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Mr. Schiff said, and I quote, “It’s a terrible time to buy a house. It’s a great time to sell one if you can find a buyer.” His statement is incorrect because any supply of unsold homes over a 6 month supply means that we are in a BUYER’S MARKET. This gives buyers the advantage when negotiating. With the national supply of unsold homes at over a 10 month supply, his statement is completely wrong and sadly many people may have missed that point. Mr. Schiff and I have argued our positions a few times but we are speaking about different things. He is concerned about the housing market and further fallout and I have always agreed that there are people and areas hard hit. Nevertheless, to ignore that there are also opportunities out there for able buyers in this Buyer’s Marketplace is not providing the full picture. My dedication to presenting the story based on my experiences in my daily activities as a Real Estate Broker will continue and I will also continue to point out positive trends that exist. Lastly,
it may not be the best time for someone to try and purchase investment
properties to flip for a fast profit, as so many have done in recent
years. But for those who want a home to live in for 5-7 years, there
is a great opportunity to purchase a house at prices far less than
previously existed. The
New Year also has many people wondering what to make of our housing
situation. With all the bad news about housing, many buyers are
either hesitating or they are confused. Real Estate is local and
it is crucial that we all get information as to what is happening
in our local market of interest. Here are a few points I though
you might find interesting: • There are areas nationally that were still going strong in 2007 and are all up in number of homes sold this year over 2006. o
CHARLOTTE, NORTH CAROLINA • National foreclosure filings actually are DOWN 10 PERCENT in November from October. •
Keep in mind that even though the monthly supply of homes is going
up in many areas, there may be no significant
increased rate of homes coming to market. The increase in supply
could just be a result of homes
taking a longer period of time to sell. o
Newport Beach is up 31.5 percent Happy
New Year! 2.
Read every contract you sign. For
example, your loan docs. You are responsible for what you sign and
laziness is no excuse. Find a neutral third party with experience
in that area to review those documents. For
the past several years you could buy almost any home anywhere and
see the value increase quickly. Well, those days are far behind
us and now it is crucial that one does some old-fashioned homework
before buying.
I welcome any comments or questions whether you are in Los Angeles, California or Dallas, Texas. I am always happy to help.
Yesterday, as expected, the Fed cut key interest rates by a quarter of a point, bringing the federal funds rate to 4.25 percent, a nearly two-year low. Although some on Wall Street had hoped for a larger cut, this third-straight price cut made by the Central Bank is a good indication that the Fed is stepping up to do what they can to keep the housing dilemma that some areas are facing from worsening. In fact, today, the Bank of Canada, the Bank of England, The European Central Bank and the Swiss National Bank announced that they are working with the Fed on designing new measures to relieve the pressure being felt in short-term funding markets. The fact that we are entering an election year is also a good indication that many in Washington are going to be keeping a close eye on the housing situation, and you can bet that many will want to be involved solving the housing crunch. With all of these voices and all of the attention being paid to housing on a daily basis, we have a lot to be optimistic about. What does this mean for you? Well, if you have a 30-year fixed rate mortgage, the rate cut probably doesn’t mean much, because fixed-rate mortgages are not based upon short-term treasuries. However, the good news is that the 30-year fixed rate just dropped to its lowest level since September 2005 at 5.96 percent. As for those with sub prime loans, while the Fed rate cut doesn’t directly impact the sub prime market because sub prime loans are generally tied to the London Interbank Offered Rate (LIBOR), the unified action taken today by the world banks is a good indicator that those struggling with their sub prime loans might soon see some relief. If you have a five-year adjustable rate mortgage, which is tied to a treasury index, or a Home Equity Line of Credit (HELOC), you most likely are going to be looking at a bit of a break because of the Fed’s action. For more information on how you personally are affected by the recent Fed rate cuts, it’s best to speak to a lender or financial advisor who can give you personalized information. I would be happy to put you in touch with someone who can help you make sense of your situation and take advantage of the falling rates! If you are in the position to obtain a loan and are thinking about purchasing a home, you now have the opportunity to get out there and negotiate a deal on a home for a price you otherwise would never have been able to get a couple of years ago. Qualified Buyers are now in a strong position- don’t let a potentially amazing opportunity pass you by!
November
26, 2007 With
the New Year rapidly approaching, I'm starting to hear that inevitable
question... Q.
What can home sellers look forward to in early 2008? Are there any
reasons for them to be optimistic in early 2008 based on market
trends, new research or otherwise? Q:
How can a seller best maximize their selling price and shorten their
listing time in the new year? Q:
Assuming you price your home right from the start, what's a realistic
length of time you can expect your home to sit on the market in
early 2008? Q:
Will the spring buying season start early and build momentum in
2008, or will it remain in the doldrums?
Q:
How much should a seller be willing to negotiate with a buyer and
meet their demands? Is there a certain percentage you recommend
that they don't cut their original listing price by at all costs? Q:
Despite the changing market and real estate slowdown, are there
any selling rules that have not changed? What are they? Q:
What kind of homes are buyers going to be looking for in 2008? Any
particular criteria? Or is it all still based on lowest price and
good location, ultimately?
