Brian Acey

Just like the news anchor in the 1976 movie, Network, I'm mad as hell and I'm not going to take it anymore!

Are you tired of banks making all the money by making risky business decisions and then complaining that he is now losing money on those bad decisions? To make matters worse, our federal government is now saying that they will bail out and cover their losses!! All the time saying it is in "our best interest". Then there is the short sale...where the bank takes less than owed on the property....and of course write off the loss as they would in any case...but again, the little guy gets it...in the form of a potentially HUGE tax bill for the shortage....not to mention the possibility of a deficiency judgment..WOW, who wins here.....the banks of course.

I think it is time we get back what we can from the banks in one of the only ways we can. Buy those bank owned properties (REOs)....negotiate, demand and be willing to walk away from them if we don't get what we feel is a GREAT deal on the homes. Forget the short sales, the banks quite often won't approve them (why should they...the Federal Government is going to bail them out from those "bad loans" anyhow). Even if the bank does approve them, the buyer doesn't wait long enough for the bank to get back to them on the answer...sometimes as long as 4 months and occasionally even longer. Forget the auctions..even IF you have the cash required, the bank puts a minimum price that is usually too high to make it a great deal considering the lack of inspection time or ability to even see the inside of the home prior to sale. Let the bank take the home and then hold onto it long enough to make it hurt...then drop the price drastically to get it off their books....

Let's push the sale of REOs, push the limits on negotiations and get our customers some incredible values....

I am not absolving the consumer or realtors from their responsibility. In fact, I think that some real estate agents talked people into buying when they shouldn't have...connected the poor, trusting buyer to predatory lenders that hooked them up with high cost loans with lots of "POC" fees (called back-end) that are Paid Outside of Closing. All the while telling the customer "trust me". It was actions like that that gave real estate agents the reputation of plaid-coated, fast talking used car salesmen and put our economy where it is.

Hopefully there are a lot of us out there that can change that image and get our new customers GREAT values on great homes with great loans at great rates on REO properties. I know I am going to make this my challenge for 2009....to improve our industry's image and get our economy on a roll once again...with solid buyers using solid loans to buy solid homes and to try doing it on REO properties.

How many times have you heard that question asked by potential cusstomers...or even repeat customers? I would venture that it would be just about everty time you come in contact with one. I was told a long time ago by someone much wiser than me to follow the "Bigger Pile Theory". What that means is, that if you have a "bigger pile" than me, then perhaps I should listen to you. that "bigger pile" could be in any portion of life....happiness, wealth, marriage, real estate, problems.....If you have more problems than me and I want more porblems, then perhaps I should listen to you. On the other hand, if you have a happier marriage than I do, then listening to you about marriage would be wise, right? And if you want to have more wealth, then you should listen to someone that has more wealth than you do.

Today, I listened to someone like that....They have more wealth, more real estate and more free time...I want more of those things, don't you? What he said was simply, "If you want to live like everyone else, act like eveyone else...If you want more than everyone else, do what the majority of people AREN'T doing. Do what 92% of the people out there won't do....take advantage of the buyers market and the interest rates." He just completed the purchase of 2 properties, sold 1 and is about to purchase another. So far this year he has PURCHASED 7 properties....some with owner financing, some with cash (not something I could do) and some with conventional financing.

So, afdter today, I will remember, from my Bigger Pile Mentor, my response to the question "Should I buy or sell in this market?" will be:

Do what your friends and neighbors AREN'T doing!

So, the Feds are going to bail (and have bailed) out the banks. They have given them money to cover their bad loans, have taken over Freddie Mac and Fannie Mae. Now they are talking about buying the mortgage backed securities that no one else wants. What is that doing to the real estate market?

I don't have an economics degree, am not an expert nor am I an executive in the banking industry, but I DO have an opinion. What am I asking are merely rhetorical questions and statements of how I would act if I were in the position of the lending institutions. I speak from my daily experience of interactions with banks on different levels and their lack of action.

As an agent representing both buyers and sellers in this real estate market, I personally have 2 short sale listings and am representing buyers on 3 REO or short sale properties. Here is my experience that causes me to question the lenders motivation to act.

With short sale properties, have you noticed that the lien holders are less than responsive to you, the agent or even the "professional short sale negotiators"? Do you have an offer placed on a short sale porperty or REO property? Have you noticed that the banks are not responding to your calls for action?

