Author Archive for kmunsell

Some Agents Make a Bigger Impression Than Others

Published
by
kmunsell
on May 28, 2009
in Uncategorized
. 131 Comments

At least that’s what one real estate couple, Melinda and Scott Tamkins believe.

A Las Vegas real estate agent named Melinda mysteriously dies. Mortgage broker husband,  Scott, is the key suspect in the case. Oh, and did I forget to mention that shady husband Scott is also a heavy drinker and an aficionado of porn and S & M? 

Does this sound like something you’d see on TV or what? It should, because it is. In fact, this storyline played out on a recent episode of CSI, and Southern California real estate agents Melissa and Scott Tamkin believe that these characters so closely resemble them, that this episode has hurt their business (even more than the downard spiraling economy has). In fact, they are suing CSI writer/producer Sarah Goldfingerfor $6 million in damages claiming defamation of character and invasion of privacy. The CSI characters reportedly bear a resemblance to the real-life couple, and the characters’ original last name was Tamkin, until the scrip was later revised.  

Could these claims be true? Here are the known clues: In 2005, writer Goldfinger entered into a real estate transaction to purchase a home listed by the Tamkins. The purchase was never completed, as Goldfinger pulled out of escrow, reportedly on amicable terms. You decide. Whatever the facts of this case ultimately are, it’s clear that the Tamkins believe that their impression on former client Goldfinger was big enough to manifest itself nearly five years later. 

It seems ludicrous to me that prior to the lawsuit, the vast majority of people never would’ve related this one CSI episode to this couple, but now, even I (a person who’d never heard of the Tamkins before) make the association. Could a brief transaction really have such an impact this far down the road? I think back to all the real estate agents I have know, and yes, indeed, there are a few that stand out. There are a few that stand out as heroic in my mind (and remain good friends to the day), and yes, there are a few that are worthy of their own Dateline story. Either way, it goes to show that transactions that involve hearts, minds, and homes can stay with you long after the paperwork is filed.

Which Came First?

Published
by
kmunsell
on May 13, 2009
in Home Buying, Home Selling and Market Conditions
. 242 Comments

The age old debate of which came first, the chicken or the egg, has never been actually decided. And in the real estate market, I’ve always wondered, what comes first, the purchases or the press? (Today, I guess it really doesn’t matter — I just hope they continue to feed off each other until we’re out of this festering economic mess. )

Case in point. The most recent headlines tell us that things are on the mend, and it’s occurring across the nation. In Orlando, there is a surge in sales of lower priced homes, in Santa Clara, April stats showed an increase in activity, and in Fort Worth, signs of healing are starting to show.  Of course, some areas are still slow to pick up, but there is hope that they simply lag behind. For example, in Oneida County, New York, sales are still down, but spirits are high.

Keep it coming. Keep it coming, press people. Focus on the positives and let’s hope that we can create a bandwagon that potential homebuyers will be eager to jump on to. It seems that new buyers are finally taking the plunge. Momentum provided by a perfect storm of big tax credits, ultra low interest rates, motivated sellers and inventory extraordinaire are causing lower priced condos and houses to actually sell again. 

Is this enough to call it over? Probably not, but it is certainly a good first step, and an upturn in the real estate market is likely to generate some momentum that can potentially affect other key economic indicators, including the job market, the stock market, retail sales and travel and tourism.  I for one, am quite happy to see that this new media attitude and regardless of whether the purchases or the press came first — keep it moving, people!

Back to the ‘Burbs

Published
by
kmunsell
on April 16, 2009
in Progressive Trends and Uncategorized
. 133 Comments

As they say, the more things change, the more they stay the same. Not one year ago, we nervously watched gas prices as they crept skyward each day. Heightened awareness of rising fuel costs and excess waste prompted Americans to run toward the cities, and those nestled in the ‘burbs wondered if these outlying areas would soon become ghost towns, once again blamed again for eco-hostility and more.

However not one year later, the first victims of the mortgage crisis, the ‘burbs, are showing new signs of life as the first to begin the rise from foreclosure devastation. For example, sales of existing homes increased in many regions over the last few months and much of the activity is taking place in the suburbs.  The strongest resurgence in suburban sales is occurring in the Sunbelt, including Arizona, Nevada, Florida, and California, where at the beginning of the mortgage crisis some of the greatest increases in prices caused buyers to turn to subprime loans.

