Ya know - I’ve decided that I want run for Congress - my dilemma: overcoming the paradigm that one aspires to move up and not - um - down. BUT! Just think of all the fun I’d have riding the train under The Capitol - sitting in convertibles waving at my constituents in parades, playing golf with my lobbiest “buddies” - Ahhhh - what a LIFE!
Honestly, though - I think the best part would be sitting in commitees and writing legislation. Imagine sitting in a big room covered in mahogany wainscoting, sitting in a cordovan leather highback chair behind the massive, hand carved desk with my BIG brass name tag in front of me -I might even have a microphone in front of me. My voice would boom while speaking down to the little peop - er - constituents - um - not MY constituents, but constituents nonetheless.
My esteemed colleague would be standing behind me whispering where the guys were going to meet up for drinks after the hearing while the pathetic homeowner in front of me goes on and ON AND ON about how some slick mortgage broker sold him a bill of goods and now he can’t make his mortgage payment. But I feign to listen because it’s only for a few hours and then I get to ride the under ground train with my buds ‘cuz tonight I’m drinkin’ and schmoozing with da bankers!
Just think about it! I’d get to drink single malt scotch while Jimbo Biggidy Big Banker throws his arm around my shoulder, pulls me aside - walks me out on the patio at The Capital Grille, hands me a cigar and tells me that those wacky Wall Street boys - ha ha - you know the type - custom shirts and suits from Hong Kong - well they really blew it. Look at ALL that hell they’ve caused.
Jimbo likes to talk in the third person.
Tommy - Jimbo’s bank is losing money. How was Jimbo supposed to know that people weren’t going to be able to pay for all of those mortgages? I mean housing always goes up - ha ha *slap on the back* right?
I mean - if I have to write down the value of all those assets - well -um - you see Tom, Jimbo and Marge won’t be able to host that ski junket in Vail this year - and we all know how much Tommy LOVES to ski.
Dammit! There is no way in hell I am NOT going skiing in Vail this year.
So Jimbo - let’s just say I get a few of my esteemed colleagues together - write a few rules and regs - make sure my boss covers your ass. You won’t lose a penny more on those declining assets - I mean, if you have to write them down to say - 85%, will that keep Vail in the running? Let’s face it - you can always foreclose - I mean who wouldn’t want to find a bargain?
Showing posts with label Real Estate Chicago. Show all posts
Showing posts with label Real Estate Chicago. Show all posts
Monday, July 28, 2008
Friday, July 25, 2008
The Epic Battle Ensues: Realtor vs. Realtwhore
Not sure if you’ve visited TruliaVoices lately - there is an active thread currently running, at last count, 1,599 responses. I believe that is the longest running thread in Trulia’s fledgling history. The poster has since updated the question with more information qualifying the question due to the overwhelming number of responses, however, the basic question is, “Why should someone buy in this market?”
When initially posted, the question was a legitimate query into an expert’s view as to why someone in the poster’s circumstances should buy in Chicago. Personally, I had a problem with the question - should the response be a multiple choice response?
a. buy low, sell high
b. interest rates are at historically low levels
c. Jill is half as tall as Bill and 3/4 tall as Sally
d. Vicodine
e. There is insufficent data to answer to this question
I like “e” - and for the first time in almost 30 years, I can now fully appreciate the significance of that answer on the SATs. For those of you who found Vicodine to be the logical choice, may I suggest an intervention?
Ok - so I’ve been following the thread from time to time, watching it morph from being a useful discussion to - lately - a discussion regarding the existence of nuclear weapons in Israel. Almost like a game of telephone gone bad. More disturbing to me however is how the question has evolved into a rhetorical question “WHY THE HELL would someone buy in this market? What are you, an idiot?”
If you’re familiar with the TruliaVoices rating scheme, you understand that comments are rated by either a thumbs up or thumbs down. Honestly, I think there’s a conspiracy brewing. As you read the responses of the many realtors who answered the question, “There is no better time to buy!”, many of those responses were met with a burrage of thrumbs down. You can almost hear the resounding “BOO!”, “LOSER!” - you know, while you’re at, why don’t you just poke me and call me fat.
On the flipside, the number of written responses as insults were flying back and forth, discrediting realtors who provided insightful responses to a fairly ambiguous question. Again - thumbs up to the responder who really stuck it to the realtor - thunderous applause - BRAVO!
I think the collective mindset - or groupthink has become, any agent who tells a consumer to buy in this market is nothing but a realtwhore. Of course you want to tell people to buy, otherwise you won’t make your ridiculous commissions.
Well, I don’t think NAR’s national campaign blanket statement, “There’s no better time to buy! Consult your local realtor” has gained us points in the credibility deparment. A good majority of consumers aren’t convinced. Honestly, I did whince at a few responses (some with big hair) - shiney, happy people providing generic responses to a very generic question. Interest rates are low, inventory is high, it’s a buyers market! Buy! Buy! Buy! Sorry - they do kinda sound like realtwhores.
