How is the market?? Are you a buyer, a seller, an investor or a renter? It is different for each of you.
As a buyer, you are probably wondering, if you should be buying now? Ask yourself the following question. Are the interest rates “true rates” or are they “incentive” rates? It is my opinion they are “incentive” rates to get buyers to purchase. Where are rates headed? There is only one way they are headed and that is higher. When will this happen? Probably the first quarter of 2010. Why will they head higher? There are a couple of reasons. One is the bond market and the other is the weak dollar. What does that mean for you, as a buyer. It means you should probably seriously consider buying at this time.
As a seller, how is the market? Today’s news is that home sales and home prices are rising. How can it be that home sales and home prices are rising when there are so many short-sales? That is exactly why they are rising. Buyers are perceiving short-sales as great values. This is generating multiple offers and the properties are selling for over the listed price as buyers clamor for a “deal.” This is setting new and higher price points, so sellers, knowing that the interest rates are going to rise and a certain percentage of your buyer audience will disappear, it is my opinion you should be realistic about your price and sell. After all, you can go out and find yourself one of those wonderful deals, as a buyer, before they are all gone.
As an investor, you are having a heyday. When have you seen properties in higher end markets cash flow? You just can’t spend your money fast enough. Good for you! Cash is king and, if you have cash……..invest and invest.
What about renters?? Normally in times when foreclosures increase, rental prices increase. As more people need to rent homes the law of supply and demand ususally creates higher rental prices. Well, that is not what I am seeing in the marketplace at this time. In fact, I am seeing a decrease in rents. Landlords, if you have a good tenant, keep that tenant. You may not be able to replace that tenant with a like-paying one. So, how is the market?? It is different for each of you, depending on how you classify yourself.
I was having a conversation with a client recently to whom I have sold two homes. His current home, his primary residence is now way under water. The purchase price of the home was in the mid $800,000 range. Today the home is valued at around $500,000.
It would be important to note this client is a very conservative man, married with a couple of children. He is not impulsive. He is very analytical, extremely conservative and successful, and has an excellent job plus lots of savings.
For him, buying a home is a very arduous task, as he constantly questions himself about making the right decision. That is where I come in, providing him with enough information, market statistics and emotional support (hand holding) to make a decision.
Recently I called to tell him that I thought we should, in earnest, find him the move-up home he and his wife have coveted for so long. I told him the combination of today’s interest rates and low prices will not last. He agreed and thus began the portion of the eye-opening conversation I am sharing with you here.
I asked him, if he was planning on selling the current residence or would it become a rental property? With almost no hesitation, he told me he would just let the home “GO”. “Go,” I said. This was a radical answer coming from this gentleman. It must be a joke, I thought. I needed to probe further. “Let the home go,” I said, “as in let the bank foreclose on the home?” “Yes,” he replied. “It doesn’t make good business sense to keep it. If you look at the loss on the house in this current market and figure a modest gain going forward, it will take years for the home to reach the same market value as when I purchased it. At that point I would have zero return on my investment. Keeping it would be a very bad business decision.”
I must admit that what he was saying was true. Being analytical, he had looked at the numbers and arrived at his conclusion. He is right. It will take a long time to rebound to its original market value, but let it go…..I couldn’t believe he was actually serious. He was and is dead serious. From his point of view he is looking at the purchase of his current home NOW as a business deal gone bad. He sees no purpose in throwing “good money after bad”, so he wants to purchase his move-up home while he still has stellar credit, verifiable income and strong cash assets. Once he owns the new home, he will let the current residence go. He figures he is better off washing his hands of his bad investment and focusing his attention on building his cash reserves and making other investments that will give him a positive return on his investment. “After all,” he said, “I need to think of my growing family. If I keep the house, it will take years just to see the house reach its original value and I will still be behind the eight ball with no return on my investment at that point. It doesn’t make sense to keep it.”
Suddenly I realized I was staring in the face of a “new” type of foreclosure……….not one out of financial desperation, but one out of financial “choice.” How many others will be making this type of decision and what will it do to an already unstable marketplace?
