RE-Posted from Joe Spake's Weblog

Looking at some of the vendors at the NAR Convention last week, old school, pre-technology is still a big seller. Realtor courses are still being taught that don't mention the new media, continuing to emphasize cold calls, mass mailings, scripts and door knocking. I am not criticizing my colleagues who have been and continue to be very successful with those techniques. If it's profitable, more power to them. I always find it interesting how the vendors adapt to current realtor "needs" - this year solutions included REOs, foreclosures, short sales, and the shiny new Realtor tool, Social Media.

Technology is not about machinery anymore

Those comfortable days of putting data in a machine to store, manipulate and access have been supplanted by having to actually go beyond the machine and interact with people who are using the web for 2-way communication. Adoption of new media requires a bit more commitment than hiring someone to do "that computer stuff". It's not enough that those potential customers can see your listings, and bio, and that business picture of you that was taken in your high school days, now they want to have a conversation with you. And that conversation is not necessarily about real estate.

Social media was all the buzz at the convention. Related sessions were well attended. But social media is more than sitting in a ballroom for a couple of hours listening to an expert panel telling the audience how they use Facebook, Twitter and LinkedIn to enhance their businesses, and trying to explain the engagement that grows from social media properly used. Success takes a commitment - a commitment to a new culture.

But I don't want to commit to that culture of "playing on the computer all day". Can I hire an assistant to do it for me? How do you find time for that? How can I get my listings on Facebook and Twitter? How much money can I make? How do I get to be a cool kid? What is a cool kid? Can I just buy a magic bullet that will take care of all this stuff and make me a social media star with thousands of friends and followers without spending all that time and energy engaging in the conversation?

Oh, there were magic bullets offered by the convention vendors, for sure, and there are plenty more ammunition dealers who weren't on the floor.

Tara Hunt (AKA @missrogue)spoke at the convention. Her presentation was Unlocking Buyer Happiness with Whuffie. Social capital? Whuffie? Sounds kind of weird. It was far from a packed house, with a fairly large number of folks wandering out during the presentation. If Realtors really wanted to learn what the new media and new culture is all about they should have been listening intently to what Tara had to say, or at least buying reading her book.

Zillow has recently reported that is shows the precentage of U.S. homes with mortgage debt higher than the value of the home has actually decreased from the second quarter to the third quarter. What does this mean for you and I and all the other real estate investors out there who are jumping into the Memphis investment property pool?

Don't break out your party hats yet! That's what it means.

I don't trust the numbers put out by companies or institutions which have a vested interest in the housing market turning around. For those of us investing in Memphis real estate, we know from being on the ground that the situation is imporving, but until retail sales actually beging to pick up steam in more parts of the city, homeowners with mortgages put in place in the last 9 years are more than likely still under water.

It's also hard to read an article like this and get a deduction about our particular market when they are obviously looking at details across many markets. Here are some of the numbers that Zillow produced:

21% of the records collected showed homes with mortgages greater than the value of the property. That is down from 23% in the second quarter. Anyone have a bottle of champaign!

7% of the markets analyzed showed declines in year to year value.

18% of the markets showed values increasing in year to year value.

But if you dig a little deeper you see what the real reason for the turn around is. "The decline in the percentage of homeowners with negative equity is a positive sign, and is directly attributable to the stabilization of home values from the second quarter to the third," Zillow Chief Economist Stan Humphries said in a statement. "It is also attributable to many homeowners who were previously underwater on their mortgage losing their homes to foreclosure."

And there it is. As more homes go into foreclosure there are fewer homes underwater. Eventually all of the Memphis properties that are underwater wil be cleared up as more go into foreclosure and those properties are then fixed and re-sold at a true value. When that occurs, there will be mroe retail sales for comparable analysis which in turn will raise the value on the last of the homes sitting under water.

In my opinion, it will take years (3-5) best guess for the Memphis real estate market to turn around. This is actually a very positive step for investors looking to buy Memphis investment property. There will be several mroe years of depressed pricing and an ever increasing demand for quality housing to be provided. When the housing crisis begins to abate, we should Memphis property values return to normal levels very quickly and investors who purchased today at 80% of current value, will suddenly find themselves with 40%-50% equity. As the economy turns around, not only will values go up, but so will rent rates as supply declines and demand reamains. All of this leads to a bright future for any investor who is purchasing properties for invesmtent in Memphis today.

Chris

Ok, today I'm in a blogging mood ... what can I say!

My church, Shady Grove Presbyterian Church as 5530 Shady Grove Road (the corner of Yates and Shady Grove) has been around for about 52 years or so. It has always been a very special place. It is well known for being a leader in the Memphis community and I've always appreciated what the church had to offer to the community as a whole.

I grew up in this church. My Mother was the second woman to be ordained an Elder in this church. My Dad was Treasurer of this church (and they are still going in spite of that period). This is a wonderful church that has gone through some tough growing pains and failed leadership in the past few years.

I just moved back to Memphis a couple of months ago. I've been away for 20 years, but when I Mom died back in August, she had told me to make sure that her friends at the church knew about her passing. I followed her wishes of course being the dutiful son that I am.

When I call the church who else would answer the phone but the Pastor, Rev. Jarad Bingham. He talked with me for about 90 minutes or so as I was speeding back to Baltimore to mourn her passing. One thing that Jarad asked me to do was to come by and see him when I got settled.

Well we got together. He is a WONDERFUL person and I went back to Shady Grove to see if as a Minister he was that great. Well, he's better than great.

But he has instituted a program on Fridays at 6PM at the church call Casual Fridays. It's blue jeans or whatever is your casual mode. For me on a Friday it is more about taking the tie off for the rest of the day. It is so wonderful. It is open to everyone and you don't have to be a member of the church. It is a wonderful laid back, easy going, sort of gathering. Nothing too much and nothing too less. No big sermon (although that's not Jarad's thing, but musings and mumblings). It is certainly something you might want to try out and visit.

You can also check out more on it at Facebook.com/casualfridays.

See you there!

Just listed this down to the studs rehab in Evergreen Historic District: Here's the Flyer:

268 N Avalon - Evergreen

268 N Avalon, Memphis, TN 38112 View Map

Down to the studs Rehab. Gleaming hardwoods, new carpet and paint, Knock-out Kitchen with Corian counter tops and stainless steel appliances.
Welcoming, full width, front porch with swing. Huge deck and 2 car garage in Back. You will love the sunroom off the living room, and the family room near the kitchen is great for entertaining. The Master suite up features built-ins, whirlpool, double sinks and separate shower.
Enjoy the many amenities of the Evergreen neighborhood: walk to the Zoo, Snowden School, and Rhodes.

Details

Asking Price:

269,900

MLS:

3184756

Bedrooms:

3

Bathrooms:

3.5

# of Floors:

2

Garage Size:

2 car

Subdivision:

Evergreen

Year Built:

1922

Property Amenities

- Range/Oven
- Sink Disposal
- Full Refrigerator
- Washer/Dryer
- Dishwasher
- Hardwood floors
- Basement
- Security System

- Attic
- Deck
- Grass Lawn
- Yard
- Fenced Yard
- Central A/C
- Central Heat
- Walk-in closet

- Tile floor
- Family room
- Living room
- Bonus/rec room
- Dining Room
- Breakfast nook
- Stainless steel appliances
- Laundry area - inside

Contact Info

Joe Spake
Broker

Main 901 725-7766
Cell 901 870-3440
Dir 901 274-1847
Email | Website

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