November
20, 2007 I hope
you have a warm and lovely Thanksgiving holiday tomorrow....and
eat all of the pumpkin pie you want!
I've also been hard at work on some more informational pieces on our current market that I will be posting soon. I feel that as a Buyer or Seller in today's market, the most important tool you can have is KNOWLEDGE, which is why I try to put as much information out there as possible. If you are interested in a particular topic, please let me know and I will do my best to post some information about it here!
November
2, 2007 I hope you all had a fun and safe Halloween. Now it seems as if we have to get geared up for the Holidays- I can't believe how quickly this year has flown by! As I'm sure most of you are aware, the Fed cut interest rates by a quarter of a point yesterday, marking the second time in six weeks that they have taken such action. What does this mean for you? Well, now is a great time for Buyers to get out there and find a terrific home at a great price. Mortgages rates are falling- in fact, rates on 30-year mortgages just fell to their lowest level in five months, so now would be a great time to lock in that loan. In addition, there is a lot out there to choose from- according to ZipRealty, more than 100,000 homes are currently on the market in the Los Angeles area, giving us the largest housing inventory in the country. If you're a Seller and would prefer not to wait approximately five years to sell, now would be the time. If you bought your home at least three years ago, you have most likely made money on your investment. Many of my clients bought their homes five or more years ago and are looking at terrific gains. If you are thinking about selling now, or within the next two years, my advice to you would be to sell now as opposed to later, because at this point we just can't predict what will happen with the market. If you are comfortable living in your home for the next five years, I would advise you to stay. If not, you may want to think about selling. On another note, I had the chance to appear as a commentator on Fox News Channel's "Your World With Neil Cavuto" this past Friday. We discussed the current state of the market, and I ended up engaged in quite a debate! You can view my segment by clicking here and watching it on my website. I would love for you to take a few minutes to watch and let me know what you think! Finally,
please remember that the information that I send out is received
by homeowners not just in Beverly Hills, which is my area of specialty,
but all over the nation. Much of what I report here is based on
a generalized overview of the market. If you are interested in information
more specific to your area, please give me a call. I am happy to
discuss your particular situation and market with you. And if you
know someone who is looking to buy or sell, information is key.
I would be happy to represent someone you know, or find an expert
in their area who can.
Last week was very eventful in terms of the housing market. I’m sure most of you are aware of the Fed’s decision to cut interest rates by one-half a percent in an attempt to ease the weight of housing and credit crunches so many Americans are now facing. It seems the Fed is now stepping up to take an active role in cracking down on poor lending practices, and there is even talk circulating of temporarily allowing Fannie Mae and Freddie Mac to buy jumbo loans (loans that exceed $417,000). The idea is that allowing the big mortgage companies to buy and sell jumbo loans would increase the amount of liquidity in the market. And while there are some in Washington who may have their doubts, there are many key players, including Federal Reserve Chairman Ben Bernanke and Secretary of Housing and Urban Development Alphonso Jackson, who feel that government involvement may help prevent further market headaches. Despite all of this gloom on the national front, Beverly Hills has just topped the list of most expensive real estate markets for single-family residences in the United States, according to an article published today in USA Today. The article, which cited data from Coldwell Banker’s annual home price survey, found that the average home sales price so far for 2007 in Beverly Hills was $2.2 million. In addition, numbers released this week from the California Association of Realtors indicate that the median price of homes in Los Angeles is up almost 3 percent from this time last year. In fact, California overall saw a statewide increase in the median price of a single-family home from this time last year of 2 percent. While there are certainly some areas in our nation feeling the pressure of a declining market, I think it is important to keep in mind that much of what we read or hear on the news is on a national scope. Things are still selling in our marketplace and numbers are still healthy. Over-generalizing the effects of the sub-prime collapse and resulting foreclosures can create a lot of worry for Buyers and Sellers in areas that aren’t really feeling those effects, such as ours. The reality is that now could be a great time to buy or sell. Remember
that I am always here to discuss your individual needs. You can
call me at any time at 310.385.3606 or visit my website at www.ConnieDeGroot.com,
which is constantly being updated with relevant information about
our market. In the meantime, I hope you are enjoying the first official
days of fall!
