more reflective of actual worth — numbers based in reality — as opposed to the artificially-created sales figures of the early 2000s.

It’s important to note that, as a nation, we’re not out of the woods just yet. But the end of 2009 gave us many signs that its edge is near. At Intero, we look forward to making the journey toward recovery with you.

Happy New Year, and the best to you in 2010.

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Moving at the Speed of Opportunity

By Russ Boyd | January 11th, 2010 0 Comments

You’ve probably heard the old saying “You Snooze, You Lose!” I’m told that the line came from the character known as George Owens on the 80’s sit com, “Mr. Belvedere.”

I think the words spoken by “George Owens” say a lot about where some “homebuyers” are relative to this market. Hopefully that’s not you.

Some people are sitting on the sidelines…taking a wait and see attitude, waiting for the market to “change,” hoping that some of the perceived risk will be reduced by more stable credit and mortgage markets, and wishing that just one more piece of positive news would filter out of the media to convince them to become active and take action.

Well, guess what? It just isn’t going to happen that way. Not if you want to capture the market at the bottom, at least. Let me explain why, and how to avoid “staying sidelined,” so you are in the right position to capture current opportunities.

Imagine for a moment that you are attempting to merge onto the freeway, where traffic is moving at 65 miles per hour -  now picture yourself coming to a stop.

Being behind somebody that stops on an on ramp waiting for the “right opportunity” can be scary, yet I imagine it’s happened to all of us at one point or another.

So, when you’re at a standstill, how hard it is to find just the right opening between the rapidly moving cars. You know how hard it is to get your car to go from zero to 65 miles an hour in a very short distance and merge into flowing traffic. It’s not easy.

Now, picture yourself in this same situation – only this time, you continue moving down the on-ramp, and, once you find the right opening to merge, you join effortlessly into the moving traffic.

Simply put – it’s hard to find an opening when you are standing still. You know this – but did you know that this principle is not just a question of physics – it’s a question of money and opportunity? And did you know that it applies to many would be home-buyers?

Movement creates opportunity. It invites new things to happen. Movement means you are ready to take action – that you are responding and adapting to the changing marketplace.

As the market continues to evolve we are past the time to watch, to wonder and to wait. Now is the time to pay attention! Watch what’s happening, and look for your opportunity. Believe me the growing positive statistics, like those at our Market Activity website, www.bayareamarketmetrics.com reveal that there are plenty of buyers ready to jump at the right opportunity. Remember, if you are sitting on the sidelines, all you can do is watch.

But what about those that “just got lucky”, right? Well here’s how people get “lucky”, they (1) they get into motion, (2) they get their financing lined up, (3) they find a great agent who welcomes their business and they start looking for the right home (4) They make an offer that fits the circumstances, (5) and THEN they “get lucky”. In other words, they are people willing to move at the “speed of opportunity”.

Remember, just like you can’t easily merge onto a highway from a dead stop -  neither can you find the best home buying opportunity unless you are moving at the “speed of opportunity.”

If you want to move at the “speed of opportunity”, a good place to start is understanding the current level of market activity. Our Bay Area Market Metrics Report can be viewed at www.bayareamarketmetrics.com.

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