Market Overview

I am writing to give an overview of the issues affecting our housing market.  This includes US stock markets, US banking issues, the general turmoil going on in Europe regarding export markets, unemployment and other investment holdings. We have seen trillions of dollars worth of holdings vanish and return in the last several weeks. Depending on the day and hour, values of stock and bond portfolios can be up or down by large percentages.

A lot if issues are going on at once:

- Our own politics stalled on partisan issues

- National Debt issues

- European Euro and economies on the brink.

This is all on top of our own foreclosure issues and high unemployment. Corporations are making money, but hiring and keeping profits overseas. All this adds up to extreme volatility in our retirement, IRA and 401K assets. People with uncertainty tend to say put

My Suggestion

As a result of low investor interest rates and rising rents, we have identified a number of neighborhoods that will result in rental homes with a positive cash flow using regular investor financing. In this way you are investing in your own back yard. And you will be investing in something you can drive to, touch, feel and see. I am not suggesting rental homes as the only thing to invest in, but perhaps part of an overall diversification plan.

Cash purchases will give off the most cash flow, but puts you all in in terms of your own cash. An approach for many of us would be a self directed IRA for the down payment. Investor financing is usually done with 25% down, borrowing the rest. I can refer you to people to help with the self directed IRA. You need the help of an accountant for that. IRA financing is non-recourse.

On the blog you will be able to read posts that I hope will give you strategies and insights into effective investing, selling, home-buying, financing, and economic trends. 

General Market Trends

Homes that are priced right and in good condition will sell quickly. There is a dearth of move in-live in homes. Many homes on the market are short sales that take a long time to settle or foreclosures that reflect eviction hostility and deferred maintenance neglect.

The best selling properties are homes in the $100,000 to $300,000 price range. Financing is available, and usually the buyers have no trailing home to sell. Pricing, presentation, condition, and quick pro-active adjustments are the key to the sale of a property. Higher priced homes with the proper upgrades will also sell if priced correctly and any trailing home to be sold by your buyer is already under contract.

Marketing Changes

Advertising has changed from print to online. This requires very good photos to catch short browsing attention spans. The point and shoot pictures no longer work. Staging is vital. In order to make a home interesting and make good photos a combination of lenses, multiple flashes and editing software is needed. When done correctly, the warmth of the home stands out. Also, walls are straight, tables do not tilt backward and open windows do not make the rest of the picture look dark. Technical issues like shooting in ‘srgb’ mode make for the best internet presentation.

The Agent

The agent needs to know how to disribute the listing at least nationally. While the buyer probably be living in this area, Washington suburbs attract people transfering in to headquarters and government jobs. The main decision maker in most real estate transactions is a female between 24 and 38 years old. This is the person that we have to cater to. Not what we as agents or owners like.

An agent also has to know how to analyse market information and communicate it to a seller for actionable results. An agent who tells a seller what they want to hear is not ususful. The agent needs to be able no say no to authority and not take a listing that will not be priced and presented correctly.