Feeding the continued survival of the ‘burbs is the changing geography of the workplace as more and more employers move away from city centers. A newly released Brookings Institute report finds the steady decentralization of jobs; between 1998 and 2006, 95 out of 98 metropolitan areas saw a job shift away from the urban core, though the overall number of jobs increased in all metropolitan areas. In fact, researchers identified a shift away from city center in almost every one of the 18 major industries analyzed and more than half of all major metropolitan areas experienced rapid job sprawl.

However, it’s not only the jobs that are keeping the ‘burbs alive. The bottom line is that time and time again, the ‘burbs get the blame, but in reality suburban living is a preferential lifestyle that will not likely fade. The fact of the matter is that suburbanites like their style of living. Many enjoy a quiet, more relaxed style of living, and study after study has shown that single family homes remain a strong preference to many; Pew Research asked residents to rate overall satisfaction with their current communities and suburbanites were the most satisfied (42%) of any residential group, including those who live in cities (34%), small towns (25%), or rural areas (29%).

So throw your sticks and stones and blame the ‘burbs for what you will but know that the more things change, the more the ‘burbs are here to stay.

Test Drive Before You Buy

Published
by
kmunsell
on April 9, 2009
in Home Buying
. 21 Comments

You try on clothes, you test drive cars – you even sample food before you buy the bulk package from the warehouse store. So why wouldn’t you test drive a home before you buy? A home is one of the single, largest purchases you will  make in your lifetime.

Particularly if the budget is tight, consider taking a test whirl in a comparable home to what you’re angling to buy before making the actual purchase. By spending 6 months to a year living in the neighborhood and tracking actual housing expenses, you can gain a better understanding of the nature and scope of your purchase before you sign on that dotted line. 

Among those little details that you will discover:

  • A more accurate estimate of homeowner expenses. In addition to mortgage payments, keep an expense diary and track all costs that you would have had to pay, had you owned the home. This includes your utilities, property taxes, insurance, and repair or upgrade expenses that you would have incurred during your time, if you owned the home. For example, if the water heater goes out, log the cost. If the heater is serviced, log the cost.
  • The maintenance and responsibility required in having the home. Yards are beautiful to look at and many homeowner’s dream. But in addition to the expense of watering and care, are you willing to take on the yard work? Living in a home and getting an up close look of what type of yard maintenance is needed during the year can be an eye-opening experience.
  • The commute to here, there and everywhere. Regardless of whether you drive to work on your own or use public transportation, you’ll learn what the actual commute would be like–day in, day out and in different weather conditions.  In addition, you’ll gain firsthand experience as to proximity of shopping, doctors and the other amenities are in relation to your home.
  • The neighborhood setting. By living in the area, you’ll notice the traffic and the people patterns, and you’ll learn more about particular lots and locations than any realtor could ever tell you, and perhaps you can avoid buying the lot where parents, children and dogs congregate every morning for the 7:30 am bus stop!

Pink Slip Phobia Got You Down?

Published
by
kmunsell
on April 1, 2009
in Home Buying and Progressive Trends
. 3 Comments

It started in the auto industry, snaked its way through cruises, men’s clothing, and now it’s hitting the real estate industry. Will this new trend in layoff protection boost consumer confidence? 

In January of this year, Hyundai Motor of America implemented a broad, new strategy, aimed directly at the ailing economy and loss of jobs. Under their new Assurance program, Hyundai said that U.S. customers who buy new cars and lose their jobs within a year of purchase can return their vehicle–as easy as that! Next to follow, JetBlue began promising full-fare refunds to customers who are laid off before their planned trip. And next came BookSafe Travel from Norwegian Cruise Lines, The Risk-Free Suit from men’s clothing retailer, Jos. A. Bank, and more auto payment protection for Florida car purchases.

So, it’s only natural that these programs designed to alleviate consumer job worries would extend to real estate. In the rental market, Western National Property Management and Goldberg Companies offer layoff protection plans, giving some assistance to laid off tenants in Florida, Ohio, Texas, and North Carolina. And most recently, condominium complex Thornton Place in Seattle jumped on the bandwagon with their Safety Net Program. Under this program, if you buy a condo and lose your job, they will pay your mortgage for six months. The company believes this is the first program of its kind in the country, though others have offered up smaller incentives such as homeowners’ association dues. To start, Thornton Place is offering 27 condos, starting at $299,950 for a one-bedroom 595 sq. foot unit. 

