Jerry LaRose, ABR, GRI, e-PRO, CLHMS Winter Garden FLorida, Orlando, Windermere FL Real Estate

Have you been feeling frustrated at clients who don't seem to be able to make a decision? At the beginning they seem interested in buying, either they've contacted you or you contacted them. Then as they see some homes and may begin listening to the news about today's marketplace, they start to get cold feet.

They don't return your phone calls or e-mails, and when you finally reached them they say, "I'm not sure this is the best time to buy. I've heard prices may get lower."

At this point you can either get exasperated and give up or you can give them a good reason to buy now, one that they can't refuse.

This is a simple three step process:

First, say to them, "Did you know that Donald Trump is buying up as much real estate as he can right now?" Client, "No, really? Why?" You respond with, "Donald Trump is a very smart businessman, wouldn't you say? What he knows that other people don't know is that this is the best time in history to buy. Prices are at an all-time low and so are interest rates. It doesn't get any better than this. So he is getting great deals all over the place." After this, your client will probably say, "Wow I didn't know that." You respond with, "If you're excited about this, then let's get you a deal."

Notice the invitational quality of your last statement. Who can resist a deal? Isn't this an irresistible statement? You are offering to partner up with them to help them make money.

Watch how quickly your previously "indecisive" clients start taking action. You've done your job to tell them the facts. You've backed that up with an offer to help them make money in the same way that Donald Trump is making money. There may be objections that come up.

Here is the KEY: if you are convinced that this is the best time to buy, then they will be too. People can sense the depth of your conviction, so convince yourself first and then you will be attracting your ideal clients

About the author:

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit http://www.jerrysellsorlando.com/ for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

(Copyright © 2008 By Jerry LaRose, P.A. All Rights Reserved.)

You might not hear much about them on TV or in the papers, but there are some economic signs popping up right now that are -- at the VERY least -- encouraging for housing and real estate.

Take the gold standard of all forward indicators for the U.S. economy -- the Conference Board's "Index of Leading Indicators," which is based on a broad survey of industry data and predicts economic activity three to six months down the road.

The latest Conference Board index registered its first increase in six months. Now I know that all we hear about these days is recession: it's either already here or it's about to happen. But the index suggests that there should be positive growth underway in the second half of the year, if not sooner. Look at the stock market, it's starting it's upward trend again.

The National Bureau of Economic Research which found that industrial production in the U.S. showed an unexpected uptick in March.

Here are some other noteworthy developments this past week:

• Applications for mortgages to buy houses were up again, it was the second straight week, according to the Mortgage Bankers Association of America's national survey. Applications for FHA loans to buy houses jumped by three and a half percent -- and conventional purchase applications rose 2.1 percent.
• The federal government reported that house prices nationwide stopped their slide between January and February -- and actually increased by six tenths of one percent.
• Interest rates remain well under 6 percent, according to the Mortgage Bankers, with 30-year fixed rate loans last week averaging 5.74 percent and 15-year loans at 5.27 percent. The Federal Reserve is likely to knock another quarter percent off short term rates next week.
• Freddie Mac announced plans to pump up to 15 billion dollars into the "jumbo conforming" loan market -- those are for high cost areas that really need some stimulus right now, like California.

Now, positive-sounding economic developments are not ballgame-changers for real estate. We've still got lots of housing inventory to sell before calling an end to the down cycle -- and total sales dipped 2 percent in March, according to the National Association of Realtors.

We're still dealing with a lack of confidence on the part of some consumers who are afraid that maybe prices still have a ways to fall.

But here's the point: It's undeniable that there are some glimmers out there that the underlying economy and financing marketplace, which after all are what support real estate activity, finally may be headed in a positive direction.

Orlando's housing marketing experienced a month-over-month increase in the number of home sales, an increase in the number of pending sales contracts, and a decrease in the amount of inventory - all baby steps toward a market balanced between buyers and sellers.

The monthly statistical reports released by the Orlando Regional Realtor® Association revealed some additional interesting tidbits for the month of March:

• the sales of homes costing upwards of $1 million more than doubled in March compared to last month;
• the sales of duplexes, town homes, and villas have increased in each of the last three months; and
• the majority of condos sold have fallen into lower and lower price categories for each of the last three months.

