Dr. Anthony G. Ziagos, Sr.

Reality of Real Estate Novel Idea? Part 17 Merrimack JOurnal January 2008

Dr. Anthony G Ziagos, Sr.

I had a conversation recently with another real estate professional and I began to think about what we were discussing. I called a few mortgage lenders and asked their opinion of our conversation. I then called a few real estate appraisers and asked for their opinion. We all arrived at the same conclusion. Our consensus would provide a real solution to avoid a reoccurred of the sub-prime mortgage dilemma. Only lend money to qualified buyers. AMAZING !!!

With just a few telephone calls and a moderate amount of discussion we could save the world!! It is my understanding that most local lenders always had funds available for qualified borrowers and still do. We have also learned that part of the problem might have occurred due to wall street investors willing to risk funds into a high yield,high risk lending pool that did not work out the way the wanted it to. Upon further investigation we have learned borrowers who could not afford to buy property were given mortgages that would "adjust" and neither the lenders or the borrowers paid attention to the disclaimers or the potential for problems disclosed in the mortgage instruments. Is it also possible someone was not totally honest when they filled out the paper work? <look of horror on the writers face>. Oh my !!

Thousands of hard working families will continue to work hard and sacrifice to keep their payments current. Some honest hard working people will be hurt by the economic downturn, as they are in every economic cycle. It is truly unfortunate that people are in this situation. It is our opinion, however, that neither the government nor the tax payers should bail out an investor or a borrower due to their lack of good judgment. ©2008 Middlesex Media Exchange/ All Rights Reserved

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Reality of Real Estate Bid and Asked Part 11 Merrimack Journal July 2007

Dr. Anthony G Ziagos, Sr.

Anyone who has invested in the stock market understands the concept of Bid and Asked. Supply and demand determines the price of anything of value. The value of Real Estate like Stocks and Bonds fluctuate with supply and demand. The Asked price of real estate is the perceived value of the seller and what they want in exchange for their property. This perceived value may be real or just something that sellers imagine based on their own preference. The Bid price is what is offered by a buyer who is willing to invest their resources in exchange for real property. Circumstance will determine if a buyer will pay more or less than an appraised value or what a seller is asking. The price is also influenced by the terms of the sale or if a seller is willing to share the risk associated with uncertain or unknown factors regarding the property. What makes real estate different than stocks and bonds, very little. Each one has an opportunity cost or "holding cost" depending on the situation. Usually holding real estate cost more than paper securities, however, the potential gain, short term or long term may outweigh the cost. The "unknown factor" is the gamble. Without a crystal ball, flippers, speculators, and investors always face a risk when buying real estate. Like any other investment, there is risk and reward. If you HAVE to sell, you get what the market offers. When a seller and a buyer cannot agree there is no transaction. Over supply of sellers willing to exchange real estate for dollars and lack of demand from buyers is what we are faced with in the current market situation. Transactions are made when two people agree based on their circumstance and minimizing unknown factors.

Here are two real life examples of current market situations. Both properties need work to move in. Property A is asking $325,000 for appraised property. Buyers 1, offered 260,000, buyer 2 offered 275,000 and buyer 3 offered 265,000. Seller said no to each one without a counter offer or reason. It appears they want to own this property for a long time, costing them $3,500 per month to carry.

Seller B is asking $225,000 for city property. Buyer offers $150,000 and seller counters at $190,000 they are still talking but not close enough for a transaction yet. Seller B appears to be more in touch with reality.

Based on the current market conditions there is a lack of demand for property at current asking prices. Appraisers appear to be at odds with buyers, sellers and lenders. A lack of understanding of the economics of the real estate market, the result slowdown in the overall economic landscape is further exacerbated by inaccurate interpretation of market conditions and economic reality of the marketplace.

Perhaps price is not the problem with the transaction? Maybe terms and conditions make it difficult for either party to accept an offer? High asking prices could be accepted if buyer and seller were to agree on terms and conditions that take into account uncertainty of the market and minimizing unknown factors. Again, write the offer and start negotiating a transaction.©2007 Middlesex Media Exchange/ All Rights Reserved

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Opportunity Merrimack Journal April 2008

Opportunity

Dr. Anthony G Ziagos, Sr.

Opportunity is the key word today in the current real estate environment. For the last 18 months we have been offering our readers knowledge and information on how to help them navigate through the current sea of turmoil.

