Mortgage and Real Estate Blog

When you’re looking around these days and you’re in the real estate business, you might find yourself getting a little bit nervous - after all, not all of the news that’s out there is particularly good lately. However, that doesn’t mean that there are not things that you can do that will help you to keep your business afloat - if not thriving - no matter what’s going on around you.

There’s long been the statement that the early bird gets the worm; when it comes to real estate marketing, you’re going to want to be sure that you are able to do more to let buyers and sellers alike who are in your area to know about your services and to know why the services that you have to offer are better than those that your competitors could provide. Keep in mind, though, that if you are going to focus on marketing your business in this way you are going to need to be able to back up what you’re saying.

In other words, your real estate marketing is only going to help you to grow your business if you are able to follow through on the promises that you make. However, if you know that you’ve got a lot to offer, and you’re still struggling, then maybe it’s time to connect with others who could boost your real estate marketing.

One of the most important trends these days - within the real estate market and within society in general - is going green. When you’re looking at your business as a real estate professional and you take a look at real estate news, you’ll find that going green is far more than just a buzzword; going green is the best way to start moving your business forward.

You’re going to find that one part of going green in your real estate business involves targeting your marketing efforts to bring on those sellers who have made green updates to their homes. If you want to work with buyers who are interested in going green when they purchase a home, you’re going to want to think about what you can do to start searching MLS listings and the homes that are available to identify the properties that are most going to appeal to the buyers you work with.

Of course, if you’re going to look at working with clients who have gone green, you may also want to make sure that you’re thinking about going green at the office. Change out some light bulbs to more energy efficient models, get rid of styrofoam coffee cups and show that you’ve got a commitment to the same things that are important to them.

For a long time, all of the real estate news that was out there was focused on the fact that in almost every city that you’d go to, it seemed that there were multiple homes for sale in any given block and some of those were the result of foreclosures. The market news was all about prices dropping out, and about homes staying on the market longer and developers getting stuck with properties that they’d built but just couldn’t sell.

The real estate news started to pick up a bit at the end of last week when the figures for existing home sales during the month of September were released. This morning, there was talk on a couple of the news magazine shows that addressed areas of the country where home prices were actually on the rise. Then, later today there was news released that new home sales were up for September as well.

This news is good for both buyers and sellers. For buyers, it’s a sign that others are becoming a bit more confident about their prospects; for sellers, it means that their homes just might start moving from the market soon. While it’s not likely to lead to a major overhaul of the market right away, it does show that there’s hope - and that’s decidedly a good thing.

These days, when you take the time to look at real estate news as an investor, as a real estate agent or as someone who is going to be buying or selling a home, one of the things that you’re going to notice is that there’s no news that’s entirely good and no news that is exclusively bad. As a result, it’s going to be up to you to take a look at both sides of the story and to sort things out for yourself.

Here’s a great example based on real estate news out of California. Those who are looking for California real estate news are going to see that there’s a fair amount to be happy about: those sellers who have been struggling to get their homes sold and real estate agents are seeing that home sales have started to pick up, which, of course, is great for sellers. The less positive news for those sellers, however, is the same news that benefits buyers: home prices are still falling.

No matter what situation you’re in - whether you’re looking at real estate news or something else altogether - you’ve got to take the good with the bad. The bright side in this case is simple: homes are selling - and that’s sure to spread to other areas as well.

Back in the spring, a lot of the real estate industry folk were up in arms about the way that Redfin and similar “real estate 2.0″ companies were breaking onto the scene. With interviews on 60 Minutes, write-ups in a wide variety of magazines and in blogs all around the internet, there were some people who were a bit concerned that Redfin might eat up the traditional real estate industry.

However, a lot can change in six months - especially when, in those six months, the mortgage industry went bust and home prices started to drop precipitously. And now, Redfin, the golden child of taking real estate to the next level is feeling the pain of a changing industry.

News was released today that Redfin would be laying off 20% of the employees that are currently with the company. Because of this, there has been some prediction that online advertising will also start to dry up - but I just can’t see that. Buyers turn to the web when they’re looking for a home before they head out to drive through a community or get in touch with a real estate agent; it seems highly unlikely that the way in which buyers find homes would be revamped just because of one online selling company.

