Could You Be A Greedy Genius?

(I think these cats are geniuses........)


Warren Buffet once said "Be fearful when others are greedy. Be greedy when others are fearful". Warren Buffet is widely considered to be one of the most successful investors in the world.

If now is not a fearful time, then I don't know what is. Just read the latest housing industry news; some of these alarming articles can be found right here on my blog page.

If you are in a position to buy a home and have the financial ability to do so, you can definitely take advantage of all this fear by being greedy. You can only win by purchasing in a market such as this. A few years from now you will be considered a genius for purchasing a home in 2010.

How many years will it take for your genius to manifest? If historical housing cycles are any indication, it could be as few as five.

Yes, it's a fearful time for alot of folks. But if you feel any measure of security in your employment situation or that of your spouse and you CAN afford to buy, there can't be a much better opportunity than interest rates below 5% and housing prices at their lowest for quite some time.

I know what you are going to say. That's fine, Amy, but how do I profitably sell the house I have now if prices are so low? For some, it's probably not the best time to sell. I get it. But by the time it is, it won't be the best time to buy either.

The most important thing is to love the house you're in. If your current home no longer works for you and your family, what cost is there to staying in it versus not getting all of your money back on its sale? Only you can guage that.



*Some content of this blog post was plagiarized from the awesome genius, Jeff Shore.

You'll Get Sprinkles and Like It!

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This is the time of year when real estate agents and new home salespeople meet alot of folks who have made the choice to relocate. It's a great time for families to do it because the kids are out of school.

When it is a mandated corporate relocation, those of us in sales had better become more sensitive, more caring, more helpful and be giving the ultimate in customer service. Not that we don't strive for that everyday, but it is a stressful situation made even harder for our buyers and we need to realize that.

Corporations don't care if a buyer has never lived more than 50 miles from Greenville. They don't care that the kids will have to find new friends. That the family will have to find a new church, grocery store, YMCA, great neighborhood, and most importantly, a new home! And by the way, there are only 45 days to do it all because school starts in August.

It's really hard to find the perfect home; even when there is no mandated schedule. A buyer has to choose from what is already built or halfway built. The half completed home can be so very difficult to visualize.

I hope that when selling new homes, we try as hard as we can to make that less than perfect home everything that it can be. And if we're not trying hard enough, let us know!!

Energy Efficiency Has Even More Benefits

Energy efficiency has more benefits than previously thought and is becoming incorporated into more and more local building codes every year. Many home builders have resisted this change; citing added costs that would push the prices of their homes out of reach for many buyers. The truth is, "green" building techniques and materials CAN be used in new homes with the long-term benefit to the homeowner greatly outweighing the added cost.

Energy Star Certified homes save a homeowner a MINIMUM of 15% on their utility bills. Many people save even more. Properly sealed air conditioning ductwork means less than 5% lost air moving through than the average 20-30% lost. Low VOC paints, direct vent fireplaces, and high-efficiency exhaust fans contribute to indoor air quality. As homes have become more and more airtight over the years, the quality of the air indoors has become more and more important.

Even if you don't particularly care about the environment, the treehuggers, or your carbon footprint, you can still get behind saving money on your utility bills.

Some homebuilders have gotten way ahead of the curve and have begun to revamp their homes for more energy efficiency; realizing the benefits to homeowners and to the environment even though building codes do not yet require them to do so. I know of at least one builder who builds incredibly energy-efficient Certified Green homes without even adding to their prices. Yes, this would be The Jones Company, LLC, right here in Nashville. Of course! :)

The following are excerpts from a Washington Post article by Katherine Salant - find the full article in the list on the left on my blog page:

"When builders are required to increase the energy efficiency of new houses, the owners will benefit from lower utility bills. Low-income homeowners, the group most vulnerable to foreclosure, will fare especially well because utilities are a big part of the total budget. A house that uses less energy is more affordable to more households, but this is not the position that has been taken by the home building industry............"

"Bill Fay, at the behest of the Alliance to Save Energy, organized the Energy Efficient Code Coalition, an eclectic mix that now has 55 members, including think tanks, affordable-housing advocates, utility companies, home-building related businesses and environmental organizations not generally associated with housing, such as the Sierra Club. This group said that to assess affordability for households with modest incomes, more than the sale price and financing must be considered. The other costs of home ownership, including maintenance and utilities, are even more critical......."

"Nationwide, the number two cause of foreclosures is utility bills," said Cliff Majersik of the Institute for Market Transformation, a think tank that follows building code issues......"

"Research has shown that owners of Energy Star Homes, which are more energy efficient, have an 11 percent lower default rate when compared to owners of nearly identical houses in the same location," he added....."

"Electric utilities also weighed in on home energy efficiency. Although this group would seem to benefit from homeowners using more energy, the opposite is true, said Steve Rosenstock of the Edison Electric Institute. Many of the institute's members are in states that have set ambitious goals for reducing total energy use in 10 or 15years. One way to meet this challenge is to make buildings more energy-efficient...."

How Long To Wait?

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This will be one of those "we already hit the bottom months ago" articles so beware!


I think most real estate professionals really don't know any better than the most proficient economist exactly when the market will turn. Watching key indicators such as standing inventory levels, the number of foreclosure filings, the bond markets, and unemployment numbers can give some guidance. We can expound, predict and advise our customers but at the end of the day, the market will do what the market will do. Alot of folks certainly weren't prepared for the drastic downturn!!


I believe that the consumers' impressions of the market are a very important part of it's activity. Some areas of the country or your city and some segments of the real estate market are hot right now while others are still lagging. Many buyers are still watching for the foreclosures and short sales as they come on the market - in other words, a whole lot of bargain hunting is still going on. People who haven't yet purchased may not realize that frequently these homes are not the best deal when so much has to be repaired or replaced. The other intriguing thing is that folks will buy a foreclosure in a neighborhood that has had several foreclosures sold already. At that point it's strictly the most square footage possible for the money because how can there be equity or value to buying low in a neighborhood that's already been brought "low"?



I also believe there was a bottom from a builder's standpoint and that we passed it long ago. Material, land, and labor costs are what they are. Materials have actually started to go up with shortages in lumber as well as trim. Companies have to make a certain amount of profit in order to stay in business. Beware the builder that is priced severely below the rest of the market; it could mean the company is in serious financial difficulty. What corners are being cut to get those prices where they are and where will you turn if you have issues with the home after closing? A quality home with a decent level of included features will be priced right now at the lowest level that a good builder can accept and still deliver a product they can stand behind.



As a buyer it is very hard to decide when the right time is to purchase. Buyers have heard that "now is the time to buy" for almost two years now! That being said, two years is a long time for a market to stay at the bottom. Inventories HAVE come down. Interest rates WILL eventually have to go up. FHA really IS making changes that will mean considerable increases in costs to borrowers after April of this year. Foreclosure activity WILL slow.


There is so much pent-up demand out there....sellers who will finally be able to sell, buyers who had issues in 2007 and 2008 will be able to buy again soon, all other consumers who have been unable to afford a home for so many reasons. Once this demand is unleashed, the upturn will come and prices will go up with it. Everyone who bought in the first half of 2010 will be Oh So Glad that they did.


(See, there I go being one of those real estate professionals making predictions........)