Real Estate Darwinism

I would like to talk a little about foreclosures and short sales today.

First of all - contrary to what the newspapers seem to want to you to believe, not every homeowner is in a financial crisis and not every home that is listed is being sold out of desperation!

Take a look at HAVE to Sell vs. WANT to Sell.

Are there foreclosures and short sales in Palm Beach Gardens?  Certainly - but its not the free-for-all that way too many people seem to expect.

Now that Im done with that, Ill cover the basics.

• You might own your real estate free and clear -GREAT!
• You could have a mortgage on the property - youre making the scheduled payments without a hitch.  Again, good for you.

The majority of people fall into those 2 categories.

Unfortunately, some homeowners arent (or are about to stop) making their mortgage payments.  The reason why does not matter - all the banks care about is: Are you or are you not making your scheduled payments?

This breaks down one of two ways:

1. Your house is worth more then what you actually owe on the home loan.  Youre not so bad off if thats the case because you can list it for sale and price it properly so that it actually DOES sell before you start missing payments.
2. You owe more on the mortgage loan then what the home can sell for.  Of course, this is the worst case.
   

Ill discuss how that could happen and what the next steps are tomorrow morning.

We've all seen HGTV's real estate reality shows, they're fun and entertaining and it's exciting when you hear that one of them will be hosted in your neighborhood. We were recently contacted by a customer telling us that HGTV was announcing a show for a house in Miami Shores (My House is Worth What?). He thought the show would benefit the sale of his own house in Miami Shores which we currently have listed.

This is how My House is Worth What? announced the show:

"We go behind closed doors, as three homeowners in three different parts of the country work with local market experts to strategize on maximizing their homes' value......Next, after three years, Christine and John are looking to sell their home in Miami Shores, Fla. and move to Tennessee so John can go back to school. They need to make enough money off the sale of the house to buy a new home and live off the proceeds."

When we watched the show we were a bit confused. We knew the house well because we had submitted an offer with one of our customers, but this was back in 2006. It was the same sellers, the same furniture, and the same selling price as over a year ago. You mean to tell me that HGTV is airing shows that are almost 2 years old?

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Romance is in the Air in Long Beach!

Valentines Day seems to turn everyone into a Romantic. Here in Long Beach there are many men that are in a complete panic over February 14^th. To make their lives a little easier here are Ten Romantic Things to do in Long Beach CA this Valentines Day with your Long Beach Sweetheart!

1. Go the traditional route. Take your Long Beach Sweetheart out to dinner. Long Beach is full of wonderful restaurants to select from:

1. Parkers Lighthouse will provide you first class surroundings and award winning cuisine 435 Shoreline Village Drive Long Beach CA 90802
2. Romantic Northern Italian try Christys Ristorante - 3937 E. Broadway Long Beach CA 90803 (866) 919-5774
3. Your Long Beach Sweetheart is a little more exegetic? Try Café Piccolo 3222 E. Broadway Long Beach CA 90803 (562) 438-1316
4. In the mood for a great Steak? Then off you go to Kellys Restaurant - 5716 East 2^nd Street Long Beach (562) 433-4983
5. Talk about Love, How about taking your Long Beach Sweetheart to The Queen of Long Beach CA? The Queen Mary has several dining options for you to select from. 1126 Queens Highway Long Beach CA 90802 (562) 435-3511
6. Do the two of you enjoy Jazz? Try this little romantic spot Nicos Restaurant 5760 E. 2^nd Street Long Beach CA 90803 (562) 434-4479
7. Perhaps a more contemporary American cuisine is what your desire? Then try The Madison 102 Pine Avenue Long Beach CA 90802
8. Want a great view of Long Beach; try The Reef on the Water. 880 Harbor Scenic Drive Long Beach CA 90802 (562) 435-8013
9. Elegant seven course meal how about Delius Restaurant - 3550 Long Beach Blvd. Long Beach CA 90807 (562) 426-0604
10. Your Long Beach sweetheart loves wine, try LOpera Ristorante with an extensive wine list that is sure to please. 101 Pine Avenue Long Beach CA 90802 (562) 491-0066
11. The ultimate romantic evening-dining and dancing at the top of the Breakers at The Skyroom; 40 South Locust Avenue; Long Beach, Ca 90802; 562-983-2703 - Like stepping back in time¦
12. Or my personal favorite in Downtown Long Beach - LaTraviata; 301 Cedar Avenue; Long Beach, CA 90802 562-432-6222

2. On a budget? Romance is not about how much you spend, but the time you spend together. How about taking your Sweetheart to the Aquarium of the Pacific and spend the day together walking hand in hand and enjoying the Aquarium and the sense of wonder¦ Go on a Whale Watch or take advantage of the Valentines Day Dinner.

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There's a saying in the news business, "If it bleeds it leads", meaning sensationalism sells the news.  The press isn't interested in hearing that the real estate market is doing well in some places.  It's not news to them. If you look closely at the statistics being used by the media, they flip the percentages showing the negative above the positive. The press in the San Francisco market is guilty of this big time and I see it everywhere I look.

What do I mean?  Did you know that 2007 is on track to become the 5th best year in the history of real estate?  How can this be, you're saying?  It's estimated that over 5.5 million homes were sold during 2007 - a year that began the melt down of the mortgage industry.  The average sales price in the US has gone up consistently. Did you know that through November 2007, 95% of all mortgages were current in the United State?  But that's not news.  It's more exciting to say 5% of mortgages are in default.

Real estate markets have cycles of about 10 to 15 years and most real estate goes up over time.  Take a look at the past three decades of data courtesy of NAR and you'll see for your self.

In each of the past three decades, we have seen low and high numbers of homes sold.  The 1980's never quite recovered to the same level as the end of the 1970's.  But, by 1996, a real recovery took place.  During those decades we suffered recessions, rebounds, and even some inflation, but housing prices were able to ride it out and generally provide the owner added equity.  What you must remember is that a house is your home, and if it gains equity, great, but if it doesn't, you still have shelter above your head and you own it.  You can take the tax deductions for the interest you pay on your loan and for property taxes, and make your house all yours.  What else can you buy that affords appreciation over time?  Not much.

The only way you, the consumer, can be sure you are getting a fair deal is to use a first rate Realtor.  We're out there for you.  We can assess the local market for you.  We can help you find the best home for your budget and make sure you are working with a reputable lender.  Top agents work with the best in the industry and we do not work with bad lenders, bad title companies or bad brokerages.

Buying a house is the biggest investment you will ever make in your life. You owe it to yourself to work with the best people to be sure you are not taken advantage of, and are protected.  Ask questions.  Keep your eyes open.  Educate yourself.  Right now is a good time to enter the real estate market to buy a home to live in.  Money is available at amazing rates.  Just stop reading the newspaper, watching the news on TV and listening to the radio.  Look at the statistics.  Raw data does not lie. Talk to your Realtor and find out for your self.

Now This is Disclosure!

Wanna Buy a House?

It comes with a clown!