It’s a tough crowd in there, many of whom are well armed - spouting out data statistics from Standard and Poors, the Case Shiller Index, weighted averages etc. Even Fortune magazine wrote an article about the state of the market. Astonishing that Fortune’s article had higher credibility that a broker of greater than 20 years experience who has shared her thoughtful, specific responses throughout the thread. Hmmm - I thought Fortune sold magazines, not real estate? Why is the Case Shiller Index the defacto standard instead of NAR’s market stats? … because NAR’s nothing but a bunch of realtwhores.
I will say I did find a great deal of humor by reading the responses. I’ve been following the thread and have noticed a good number of real estate professionals’ responses. Many continue to dent their armor, they stood their ground - they took a few for the team, but then again, they do this for a living.
I couldn’t help but be struck by one agent’s response who up until then had been fighting the good fight, but then sheepishly admitted, oh I don’t actually use this site as a prospecting tool, I just come here from time to time and “check-in”.
Excuse me?
Let me get this straight - you fill out a profile in detail, providing all of your contact information, designate yourself as a real estate professional, actively participate in discussions, follow a thread that has grown to almost 1,600 responses, share your knowledge and expertise, but you don’t want consumers to think you’re a realtwhore - is that was you mean?
Who are you kidding? After I read that - the groupthink just took a survey: *DING*DING*DING, survey says *REALTWHORE* Suffice it to say - when a potential client now calls said agent, it is their duty to say - oh, I’m sorry, while I appreciate the fact that you enjoyed my knowledge and experience, I was not seeking any potential business - I’m afraid I can’t help you - I’m a realtor, not a realtwhore.
Some how realtors who admit they use social networking sites as prospecting tools are looked upon as less credible. How far from the truth can that be? When you establish a web presence, you’re prospecting. Consumers are using these sites in exponentially increasing numbers. While some consumers enjoy the game of discrediting the experts and the realtwhores, a greater majority are seeking sage advice. They need expertise and knowledge and they are seeking out the experts. Groupthink tells that buying and selling is a do-it-yourself job. For some that very well may be the case - some are not seeking to be converted and you know, that’s ok. Where better to draw the distinction between a realtor and a realtwhore?
Regarding my own TruliaVoices involvement, in my own professional way, I would like to address the few of you who gave me thumbs down on my incredibly insightful responses. No - for you who choose to discredit me - I will not pick up my toys and leave the sandbox. Nope - instead I want you to follow these simple directions:
Apply lips firmly to my right buttock. Pucker and release. Repeat.
Now see? It’s all in the delivery.
When initially posted, the question was a legitimate query into an expert’s view as to why someone in the poster’s circumstances should buy in Chicago. Personally, I had a problem with the question - should the response be a multiple choice response?
a. buy low, sell high
b. interest rates are at historically low levels
c. Jill is half as tall as Bill and 3/4 tall as Sally
d. Vicodine
e. There is insufficent data to answer to this question
I like “e” - and for the first time in almost 30 years, I can now fully appreciate the significance of that answer on the SATs. For those of you who found Vicodine to be the logical choice, may I suggest an intervention?
Ok - so I’ve been following the thread from time to time, watching it morph from being a useful discussion to - lately - a discussion regarding the existence of nuclear weapons in Israel. Almost like a game of telephone gone bad. More disturbing to me however is how the question has evolved into a rhetorical question “WHY THE HELL would someone buy in this market? What are you, an idiot?”
If you’re familiar with the TruliaVoices rating scheme, you understand that comments are rated by either a thumbs up or thumbs down. Honestly, I think there’s a conspiracy brewing. As you read the responses of the many realtors who answered the question, “There is no better time to buy!”, many of those responses were met with a burrage of thrumbs down. You can almost hear the resounding “BOO!”, “LOSER!” - you know, while you’re at, why don’t you just poke me and call me fat.
On the flipside, the number of written responses as insults were flying back and forth, discrediting realtors who provided insightful responses to a fairly ambiguous question. Again - thumbs up to the responder who really stuck it to the realtor - thunderous applause - BRAVO!
I think the collective mindset - or groupthink has become, any agent who tells a consumer to buy in this market is nothing but a realtwhore. Of course you want to tell people to buy, otherwise you won’t make your ridiculous commissions.
Well, I don’t think NAR’s national campaign blanket statement, “There’s no better time to buy! Consult your local realtor” has gained us points in the credibility deparment. A good majority of consumers aren’t convinced. Honestly, I did whince at a few responses (some with big hair) - shiney, happy people providing generic responses to a very generic question. Interest rates are low, inventory is high, it’s a buyers market! Buy! Buy! Buy! Sorry - they do kinda sound like realtwhores.
It’s a tough crowd in there, many of whom are well armed - spouting out data statistics from Standard and Poors, the Case Shiller Index, weighted averages etc. Even Fortune magazine wrote an article about the state of the market. Astonishing that Fortune’s article had higher credibility that a broker of greater than 20 years experience who has shared her thoughtful, specific responses throughout the thread. Hmmm - I thought Fortune sold magazines, not real estate? Why is the Case Shiller Index the defacto standard instead of NAR’s market stats? … because NAR’s nothing but a bunch of realtwhores.