The median sales price of a single-family home in the Orlando area decreased by 1.35 percent ($3,000) from $223,000 in February 2008 to $220,000 in March 2008. The median sales price for March 2008 is 8.33 percent below that of March 2007 ($240,000).

The decrease in the median home price to $220,000 means that the area's affordability index increased in March to 102.35 percent. (An affordability index of 99 percent means that buyers earning the state-reported median income are 1 percent short of the income necessary to purchase a median-priced home. Conversely, an affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.) Buyers who earn the reported median income of $51,506 can qualify to purchase one of 10,980 homes in Orange and Seminole counties currently listed in the local multiple listing service (MLS) for $225,170 or less.

The first time homebuyer affordability index held steady in March, at 72.78.

The number of sales in the Orlando area declined by 39.29 percent in March 2008 compared to March of last year (1,080 to 1,779), but the number of sales that took place in March 2008 increased by 13.56 percent compared to the number of sales that occurred in February 2008 (951).

There are currently 2,398 homes in the MLS with pending sales contracts (an indicator of future sales activity), up from 1,731 in January and 2,175 in February. The number of homes newly under contract increased by 142 in March, and the increase from January to February was 298.

The area's average interest rate was 5.94 percent in March 2008, up from 5.87 percent in February but down from 2007's high of 6.60 percent in August.

Homes of all types spent an average of 130 days on the market before being sold in March 2008; the average home sold for 93.53 percent of its original asking price. In March 2007 those numbers were 90 and 95.87 percent, respectively.

The majority of single-family homes (223) that changed hands in March 2008 were sold for between $200,000 and $250,000. Another 129 homes sold in March for between $250,000 and $300,000. Two hundred eighty-four homes sold for less than $200,000 in March, and 260 sold for more than $300,000. On the far ends of the scale, 31 homes were sold for $1 million or more (double the number sold in February) while only 10 homes sold for less than $50,000.

About the author:

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit http://www.jerrysellsorlando.com/ for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

(Copyright © 2008 By Jerry LaRose, P.A. All Rights Reserved.)

Homeowners reluctant to sell because prices have fallen should do the math and realize that the market downturn could work in their favor.

"People are finding houses at prices they thought they'd never see again,"
I would like to point out that to potential sellers that if the house a buyer covets used to be $500,000 but its price has fallen 20 percent to $400,000, it is a deal, even if the buyer's own home also has lost 20 percent of its value.

In general, the toughest will be for people who bought within the last three years, at the height of the market. But even for these homeowners, selling now may make sense as long as they can at least break even, or their trade up property is down more than their current property. (ie., that $500,000 home 3 years ago that may be now worth $400,000, considering it's down 20%, when your home 3 years ago was worth $450,000 and is now worth $390,000 down only 13%. That's nearly an even trade considering you would be getting a bigger home in potential a better neighborhood.

Almost everyone forgoes something, and probably several things, that he or she wanted when buying a house. For instance, the home may be in the right school district but on a busy street. Or it may in a great neighborhood, but it's a 2 story, not a 1 story. These are "unchangeables."

It's a good time to sell if a seller can get rid of the most negative unchangeables in his current home and replace them with better unchangeables in a new home. Once the market really turns around, the growth will be bigger in the better house.

About the author:

Jerry LaRose is an Orlando Area Residential Real Estate Expert, who can assist you with the purchase and/or sale of real estate in Orlando, Windermere, Winter Garden Florida or any place in the country. Jerry has created a team of professionals throughout Orlando and the country to ensure that you enjoy a smooth transition to your new area. Please visit http://www.jerrysellsorlando.com/ for your real estate needs. Please give me a call if you have questions about the Orlando and Central Florida real estate market.

Jerry LaRose, P.A., ABR, GRI, e-PRO, CLHMS, REALTOR® 407-580-7011

(Copyright © 2008 By Jerry LaRose, P.A. All Rights Reserved.)