Greensboro, NC Real Estate Larry Story's Blog of the Triad!

We seem to be our own worst enemies at times. Unfortunately, some of the government policies are contrary to basic business policies. If we continue to tax our businesses they will continue to trim their own costs. One basic fact of business is that one of the biggest and fastest way to cut costs is to cut labor. Now your basic business planning is to staff for the business you want not what you have. In an economy where there is hope of business improving an not going down you can do that. Otherwise you must trim the fat and sometimes unfortunately you trim some things which are not fat. Let's compare it to a crash diet or fasting. When a body does not get food it stores up what little fuel (money) comes in (sound familiar like maybe some TARP funds). Then when nothing is coming in the body turns inward and consumes (or like business cutting back) the fat. Only thing is after the fat starts to disappear it will actually start on muscle. So just like corporate business today they have cut all the fat they can. If need be they will cut some muscle (labor) to continue to try and lower their overhead.

So just because we have a majority in both houses and the same party in control of the executive branch they can ram through whatever they want as far as legislation. I believe the picture says it all.

We all know that our major industry that fuels some many other industries is the housing market. New construction homes and even the buying and selling of older homes feed so many other markets. I read today that furniture orders are way down. Well of course my answer was no duh! If people are not moving they are not buying new furniture, appliances, carpet/flooring, paint, or anything for the home.

So I hope and pray we are not too overconfident in our elected officials and their ability to solve this crisis. I am a firm believer in the capitalistic system that is much like nature. The survival of the fittest. Yes some businesses need to fail. By us "bailing out" these companies we are just perpetuating a company that has already failed once. So let us not be too overconfident and keep a careful watch on what is happening. The worst thing that we can do is to stand by and do nothing in a time of crisis.

I got a wonderful call from one of my buyers just a few minutes ago. Young family that have been saving up for the downpayment for a home (moving up in size). They are getting a pretty good income tax return and now they have their downpayment!! Yahooo!

So what are your buyers doing with their refunds?? Hey let's face it if they are in the upper end of the "middle class" or even higher it might be the last one they get for awhile.

I can remember my mother always after me to save. Well, I grew up and decided to let Uncle Sam save it for me (Hey I was young and dumb I know no interest) let's face it at that age if I didn't have it I couldn't spend it. So what better way to get a nice chunk of money to put towards something that really is a safe investment.

The Author:

Larry is a Greensboro Residential Broker, CARTUS Certified Relocation Specialist, Previews luxury homes trained, SRES & CHMS who can assist you with the purchase and/or sale of real estate in the Piedmont Triad Area that include but, not limited to Greensboro, High Point, and Winston Salem, NC. If you're relocating to or from any other area of the country, Larry connects you with a member of our national team of relocation specialist in your destination or exit city of choice. The destination service is of no cost to you! The Coldwell Banker Triad's service guarantee puts us way ahead of the competition by providing customer service that is equal to none. Your complete happiness is our top priority! Larry Story - Coldwell Banker Triad Realtor's - 336-327-1841 also at www.storybookhomes.ws

Copyright© 2009 By Larry Story, All Rights Reserved...

OK we have discussed the historically low interest rates to death. We have also covered over and over the fact that this is definitely a buyers market. Now the Stimulus Plan that the legislature is voting on has a clause in it that will make the $7,500 tax credit a gift not a loan! While I am not in favor of this whole plan I guess if there is what you might call a silver lining that is it. Our NAR has fought very hard for it so if and when it does go through that is the one part I am going to be watching to make sure it stays in.

You can make sure that the minute that a bill passes and has that in there I will be on the computer and the phone because guess what the deal expires July 1!!!! How much more incentive could our first time buyers have! I mean good grief! I would surely just hate to be the one person out there that would miss out on A)these interest rates, B) this buyer's market, C) Free money from the government to buy a home!