I will say I did find a great deal of humor by reading the responses. I’ve been following the thread and have noticed a good number of real estate professionals’ responses. Many continue to dent their armor, they stood their ground - they took a few for the team, but then again, they do this for a living.
I couldn’t help but be struck by one agent’s response who up until then had been fighting the good fight, but then sheepishly admitted, oh I don’t actually use this site as a prospecting tool, I just come here from time to time and “check-in”.
Excuse me?
Let me get this straight - you fill out a profile in detail, providing all of your contact information, designate yourself as a real estate professional, actively participate in discussions, follow a thread that has grown to almost 1,600 responses, share your knowledge and expertise, but you don’t want consumers to think you’re a realtwhore - is that was you mean?
Who are you kidding? After I read that - the groupthink just took a survey: *DING*DING*DING, survey says *REALTWHORE* Suffice it to say - when a potential client now calls said agent, it is their duty to say - oh, I’m sorry, while I appreciate the fact that you enjoyed my knowledge and experience, I was not seeking any potential business - I’m afraid I can’t help you - I’m a realtor, not a realtwhore.
Some how realtors who admit they use social networking sites as prospecting tools are looked upon as less credible. How far from the truth can that be? When you establish a web presence, you’re prospecting. Consumers are using these sites in exponentially increasing numbers. While some consumers enjoy the game of discrediting the experts and the realtwhores, a greater majority are seeking sage advice. They need expertise and knowledge and they are seeking out the experts. Groupthink tells that buying and selling is a do-it-yourself job. For some that very well may be the case - some are not seeking to be converted and you know, that’s ok. Where better to draw the distinction between a realtor and a realtwhore?
Regarding my own TruliaVoices involvement, in my own professional way, I would like to address the few of you who gave me thumbs down on my incredibly insightful responses. No - for you who choose to discredit me - I will not pick up my toys and leave the sandbox. Nope - instead I want you to follow these simple directions:
Apply lips firmly to my right buttock. Pucker and release. Repeat.
Now see? It’s all in the delivery.
Sunday, July 20, 2008
What's at Your Core?
Ok - I have to admit it - I am finding that I have more idle time in my day - clearly my time blogging has not yet resulted in the deluge of qualified buyers and sellers that are promised by the "experts". So, as a social experiment, I have decided to blog more in the attempt to attract more buyers and sellers -
here goes...
Aside from being a self-subscribed caffiene addict, I also realize that I have become unhealthily (is that a word?) addicted to LinkedIn, Twitter, PropertyQube and Trulia - as well as additional social networking sites that serve the real estate community. Facinating! I continue to be drawn into the discussions and quite honestly, I am learning some really great stuff.
In my idle boredom, I decided to throw out my own questions because I am excited about the prospect of learning from my peers as well as possible clients.
I threw out a few questions - what sites do consumers like most when searching for property? - what's the most creative marketing you've done / come across in marketing a property?
and - what I felt was a fairly innoquious question, "What are a real estate agent's core competencies?" I wanted to hear what other agents had to share regarding their skill sets - what ultimately creates value and makes them money. Many of the responses were great. I was surprised, however, that I received so many responses that I honestly felt simply missed the mark. I received one response telling me my question was "odd".
Disclaimer: I do not know everything about buying and selling real estate and I do not profess to be the source of all information. Ok - now that I have that out of the way - people - core competencies are the value-added activities we do - many of which are intangible - that justify getting paid for what we do as real estate practioners. Cha-ching.
I am a practitioner - I continue to practice until I get really, really good at what I do. But practicing is an appropriate word, because as the landscape of the real estate environment changes, we must continue to hone our skills and knowledge. But key to all of that is - finding the intersection between our core competencies and meeting our clients needs.
I referenced the changing landscape of real estate because there are an onslaught of technology solutions hell-bent on eating our lunch. Many of these solutions are meeting the needs of the consumer because we have either failed to understand the need or have neglected to tell the consumer how/why we're valuable.
If a client wants to search for their own property - let them - or perhaps we may be able to do a better job sifting through the rift. If a client wants to do the analysis of the comps - let them - or perhaps we need to expertly assimilate the data in a way that imparts our specific knowledge of the property types, the neighborhood and the specifics regarding where the market is headed.
Sometimes experience and intuition is worth something.
If a client wants to negotiate their own contract - let them - or perhaps we should share with them the skills required to provide a win-win for both parties - so after the ink has dried, the deal still sticks.
Maybe the commission based model isn't in our best interests as real estate practitioners because it fails to articulate the real value-add of the many things we do to get the job done.
Ask yourself - what is at your core? Anyone? Buehler?
here goes...
Aside from being a self-subscribed caffiene addict, I also realize that I have become unhealthily (is that a word?) addicted to LinkedIn, Twitter, PropertyQube and Trulia - as well as additional social networking sites that serve the real estate community. Facinating! I continue to be drawn into the discussions and quite honestly, I am learning some really great stuff.
In my idle boredom, I decided to throw out my own questions because I am excited about the prospect of learning from my peers as well as possible clients.