The details of each program vary of course, so buyer beware. However, layoff protection is catching the eye of worried consumers and addressing pink slip phobia head on. Is it working? It’s still too soon to tell, but initial signs are good. Hyundai’s sales were reportedly up by 14% for the first two months of the year, compared to last year, however the jury’s just starting deliberations on those condos.

Spring Offers Hope But Will it Last?

Published
by
kmunsell
on March 26, 2009
in Home Buying, Home Selling and Market Conditions
. 104 Comments

The official start of spring pounced on the scene just days ago. From the winter trodden areas of the country, bulbs peer out from under ground, cherry trees poise to burst, and tiny, new leaves prepare to invade winter beaten branches.

Spring, the traditional start of prime real estate season, is here. This year, however, is an extraordinary year.  Will the traditional spring real estate jolt happen this year? If you sell, will they come?

Have faith. The lookers are already beginning to emerge from their quiet, hiding places, waiting to blossom into healthy, thriving buyers. So far:

  • New home starts jumped 22% in February, compared to one month prior. Though this number is still significantly below where it was one year ago, it does offer some hope.
  • Sales of existing homes rose 5.1% from January figures, again still lower than same time last year, but a move in the right direction, nonetheless. 
  • New home buyers can obtain up to $8,000 in tax credit from a qualified purchase.
  • Fixed rate mortgages are as low as 4 3/4% for qualified buyers.

This year, spring is needed more than any year before, but we don’t know how long this new burst of life will last. Is the market now poised for a turnaround or is it just a spot of sunshine that will shrink in the dark clouds ahead. Nobody knows what lies ahead, but if a move in on your mind, there may be no better time. 

Sellers clean up, price well, and play nice to make a sale, and lookers, buy now or prepare to stick it out for the long haul. Right now, the time is right for both sides of the deal. Let’s just hope this lasts.

Readers, share your thoughts below. Do you believe we’ve reached the bottom and clearer skies lie ahead, or do you believe this is a short term, transient burst of energy?

Multigenerational Shacking Up on the Rise

Published
by
kmunsell
on March 19, 2009
in Market Conditions and Progressive Trends
. 140 Comments

Lost jobs, home foreclosures, tight pocketbooks, and aging are forcing more and more people to shack up with in-laws, parents, and grandparents, this trend a clear result of an economy in the dumps. Multigenerational housing, where extended families live together under one roof is on the rise, as more adults are returning home to live with their parents, even after a period out on their own.

According to the results of a new study by the AARP, 33% of respondents age 18-49 currently live with their parents or in laws, with 11% of those between the ages of 35 and 44 living in this arrangement. Furthermore, the AARP predicts this number is likely to grow. When asked about the likelihood of living with other family members in the future, 15% of respondents thought it would be likely, with 61% of these people citing the need to economic reasons such as job loss or foreclosure.

However, even before economic tough times hit, multigenerational housing was making its way back to the American household. Census estimates in the year 2000 showed that nearly 3.9 million households consisted of three or more generations living together, this number representing an increase of 60% from the number of 3+ generation households in 1990. Though job loss and home foreclosures didn’t play as significant of a role during this period, economics still had its hand in the matter. Dual income families benefited from having grandparents present to participate in child care, while aging grandparents also benefited from having the company and support of an extended family.

Consequently, homes that are flexible enough to suit a wide-range of needs are gaining more attention. These include homes that are either specifically “universally designed” to accommodate aging in place, or homes that simply offer certain amenities or functionality for elderly or multiple families such as:

  • Dual master bedrooms
  • Main floor bedroom(s)
  • Level entries
  • Wide hallways
  • “Privacy wing” floor plans
  • Bathroom support bars
  • Multiple entrances

Real Estate by the Generation

Published
by
kmunsell
on March 11, 2009
in Home Buying, Sustainable Living and Technology
. 148 Comments

The generational divide applies to music, television, philosophy and life in general, so it comes as no surprise that there are generational differences when it comes to real estate as well. The biggest population segments shaping the market today are the Baby Boomers (1946-1964), Generation X (1965-1980), and Generation Y (1981-1999). Each group has its own unique set of characteristics and needs, and nowhere is this more visible than in real estate and choosing a home.

