Many Realtors around the country are facing the same problem - how to get buyers off the fence and commit to buying a home!

I have had more luck recently conceding that prices may in fact keep dropping a little, but am able to show my clients why it can still make sense to buy now!  For example, stock brokers quit aspiring to help you buy low and sell high since they were always getting beat up for not buying at the lowest and selling at the highest!  They started telling their clients to just "buy now and sell higher later" so they wouldn't get blinded with hindsight later.

For example, here are two scenarios:

1. $250,000 mortgage today @ 5% = 

   Monthly Payment:

   $1,342.05 (Principal & Interest ONLY)

   
   
2. If your buyer thinks the property values will decline 5% more in the next year, just agree with them! Then the mortgage would be $237,500 instead of $250K.  Because you agreed with them that things are still eroding, they might agree that interest rates will go up due to additional economic concerns so figure the same house at the reduced mortgage but increasing interest rates to 6%.  $237,500 mortgage at 6% = 

   Monthly Payment:

   $1,423.93 (Principal & Interest ONLY)

   
   

Therefore, by waiting for prices to drop another 5% due to the economy and if interest raise only 1% your effective payment is going to increase $81.88.  The effect of the payment increase will drop your buying power by roughly $13,500 at 6% so you wouldn't even be able to buy as nice a home!

Oh by the way, if you don't close by November 30th of this year, you also loose the potential $8k First Time Tax Credit!

Jim Paulson, CRS, GRI,
Certified EPRO Instructor and Home From Work Instructor
Owner/Broker - Progressive Realty Corporation
Specializing in Boise Idaho Real Estate
http://www.IdahoMLStours.com
Http://www.Progressive-Realty.info

Choosing a REALTOR in these Changing Times

Sorry for the length of this blog, but it was necessary to accomodate the case-and-point. The importance of choosing the right professional has never been more important in today's real estate climate.

Whether you are buying or selling, a qualified real estate professional will help you successfully navigate the entire process of a real estate adventure-transaction, regardless of the complexity. Searching for the right real estate professional can be a daunting task and when trying to decide what to look for in a good agent, the following topics and ideas should be considered.

1. Training/Education. We all know there simply is no substitute for age and wisdom. They go hand in hand. When considering "hiring" a professional to assist or handle a real estate transaction, experience, education, and training background should all be considered. Continued professional training and education is a strong indicator to an agents dedication and commitment to their profession. An agent who takes the initiative to continually improve their knowledge base, and those who train into specialties and receive special designations, are agents that should make the cut. Aside from the State of Mississippi requirement of only 8 hours of continuing education every two years, study initiative and the determination to be a good professional separates the knowledgable haves from the have-nots. Knowledge is key to everything in real estate, and together with experience and wisdom, is the formula for success. It is this success factor that is in the customer's or client's best interest.

2. Experience. Ever purchase a car without a test drive? Probably not. Choosing a real estate professional without a sufficient level of expertise is probably not wise either. While length of professional service alone is no guarantee of professional excellence, it is believed that, in general, the more experience a professional has, the more experiential knowledge they acquire. To consumers in the selection process, this becomes the most important element of qualification. left unchecked, an inexperienced agent can cost you, and most often, without your knowledge. When choosing an agent with a less than desirable level of experience, request references or ensure that the agent is under good tutelage or mentorship. * Initiation * Negotiation * Mediation * Calculation * Finalization These are not skills that are perfected by classroom study. They are indeed a skill set learned and improved over time and with actual experience.

3. Availability. Now here is a tough one. Some of the best agents you can think of are, well, usually not available when you need them. Good Buyer's agents are busy, usually with buyers. Others agents may be listing agents and that is what they practice. They list properties. An abundance of listings is, by design, what makes them successful. With this abundance, an agent relies on the odds of selling and most often equates to their top production status (especially through the consumers eyes). It is a percentages game, usually at the cost of customer service. Choose a busy listing agent and the liklihood of recieiving good customer service is greatly diminished. They will market your home the most convenient and efficient way they know as they will continue to list more homes. You should always choose a professional that will provide you full-time availability and whether you choose a Seller's or Buyer's agent, they should provide you with a commitment of service.