I threw out a few questions - what sites do consumers like most when searching for property? - what's the most creative marketing you've done / come across in marketing a property?
and - what I felt was a fairly innoquious question, "What are a real estate agent's core competencies?" I wanted to hear what other agents had to share regarding their skill sets - what ultimately creates value and makes them money. Many of the responses were great. I was surprised, however, that I received so many responses that I honestly felt simply missed the mark. I received one response telling me my question was "odd".
Disclaimer: I do not know everything about buying and selling real estate and I do not profess to be the source of all information. Ok - now that I have that out of the way - people - core competencies are the value-added activities we do - many of which are intangible - that justify getting paid for what we do as real estate practioners. Cha-ching.
I am a practitioner - I continue to practice until I get really, really good at what I do. But practicing is an appropriate word, because as the landscape of the real estate environment changes, we must continue to hone our skills and knowledge. But key to all of that is - finding the intersection between our core competencies and meeting our clients needs.
I referenced the changing landscape of real estate because there are an onslaught of technology solutions hell-bent on eating our lunch. Many of these solutions are meeting the needs of the consumer because we have either failed to understand the need or have neglected to tell the consumer how/why we're valuable.
If a client wants to search for their own property - let them - or perhaps we may be able to do a better job sifting through the rift. If a client wants to do the analysis of the comps - let them - or perhaps we need to expertly assimilate the data in a way that imparts our specific knowledge of the property types, the neighborhood and the specifics regarding where the market is headed.
Sometimes experience and intuition is worth something.
If a client wants to negotiate their own contract - let them - or perhaps we should share with them the skills required to provide a win-win for both parties - so after the ink has dried, the deal still sticks.
Maybe the commission based model isn't in our best interests as real estate practitioners because it fails to articulate the real value-add of the many things we do to get the job done.
Ask yourself - what is at your core? Anyone? Buehler?
Friday, July 18, 2008
Is It Really All About the Data?
I just read the recent posting to Joel Burslem's blog, Future of Real Estate Marketing, Millions of Listing Oh My regarding the lastest statistics regarding the total number of listings now available online from the real estate search portals.
I read the numbers and I can't help but yawn. So what. So now consumers can have access to all the available properties online - there's plenty of data now available online. But is Web 2.0 solutions for real estate really all about the data?
1000Watt consulting has developed a Real Estate Web 2.0 mindshare map which classifies the players in the real estate technology space and where they play. As a real estate practitioner, I come across both buyers and sellers who are actively engaged on many of the sites on the map searching for their new home - doing the comparisons and grinding out the data. Why do I need a real estate agent when I can do my own search? I can do my own comps - all real estate agents do is look up property on the MLS and drive me around to look at houses I have already found.
Wait one cotton-pickin' minute Guggliomi! Do consumers really think real estate agents just look for property - property listings already available through many of the players on the Web 2.0 map? I think someone with the experience who does the analysis on a day to day basis has a better basis for assimilating the data personally, but that's my opinion.
Regardless, I still don't think the Web 2.0 data driven solutions are the answer. As I scour the map of players, I am struck by the scope of the playing field - and the categories. It simply hit me that there really is no comprehensive solution which is addresses the real estate landscape. No current offering provides an intuitive process approach that follows the natural progression of a real estate transaction.
While many sites such as Trulia allow users to interact and share knowledge and expertise in TruliaVoices, it is generally disjointed and lacks the context within the natural progression of the process of buying or selling real estate.
Why is this important? Because consumer still don't know what they don't know. They think the process is all about the data. Who's fault is that?
I read the numbers and I can't help but yawn. So what. So now consumers can have access to all the available properties online - there's plenty of data now available online. But is Web 2.0 solutions for real estate really all about the data?
1000Watt consulting has developed a Real Estate Web 2.0 mindshare map which classifies the players in the real estate technology space and where they play. As a real estate practitioner, I come across both buyers and sellers who are actively engaged on many of the sites on the map searching for their new home - doing the comparisons and grinding out the data. Why do I need a real estate agent when I can do my own search? I can do my own comps - all real estate agents do is look up property on the MLS and drive me around to look at houses I have already found.
Wait one cotton-pickin' minute Guggliomi! Do consumers really think real estate agents just look for property - property listings already available through many of the players on the Web 2.0 map? I think someone with the experience who does the analysis on a day to day basis has a better basis for assimilating the data personally, but that's my opinion.
Regardless, I still don't think the Web 2.0 data driven solutions are the answer. As I scour the map of players, I am struck by the scope of the playing field - and the categories. It simply hit me that there really is no comprehensive solution which is addresses the real estate landscape. No current offering provides an intuitive process approach that follows the natural progression of a real estate transaction.
While many sites such as Trulia allow users to interact and share knowledge and expertise in TruliaVoices, it is generally disjointed and lacks the context within the natural progression of the process of buying or selling real estate.
Why is this important? Because consumer still don't know what they don't know. They think the process is all about the data. Who's fault is that?
