Ron Wickes

Reading self-improvement books is a daily habit of mine. These books help fuel my dreams and keep me focused on my daily, monthly and long term goals. As I was rereading one of my favorite books today a particular passage caught my eye. The passage made me think of tentative home buyers and sellers. This particular passage read "A committed heart does not wait for conditions to be exactly right. Why? Because conditions are never exactly right. ...... He has put the vision in you - proceed." Please notice the words vision and proceed. These are big words; they say a lot and most likely if you are reading this they apply to you.

You have the vision, the dream. You have the vision of a new, bigger, smaller, fancier, closer to work, in the country, in the city, second, third, investment, on-the-lake, oceanfront or whatever home. A home you do not have now but a home you have the vision of owning. The vision is clear. The vision is in your minds eye. It is there and it will not go away. The vision is committed in your subconscious, but have you consciously committed to the vision?

Are you doing something everyday to make the vision a reality? You may answer that question by saying something like "are you kidding me"." Buy a home in today's economy?" "You're nuts!" No, I am not nuts. I understand your tentativeness as regards the real estate market however I do not agree with it. In my little corner of the world it is a great time to buy or sell a home. Values have not come down in the last two years. In fat in one area by me they were up about 7% in 2008 over 2007. Yes it does take longer to sell a home and unit sales have fallen but values have not. It may not be the same in your little corner of the world I know that. But it will not always be that way. However you are the client, you make the decisions and I only consult and advise. So what am I advising? I am advising you "COMMIT TO THE VISION"! I do not care about the circumstances I am advising "COMMIT TO THE VISION"!

If you are buying, COMMIT TO THE VISION, by checking your credit score, getting credit restoration if necessary; get your credit score as high as possible, save an extra $1.00 dollar a day towards closing costs or save an extra $5.00 a day for that down payment. Talk with your realtor about areas, schools, subdivisions, the number of bedrooms and bats you require, HOA fees, transfer fees, termite inspections, home inspections and on and on. Talk with your mortgage banker about interest rates, origination fees versus a little higher interest rate, discount points, conventional versus FHA loans, VA loans, credit score requirements and on and on and on. Select and consult with your chosen professional now. Do something everyday to COMMIT TO THE VISION.

If you are selling, COMMIT TO THE VISION, by caulking every crack in your home, repainting the room that really needs it, trimming the trees, putting a border on that peeling mirror, choose your listing realtor now, have your realtor walk your house with you now and discuss needed repairs and staging, clean the gutters, clean the closets or save $5.00 a day for moving expenses. Discuss home warranties, proper pricing, showing requirements, good buyers, bad buyers and on and on and on. Select and consult with your chosen professional now. Do something everyday to COMMIT TO THE VISION.

As the passage I mentioned earlier said "He has put the vision in you - proceed." Proceed by committing to the vision. I know you will find great reward with that commitment.

Have a great day!!

Ron

Today I just finished mailing to my database the Executive Summary to my 2008 Montgomery County Single Family Residence Review. The actual report is 42 pages in length and shows all of the important data for 2008 as compared to 2007. The report really is not a shocker by any means. Unit sales were down just over 20% for 2008 versus 2007. However the good news is that the average sales price and median sales price for the four MLS areas that comprise our county held steady and in some cases were up. We really saw no price deterioration in our county. That is great news as far as I am concerned.

In really looking at the numbers I think I even saw some positive trends developing towards the end of the year. I have no idea if those upward spirals will continue but do feel that we will know shortly. Let's all say a prayer that we see a unit sales increase this year. IF you would like a copy of the report send me an email. Here is the summary. Have a great day. Ron

Montgomery County Single Family Residence Real Estate Review - Executive Summary

This Executive Summary is part of a forty-two page report. The complete report may be obtained by contacting me at ronwickes@kw.com.

MLS Area 15 - The Woodlands area and west to the county line

Single Family Residence (SFR) unit sales were down 893 units or 20.53% in 2008 versus 2007. Yet even with this sales decline the average sales price increased $6,948 and the median price increased a minor $600. The average number of homes for sale on the active market stayed about the same and followed the same patterns as 2007. There was only a minor increase of twenty-two homes in this category. The average days on the market increased an average of six days per sale for 2008 versus 2007. The average home took 76 days to sell in 2008. Although values appeared to hold and it only took about a week longer to sell a home in this MLS area the sales decline did result in a higher average "months inventory" figure. This figure increased a little over half a month from 4.5 months average inventory for 2007 versus 5.2 months average inventory for 2008.

