OH YES! I am on a mission!

I have listened to the “Rocky” theme this morning, and Billy Squire…while jumping rope…in the office…MY BLOOD IS FLOWING!

I can’t wait to see what today brings…no, I can’t wait to see what I accomplish today! How are you feeling?

There is one thing that is going to separate the pack…your mental attitude combined with your actions!

Attached is my “open house diary” if you will. Read it…I just read it again, and am more fired up than I was yesterday!

Here is the problem:

Many of us have been sucked into a belief that nobody is doing anything that works…the problem is that you are most likely RIGHT! How many opportunities are slipping between the cracks because we are not out there doing the simple things that need to be done. If you are doing anything to generate business, you have the opportunity and time to do every step to the nth degree. That is the only way to correct your bank account…read the attachment…what would you have done, and what would you do?

So, I had one open house. I have seven POSSIBILITIES that have come from the open house. If I do nothing beyond last week, I will end up with the same…nothing.

None of the possibilities are related to the 2 hours I was in the home, they all circle around what I did outside of those hours, or what I will have to do beyond those hours.

I am going to be hitting the streets, and I am going to figure the mess out!

Remember, we are going to end the year up between the sales pace of 2002 and 2003…were those “bad years” in real estate? NO!

They say the strongest will survive…I have dusted off my real estate work out attire, and have begun my regimen…are you in with me?

Talk LIKE Terry

The market is changing!  The problem with what we are facing is that nobody realized what the next wave was going to be…It is now the economy and joblessness that is our nemesis!

What can you do?  You need to understand all of the factors that circle around the fears of people you may be dealing with.  It is the absolute best time you could ever think of buying a home if you are in the position to do so…you have to feel this, and let go of your fear!

I have learned that if you ultimately worry so much about something, it will ultimately come true!  This goes true for positive, steadfast visions too!  Which path are you on?  It is not too late to switch if you are on the wrong one…but you must make a decision to change!

This is going to break down some of the trends that are vitally important for you to be able to discuss with people and understand how to effectively communicate with someone.

Should you have any questions, or need more information, please contact me, and I will be more than happy to help!

The reality is that homes ARE selling!  Maybe not as many as we would like to see, but they are selling…the key is to be that much smarter and take a bigger piece of the pie!

There is some good news for re-sales…there are very few builders building, and your new home supply is shrinking fast!  Our inventory for Atlanta has dropped TWENTY THREE PERCENT from a little over a year ago!  Study your area, and know it better than ANYBODY!

 

 

 

 

Get Results in Today's Market

Gas in the Turn! GET RESULTS!

In race car driving, the top earners make their money in the turns. While most people would think to take the foot off the gas, or put their foot on the breaks, the top performers are pushing the gas and making their passes. Now is the time to learn what race car drivers already know, and apply it to the real estate market/housing market…now is the time to accelerate, while others are scared, and putting on the brakes! The money is made in the turns…ACCELERATE NOW!

There are many signals to identify that the bottom has been reached in the housing market, and there are finally positive articles coming out regarding the pace of sales getting better. More importantly, most every financial wizard is telling people to “BUY REAL ESTATE NOW!” You must remember, these are the same people that have been saying “do not buy real estate” for 2 years!

The following facts are happening now, and they will help form the turn in the near future:
1. The Bailout ($700 Billion) is taking place, and will be filtering into the credit market…this will create the floor of pricing and help in confidence of the general public
2. Oil has dropped to the mid $60’s per barrel (it was $147/barrel in July!)! This will help with energy bills over the winter, and keep our houses monthly bills lower
3. In Atlanta, Gas is in the $2.30’s, and was over $4.00/gallon just 2 months ago! June is when the brakes could be felt, and gas had just reached $4.00/gallon
4. Interest rates are still incredibly low, and will most likely stay here for a while
5. Fannie Mae and Freddie Mac have been taken over, and will be adjusted to be stronger and be able to make more loans to more people than what was beginning to happen
6. Supply of homes is coming down in most areas…Atlanta is about 10 to 12% lower than its peak about 1 year ago
7. Builders are not building as much (dramatically down), and what is being built today has been adjusted for being deals in today’s climate
8. Financially challenged banks are being shut down and taken over by the FDIC…this is bad right now, but the good will emerge from the FDIC regulating and selling off the bad assets at attractive prices and stimulating more sales…this simply needed to happen
9. Recession talk…who would not think we would not be in a recession?! Banks haven’t been able to loan as many people money…people have been losing jobs…stock market going crazy…how in the heck could we not be in one…and when we know we are in one, is when we are digging out of it!
10. Election will be done! It does not matter if it is Republican or Democrat, the 50% of the Nation that was scared of who/what will embrace the reality of the next 4 years and move on…they are waiting to see right now!

Educate your buyers that they have 3 to 6 months to get the best deals…and then the market is going to be moving up due to reasons 1 – 10 above. Remember, it is riskier to buy at the top of the market vs. buying at the bottom…we are nowhere near the top, and most likely at the bottom…BUY NOW for investments!