Wednesday, July 16, 2008
Social Networking Qube'd
I just added a new badge on my blog to allow viewers to click to my new profile on PropertyQube - again, a great find due to my twitter trolling. I really love the fact that I was able to syndicate my blog to PropertyQube.
There are many social networking sites that - ActiveRain for example, however, I can't syndicate my entries - i.e. post once, distribute many. I want one and only one place to blog - thank you PropertyQube.
There are many social networking sites that - ActiveRain for example, however, I can't syndicate my entries - i.e. post once, distribute many. I want one and only one place to blog - thank you PropertyQube.
As My Universe Expands ...
I have found my new addiction - TWITTER. As first, I wasn't sure what value it provided until I started to stalk - er...follow a few people in real estate and the social media space.
Needless to say, I am an addict. Not only do I have direct access to individuals and leaders who have tremendous mindshare in the social media space, I can TWEET with fellow colleagues about real estate, technology, my dogs - ah, the possibilities are ENDLESS!
This is more than a vehicle for marketing my clients' properties etc, it allows me to learn more about the exponential evolution of technology and its impact on my industry/business, plus I get to connect with some really smart people.
Friday, June 27, 2008
Interested in Finding Foreclosures Online?
I've come across 2 websites that provide a list of foreclosures. The first list is for properties in Cook as well as additional counties in northern Illinois:
http://cook.il-foreclosure.com/
The site allows you to purchase the actual foreclosure documents which have been filed. It also lists the auction service, location, time and date of the actual property auction.
The second site is a national list of real-time filings in 35 states for forclosures which have been filed, www.foreclosurepoint.com. The site provides real-time listings, including property type, address and estimated value via Zestimates where available, and date of filing. Owners contact information is available for a fee if you subscribe to the site.
While foreclosures are becoming more and more common, I thought I would pass along the following article regarding purchasing foreclosed properties at auction.
http://cook.il-foreclosure.com/
The site allows you to purchase the actual foreclosure documents which have been filed. It also lists the auction service, location, time and date of the actual property auction.
The second site is a national list of real-time filings in 35 states for forclosures which have been filed, www.foreclosurepoint.com. The site provides real-time listings, including property type, address and estimated value via Zestimates where available, and date of filing. Owners contact information is available for a fee if you subscribe to the site.
While foreclosures are becoming more and more common, I thought I would pass along the following article regarding purchasing foreclosed properties at auction.
Friday, June 20, 2008
So You Want to Make Money In Real Estate?
Ok, ok, ok - so you want to make money in real estate but you don't want to buy - er - real estate. Hmm - I think I understand your dilemma. Everywhere you read someone comments that waiting to buy - or actually buying real estate - is like catching a falling knife. Ouch! But people in real estate keep saying to buy - there's no better time to buy!
Honestly - I'm still on the fence regarding whether or not now is the perfect time to buy. For some properties in some neighborhoods, I agree - there are well priced properties. Not all properties are created equal, however, so I don't believe it is ideal for everyone to buy. If you do buy, make sure you buy smart. Foreclosures and short sales may represent a fairly high percentage of sales in the near term, but not all represent the best deal. Some sellers who are not in financial distress have priced their properties to sell and may be better deals.
Ok - so you still want to make money in real estate, but you still don't want to buy real estate. I think most would people respond by saying - Um - have you taken your meds? I - however - would respond - of course you do! Let's make money in real estate without actually buying real estate.
Ok - I am not Carlton Sheets, nor do I play him on TV. There are ways to actually make money in real estate without outright purchasing a property. Needless to say, this is a tough market in a majority of cities currently. In light of the flood of foreclosures, there are many people in dire financial straights, unable to meet their monthly mortgage obligation, hence forcing a short sale or foreclosure. The deluge of foreclosures is having a significant impact not only on real estate values, it is also putting a strain on local governments in terms of unpaid property tax revenues. Not only are people having difficultly paying their mortgages, in many cases, their property taxes are also in arrears.
This presents an interesting opportunity. While unpaid real estate taxes is not a new phenomenon, the magnitude of unpaid tax bills will have an impact on local government - some bills may go unpaid for a longer than normal period. In order for local governments to generate revenue from unpaid tax bills, state laws allow local entities to sell unpaid taxes at auction.
http://thomasjhall.com/links.php?url=http://www.cookcountytreasurer.com/default.aspx
So - you want to make money in real estate, but you don't want to actually buy real estate? Hmmm - how 'bout buying someone's outstanding tax bill? While this may not make you rich, it may allow you to generate some income while not being fully exposed to the issues related to the purchase of a foreclosure.
Each year the county has an auction for all outstanding tax bills where any qualified individual can bid on the balance due on the available properties with delinquencies. You bid on a rate of return you wish to be paid on the balance of the outstanding tax bill - to be paid as interest. If you win the auction, you pay the outstanding balance. When the property owner pays off the balance, you are paid interest on the balance plus the outstanding balance.
Understand that the owner of the property will in all probability pay the outstanding balance due - if so, you will be paid the balance due plus interest. Here are the details:
http://thomasjhall.com/links.php?url=http://www.cookcountytreasurer.com/default.aspx
Again, this is not a get rich quick investment opportunity - it represents a way to potential make a better than market return on your money in real estate without a full exposure to holding a property that may continue to decline in value.