Baby Boomers: This group currently makes up about 26% of the population and falls between the ages of 45 - 63. They are quickly becoming “empty-nesters” and though retirement is in their field of vision, they are happy, healthy, and on the move. Consequently, smaller homes centered around an active community and lifestyle are becoming popular with this crowd, giving rise to a new class of retirement communities for active adults.

Generation X: About one out of every five people falls into this age range of 29-44 years old. According to the National Association of Home Builders, the average age of the move-up home buyer was about 45, squarely falling on the line between Gen X and the Baby Boomers. The priorities of this busy group are different from others. Consisting of many double income couples now in the midst of raising children, technology, efficiency, and casual are in, while unnecessary is out. The unnecessary, to this group, includes extra space (like formal dining rooms and wine cellars) and even extends to unnecessary labor as well–low maintenance is a boon to Gen X.

Generation Y: Young and upcoming represents the core of this group. Currently aging in range from 10-28 years old and comprising a whopping 28% of the population, Generation Y has yet to make its full impression on society. However, what we have heard of this group so far, shows that they are keen on location (they want to live, work, and play all in one) and are interested in creative design and efficient living spaces with less emphasis on kitchens and formal areas. High tech and constant connectivity also seem to be high priorities with this group, while green tends to be a crowd pleaser. This group is aware of the environment and will likely continue to fuel advances in the green building industry.

Times are Tough All Over

Published
by
kmunsell
on March 4, 2009
in Home Selling and Market Conditions
. 145 Comments

Photo Source: KARE11.com

Sometimes it’s just no fun to read the headlines. Sometimes statistics, analyses and doom and gloom are all you see, and sometimes it is quite obvious that the problems are all over.

The last few weeks showed us that celebrities have their problems too. There are no easy sales for Britney, Ed, Shaquille or Christina, who have all had to drop the prices on their homes, while another, Debbie needs a lesson on preparing her home for sale.

However, in other news, sometimes celebs play it safe. Basketball legend Michael Jordan purchased a more humble abode, probably to avoid the infamous foreclosure calamities that other well-knowns have been unable to avoid.  

Then again, the crazy antics of common folk that can make us laugh or cry as well.  Average Joe resorts to a circus to sell his home–er, at least to get ”several people” to walk through, while another man takes his case to the streets, “Stimulate the economy! Buy my house!” And in others cities, tiny homes are filling up with too many people.  Maybe a cave would hold more people. I hear there is one for sale, that is, if it doesn’t go into foreclosure first.

Of course, these down times are causing couples on the rocks to stay together just a little bit longer.  Is this good or is this bad…in the end we really don’t know. All we can do is hope because it some point it just has to get better.

The Value of an Emotional Remodel

Published
by
kmunsell
on February 25, 2009
in Home Buying, Home Selling and Market Conditions
. 114 Comments

I’ve been hanging around house sellers (too much) lately and I find myself wondering why the most fun loving, rational of people become raving mad lunatics as soon as their house goes up for sale.  It just shouldn’t come as a surprise that it takes longer to sell a home these days. The economy is in the toilet. On top of that, low ball offers shouldn’t be particularly startling either, so why is it that sellers fly off the handle and end up on a rampage when on the receiving end of one? 

This is very likely due to the ugly baby syndrome. Sellers wonder why their house is taking so long to sell or they become downright insulted when somebody asks for a deal. Sellers fail to see the strict business side of the deal –they only hear that they have an ugly baby. Consequently, if you’re a seller, the most productive thing you can do in today’s market is to give yourself an emotional remodel.

Consider:

You are selling your house, not your home. Make the mental transition for this transaction and realize that while you consider the sale of your home near and dear to your heart, the buyer sees this transaction as the purchase of a house or real property. There are no personal insults or attacks in a business transaction. There is no ugly baby.

A low ball offer is not an insult, it is an invitation to deal. No matter how far below asking price an offer is on your property, you need to keep in mind that it is not a personal statement. In today’s dismal economy, buyers are doing what buyers are expected to do. They are looking for a good deal and there should be no harm and no foul for asking for one. After all, some sellers are willing to make better deals than others, and it’s your prerogative as a seller to simply say no, or more wisely, to make a counter offer.

A lower offer might not be your ideal offer, but it might just make financial sense. Emotions get in the way and cloud solid financial sense. The holding costs of property might make a lower offer more reasonable that it seems at first blush, so do not discount what you have in front of you because it just might take longer than you think to find a buyer that values your house the same way you value your home.