Who’s not talking
"The folks who know the truth aren’t talking. The ones who don’t have a clue,… you can’t shut them up."
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Real time “comps”
Link to recent press post Inman re "real time real estate."
Instead of developing a "CMA" type of report that describes sold data, I’ve
been using the "pending date" instead of the sold date.
Reason? The market is changing so much on a daily or monthly basis,
that considering "comps" may not be as accurate if the sold date is used, as
much as using the "pending date." If you develop a list of 6 houses that
sold in August to compare those sales with an offer you’re making today, then
what if the market has been in a decline since March? How much of a value
difference may there be from properties that went pending in the spring,
compared to a property on the market now?
that considering "comps" may not be as accurate if the sold date is used, as
much as using the "pending date." If you develop a list of 6 houses that
sold in August to compare those sales with an offer you’re making today, then
what if the market has been in a decline since March? How much of a value
difference may there be from properties that went pending in the spring,
compared to a property on the market now?
Some, if not all of those 6 "comps" could have sold last spring. As
we know, listing agents and appraisers will often use the "comps" that best fit
the subject being appraised rather than an objective assessment of the sales
data.
we know, listing agents and appraisers will often use the "comps" that best fit
the subject being appraised rather than an objective assessment of the sales
data.
So, next time you structure some type of analysis, why not use "pending
dates" instead of "sold dates" to make any comparison to a subject property
you’re trying to negotiate for on behalf of your buyer clients?
dates" instead of "sold dates" to make any comparison to a subject property
you’re trying to negotiate for on behalf of your buyer clients?
I suggested this to one of the "honest" appraises we typically use
here…he said he’s only using month old "comps" because there is an ongoing
decline in values here.
here…he said he’s only using month old "comps" because there is an ongoing
decline in values here.
Friday, June 10, 2005 at 06:44 PM
David Johnson from Dallas:
Time Magazine cover, Home Sweet Home, why we’re going ga-ga over real estate. As recently as yesterday, Greenspan was talking in Congress about the froth in real estate.
Greenspan is not saying there is a national real estate bubble, but he is talking about flipping property.
The experts have called ten of the last two busts in the housing market. The Fed makes these preemptive moves when they see inflation. So what do you do?
Buy low and sell high. What you don’t want to do is get strung out,
Dual agency: Untold story of real estate bubble?
I think there is some truth to complaint that the "traditional" real estate business model contributed to bidding wars over the past five years, hence the anger by some home buyers. As a buyer agent, I can honestly say that our buyers seldom beat an in-house offer at well-known dominate firms in the Boston area. My guess is that buyers were manipulated to drive prices up, and commissions were then shaved to insure in-house sales — enabling the brokerage to keep both sides of the commission.
Greenspan’s “Interest Rate Conundrum”
While Fed Chairman Alan Greenspan once again told Congress he does not see a national housing bubble, he repeated his warning of May 20, the day Greenspan first used the "F" word:
"…at a minimum, [there are] signs of froth in some local markets where home prices seem to have risen to unsustainable levels." Expressing his concern about interest-only loans, Greenspan added, "To the extent that some households may be employing these instruments
to purchase a home that would otherwise be unaffordable, their use is
beginning to add to the pressures in the marketplace."
According to NPR’s "All Things Considered," mortgage rates fell again today and stand at a 14 month low. In the past, Greenspan has called that "a conundrum" because "falling interest rates have [historically] signaled looming problems." Greenspan does not see that this time, according to NPR, because globalization is changing price structures, easing concerns of inflation.
Interest rates at 14 month lows may sound good to some home buyers, but not everyone agrees. According to Tom Ashbrook, host of NPR’s nationally syndicated OnPointRadio, low interest rates may "portend real shocks down the road."
Talking about a (Real Estate) Revolution: Then & Now
Welcome Boston Globe readers, existing clients, and others: Some real estate consumer advocates, like The Real Estate Cafe, have been "Talking about a Revolution" in real estate — CONSUMER revolution to be specific — since the early 1990’s. Why do you think that alternative, money-saving real estate business models have been slow to capture market share?
The Real Estate Cafe has just launched an experimental new, social networking site to discuss that question and MANY others in coming months. Please visit the site, add your perspective or questions, and even set-up your own page within the new site to share your thoughts, photos, videos, etc. We can’t wait to grow this community of web-savvy, do-it-yourself real estate consumers and real estate "change agents" to share moneysaving strategies and opportunities!
Your creativity and friends are needed to join and expand the revolution. Some photos from past efforts are shown in this mini-slideshow as well as a photo of the original Real Estate Cafe, founded in 1995, as the nation’s first, internet-based, walk-in housing information center. Last year, our clients saved over $1 million not even counting our commission rebates (see article in Wall Street Journal). If you’re buying a home, we’d be glad to chat online or in-person about our NEW menu of fee options, to help you choose the one that’s best for you.
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