While still a low probability, you still could actually end up with the property by simply paying for only a portion of an outstanding tax bill. If the balance of any outstanding tax bill is unpaid for a period of 3 years, you can obtain the property as default. Again, a large majority of property owners pay their outstanding balances off, however, in light of the current flood of foreclosures, there may be a slightly greater possibility of actually obtaining a property by simply paying the back taxes.
So - it's not your meds - you actually can make money in real estate without having to actually buy it.
Honestly - I'm still on the fence regarding whether or not now is the perfect time to buy. For some properties in some neighborhoods, I agree - there are well priced properties. Not all properties are created equal, however, so I don't believe it is ideal for everyone to buy. If you do buy, make sure you buy smart. Foreclosures and short sales may represent a fairly high percentage of sales in the near term, but not all represent the best deal. Some sellers who are not in financial distress have priced their properties to sell and may be better deals.
Ok - so you still want to make money in real estate, but you still don't want to buy real estate. I think most would people respond by saying - Um - have you taken your meds? I - however - would respond - of course you do! Let's make money in real estate without actually buying real estate.
Ok - I am not Carlton Sheets, nor do I play him on TV. There are ways to actually make money in real estate without outright purchasing a property. Needless to say, this is a tough market in a majority of cities currently. In light of the flood of foreclosures, there are many people in dire financial straights, unable to meet their monthly mortgage obligation, hence forcing a short sale or foreclosure. The deluge of foreclosures is having a significant impact not only on real estate values, it is also putting a strain on local governments in terms of unpaid property tax revenues. Not only are people having difficultly paying their mortgages, in many cases, their property taxes are also in arrears.
This presents an interesting opportunity. While unpaid real estate taxes is not a new phenomenon, the magnitude of unpaid tax bills will have an impact on local government - some bills may go unpaid for a longer than normal period. In order for local governments to generate revenue from unpaid tax bills, state laws allow local entities to sell unpaid taxes at auction.
http://thomasjhall.com/links.php?url=http://www.cookcountytreasurer.com/default.aspx
So - you want to make money in real estate, but you don't want to actually buy real estate? Hmmm - how 'bout buying someone's outstanding tax bill? While this may not make you rich, it may allow you to generate some income while not being fully exposed to the issues related to the purchase of a foreclosure.
Each year the county has an auction for all outstanding tax bills where any qualified individual can bid on the balance due on the available properties with delinquencies. You bid on a rate of return you wish to be paid on the balance of the outstanding tax bill - to be paid as interest. If you win the auction, you pay the outstanding balance. When the property owner pays off the balance, you are paid interest on the balance plus the outstanding balance.
Understand that the owner of the property will in all probability pay the outstanding balance due - if so, you will be paid the balance due plus interest. Here are the details:
http://thomasjhall.com/links.php?url=http://www.cookcountytreasurer.com/default.aspx
Again, this is not a get rich quick investment opportunity - it represents a way to potential make a better than market return on your money in real estate without a full exposure to holding a property that may continue to decline in value.
While still a low probability, you still could actually end up with the property by simply paying for only a portion of an outstanding tax bill. If the balance of any outstanding tax bill is unpaid for a period of 3 years, you can obtain the property as default. Again, a large majority of property owners pay their outstanding balances off, however, in light of the current flood of foreclosures, there may be a slightly greater possibility of actually obtaining a property by simply paying the back taxes.
So - it's not your meds - you actually can make money in real estate without having to actually buy it.
Wednesday, February 20, 2008
Thursday, February 14, 2008
4Q07 Illinois Median Price Moves in a Modest Range;
All is not doom and gloow - take a look at the article. While the market continues to be in the buyers' favor, values remain strong.
FOR IMMEDIATE RELEASE: February 13, 2008
Contact: Mary Schaefer, Ann Londrigan
217/529-2600
4Q07 Illinois Median Price Moves in a Modest Range;
Buyer’s Market Continues in Early 2008
SPRINGFIELD, IL – Illinois median prices closed 2007 in a moderate range, while slower sales activity may be boosted in the months ahead by the federal economic stimulus package that includes important housing provisions recently passed by Congress awaiting President Bush’s signature. According to the Illinois Association of REALTORS (IAR) fourth quarter 2007 report, the Chicago Primary Metropolitan Statistical Area (PMSA) median home sale price was $248,000, up 1.2 percent from $245,000 in 4Q06. Statewide, the median sale price in the fourth quarter was $191,000, down 4.5 percent from $199,900 in 4Q06. The median is a typical market price where half the homes sold for more, half sold for less.
Illinois home sales (which include single-family homes and condominiums) totaled 27,176 in the fourth quarter, down 22.9 percent from 35,254 home sales in the same period a year ago. For the year, total sales were down 16.8 percent with 139,803 homes sold compared to 168,038 sales in 2006. The statewide median home sales price was $201,250 in 2007, down 1.1 percent from $203,500 in 2006.