Sellers-the amount of buyer traffic right now through homes is the most I have seen in 23 years. The buyers are determining that now is the right time to buy. When you look at the combination of rock-bottom prices and historically low interest rates, the buyers are recognizing this opportunity is short-lived. Food for thought for both buyers and sellers, Do you think the interest rates we are now enjoying are true rates or incentive rates? They are incentive rates to encourage the purchase of homes. The prediction is Mortgage rates will rise in the first quarter of 2010, because of the weak dollar. It is the old saying “you know what you have, but you don’t know what you’ll get.” Keep your home on the market.
In this down economy I have learned that all of those THINGS that I used to think I had to have are, after all, just things. Things can be taken from you in an instant. One day you can have all of the things you ever wanted and the next they can all be gone.
In taking personal stock of the situation, I have realized that the things that money can’t buy are the things that are really important. When I look around my world, I am surrounded by the deep love of seven children and four grandchildren, 2 extraordinary sisters, a passel of nieces and nephews, a great aunt, brothers-in-law and a son-in law. I have wonderful friends, some of whom I have known since I was very young. I have the respect of my peers. I was blessed with a great brain and an endless thirst for more knowledge. I have traveled the world, flown on the Concorde, crossed the Panama Canal, learned to speak Spanish and Italian, have no fear of public speaking, love my profession, personally cared for both my parents until the day they each died at home, have helped make the difference in a family of six, have taught my children and grandchildren a slew of board and card games, have a piece of the Berlin wall, have seen the Whirling Dirvishes and ridden a camel. I have truly had an extraordinary life. While the majority of the things may have disappeared, the memories of of a life fulfilled is the greatest gift of all. No one can take my intelligence or break my spirit. I am the eternal optomist and a big dreamer. Oh yes, I can have those things again and I will have the ones I really want, but this time will be different. I will have an appreciation of the real price I am paying to have those things. I know one thing for sure, those things can never replace the priceless gifts life has given me.
I don’t know about you, but I am extremely upset with the banking system in this country. First they take government money allegedly to lend it to homeowners and it sits on their balance sheets so they can present a “new and improved” personna for their own personal agendas. We all thought that with the bailouts, the consumer would have some benefit, the housing market would be stimulated and we would exit this recession quickly. We should have know better. It is greed that got us into this recession and it is greed that is prolonging it.
I received a notice from my bank that I was overdrawn. I was so surprised, as I had opted out (you have to opt out) of letting the bank pay any checks for which there were not sufficient funds. How does this happen?? I spoke with a very nice young man behind the counter who suggested I call the number on the back of my ATM card and that I should record the call. He had had a similar problem (he works for the bank), so I heeded his advice.
When I called the banking number, I told them I was recording the call and the gentleman on the other end of the phone said he would not speak with me and he would be calling his supervisor. When the supervisor came on the line I explained the situation. What I learned next just irritated me so much I am writing this blog to warn others of the “Shadow Greed” that lies in wait for you.
Once you tell the bank (opt out) that you do not want them to pay any checks for which there are not sufficient funds, they are happy to accommodate. Why? Now they are going to charge you for Non Sufficient Funds up to $140/day and you will probably be charged by the institution to whom you authored the check. I got their game immediately. Basically you have a choice. Pay an overdraft fee or pay a NSF fee plus any other costs. How could I have been so naive as to think we consumers were actually getting a break?
There is no limit to which the banks will go to squeeze us dry with their fees. I, for one, am sick of it. When they are paying 0.5% on CD’s, we might as well keep our cash in a safe at home. We give the bank $100 and for letting them use our money, we are rewarded with a $.50 return after a year. What a joke!! That is less than one cent per week on a $100 deposit.
Of course the banks spin this debacle, so the consumer thinks these crazy fees will be banned or reduced. Don’t kid yourself. We are only going to see more and more of this kind of egregious business practice, but it will not only be by the banks, but any large industries that can get away with it.
