DEFFENBAUGH
REAL ESTATE
| A few notes from Janet’s Desk |
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- Spring 2011 As I look out my window on this gray spring day and see the trees budding. I have to decide how I can handle my mood. Am I going to be down because it is gray or am I going to focus on the budding trees and the tweeting birds relishing the rain and the worms? The promise of warm spring sunshine tomorrow and summer is just around the corner. -
Selling a house is like that. -
An agent is a director of the prospective purchaser. Do you see the outdated countertops on the kitchen or the fact it has premium quality cherry cabinets? Do you see the odd colored painted walls or the premium crown and cove molding? This is why you need an agent. Most people focus on the negatives in their houses; you need the agent to see the positive and to help the buyer see the promise of a new future for them. -
But remember that you have a job as a seller is to make the house sparkling clean and clutter free. -
With a combination of the positive agent and the sparkling clean unit, you can have a positive spin on selling your home. Remember it is all in the attitude. Have a great day and a great life!!! |
| August 2010
Last month I told you I would share with you some techniques to make money in real estate. These techniques are not for Donald Trump but for the everyday Joe Six Pack. As a certified appraiser I am searching market activity for both listings and sold units. What I have found is that there is a lot of activity for houses in the lower to middle price ranges. It is supply and demand. When there are more people hunting for an item and less items to be found, this forces the price up. Let’s look at the current housing market and what has happened to getting a loan. The government has told the banks we have new regulations. Now people need to have more money in savings as down payment and this is based as a percentage of the purchase price. Guess what? More people have less money but they still want to buy a house, so more people are forced to buy lower priced units. Ah hah! Demand for entry level homes goes up, supply is down. Voila the prices of the lower houses are stronger. Now, let’s look at the other end of the market. There are higher priced homes for sale and less people trying to buy them. Ah hah! That ugly supply and demand comes into play again, but the wrong way. Less buyers result in more houses. More houses for sale causes the prices to go down. So if you own a nice house in the middle price range and you are staring at Johnny’s feet while you are reading this, it is a good time to move up to a larger house. Sell your small house high and buy a bigger house low. I cannot tell a lie. Can you turn and sell the house tomorrow for more money? No. But if you raise your kids and keep the house up, the market will turn around and you will have a great investment in your retirement. The gift of having room for your family and friends is priceless Unfortunately, the stock market has gone sideways in the last 10 years. In fact yesterday I read an analyst that said the stock market is the road to nowhere. In our market area, you are better off with money in real estate. We Pittsburghers are considered provincial, but we know the value of family and friends and keep coming back. This attitude has kept our real estate market in a positive mode due to limited turn over. In fact we are considered the #1 market by both Forbes and Money Magazine. This is great news if you are hunting for a place to grow your money. The other half of this story is historically low interest rates. The current interest rates have not been this low since they started tracking them in 1971. In dollars for every $1000 you borrow at 6% on a 30 year fixed rate you pay $6. In dollars for every $1000 dollar you borrow at 4.9% on a 30 year fixed rate you pay $5.31. You can say that is only .69 per thousand but if you buy a $100,000 house that is $69 per month or $828 per year. This is huge. So there are double reasons to act now. Trade up and you win twice. Don’t be afraid to take the plunge, the water is warm. Call and see what your future can hold by seizing the day and making the first step to a better tomorrow for you and your family. Just pick up the phone and call or send me an e-mail. The cost of the call is nothing and I would love to help you make your dreams come true. |
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July 2010 Today’s topic is the one real estate agents hear at all the picnic, parties and events they go to. You’ve even heard the question “Is a house a good investment anymore?” Not just because I am in real estate, but because it is the truth the answer is it depends. Now that answer should have surprised you as a salesman I should just say yes, absolutely and of course. But then you would think I was not better than a bad used car salesman.I can only tell you the truth and the whole truth and nothing but the truth. Those of us who are in the Pittsburgh region are in a much different position than those markets in Florida, California or Michigan. I was at an investment seminar recently and the financial advisor got up and said I always tell people do not invest in Pittsburgh real estate because the rate of return is too small. While the other parts of the country had double digit return we only had a 2 to 3 percent growth a year. We never had a bubble, more like pimple and when it burst everywhere else we were sitting pretty. We are the most stable market in the United States and are rated as the top real estate market by various publications. This information tells you yes it is a good investment if you are happy with that rate of return.
My friendly financial advisor taught me that you must keep your money in the market for the long haul as there are typically just a few days on the market that bounce up and if you try to predict it you could get burned. I think the same can be said of real estate, you need to hold it long term to reap maximum profit for the least amount of risk. But there is still money to be made by buying and selling, but like the stock market it has a higher risk with a higher return. Remember Donald Trump got rich in real estate.
Just compare the way the stock market has had huge swings up and down and then up and then down and your heart goes up and down. It seems like your gambling at the casino daily. Now in Pittsburgh, your house, if you already own one , you don’t get the wild swings, but just a slow steady appreciation and you get to deduct the interest you pay on the mortgage from your income tax typically. Boring , yes, but remember it was the tortoise that beat the hare in the race.
This is just the yucky facts about it as an investment, but what about the fun part of a house. It is a home, a place to have your friends over, a place to close your door and leave the problems of the world behind. Whether you want a place for your family, your family to come or just for you and your dog or cat, it is your own home. A house gives a satisfaction no bond or mutual fund can give You can’t go to bed or have a picnic in your bond or mutual fund.
Again real estate may be a great investment but how you do it and what you want to achieve can be wildly different. Just like the financial world and the need for a financial advisor, you also need a good real estate broker to help you buy and sell at the right price. Next week we’ll talk about a couple strategies to make money by buying and selling at the right price at the right time.
Remember you can always call me and chat about your needs are in today’s market.
Talk to you soon,
Janet |