Big change does not happen overnight…it takes time for these to filter out into the minds of the general public. The general public also must see the changes happening prior to believing them. If you have all 10 facts happening above, and give them 3 to 6 months to begin to make change, just imagine what good effect that can have on the housing market.

If you are in the game of real estate, you better get into the game!

The old way of having people like you because of your personality, and you being able to profit from it is gone! This will still get you leads, but you will not be equipped to speak the new language and lead people where they need to go. You will be stuck with indecisive buyers waiting on the bottom, and overpriced listings believing their home is worth last year’s pricing…good luck on this plan!

What are we doing as a company? INVESTING our time, energy, and money into programs, training, systems, and internet strategies to be in the lead coming out of the turn…WE ARE PRESSING ON THE GAS!

The message over the next two months (while others will be petrified, and putting on the brakes) is “GAS IN THE TURN…GET RESULTS!” You need to get into it…eat it, breathe it, sleep it, live it! The turn in North Atlanta begins with YOU! Wrap your head around 1 – 10 above, and understand it so you can talk knowledgably about it…GAS IN THE TURN…GET RESULTS!

Are there good results from the take-over of Fannie Mae and Freddie Mac?

Do you feel there are positive results from this recent take-over or is this a situation bound for failure in the end?

The failure had already happened with both companies. This will hopefully put some corrective measures in place, and ultimately lead to a positive result.

James did an excellent job spelling out the details of the changes that have recently occured by the Government. These are measures that, along with others, needed to happen to establish a floor in housing prices, and create the potential for more loans to be made...in the near future.

You will see the possibility of positive results in a short period of time...but I would not say the results would be relevant right now. We need several things in motion to help change the psychological thought process of the general public around housing...

If we relied on this one move by the Government to have significant effects, we would wait a long time...and probably never see a positive result.

Fannie Mae and Freddie Mac were a single step...combine them with the following, and we should see some positive measures:
1. Gas prices falling/Oil too
2. Supply of homes coming in check
3. Election soon to be behind us (we will accept whoever and move forward knowing the outcome)
4. Interest rates low
5. $700 Billion Bailout to stimulate more lending, and stop housing prices plummeting
6. Builders not building many homes at all (lowest # since early 1990's)

Pent up demand does exist...once the factors listed above are moving together, then we should see the engine moving in a positive direction...and one of the items that will have corrected the situation will be the takeover of Fannie Mae and Freddie Mac...when this happens, we will all embrace the takeover in a positive light.

Calling All Realtors in North Atlanta!

Calling All Realtors…
I guess the real title should read “Calling on 30% of the Realtors!”

It is time to rev your engines, and get FIRED UP about what is going on with our economy! That is right! The Government is relying on YOU to turn the economy around, and it is yours and other taxpayers money that is on the line…are you ready?!

I have talked with a lot of Realtors in the Alpharetta, Forsyth, and Gwinnett areas, and the overall message is NOT GOOD! There are about 30% of the Realtors I speak to that are revved up about what is going on, and have been having very solid months in the most recent activity.

You must read the articles and understand the potential implications of what they mean and how they could change the overall environment…never look at things as Doom and Gloom…see the challenges today as OPPORTUNITY to learn, grow, and be one of the people that others aspire to be like!

The Bailout is going to change a lot of potentials. It has the opportunity to quickly:
Level Housing Prices
Stimulate more lending
Have a positive effect on attitudes for buyers
Seal the hole so the bottom is established
Increase the number of potential buyers interest

Get into what is going on. Don’t be nervous…GET EXCITED!

Here is what you need to do:
Improve your understanding of what is going on and why it is going on
Improve your language about the market
Improve your thoughts about the market
Start doing more open houses! The RIGHT ones!
Get passionate about talking the Supply and Demand issues
Get excited about the RIGHT listings, and firing the wrong ones!
Go to classes and take away ONE thing you can apply to be better in your business
Feed your energy and knowledge to other agents that are sucking wind right now!

Seven Hundred + BILLION DOLLAR Bailout…Everyone states if they can’t get the housing market corrected, nothing else matters…the bet is on YOU! What are you going to do about it?!

Wholesale vs. Retail

There are several different types of buyers in the pool today for the North part of Atlanta. There are true investors, and there are people that are trying to take advantage of the market conditions...and trying to act like investors.

There are two different types of sellers as well. We will call them Wholesale or Retail.

The problem is that many of them are colliding, and only causing frustration for each other vs. the ultimate goal of creating a sale.

The true investor will stick to the fundamentals that allowed them to earn the title of "true investor". They will typically only look at opportunities that would fall under the Wholesale Seller. In this type of arena, the true investor knows there will be inherent risk, and usually the homes will be in less than acceptable condition. They will need improvements, and also need to be brought up to today's standards of specifications. They will also be priced for the "deal" to be made.

The buyer trying to think like an investor, but intending on buying a home for their family at an investor's price, is the one that is causing frustration. The reason they tend to be causing frustration is that their expectations are typically off-base.

This person has heard about all of the foreclosures, and the deals that are out there. They begin the search, at first, out of curiosity...then with a sense of passion. A passion for "giving someone a blood-bath".

Now, there is no harm with someone wanting to get a deal, but the homes they are falling in like with do not measure up to the ability of getting "the deal". They tend to be attracted to the Retail Sellers home that has been updated some, and is in great condition.