Overall MLS area 15 appeared to handle our decreased market in a fairly stable manner.

MLS Area 19 - Conroe and the eastern parts of Willis

Single Family Residence (SFR) unit sales were down 215 units or 19.06% in 2008 versus 2007. Yet even with this sales decline the average sales price decreased a hardly noticeable $35 and the median price decreased only $500. The average number of homes for sale on the active market stayed about the same and followed the same patterns as 2007. There was only a minor decrease of forty-five homes in this category. The average days on the market increased an average of thirteen days per sale for 2008 versus 2007. The average home took 91 days to sell in 2008. Although values appeared to hold and it only took about two weeks longer to sell a home in this MLS area the sales decline did result in a higher average "months inventory" figure. This figure increased a little over three quarters of a month from 5.9 months average inventory for 2007 versus 6.7 months average inventory for 2008. Overall MLS area 19 appeared to handle our decreased market in an okay manner.

MLS Area 39 - Lake Conroe, Montgomery and west Willis

Single Family Residence (SFR) unit sales were down 379 units or 25.44% in 2008 versus 2007. Yet even with this sales decline the average sales price increased a whopping $18,451 and the median price increased a huge $17,270. Although I can not say for sure I will hazard a guess that waterfront sales had an impact on these numbers. The average number of homes for sale on the active market stayed about the same and followed the same patterns as 2007. There was only a minor decrease of eighteen homes in this category. The average days on the market increased four days per sale for 2008 versus 2007. The average home took 101 days to sell in 2008. Although values appeared to hold and it only took about half a week longer to sell a home in this MLS area the sales decline did result in a higher average "months inventory" figure. This figure increased one and a half months from 7.7 months average inventory for 2007 to 9.2 months average inventory for 2008. Overall MLS area 39 took the most serious beating in 2008 yet average and median sales prices increased. Although I do not have the data to prove it I do believe that waterfront and prime water view properties had a heavy influence on these numbers.

MLS Area 40 - East Montgomery County

Single Family Residence (SFR) unit sales were down 116 units or 19.50% in 2008 versus 2007. Yet even with this sales decline the average sales price increased $1,004 and the median price increased $3,800. The average number of homes for sale on the active market stayed about the same and followed the same patterns as 2007. There was only a minor increase of four homes in this category. The average days on the market increased an average of twenty-four days per sale for 2008 versus 2007. The average home took 99 days to sell in 2008. Although values appeared to hold and it took about a month longer to sell a home in this MLS area the sales decline did result in a higher average "months inventory" figure. This figure increased a little over half a month from 6.5 months average inventory for 2007 versus 7.6 months average inventory for 2008. Overall MLS area 40 appeared to handle our decreased market in a fairly good manner.

Montgomery County Summary and Outlook

County wide SFR sales were down 21.20% in 2008 versus 2007 and down 24.4% from 2006. Yet if you look at some of the year end numbers in detail you may see some signs of a possible loosening in our market. It will probably take another month or two to see if these slight upward indicators hold true or not. County wide active listings are at their lowest level since before January, 2007. In the last four months of 2008, months of inventory dropped one month from a high of 7.8 to its' end of December, 2008 reading of 6.8.With this drop in inventory, historically low interest rates and pent up demand is it possible that we have seen the bottom and are now on the way up again? Only a couple of more months will answer that question. Please contact me for a copy of the full report, with any questions you may have and of course with referrals of people you know who are interested in buying or selling real estate. Have a GREAT DAY!

"You never know where the bottom of the market is until it has passed"

I ran into a friend of mine on Saturday who works for the San Jacinto River Authority. I ask him how the hydrilla situation was and what it might be like this coming summer. He said that with as many weed fish that are currently in the lake that we should not have a problem for five to ten years. Good news. Please realize that this is not an official statment from the SJRA but rather a disclosure from what might be called a "deep cover source". How's that for Washington DC speak?

Anyway I thought that was great news. He did mention that with that many weed eating fish in the lake that the lack of weeds does affect other water fowl. They are affected because of a lack or loss of suitable habitat. For every action there is an opposite and equal reaction.

