Dan Gobis

Hunkered Down Consumers (buyers included) are Beginning to Emerge after seeking shelter from the storm. Was it the 'perfect storm' as defined by Wikpedia... "the simultaneous occurrence of events which, taken individually, would be far less powerful than the storm resulting of their chance combination. Such occurrences are rare by their very nature, so that even a slight change in any one event contributing to the perfect storm would lessen its overall impact. Since the 2000 movie by the same name, the phrase has gained popularity and grown to mean any event where a combination of circumstances will aggravate a situation drastically."

It was the perfect storm. Many took shelter. Many were lost in the storm. Many were injured. Many more have survived, and are stronger for weathering the storm. The strong need to share, with the injured, the lessons of the storm. Others that survived, by pure luck, need to take lessons from the experience and from the strong. We need to do all we can to hopefully avoid another 'perfect storm', or at least be better prepared for it.

Consumers are emerging from the shelters as they get positive signs of recovery from the storm. The sun is shining again. Yes, we will have cloudy days, but it is time to move forward with our lives. It is the American Way.

Real Estate is local. The overall Real Estate market in the United States affects all local markets. Local markets will reach the bottom of their specific market(s) at different times. Idaho, North Dakota, Wyoming, and a few other states that have not, generally speaking anyway, been victims of predatory lending to the degree other states, such as California, Arizona, Nevada, Florida, ..., have had predatory lending as the norm, rather than the exception, willrecover sooner than the states that were suseptible to predatory lending.

Real Estate is local. I am an expert in my market, Racine County, Wisconsin. We have experienced declines in property values, depending on municipality, ranging from 7% to 18%, annually since 2006.

The number of closed transaction in Racine County for 1st quarter 2009 vs. 1st quarter 2008 the decline ranges from 28% to 48% depending on the municipality. Are we close to the 'bottom' of our market? Depending on what Washington does, how the automakers deal with their challenges, how consumer confidence does, how the credit markets recover, how the greedy lenders and Wall Street react by making good borrowers pay for the lenders, and risky borrowers, past indiscretions, and how unemployment is managed, ...

According to the most recent study done for the PMI industry, the Racine, Milwaukee Metropolitan Statistical Area, (MSA), is rated at minimal risk, less than a 5% of probable decline in property value over the next 12 months, as compared to other areas that may face declines of 20%-40% over the next 12 months.

Is the bottom near? I think so!

Listing properties nowadays brings a myriad of challenges. Proper pricing, convincing sellers of the actual value of their property, even with the most detailed market analysis, is the biggest challenge. I normally do a traditional market analysis, followed by another analysis of sold prices vs. assessed values in a narrow ($10k-$30k) sold price range, and a 3 month and 6 month analysis of current year solds, in the same narrow price ranges, as compared to the previous year time frames in the same 3 and 6 month periods. Sellers, almost always, are able to see, and usually agree, with my conclusion of value.

Seller motivation is always the most important variable I consider whether I will list a property, yet it never ceases to amaze me when the even the most motivated seller wants to list at a price considerably more than my recommended list price, even when they agree with my conclusion of value.

Some sellers look at the challenge, as having a negative attitude, rather than a realistic assessment of the market.

Maintaining a positive attitude in a rapidly declining real estate market brings many challenges to all agents. How an agent handles these challenges will determine their longevity in the real estate business, as well as how the agent adapts/embraces the changes taking place in our industry in technology and transparency.

The sooner agents properly advise their sellers as to market value and market conditions, rather than taking the listing for long time periods figuring they will eventually wear the seller down and get the price reduced to where it needs to be to sell, the sooner the market will recover.

Good things are happening in Racine Wi. We have the challenges brought on by the national economy, but Racine is moving forward, in small steps, but forward.

Our Real Estate market did not experience the double digit appreciation that many other markets had, and because of this, our market adjustment is not as prolonged as the markets that had the big appreciation rates.

Investors are buying, multiple bids on foreclosures, that are properly priced, is the norm. The follow up to this activity should be the market returning to a "new normality" with owner occupants buying properties again.

Patience grasshopper.

A hassle-free transaction? They happen when you use experienced professionals, knowledgeable about the locality in which you are planning to purchase a home. Fortunately in Racine, Wisconsin we have many experienced professionals in the Real Estate Industy.

Racine based lenders have less than 5% of the foreclosures listed in Racine County. The majority of properties in foreclosure in Racine belong to out of state lenders who were unfamiliar with the Racine area real estate market. If you are purchasing a home in Racine County there a many quality, experienced lenders to choose from. If you need recommendations, feel free to contact me.

Racine based Home Inspectors are familiar with local conditions and building practices. An experienced, quality Home Inspector will know and understand local influences that may or may not be of concern, without creating unnecessary stress for you. Again, feel free to contact me for recommendations.

REALTOR? Need a professional, experienced, honest and ethical REALTOR? If you need a recommendation, feel free to contact me. http://www.dangobis.com/