These Retail Sellers have taken better care of their home (because they knew they were not behind in payments, and needed to get what they could out of the home), and in many cases, have updated the interiors unlike most of the Wholesale situation homes.

So this presents a big gap...and tends to lead to angst, and a lot of emotions...on both sides!

The Retail Sellers expect to get close to what they are asking for their home. After all, they would not have kept it in the condition and added things if they would accept Wholesale Pricing.

The buyer trying to think like an investor gets frustrated because he/she has heard of all the deals that are 40% below market value.

The best question to ask a buyer: "Mr./Mrs. Buyer, are you interested in buying a Retail Home, or a Wholesale Home?"

They will probably ask what you mean, and then you can use the examples listed above to educate the buyers as to the reality of buying today:
The best POTENTIAL deals usually require the highest level of risk, and work to get them to where you would want to live in them. They are typically owned by a Bank, Company, or Institution that wants to dump them off their books.
The Retail Homes are usually in move-in condition, and have much of today's decor and features...they are still extremely attractive VALUES, but may not have you feeling like you gave someone a "blood-bath".

It may help you educate them and have a much more fulfilling process...for everyone involved!

Psychologically Speaking...Get Excited about Real Estate!

Psychologically speaking, you could find your best opportunities to invest in Real Estate right now! We have been through a long 2 year barrage of negative news regarding different aspects of Real Estate. Now, everyone agrees that if they can not get a grip on the housing market, and foreclosure scenario, the financial impact will be far greater than you could imagine.

If you are looking in the North part of Atlanta, such as Forsyth, or Gwinnett, there are numerous new home opportunities to be taken advantage of.



Cycles happen. Consider the changes going on today that will change the psychological patterns around the real estate arena in a short time period to follow. The cycle has been down a long time, and changes are taking place to begin the healing process right now...with this, the real estate market will have a chance to improve before long!



1. The Government has taken over the Freddie Mac and Fannie Mae organizations...the Government is doing this to allow these organizations the ability to re-group, and the money guaranteed through 2009 to hold in the money, and not have a mass exodus of investors. The other reason is to get the lending to be able to be obtained by more people, so we can begin to have a positive side to our current housing scenario. They are doing this through the end of 2009, which would indicate that the Government believes the housing market will have corrected enough to have this channel moving positively enough to hang on it's own.


2. Interest rates are very low for the overall trend of the mortgage rate life...30 year rates have been around 6% or lower for some time, and will probably stay in this ballpark for a while. While the Government does not reach out and physically control the mortgage rates, they can act around areas that will most likely keep this in check, and they will.


3. The credit crisis and financial crisis we are currently facing does not have a good chance of correcting unless the housing scenario is corrected...this is good for our industry as the Government must act as they are, or the problem will mushroom like a nuclear bomb. It may feel as though it has to you, but the reality is that it is small at this time and could leak into global matters if not corrected here.


4. Oil has come down from an all-time high of around $147/barrel...This will have an effect on gas and energy costs.


5. Gas has come down from it's all time high, and has only been trudging higher because of the recent hurricane scenario. The reality is that the oil refineries were not affected as much as feared, and once this is all in place, you should see gas continue it's fall in price to more acceptable levels. Let's be real, if the price of gas stays at $4/gallon, it will be difficult for any of the housing/credit world to correct.


6. Supply of homes is declining...The highest number of homes that was on the billboard around Atlanta was 110,000...this number has dropped to the high 90's...a TEN PERCENT drop! One of the indicators of where we are going is the supply of homes available. The number is dropping which would indicate the worst is where we are, or slightly behind us.


7. The ELECTION! It does not matter who ultimately gets in the White House (it does depending on which side you are on). The reality is that once it is done, it is done. We will face the future knowing what the facts and realities are, and a more positive psychological process will form vs. wondering what/who is going to be running the Country.

8. The Prime rate is incredibly low! Although the lending requirements are more stringent than ever, those that are in a position to buy with good credit are poised to buy more than if the rate were higher with the rest of the conditions we face!

9. Builders not building inventory...Banks are not lending to builders, or have tightened the reigns on those they are lending to, and that has limited the inventory levels which is good. This needed to happen. The supply will partially by default come in line...It really does not matter if it comes in line by default or purpose...Supply and Demand are going to meet at an acceptable level as long as Supply keeps coming down.

Number 9 leads me into CYCLES!

I am going to ask you to research the Savings and Loan debacle of the '80's. Why would I want to do this?

If you go back and look at history, you can usually predict the future by virtue of Cycles. History does have a way of repeating itself, and with the big companies that have fallen recently, along with the smaller institutions being regulated, I wanted to dig and learn more about the Savings and Loan issues. This had an impact on the housing industry, and financial industry too.

The Government did a big bailout very similarly to what they are doing now...this helped dig out of where they were at the time, and the coincidences are phenomenally close...it is actually a little eerie.


Don't worry...change is happening...yes, it will cost us money for the bailouts one way or the other, but the much more affordable option appears to be what they are doing now, vs waiting to see how much worse it can get on it's own...