4. Service Ability. Related to, and in contast to Availability, good customer or client service is an important attribute of a good agent. They are good time managers and stay in contact with you, providing you with accurate and timely information about the housing market, enabling you to make smarter marketing and buying decisions, as necessary. Good agents are tuned in to their market and their clients. They will stay the course with you and be available when you need them. Question: Will the agent you use to market your home take you from beginning to end? Will they handle all the marketing aspects and advertising for your home? Or will they drop off your file with a company "staffer", letting them handle all the details of marketing, the sale, and all of the details of your transaction? Always ask an agent about their "process". There is as much individually here as there are agents. Question: Will your Buyers Agent spend the time with you to help you determine the right home. Will they provide you with a "complete" amount of information or provide you with the right resources? Will they willingly show you all the homes that meet your criteria, or just those in their inventory?

5. Technology Resources. Today, here is where the 'NOW' rubber meets the road. The agent you choose may have knowledge of the area and provide you with friendly customer service. But have they progressed in their profession, technologically speaking? Are they techno-resourseful? Can they deliver all of the above expectations with-and by-todays standards? Technology is well upon the real estate industry and has led to the creation of a new genre of Top Producers while some agents continue to conduct their business-as-usual. Agents that embrace and implement new technologies are spending more time and money leaning and implementing technologies to market their listings. It has become personal again. Most large companies make the technology and tools available to their agents, but agents must be willing to spend the money and extra time to effectively leverage these tools. Many companies simply do not train agents to be techno-savvy. This can be most evident by whether an agent has their own website or whether they employ additional tools or internet syndication methods in their property marketing plans. A good agent will offer value added services in addition to what their company provides.

Here is where good listing agents can make the overall grade:

* Implemented Technology

* On-line Social Networking

* Internet Marketing

* Internet Syndication

* Blogging

* Visual and Virtual Tours

* Multiplex Communications

* Leads Generation Systems

In summary, the agent selected to represent one's real estate transaction should be examined closely. Ensure that they meet or exceed your expectations. Ask questions about their qualifications using the above guidelines and ensure that you are comfortable with their qualifications. A good agent should not hesitate to provide you with a resume and the consumer should never hesitate to ask for one. Also, seek out references. Check with past clients with whom they previously worked. Your real estate agent is like the other professionals you choose in life...and it's usually not your cousin or your sister-in-law. There are many resources available to guide you in locating the right agent equal to your task. There are new standards in our business. Overall, it is an important decision and once you make your selection, you should expect results equal to that choice.

Happy Hiring!

Randy Landis - The EXiT Guy!

There is a new venture in Los Angeles offering tours through Los Angeles gang turf.

These are high end specialty tours of top crime scene areas of South Central Los Angeles. 

The first tour on January 16th was sold out!  Passengers received a discount of $35 on the regular $100 per head ticket and signed waivers that they were aware they could become crime victims and agreed to put themselves in the hands of ex-gang members who had negotiated a cease-fire in the most violent gang area in the U.S.

The objective of these tours, which are scheduled to run once a month, is to create jobs for residents of South Central and to inject money back into the community. It also promotes the continuation of a cease fire in certain designated areas in exchange for the tour operators hiring some of their youth for employment and training opportunities. Designated routes and times are being honored by participating gangs.

For more information on these tours visit L.A. Gang Tours.

Buying or selling real estate in Los Angeles can be an overwhelming process.  Contact Jane Peters, Los Angeles realtor specializing in absentee owners, out-of-town buyers, and those who need that extra attention, in order to make the transaction a smooth, trouble-free, and fun experience.

Search Los Angeles Homes for Sale.