I have always so believed in my country, but, as of late, I am disillusioned. The American people are great people. We have a sense of community that is the envy of the world, but those in charge seem to have forgotten. We need to come together to restore the greatness that America once represented. I’d love to hear from any of you out there. I don’t think I am a minority in my thinking. As many hands make “light work”, many minds coming together can create greatness. Let’s begin today.
I just had to write about this, as it touched me deeply. Sunday mornings are reserved for my granddaughters. We have a special routine for Sunday mornings. As many of us as are available jump in our cars and meet at Denny’s for breakfast. It is a special time when we focus on one another without outside interruptions. Our darling waitress, Miriam, always greets us like we were her family members. She has remembered from day one what beverages and breakfast specialities we each like. She makes our Sunday mornings extra special and it wouldn’t be the same without her.
This morning, it was different, as Miriam was not there. It just wasn’t the same, but we were told she will be back next Sunday. It sort of started our breakfast experience off on a bit of a down notes. After breakfast, my granddaughters routinely go to a game in the restaurant where you can win all kinds of stuffed animals just by picking them up with a special claw. You must guide the claw to just the right spot. Once there you drop the claw and, if, you are lucky when the claw rises up again, it will have an animal in its mouth. Denny’s has lost money on these two, as they rarely leave without a prize. They have both become quite skilled at the game. Today was different. After about $3 worth of tries, my youngest granddaughter returned to the table, obviously disappointed that she had been unable to win anything. I asked her what she had her eye on and she told me it was a big bear in the corner. He was so wedged in the corner, it would have been a nearly impossible feat to obtain him. We all consoled her and talked to her about how many times she had been victorious in the past and perhaps next week she would win another prize.
As we were finishing our breakfast and getting ready to pay our bill, I saw a very large man sitting alone having breakfast. He got up from his seat and walked over to the machine. It was a little surprising to see a man alone playing this game. I kept watching him out of the corner of my eye as he tried time and time again to dislodge the bear. My heart panged a bit, because I knew how much Alexis wanted that bear. This man had an amazing technique he used to dislodge the bear and I was thoroughly fascinated watching him. He kept putting money into the machine until he finally got the bear. He plucked it from the machine, walked over to our table and handed it to my granddaughter. We were all just stunned. What a beautiful act of random kindness. She just kept saying, “my goodness, my goodness.” We all started talking about what a wonderful thing he had just done. His random act of kindness was one that would, once again, restore our faith in humanity. We all went to his table one by one to tell him what a wonderful act of kindness he had performed. His smile got broader and broader. As I left I wasn’t sure who had recieved the most joy from this random act of kindness, but I knew I was leaving with my family and he was still sitting there all alone.
Beware, buyers. Please watch this video, before you make an offer on a short sale. There are some important facts you should know. http://www.youtube.com/watch?v=qA3X8kE8URU
When my children were young, I would constantly correct their grammar. They would complain bitterly, but I kept doing it. Today, without exception, they thank me over and over and are now correcting their children’s grammar.
I am, frankly, disgusted at the incredibly bad grammar I hear all of the time. Even our President, in making an off-hand comment(not scripted) recently, used poor grammar. He is a Harvard graduate. How does this happen??
What is even more worrisome is that this bad grammar may someday replace proper grammar as acceptable. How often do you hear kids say, “Me and my friend”, instead of my friend and I? How about the bachelorette with her repeated “Him and I” instead of “He and I”?? For anyone with a good sense of proper grammar, this is like fingernails on the old chalkboard.
Kids learn what they hear and experience. If they are not getting proper grammar at home, are our English teachers really impressing upon them the importance of good grammar?? It is such a great gift to give a child, as a first impression is a lasting one. While good grammar says “educated”; poor grammar says “not well educated”.
Poor grammar creates a bad impression. It is certainly not good in an interview process for a job or a selection process for college and it leaves a bad impression with people who value good grammar.
I will keep correcting my grandchildren to do my part to help preserve our language as it should be spoken. It costs nothing and will pay dividends in their lifetimes. I am sure there are many of you out there who feel the same.