Let me ask....If Joe owed YOU money and he obviously couldn't pay all that he owed, would you take what you could get and call it a day? I would. What if you got a call from a wealthy neighbor who said "I know that Joe owes you $200....and he can only pay you $100.....If you take the $100, you are done and you will lose the other $100...BUT..if you refuseto take what Joe can give you and wait, I will give you the whole $200...What would you do? So much for short sales, huh? Rather than accept what I can get, I'll foreclose, cry to the FED about my losses and get paid.....It doesn't matter that when I made the loan, I got paid 6 points up front (it was a hard money loan), charged usurious interest rates and made money on the prepayment penalty...

So, to me, it seems that our lending institutions are motivated to do NOTHING to close our short sale properties because they are waiting for the saviours in our federal government to cover their losses...so once again, WE, the general public, are the ones left hurting. Isn't it a shame? Shame on us for buying when we couldn't afford it, shame on the banks for making the loans that they shouldn't have and shame on the federal government for not holding the banks responsible for their own actions.

Lets talk a bit about the real estate market and financing...this has a profound affect on all of us, not just me. Even the pundits, politicians and journalists realize that the state of real estate runs the economy. The problem with the general media is that they LOVE to sell...advertising, fear and panic. The media and politicians will tell you the state of the real estate market and how bad it is...citing Phoenix, Las Vegas, San Diego and Florida. To cite those areas is fine IF you live in those areas. I compare that to hearing it is 80 degrees and sunny....and it is...they aren't lying...it just isn't 80 degrees and sunny HERE! Somewhere it is....but not here...not in December!

Real estate is a local phenomenon. Like the "Convergence Zone" in Snohomish County. It might be raining there, but clear and windy in Marysville, or snowing in Arlington. If you want to see what is happening in YOUR area you can look out the window for the weather or call a local expert for the real estate temperature in your area. Getting the statistics for Snohomish County will give you a general idea, but it won't tell you what is happening in Mukilteo, for example, as compared to Darrington or Mill Creek. Each area is unique. If you want to know what is happening in YOUR area, call me or send me an email and I will put together a short report for your neighborhood showing recent activity, trends and projections. It will take a couple of days, but then you will really have the true picture.

Financing has sure changed over the last year hasn't it? I know that everyone is saying that there isn't any money for home loans and even if there was, nobody could qualify anyhow....right? NOT TRUE! As a matter of fact, the lending guidelines are loosening up a bit and we now have 3% down conventional loans, 3.5% FHA loans, 0 Down VA and Rural Development Loans...and believe it or not, I have actually found 1 or 2 ZERO DOWN CONVENTIONAL loans! The Interest rates have droped to a point lower than I can remember....on Friday, December 12th, they dropped to 4.875% for conventional and FHA loans!

So, is this a good time to buy or refinance? Absolutely! Believe it or not, it really is a good time to sell too! Even though prices are not what they were and your home isn't worth what it was 12 months ago, if you are thinking of moving up, remember that the house you would be buying is also not worth as much! And at 4.875 rates, your payment probably wouldn't be much more than you are paying now. The buyers that are out looking right now are serious and have all their ducks ina row and are well qualified and ready to move...that means fewer "Lookie-Loos" to interrupt your day...when they do come by to look, they mean business!

So much for business....I wish you all a very Merry Christmas, Happy Hannukah and a Happy and Prosperous New Year!

Do you ever get tired of non-producing agents tell you how bad the market is? I sure do. Sure, it's harder to find a qualified buyer....or is it?

Two years ago, we didn't have to find qualified buyers...we just had to find buyers...someone...anyone. They didn't have to be qualified. Regardless of who they were, what they made, how they paid their debts...they could get a loan. Now we have to actually work and find a buyer that makes a decent living, has good credit...and it helps if they have just a little bit of money.

And yes, we now have to qualify our sellers too. Do they have the equity that makes them able to sell in this down market without having to sell "short"? If they have to sell short, will the lender accept their position and not make them bring a checkbook to the closing table?

No doubt, us full time agents have to work harder for our money. Work harder, work smarter and commit to ourselves and our customers that we will be around for them over the long haul. I don't condemn those agents that have to find second jobs to supplement their income, but I compare this to a retail establishment cutting back on their marketing during slow times.....cutting back on advertising and time is the LAST thing we should do in lean times. We might be better off redirecting and concentrating our efforts to those things that have provided us with business in the past. This is called working smarter. Know where your business came from in the past and concentrate our money and time on those things that worked. Get rid of the stuff that didn't. Perhaps try something new if it doesn't cost too much money or time the TRACK the numbers. If we are now only working part time, then we don't have the time in our day to spend doing what will change our market.

This market IS different than we have experienced, but it still is active. People still have to sell, others still have to buy....and the visionaries WANT to buy. The visionaries know that many, many millionaires will be made in this market. It's up to us, as professionals in our field, to help them realize "THE TIME IS NOW!"

This market is what we make it and what we do will determine our own future.