The Author:

Larry is a Greensboro Residential Broker, CARTUS Certified Relocation Specialist, Previews luxury homes trained, SRES & CHMS who can assist you with the purchase and/or sale of real estate in the Piedmont Triad Area that include but, not limited to Greensboro, High Point, and Winston Salem, NC. If you're relocating to or from any other area of the country, Larry connects you with a member of our national team of relocation specialist in your destination or exit city of choice. The destination service is of no cost to you! The Coldwell Banker Triad's service guarantee puts us way ahead of the competition by providing customer service that is equal to none. Your complete happiness is our top priority! Larry Story - Coldwell Banker Triad Realtor's - 336-327-1841 also at www.storybookhomes.ws

Copyright© 2009 By Larry Story, All Rights Reserved...

I have read several posts lately from around the country that testify to the fact that more and more buyers are missing out on potential deals. Because they are dragging their feet. I had one just last week. We found a house, a great deal almost $40,000 below tax value. No real repairs to be done except paint and carpet. He was supposed to come and sign Thursday and then Friday. Well then finally came in Monday, well when he got here in the morning to sign first thing I go to look and it is under contract. I have recently seen several other of my fellow AR members testify on their own blogs of the same thing. Good things do not last forever and this "PERFECT STORM" for buyers of a buyer's market and historically low interest rates will not last forever. Let's face it the theory of diminishing return is soon to be in effect. I heard on the new that the new construction numbers are at an all time low. Now this is a bad indicator for the economy but it is the free market healing itself in our arena. Now that there are not so many homes being built the inventory will start to go down. Once the inventory gets back down to a manageable level the market WILL TURN! Make no mistakes this will happen and for some buyers it will happen while they are asleep at the computer. They are going to see a once in a lifetime opportunity pass them right by. I saw some figures the other day stating that the last time the interest rates were this low was 1951. So OK that was 58 years ago. The average lifespan for a male is approximately 75 give or take a few years. So maybe in another 50 yearsthis will come back around since we all know everything works in a cycle. Don't know about you but I don't think I will still be here in another 50 years. This phenomenon may last another couple of months it may six months but, it will not last forever! Don't you wish you had bought Microsoft stock when it first came out or, Google. Now it is going to be soon don't you wish you had bought a home in the first quarter of 2009.

www.storybookhomes.ws

Maybe I should clarify. When a client is asking you for advice and there is an option that does not include as big a payday for you as the other option which road do you take? I would consider this the old High Road vs Low Road issue. Too many Realtor's have one thing in mind and that is their bottom line (otherwise taking the Low Road to a paycheck). We have all met them. Let's face it many of this type of Realtor is the reason we fight everyday to prove our worth and our character. We fight and work for a long time to establish our reputation and the value of our business. When representing your seller do you have THEIR best interest in mind or, are you just looking for a sale. I am reminded of this much too often when I take over a listing from another agent that has not (what I would say) properly done their job. That is to educate, and counsel your clients as to the best way to achieve THEIR goal. One of the first steps to that is ASK THEM! I went to a listing appointment a few days ago. Now this is possibly going to be a short sale but, I asked them what was it they wanted to achieve? They said that they wanted the most economical solution to their problem. OK now I have a direction. Luckily for them they have a FHA loan. I will meet with them tomorrow night to discuss their options. Only one of those includes selling. Now with the H4H program and other HUD programs we may have other options. I see myself as more then just a person that helps people sell and buy homes. If I can help someone to have a better life themselves I jump at the chance. I do volunteer work in the community which does make a small difference but, if I can help someone to stay in their home and not be affected in a negative manner that makes me feel good.

In this time of financial crisis there are many families out there that need our help. They rely on their Realtor's for advice and honesty. Granted sometimes that answer is not a pleasant one but, how good would you feel if someone told you that you were not going to lose your home. Not that it is the reason but, you will also find that you reap what you sow. Every time I have helped out a person or family I find that the referral business I receive far outweighs the little bit I would have made off of one little sale.

So as a farmer what type of seeds are you out there planting? Do you find yourself surrounded by thorns or a bountiful harvest?