As a real estate professional I am distressed to see all the negative and misleading information that is circulating in the main stream media. Here are some reality of real estate facts. Qualified buyers can ALWAYS obtain funding to purchase or refinance real estate. People who write offers get to buy real estate. Property that offers good value to a buyer will ALWAYS sell. Market conditions in Arizona and California are not necessarily the same or relevant to what is going on in New England. Of course there are many more reality checks than these, however, a buyer or seller must work with a qualified professional to determine the "circumstance" and only then can they offer solutions that are right for you.

Buyers who are actively seeking real estate opportunities do not see a distressed market, they see an opportunity to purchase property at great prices. Lease rates have dropped in the last year offering tenants an opportunity to save money. Despite the lack of appreciation in the last few years property is still being offered for sale and transactions are closing every day. Over the long run real estate is one of the best investments you can make. Consult with a real estate professional so you can take advantage of opportunities in todays market. ©2008 Middlesex Media Exchange

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Reality of Real Estate Part 20 BUY BUY BUY Merrimack Journal January 2009

BUY BUY BUY

Dr. Anthony G Ziagos, Sr.

Now is the time, this is the place BUY BUY BUY. Real Estate offers great value if you buy it right. Make your profit when you buy rather than waiting for a sale. In all likelihood, it may not get much better. Any further declines will be marginal at best over the next six to twelve months. Favorable interest rates, under 5%, indicate the time to buy a home or invest in a single family house for income and future growth is right now. We made this recommendation in September of 2007 and we continue to see excellent values and financial packages that make economic sense. The decline in values since September would have been offset by income generated and excellent posture for future refinance given continuation of attractive rates. Qualified buyers will experience an advantage in current economic environment. Lease with an option to buy is another strategy that will yield great dividends.

When the real estate market price curve intersects with the rental market rate curve it signals an open window to buy real estate. EVERYONE has to rent or live somewhere. This article is not intended as legal or accounting advise, however with the guidance of a real estate professional, you can determine where to buy or what strategy to use that best suits your situation. It is a signal to act before its too late. When rental prices are greater than the cost of owning a home it is time to BUY BUY BUY. Any further declines in interest or property prices will not effect the mechanics of a transaction. When the world wakes up, it will be too late and prices will begin to climb once again and the cycle will continue.

Interest rates should be available, in the 4.5% range, and the cost of an average house in many cities and towns is below rental market rates. House sharing can work for many families and at less than $1000 per month anyone who wants to own should be able to own.

©2008 Middlesex Media Exchange/ All Rights Reserved

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Real Estate Counseling, Educational Opportunities ~ Seminars and Lectures Full Day & ½ day

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Two Faces of Anything Part 19 Merrimack Journal May 2008

Dr. Anthony G Ziagos, Sr.

In the Chinese language, characters are used instead of words. To the untrained eye they appear to be complicated and difficult. To the people of China, it is normal and easy to understand. Twenty years ago, at a real estate seminar, I learned an interesting piece of information and to this day I refer back to the wisdom and diversity of that observation. The Chinese character used for the word "Crisis" and the word "Opportunity" are the same.

Observation and perception are a lot like crisis and opportunity. When you observe an event you look at it based on your perception and your values. If you do not understand the history of an event or why it occurred your view is limited and bias. You cannot see the big picture if you do not have knowledge and information about the past.

Anyone observing an auto accident can attest to this. Same accident, two witnesses, two different stories. If you own a large block of "Oil Company Stock" your view of the oil crisis is very different than someone who has to fill their tank to get to work. If you depend on dividends from a pharmaceutical company for your retirement income, you may be less aggravated about the cost of prescription medication. If you want to buy a house you are more concerned about good value and less concerned about the seller's circumstance.

During these difficult times and economic crisis, opportunities are plentiful. People who are resourceful, creative and hard working take advantage of this time to become more efficient and look for ways to conserve and make every dollar count. The lazy and unimaginative and those who prefer entitlements to work, sit and moan about how bad things have become. ©2008 Middlesex Media Exchange/ All Rights Reserved

Qualified Expert Witness with 30 years experience

All Judicial Matters involving Real Estate

Transaction Structuring and Opinion of Value.

Real Estate Counseling, Educational Opportunities

Seminars and Lectures Full Day & ½ day

visit our web site:

www.Middlesex1031.com