When the real estate market turns south as it has in the U.S. recently, how can real estate professionals make money? Where are the deals?

Everyone seems to be touting foreclosures and I admit that there is a market for foreclosures. But what if the foreclosure market is affectd adversely by the financial bailout package? Can that happen? Will it happen?

I think the bailout package has the potential to slow down the foreclosure market, not dry it up. Even then, there is another market in real estate that many investors are ignoring, either because they do not recognize it or because they don’t know how to tap into it. It’s the short sale market.

A short sale involves taking a property from a bank or mortgage company for less than it’s retail value. It takes place usually after the foreclosure is complete, but it can also take place during the foreclosure process. Banks don’t like to be left with unoccupied properties because they are a liability. Many banks will sell these properties at a loss in order to liquify their assets, especially if they are in danger of going bankrupt. If a bank, mortgage company, or other financial institution has a large number of properties seized from borrowers who couldn’t pay then they’ll want to unload those properties and take the cash. That’s where the real estate market is going to be in another six months to a year.

Seems like a fairly safe bet these days that if you ask a dozen people what happened to drag the real estate market to where it is now, you’re going to get a dozen different answers. If you ask a hundred people, you’d probably find yourself with about 90 answers to choose from, because it’s likely that there would some degree of overlap.

The reason why there are so many different answers out there is simple: there’s no one event that led to the real estate meltdown that’s been going on. Over-inflated prices in some markets are to blame. Underhanded mortgage lenders that weren’t up front about what borrowers could afford are part of the problem as well.

In other words, the most certain answer that anyone can give you is this: “it’s a combination of things.” However, just because the real estate market is here now, doesn’t mean that it’s going to stay that way; it’s possible to get a great deal, it’s possible to find a great mortgage and it’s possible to build equity: you just need to be sure that you are able to get the right advice along the way.

There are plenty of projections out there that say that the mortgage and real estate market will come together to help buyers get into the homes that they’re interested in. The reality is that it’s not all about speculation - especially given a report in California that’s just been released:

(source)Declining home prices coupled with low interest rates prompted more home buyers to purchase in 2008 compared with last year, according to the CALIFORNIA ASSOCIATION OF REALTORS(R)’ (C.A.R.) “2008 Survey of California Home Buyers.” Sixty-nine percent of all home buyers reported that price declines encouraged them to buy a home, while 40 percent said that low interest rates enabled them to move to a better location.

Sure, the message is focused on homes in California - the chance to afford a nicer home and to buy property in a better neighborhood. But that doesn’t mean that you’re going to be in a position to find completely different results. Michigan is a great example; you’ll be able to get a better Michigan mortgage and the right real estate agent so that you can be sure that you find the right home and the right loan to put you in it.

Do you play tennis? How about on the beach?

In Jacksonville, Florida, you can actually play tennis on the beach and if you live there it’s just a little walk to the Jacksonville Beach Tennis Center. Seven courts. No kidding.

Well, not only does the beach have seven tennis courts, but they are also building a pro shop and lounge, not to mention a hitting backboard. I thought it was a beach, not a country club. Or maybe it’s both.

At any rate, this sounds pretty cool. I might have to move to Jacksonville myself just so I can brush up on my tennis strokes. And see if I can get in good with one of the Williams sisters.

Read more about tennis at Jacksonville Beach

Warren Buffet, the world’s richest man, says Fannie Mae and Freddie Mac are on the outs. He furthermore said that the economy will not improve for at least five months.

Well, now that he’s said it, it will likely come true. If his predictions prove true then you can expect a bailout for the two mortgage companies soon. The U.S. government will not just let these two institutions fail. Too much is riding on their existence and if they go belly up there will be a worldwide economic crisis. Uncle Sam won’t let that happen.

Another prediction Buffet made was more bank failures, especially in areas that are affected by the housing bubble. Well, he may be the bearer of bad news, but you can bet he likely knows what he’s talking about. The question is, how will you profit from his predictions?