“Housing provisions included in the economic stimulus package passed by Congress include temporarily increasing loan limits for FHA, Fannie Mae and Freddie Mac and will help to bolster housing market activity by infusing much needed funding into these mortgage options and thus making the dream of homeownership more attainable for homebuyers,” said REALTOR Kay Wirth, president of the Illinois Association of REALTORS. “Homebuyers sitting on the fence now should be looking at the large inventory of homes available and getting their finances in order to make a move while interest rates remain at record lows. Overall, the Illinois economy is performing very well compared to the rest of the Midwest in terms of job activity.”
The 4Q07 interest rate for 30-year, fixed-rate mortgages averaged 6.27 percent in the North Central Region, according to the Federal Home Loan Mortgage Corporation. It was down from 6.58 percent in the third quarter and also down from 6.29 percent a year ago in 4Q06.
Sales and price information is generated from a survey of Multiple Listing Service sales reported by 35 participating Illinois REALTOR local boards and associations. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
In the Chicago PMSA total home sales (single-family and condominiums) were down 28 percent in the fourth quarter to 17,364, compared to 24,120 home sales in 4Q06. For the year, total home sales in the Chicago PMSA reached 92,656, down 20.5 percent from 116,527 sales reported in 2006. The Chicago PMSA median home sale price for 2007 was $254,000, up 2.4 percent from $248,000 in 2006.
“The uncertainty in the national housing market has penetrated into the Illinois economy although the volatility is more muted than for other parts of the country, especially the major metropolitan areas and states like Florida,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “In terms of prices, the Springfield MSA looks to be stellar during the first quarter of 2008 with other metropolitan areas of the state experiencing the effects of uncertainty at the national level.”
Adds Hewings: “Most metropolitan statistical areas in the state can expect to see the usual rebound in sales in March.”
A sample of counties in the Chicago PMSA with increases in the median home sale price in the fourth quarter compared to the same period a year ago include Cook, up 4.0 percent to $260,000; Kane, up 0.4 percent to $229,990; and Lake, up 1.8 percent to $252,000.
A sample of counties around the state where the median home sale price increased in the fourth quarter include Sangamon, up 16.2 percent to $115,000; Peoria, up 6.9 percent to $112,250; Champaign, up 1.9 percent to $147,627; Jo Daviess, up 5.4 percent to $160,450; McLean, up 1.5 percent to $149,150; Rock Island, up 5.0 percent to $95,000; and Tazewell, up 9.9 percent to $128,000.
“Some areas weathered the fourth quarter well despite the climate of mortgage tightening, lower consumer confidence due to economic concerns and the expected seasonal slowdown,” said Wirth, a broker with Re/Max Unlimited Northwest in Crystal Lake.
“Other downstate areas that saw sales increases in the fourth quarter include Sangamon County (Springfield), Macon County, (Decatur), Iroquois and Kankakee counties and Jackson County (Carbondale),” said Wirth.
In the latest forecast from the National Association of REALTORS, chief economist Lawrence Yun said sales activity is expected to remain soft through the first half of the year despite a generational low in mortgage interest rates. “Household formation was only half of what it should have been last year given the demographics of a growing population and sustained job growth, so there clearly is a pent-up demand from buyers who are on the sidelines,” said Yun.
4Q07 Condominiums
Fourth quarter condo sales across the state were down 28.6 percent to 7,962 condos sold compared to 11,157 in 2006; 43,476 sales were reported for the year, down 17.6 percent from 2006. The median price for a condominium in Illinois in the fourth quarter of 2007 was $225,000, up 5.9 percent from $212,500 a year ago. The median price for a condominium in Illinois for the entire year of 2007 was $223,000, up 4.1 percent from $214,200 a year ago.
In the Chicago PMSA, condo sales were down 28.4 percent to 7,614 units sold during the fourth quarter of 2007, compared to 10,632 in the same period of 2006. The fourth quarter condo median price in the Chicago PMSA was $230,000, up 6.0 percent from $217,000 in the fourth quarter of 2006. For the year, Chicago PMSA condo sales were down 17.4 percent to 41,703 units sold during 2007, compared to 50,488 sales 2006. The year-end Chicagoland condo median price was $228,000, up 4.2 percent from $218,893 in 2006.
The Illinois Association of REALTORS is a voluntary trade association whose 60,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.
FOR IMMEDIATE RELEASE: February 13, 2008
Contact: Mary Schaefer, Ann Londrigan
217/529-2600
4Q07 Illinois Median Price Moves in a Modest Range;
Buyer’s Market Continues in Early 2008
SPRINGFIELD, IL – Illinois median prices closed 2007 in a moderate range, while slower sales activity may be boosted in the months ahead by the federal economic stimulus package that includes important housing provisions recently passed by Congress awaiting President Bush’s signature. According to the Illinois Association of REALTORS (IAR) fourth quarter 2007 report, the Chicago Primary Metropolitan Statistical Area (PMSA) median home sale price was $248,000, up 1.2 percent from $245,000 in 4Q06. Statewide, the median sale price in the fourth quarter was $191,000, down 4.5 percent from $199,900 in 4Q06. The median is a typical market price where half the homes sold for more, half sold for less.