Safe boating!!

Ron

Did you ever wonder how our economy got in the mess it is today? We all listen to CNN, Foxnews, the sage old male talking news anchor, the young pretty blonde up and coming news anchor, the fat bald loud politically active male and tall slender blonde political active female and they all blame a different person or group of people.

But are these the people we should be listening too? Are they the ones who really know what happened to our economy? What do the really smart people have to say about what caused this horrendous mess we find ourselves living with? Where are the really smart people so that we can hear or read about what they think? I think I may have found these smart people.

I was doing some reading today on this subject and started following some links. You know how it works, you start at A and think the link goes to B and you end up at R instead. But lo and behold I think I found the smart people who can tell us what really happened. Who are they? They are The Brookings Institution. I have heard of them before. They are the eggheads and the geeks. They are smart. Maybe they have the answer as to what happened to our economy. Today they just published a paper entitled The Origins of the Financial Crisis. I just read the three page summary and have printed the entire forty-five page report which I will review tonight. It may be boring but it should also be good. I wonder if President Obama or anyone else in Washington will read this paper from The Brookings Institution? Probably not as they will all be out with the lobbyist. I will put the link to the three page summary below just in case you would like to read it. At the top of the first page of the summary is the download logo which will give you the entire report.

Oh you want me to summarize the summary? Okay here goes it only takes two words. Stupidity and greed. Yep that's all, just those two words. Read the three page summary it really is interesting and tells us how much we can't trust Wall Street or our local banker.

Here is the link: http://www.brookings.edu/papers/2008/11_orgins_crisis_baily_litan.aspx

Have a great day!!

Ron

Since it is the beginning of a new year and a time when we all set our new annual goals I thought it appropriate to review why you should use a realtor if buying or selling real estate is part of your plans for this year. Let me start by asking a question. Are you thinking of buying a home or selling your home without the services of a great Realtor? I hope not but in case you are you will find below twelve reasons to use a Realtor. yes the reasons were written by the National Association of Realtors so you may view they as protective on our part. However in today's economic and real state environment can you really do without the services of a professional Realtor? Here are the twelve reasons to use a Realtor. And please use me!!

1. Your REALTOR® can help you determine your buying power-- that is, your financial reserves plus your borrowing capacity. If you give a REALTOR® some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders -- banks and mortgage companies -- offer limited choices.

2. Your REALTOR® has many resources to assist you in your home search. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.

3. Your REALTOR® can assist you in the selection process by providing objective information about each property. Agents who are REALTORS® have access to a variety of informational resources. REALTORS® can provide local community information on utilities, zoning. schools, etc. There are two things you'll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

4. Your REALTOR® can help you negotiate. There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Your REALTOR® provides due diligence during the evaluation of the property. Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your REALTOR® can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your REALTOR®, title company or attorney can help you resolve issues that might cause problems at a later date.

6. Your REALTOR® can help you in understanding different financing options and in identifying qualified lenders.

7. Your REALTOR® can guide you through the closing process and make sure everything flows together smoothly.

8. When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.

9. Your REALTOR® markets your property to other real estate agents and the public. Often, your REALTOR® can recommend repairs or cosmetic work that will significantly enhance the salability of your property. Your REALTOR® markets your property to other real estate agents and the public. In many markets across the country, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your REALTOR® acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, open houses for agents, etc. The REALTOR® Code of Ethicsrequires REALTORS® to utilize these cooperative relationships when they benefit their clients.

10. Your REALTOR® will know when, where and how to advertise your property. There is a misconception that advertising sells real estate. The NATIONAL ASSOCIATION OF REALTORS® studies show that 82% of real estate sales are the result of agent contacts through previous clients, referrals, friends, family and personal contacts. When a property is marketed with the help of your REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

11. Your REALTOR® can help you objectively evaluate every buyer's proposal without compromising your marketing position. This initial agreement is only the beginning of a process of appraisals, inspections and financing -- a lot of possible pitfalls. Your REALTOR® can help you write a legally binding, win-win agreement that will be more likely to make it through the process.

12. Your REALTOR® can help close the sale of your home. Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your REALTOR® is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).

Would you fix your own car? Would you pull your own tooth? Why would you think of selling or buying real estate without the services of a Realtor?

Have a great day!!

Ron