I do know this however, that there was a significant mindset shift in our country.  The invinsible-act now-worry about the consequences later attitude has receded.  We have changed.  And I believe for the better.  Here are a list of my personal observations as they pertain to real estate:

• People are buying less home than they can get a loan for today.  
• People are selling unnecessary big, expensive homes for less expensive homes.
• People are not using their homes like credit cards to borrow against in order to pay for excessive lifestyle.
• People are making the shift back to moving out for lifestyle reasons rather than profit reasons.
• People understand that home values will likely not double in the next year or three.  
• People are looking at the “home” as a place to live, raise a family and enjoy, rather than a retirement vehicle or something to “flip.”

While we had a period of irrational exuberance in our country, I genuinely feel this mindset shift will lead to great things long term.  Home is a powerful word.  It is such a great feeling to have a home.  A place to retreat and be safe.  While real estate values will likely go up and real estate will likely be a good investment, my hope is that this vehicle is not abused.    

This mindset shift will also lead to a change for the real estate industry. We will no longer be agents of wheeling and dealing in a world based on fantasy.  My hope is that we become true professionals that strive to help people with the most precious asset they possess.  We need to step up and learn to truly serve the needs of those who employ us and seek to identify and find the right place for our clients to call “HOME.”  

I look forward to what 2010 offers, not for what huge profit can be made, but for what opportunity to help our clients steward the gift of home.  

Blake Outlaw, Outlaw Real Estate Group

The following is a response I sent to a client just the other day.

A “short sale” means the seller owes more on the property than it’s worth and they are usually behind on their payments. The listing agent lists the home at a price that will cause it to sell. Usually it’s at a price below market value to bring attention. Since the final sales price is subject to bank approval, they can “list” it for whatever they wish. Once they receive offers, they submit those to the bank requesting the bank to release title for the amount offered. The bank goes through their own evaluation process and approves an amount they are willing to sell it for.  In other words, short sales don’t always sell for what they are advertised for.

Since the short sale system is now 5x its capacity, it usually takes a minimum of 8 weeks to receive a response from the bank. In the case of my last short sale transaction, the bank foreclosed on the property before they would approve any of the offers submitted. That was after waiting 5 months for a response. So it can be a very frustrating experience if expectations are not realistic.

In my opinion, the banks are not receiving enough incentive to work these out for the benefit of the owner and buyer. They might be delaying writing the losses off from foreclosure and waiting to receive foreclosure insurance proceeds from FHA or PMI entities.

As with any transaction, the end result usually comes down the experience of the agents involved.  Make sure your agent asks the listing agent lots of questions.  Questions such as:  How many short sales have you handled?, How many have you been successful in?, Can you send me a copy of the packet you present to the bank?, What communications have you already had with the bank?, Have you ever worked with this bank in the past and if so how did it go?, etc.   The answers from questions like these will help you determine the likelihood of the transaction closing successfully.

What I typically recommend to a client who falls in love with a short sale home is to put in an offer for their highest value and keep looking.  Since you are open to other buyers putting in other offers, it’s usually ideal to put your best foot forward and then keep looking for other options.

Does this help clear it up for you?

Charlie

_____________________________
Charlie Pitkin
Outlaw Real Estate Group
Partner | Consultant
512-514-0302
Charlie@AustinRealEstateIQ.com
www.OutlawRealEstateGroup.com

This market has not seen the broad swings that other markets have.  Our pricing has remained very consistent and we are starting to see that values are moving up.  Prices likely will not run up dramatically for some time, but I am personally content with a steady consistent growth.  Very manageable and very good for both buyer’s and sellers.  Less pain and financial hardship.

The Fruits of a Boring Market.

Blake Outlaw, Outlaw Real Estate Group

Review the Market Statistics Graphs at: http://www.outlawrealestategroup.com/polibrary/system_data/aws_doc_library/aws101/496_400_50522p776_doc.pdf

First of all, the team here at Outlaw Real Estate Group is awesome. As a Realtor it is often tough to take vacations as we always have things going on and with all the different moving parts of a real estate transaction there is lots to manage. Well I was able to take some much deserved time off and things ran smoothly while I was out. “Maybe even better than when I am here.” said one of my clients. I have to say that I am honored and know that all of our future clients will benefit from working with such an all-star team.

Second, while I was away and not thinking about work, I could not help but notice that every third home in this small resort town I was visiting was for sale. It was unbelievable. Prices are off 40% from their peak. Talking to several locals, they suspected that 90% of the homes that were selling were short sales and foreclosures. Some serious pain on the selling side out there. My heart goes out to them. It made me really really thankful to be a Realtor in Austin, Texas. Great market to be in. Our latest stats just came out. Prices are up almost 14% year to date through June. That is a 28% increase in prices for the year if we keep at this pace. Unbelievable. It is a great time to sell in Austin if you have been on the fence.   It is also a good time to buy before prices move even farther.  Thank you to Austin companies for being the best and brightest and hiring more folks in a slow economy. The future looks bright as we move into the second half of this year here in Central Texas.

It is a good life. Take care and remember we are never too busy for your referrals.

Follow the below link to view this video on YouTube:

 http://www.youtube.com/watch?v=FV8Uj0Ay1Xk