Illinois home sales (which include single-family homes and condominiums) totaled 27,176 in the fourth quarter, down 22.9 percent from 35,254 home sales in the same period a year ago. For the year, total sales were down 16.8 percent with 139,803 homes sold compared to 168,038 sales in 2006. The statewide median home sales price was $201,250 in 2007, down 1.1 percent from $203,500 in 2006.
“Housing provisions included in the economic stimulus package passed by Congress include temporarily increasing loan limits for FHA, Fannie Mae and Freddie Mac and will help to bolster housing market activity by infusing much needed funding into these mortgage options and thus making the dream of homeownership more attainable for homebuyers,” said REALTOR Kay Wirth, president of the Illinois Association of REALTORS. “Homebuyers sitting on the fence now should be looking at the large inventory of homes available and getting their finances in order to make a move while interest rates remain at record lows. Overall, the Illinois economy is performing very well compared to the rest of the Midwest in terms of job activity.”
The 4Q07 interest rate for 30-year, fixed-rate mortgages averaged 6.27 percent in the North Central Region, according to the Federal Home Loan Mortgage Corporation. It was down from 6.58 percent in the third quarter and also down from 6.29 percent a year ago in 4Q06.
Sales and price information is generated from a survey of Multiple Listing Service sales reported by 35 participating Illinois REALTOR local boards and associations. The Chicago PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.
In the Chicago PMSA total home sales (single-family and condominiums) were down 28 percent in the fourth quarter to 17,364, compared to 24,120 home sales in 4Q06. For the year, total home sales in the Chicago PMSA reached 92,656, down 20.5 percent from 116,527 sales reported in 2006. The Chicago PMSA median home sale price for 2007 was $254,000, up 2.4 percent from $248,000 in 2006.
“The uncertainty in the national housing market has penetrated into the Illinois economy although the volatility is more muted than for other parts of the country, especially the major metropolitan areas and states like Florida,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “In terms of prices, the Springfield MSA looks to be stellar during the first quarter of 2008 with other metropolitan areas of the state experiencing the effects of uncertainty at the national level.”
Adds Hewings: “Most metropolitan statistical areas in the state can expect to see the usual rebound in sales in March.”
A sample of counties in the Chicago PMSA with increases in the median home sale price in the fourth quarter compared to the same period a year ago include Cook, up 4.0 percent to $260,000; Kane, up 0.4 percent to $229,990; and Lake, up 1.8 percent to $252,000.
A sample of counties around the state where the median home sale price increased in the fourth quarter include Sangamon, up 16.2 percent to $115,000; Peoria, up 6.9 percent to $112,250; Champaign, up 1.9 percent to $147,627; Jo Daviess, up 5.4 percent to $160,450; McLean, up 1.5 percent to $149,150; Rock Island, up 5.0 percent to $95,000; and Tazewell, up 9.9 percent to $128,000.
“Some areas weathered the fourth quarter well despite the climate of mortgage tightening, lower consumer confidence due to economic concerns and the expected seasonal slowdown,” said Wirth, a broker with Re/Max Unlimited Northwest in Crystal Lake.
“Other downstate areas that saw sales increases in the fourth quarter include Sangamon County (Springfield), Macon County, (Decatur), Iroquois and Kankakee counties and Jackson County (Carbondale),” said Wirth.
In the latest forecast from the National Association of REALTORS, chief economist Lawrence Yun said sales activity is expected to remain soft through the first half of the year despite a generational low in mortgage interest rates. “Household formation was only half of what it should have been last year given the demographics of a growing population and sustained job growth, so there clearly is a pent-up demand from buyers who are on the sidelines,” said Yun.
4Q07 Condominiums
Fourth quarter condo sales across the state were down 28.6 percent to 7,962 condos sold compared to 11,157 in 2006; 43,476 sales were reported for the year, down 17.6 percent from 2006. The median price for a condominium in Illinois in the fourth quarter of 2007 was $225,000, up 5.9 percent from $212,500 a year ago. The median price for a condominium in Illinois for the entire year of 2007 was $223,000, up 4.1 percent from $214,200 a year ago.
In the Chicago PMSA, condo sales were down 28.4 percent to 7,614 units sold during the fourth quarter of 2007, compared to 10,632 in the same period of 2006. The fourth quarter condo median price in the Chicago PMSA was $230,000, up 6.0 percent from $217,000 in the fourth quarter of 2006. For the year, Chicago PMSA condo sales were down 17.4 percent to 41,703 units sold during 2007, compared to 50,488 sales 2006. The year-end Chicagoland condo median price was $228,000, up 4.2 percent from $218,893 in 2006.
The Illinois Association of REALTORS is a voluntary trade association whose 60,000 members are engaged in all facets of the real estate industry. In addition to serving the professional needs of its members, the Illinois Association of REALTORS works to protect the rights of private property owners in the state by recommending and promoting legislation that safeguards and advances the interest of real property ownership.
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