September
21, 2007 I wanted to take this opportunity to share with you all some kind words that I’ve received over the past few months from clients and others who have caught my television appearances or newspaper articles. I can’t tell you how rewarding it is to know that my hard work is well received and appreciated. Just knowing that I am able to help offer advice or encouragement that may make a difference in someone’s life is the very reason that I find this business so fulfilling and why I am so passionate about the work that I do. I
hope you all have a beautiful weekend. Fall is quickly approaching
so enjoy those final days of lovely weather. I know I will! ****** “I am a real estate agent in the Central Valley. I really enjoy watching you on Real Estate Confidential.” As a matter of fact, I was just saying last night, that watching that show is like training for me.” -Rebecca Ellis, Modesto, CA "I saw one of your episodes on Fine Living again last night. You inspired me to come to the office today with energy and drive to get things done!" -John Leach, Mortgage Planner, Eugene OR
-Christine Benicaso, Morgan Hill, CA
-John Schmitt, Jacksonville FLA “Hi Connie, I’m a Realtor in El Paso, TX. You’d have to look very closely on the map to find us but I’ve been living here for 15 years and I love the city and my work. From what I’ve read about you and by watching you on the show, I can tell that you have distinguished yourself from your peers. I look forward to seeing more of your episodes on the show.” -Grace Quevedo, El Paso, TX
-David and Rebecca Smith, North Fork, ID
September 12, 2007 CONNIE DE GROOT CAUTIONS: “THE SKY IS NOT FALLING” Some SECRETS all buyers and sellers should know Los Angeles, CA. --- With so much negative publicity and coverage on the current housing market, most buyers and sellers would think that the entire real estate sector is in the doldrums. Such is not the case according to Realtor Connie De Groot (www.ConnieDeGroot.com) with the prestigious Real Estate agency Coldwell Banker in Beverly Hills, the firm’s number one office in the world. In fact, Ms. De Groot states that a number of stellar opportunities exist for qualified buyers. “It’s not all doom and gloom,” states Ms. De Groot, distinguished for being within the top two percentile of all Coldwell Banker agents internationally. “The truth is that most buyers did not get sub-prime loans and most areas are not flooded with foreclosures. Let's not make the problem worst by over generalizing. Get the facts before underselling your home or before saying “no” to your dream home and start by calling your local Realtor. Below, Ms. De Groot offers STRAIGHT TALK on the current real estate situation and reveals the SECRETS all buyers and sellers should know. Sellers have become concerned, even scared, by the drastic change in the market. If you wait to buy, those feelings may subside since people do adjust to change. Some sellers may eventually take a stronger stand after the dust settles as they realize that their local market was not affected. This is a real possibility in some of the most popular locations across the nation. Sellers are now WILLING, even offering, to make serious efforts to please an interested buyer. Requests for re-painting, offering perks such as personal property (furniture, plasma TV’s, stereo systems, potted plants), even gym and country club memberships, could and should all be considered to make the deal. Loans are absolutely available for those that can afford to purchase. If that is you, there are still great rates as compared to historical standards. National Home Builders buy materials in large quantities and, often times, can and will pass along those savings to consumers if asked. The addition of a pool, game room, etc. would typically cost a buyer considerably MORE time, money and up-front costs, but with the savings afforded by the National Home Builders, this investment is certainly worth taking advantage of. To hear more STRAIGHT TALK and/or arrange for Connie De Groot to provide additional commentary on the real estate industry and the concerns of buyers and sellers, please contact: Connie De Groot at Coldwell Banker Beverly Hills Ph 310 385-3606 or send an email to: conniedegroot@coldwellbanker.com.
September
6, 2007 So
you found the perfect house, at the right price…you get into
escrow and the house passes all of your inspections! But then you discover that although you had been pre-approved for a loan some months ago, you are now told that it cannot be done. Things are changing. We are all adjusting to the fact that money is now harder to get and if you can qualify for a loan, the cost is often greater. Going to the large institutional lenders may offer little encouragement but there are still smaller lenders that may have more flexibility. My suggestion is to work with an experienced mortgage broker who has access to banks large and small, across the country. Don’t
give up if you get a “no” from one lender, as there
are just too many willing lenders to let a few rejections stop you
from buying that dream house. So, if you can afford to buy, then
buy…and celebrate!
September
1, 2007
Well,
the shock seems to be wearing off and the Federal Reserve has also
showed their support by lowering the discount rate and Wall Street
has already regained some of their losses. Yes, it does appears
that investors are now adjusting to the new times and some are even
out there looking at the many new opportunities this new marketp So,
is this a good time to buy? Here are just a few things to keep in mind in when SELLING in today’s market: ONE: It is very important to get good information when buying or selling a home. I recommend hiring a knowledgeable Realtor to guide and protect your interests. I also invite my clients to take an active roll in the process and start by first suggesting they look at every home that is now available in their area. Notes should be taken on each of the properties in regards to the condition of the home and its amenities as well as the square footage (permitted) and attach a photo. Sellers, you will then see what the buyer sees when he or she is shopping for a home and this information will help you plan a smart winning strategy to sell your home. Buyers, it becomes impossible to separate homes after a while and your notes will trigger more recall. TWO: Make your home look its best- it doesn’t have to be expensive if you have friends! Think about whom you know and what their talents are (decorating, home repair, carpentry) and invite them to help you do something important. When your friends feel a part of something special, they will be happy to help. THREE: Know that the first offer is many times the highest offer. This market is different and if you casually let an offer go, you may be holding open houses for months to come and looking back with regret. FOUR: Do a home inspection before going to market so that repairs can be made before the buyer does their inspection. You do not want your Buyer to get alarmed and back out of the deal because your house has too many things that need attention. By the way, many buyers do not understand if things are serious or minor or costly or inexpensive. They just see all the items and panic. Now remember, you do need to disclose that report and the repairs done.
August
30, 2007 August
10, 2007
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January
4, 2008
December 12, 2007
November
16, 2007
September
26, 2007
lace
is creating!
To Anyone Wondering,  |