Well, just when Grandpa died you might have thought we were through with medical bureaucracy issues. From my last blog post you will remember Grandpa was ushered out of the hospital only to die within 2 hrs of discharge. This was orchestrated under the guise of hospice, but it was really a way to get him out of the hospital in time to prevent him dying there and becoming a negative statistic for Kaiser Permanente.
When we went to make arrangements for Grandpa, we were questioned as to who was going to sign the death certificate. How would we know? Was there a problem? Yes, there was. You see the doctor who saw Grandpa on the morning of his death did not want to sign the death certificate, because an ER doctor stopped by his room late afternoon to check on him. Since he was not the last physician to see Grandpa alive, he would not sign the death certificate. The ER doctor would not sign the death certificate for some reason which was never clearly explained to us. He was the last physician to see Grandpa alive. Next we were shoved off to hospice to have the hospice doctor sign the certificate.Since hospice was not at Grandpa’s home to evaluate Grandpa (although they had promised someone would be there to receive Grandpa when he was delivered home), which was not the case. By the time the hospice nurse arrived Grandpa was in the last hour of life and there was no evaluation done. Since he had not been evaluated by the hospice physician, the hospice physician would not sign the death certificate as he had never seen Grandpa. Well, this went on for two days until finally another physician from hospice signed the death certificate. He NEVER saw grandpa, so how could he sign the certificate attesting to a cause of death. Bureaucracy never ceases to amaze me. Whatever is expeditious becomes permissible!!
I once thought I was pretty smart when it came to the medical world. After all, my former husband and daughter are both physicians. Well, then how come I never knew that a hospital was not a place to go to die?? I have just experienced this first hand and need to share this with you.
The doctor’s informed me and my sisters our dad was not going to get better. The palliative care team wanted to speak with my sisters and myself. They suggested (actually pushed us) we put our dad into a hospice program. This made sense, because he was not going to get better. Little did we understand the real reason behind the big push. They wanted him out of their facility. We questioned them about why they would want to move him, if he was so terminal. They said it was, because he was going to be put on hospice and he would need to be moved to another facility that dealt with hospice patients. Well, no facility wanted him, because he had been tested for swine flu and, even though, they told us the results appeared negative, he was “persona non grata”. They told us they would find him a place as we would have to move him. I couldn’t believe my ears. He was close to death and we had to move him. It was sometime during this shuffle that we learned the doctors had given him about 24-48 hours to live. Why with such a little time left did they have to move him? They found him a place all right, far from our homes. It took all day for them to do so. By the time they were ready to discharge him about 36 plus hours had elapsed and he was comatose. At that point I said to my sisters that we should just take him home to die in a warm, familiar and comforting environment. They quickly ordered an ambulance to transport him. They loaded him onto a gurney in a completely non-responsive state. As they were moving him from the bed to the gurney the sheet under him tore and he was dropped onto the journey quite roughly. He was not responsive and I couldn’t believe they were actually moving him. We did not think he would live long enough to get home. He did, however. We were told a hospice nurse would be there to meet us. HaHa. She did not appear until nearly an hour later, when it was obvious to us that he was close to the end. He died quite shortly thereafter. Her only role was to listen to his heart to verify the time of death. We, all, found it interesting, however, that she said she could not believe the hospital had discharged him. To discharge him, he would have needed to have been stable and he WAS NOT. Why then was he moved???? Simple….the hospital did not want him to die in their facility. It would impact their statistics to have him die there. We feel completely duped. Not that the outcome would have been different, but we feel as though (under the guise of caring) they convinced us that palliative care vis a vis Hospice was what was needed, so they could get rid of him. For him to die within 2 hours of discharge is shameful on the part of the hospital. Two hours was all about statistics and nothing about compassion or humane treatment. I am appalled and outraged. They won’t pull the wool over my eyes again, but I am sure there is a family out there today confronted with the same situation as we were agonizing over the decisions that have to be made. It is only going to get worse with a public health care option. It scares me to think about it. If you don’t have a health care advocate, you need one or two or three. We spent 12 days bedside around the clock and we still got the boot. God only knows what would have happened had we not been there to be his advocate. NO, that is not true. He would have conveniently died days earlier and they would have had that statistic with which to deal.
