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John Wuertz |  |
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Sales Agents The Corcoran Group New York, NY  |
 I'm Your Local Expert 
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Reduction in Interst Rates
This week saw another drop in the interest rate at the Federal level. A large number of lenders are subsequently lowering the interest rates offered to consumers. Reputable real estate agents won't push their clients up in price or tempt them by showing them properties they can't afford. The same applies to good mortgage lenders. The naive buyer won't be approved for higher amounts by decent, ethical lenders. The current requirements in underwriting will weed out many questionable loans. BUT!!! Will the innocent, uninformed buyer be swayed or tempted into over-spending??? Yes, lower interest rates allows some to buy slightly higher in price. But should they?
This week's news has already brought a new wave of fence-sitting buyers to the Realtors' doors. We've been seeing more people enter the buyer pool recently. Good news for sellers? Good news for those buyers? It depends on each individual situation.
I've said this before, and I'll continue to say it: The time MAY be right for you and it may NOT. Enlist the help of a good mortgage counselor and a reputable Realtor. Choose a National Brand Realtor (i.e. Coldwell Banker, Century 21, Sotheby's, etc). Talk to the office manager about which agent to choose. How do you feel with the office and the manager. Then interview the agent. Make sure they know the area, the market, and eventually you! Be honest with the agent in what you're looking for, your financial situation, your fears and questions. Let him/her know what you know and what you don't know. A good agent should be able to walk you through the process. In fact, he/she should be eager to explain everything to you.
If you're searching for an agent to SELL your property, do the same things. Ask questions about marketing, negotiating skills, price ranges, and experience. Look at the agent's web site. The office/company web site. How do their other listings look? If you were a buyer, would you stay on the site or move on to one that's easier or has better pictures? Remember, when you're on the site, you should consider a few things: look at the pictures for THAT company's listings. They have no control over what other companies put out. Ask about how much traffic they get on a monthly basis. Do they only have their own listings or other company listings as well?
Remember that when you interview an agent...the AGENT is interviewing for a job in which you are the boss. That does NOT mean you should direct them on what to do. The agent is the professional. But the agent will be accountable for results to you, the boss.
Once again....get advice from professionals who work in the real estate industry every day. This is not the time to consult with Uncle Bob...unless he's a full-time real estate professional.
Media hype or real market statistics...which do you believe?
4/7/2008 at 12:57 PM - Regional Markets - New York Metro Area  1 Comment"The Bubble Has Burst!" says one newscast. "Recession is Upon Us." reads a newspaper headline. "Real Estate Market Worst Since WWI" proclaims another. The major news companies would have us believe that the world as we know it is coming to an end...at least from a real estate perspective. You'd have to look pretty hard to find all the positive 2007 statistics. But they're there. Buried in fine print on one of the back pages. Or lost during the commercial breaks of the nightly news. 2007 was one of the busiest years since the number of real estate transactions have been recorded. (2006 was #1, 2005 was #2) Property values are still up from 2001 in most places across the country!
There are too many "professional" reporters and statisticians talking about an industry other than their own. Few of the doom sayers have quoted actual statistics. The Shiller report doesn't track the whole country, only certain towns in certain states. One of the "towns" Shiller uses in the report is a trailor park in New York State (although he says that's representative of New York City).
The truth is, the market is very local. It's probably one of the most regionalized marketplaces of all. How many times have you heard, "If this house were in _______town, it'd be worth twice as much."? This only reinforces the fact that the layperson understands the differences in values and the importance of local information. Blanket statements don't work. And yet, the news providers insult America daily by reporting gloom and doom across every state and local border. New York City is a world unto itself. Our market is different. Boise Idaho doesn't have foreign investors buying real estate. Casper, Wyoming isn't the City that never sleeps. Rugby, North Dakota isn't NYC! Why would their stats be the same? How could their stats be indicative of NYC? Or any other town or city for that matter?
Interest rates are very low. Is it more difficult to get a mortgage? Not for the person who would have qualified in 2001. Lenders got sloppy and greedy. They approved people with no income, histories of bankruptcies, too much debt, etc. No wonder the mortgage industry fell apart. No one was watching the store!
Should you sell or buy now? It depends on your situation and location. No one should make blanket statements. If you're thinking of moving, talk to a reputable real estate agent and a reputable mortgage counselor. Only the agent can advise you of what's really happening in the market. Only a mortgage counselor can talk to you about financing options.
It may not be the right time for you! Do your research. If you're going to look at statistics, my advice would be to request statistics from the tax office or the MLS. Those sources have to be authentic. It's public information. Don't believe the media hype. Don't believe their yellow journalism in order to get ratings!
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