Seb Frey

One of my relatives who is a perpetual bear on the housing market sent me this link to a BusinessWeek article:

http://www.businessweek.com/magazine/content/08_06/b4070040767516.htm

I'm not quite sure what to think when I read something like, "Housing prices could drop another 25% on average." Sure, they could. Or they could rise a bit. And then there's that part about "on average." It's almost completely meaningless. I don't live in an average area - maybe you do, but I'm sure there are lots of factors that make your area not-so-average.

It could be that some cities in the county where I live (Santa Cruz County, California) will see further price declines of 25%. Before we get to that point, though, I expect to see sales volume pick up quite a bit. In some parts, prices can't go much lower before the mortgage payment is less than the amount the property would get per month as a rental. I understand that there are some areas in the country where that is par for the course - it's cheaper to buy than to rent - but I can never remember a time where that has been true around here.

What do you think - can you see your market dropping another 25%?

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Seb Frey - The Real Estate Guy
Broker Associate, Thunderbird Real Estate
(831) 293-6727 / sebfrey@sebfrey.com
Specializing in Santa Cruz Real Estate

Whether you are buying or selling property in Santa Cruz, you will want to work with a qualified real estate agent. The Santa Cruz real estate market is highly competitive, yet has some unique characteristics that make it necessary to work with a professional. Here are some tips to use when choosing a Santa Cruz agent to help you with your real estate needs.

One characteristic that you must demand of your Santa Cruz agent is experience. However, you don't just want an experienced Realtor, but you want a Realtor with experience in the Santa Cruz market. Purchasing or selling property in Santa Cruz means dealing with a large sum of money, because property in this part of California sells for extremely high prices. Be sure you are not working with a new agent or an agent who is new to Santa Cruz, because you will be trusting that individual with substantial amounts of your money. Look for an agent with more than two years of experience in the market.

Experience, however, is not all that makes a Santa Cruz agent a good choice. You also want to work with an agent who is committed to his or her work. There are many retired and seasonal agents, particularly in sunny California, who lack the dedication and commitment that you need in an agent. Find someone who is working full time in the Santa Cruz area.

Of course, you also want to find a Realtor that has education in the world of real estate. Unfortunately, you may find that simply locating a licensed agent is not sufficient. Some states make it easy for Realtors to get a license with little education behind it. Instead, look for an agent that holds Graduate, REALTOR Institute status. This certification indicates that the Realtor has completed fifteen eight-hour classes and passed several tests showing an expertise about real estate. This series of courses is directed by the National Association of REALTORS. Also, you might want to look for a Realtor who is not just a salesperson, but is an actual Real Estate Broker. The licensing requirements for Real Estate Brokers are quite a bit higher than for a salesperson.

Once you have found a Santa Cruz agent or two that fits these qualifications, schedule some interviews. Talk to the agent and tell him your needs, whether you are buying or selling. Find out what marketing tools the agent has available for you to use if you are selling. Magazines, newspapers, and internet advertisements are all important advertising tools when selling property in Santa Cruz. After you have explained what it is you wish to do, listen to the agent to see what is suggested. You will be able to get a good feel for how the agent will go about meeting your needs.

Once you have held these interviews, you will have a good feeling as to which Realtor is the best for you. Remember, you will be working with the realtor for a potentially extended period of time, depending on how long it takes for you to find a property or sell the one you own, so be sure that the personality of the realtor agrees with you. If all of the qualifications are the same between the realtors you are considering, go with the one you are the most comfortable talking to, as you will be talking to this individual on a frequent basis.