Donn Rasch

They're Coming...

Who or what's coming you ask? Why the huge backlog of bank foreclosures of course!

One of the topics of conversation that came up at our weekly business meeting today was the foreclosure mess.

One broker mentioned the 60 Minutes tv segment that aired Sunday night about "Robo-Signers". I watched the segment and it is pretty disgusting, in regards to the blatant fraudulent signitures used in these foreclosure documents. I could go on and on about how wrong it is. But I also realize that probably 99.999% of the delinquent homeowners would have lost their homes anyway. The bottom line is the banks need to foreclose by following the current rules & regulations period. The parties responsible for cutting corners with the Robo-Signing paperwork need to be brought to justice as well. Here is a link to the segment, you make up your own mind: http://www.cbsnews.com/stories/2011/04/01/60minutes/main20049646.shtml

Due to this Robo-Signing fiasco, there are tons of bank foreclosures waiting in the wings. They are being held back from the market until the mess gets sorted out.

One of the very seasoned brokers in our office, who normally has a huge pipeline of bank foreclosures gave us an interesting snapshot of what is going on. She stated that she has not seen a new bank referal since October! She checked with other brokers she knows, who get these referrals also and their telling the same story.

So how does that translate to the marketplace? We are seeing a temporary shift to more of our private party sellers getting more offers as long as they are priced right. Multiple offers on some of these properties is not uncommon. Perhaps even a slight stabilization of the downward spiral of prices can be seen.

But this won't last. Those bank foreclosures are coming. It's just a matter of time. I predict it will be sooner rather than later. And when they do come, look out!

For you buyers, I see even more great buying opportunities on the near horizon. Keep in mind, there are still plenty of great deals out there right now.

And for you sellers, is the window of opportunity about to close? Time will tell. Now may be the time to get real with your asking price, so you can capture the current buyers in the marketplace. Because when those bank foreclosures start flowing again, the competition is going to get fierce!

Donn

That's right, I'll share it with you, but don't ask me where it is because that's a secret. I can't have everyone showing up when I'm trying to relax now can I?

Press the play button and enjoy the view... Donn

You read it in the news every day, alarmist headlines such as:

"New Home Sales at Half Century Low"

"New Home Sales Data: Wickedly Bad"

"New home sales tumble to record low"

I mean, I could go on and on with examples of the news media "Chicken Little" cries "The Sky is Falling! The Sky is Falling!" But what is the point?

We all are drawn to these headlines with a morbid sense of curiosity. Like people who slow to a crawl on the highway to rubberneck at an accident. So why are news stories painting such a bleak picture? Because that sells news.

But the fact of the matter is, as long as we need shelter over our heads people will continue to buy homes. As long as folks have a desire to be independent of someone telling them what they can and can't do with their living environment, they will continue to buy homes.

Right now there are thousands and thousands of everyday folks, out there in the marketplace looking to buy a home. They are out there, I guarantee it. How do I know? Because I get calls every day from some of them. Do they all qualify to buy? Of course not! There are a lot of hard luck and sad stories out there in the big city and I've heard my share of them.

However, for every 5-10 sad stories I hear, there are one or two that have what it takes to achieve their dream of home ownership. All they need is my help and guidance to get there.

I can tell them with certainty in my heart, their dream is obtainable. That they can get an interest rate we could only dream of in the last 30+ years! That current interest rates and home prices have hit that sweet spot in history where housing affordability for the average American is at an incredible high!

We are at that point where folks who are renting homes realize they could be owning a home for the same price they are paying in rent.

Home sellers, who are motivated to sell and are willing to price their homes reasonably in relation to the current market conditions have hope as well. Sure, there are investors and other buyers out there who lowball homes in this market. They are around in every market. Some of them have the attitude of "somebody is going to bleed in this transaction". I advise my selling clients to ignore these vultures.

Real estate sales should be a "win - win" transaction. The buyer should be able to get what they want at a "fair price". The seller should be able to sell what they need to sell at a "fair price". My definition of a "fair price" is determined by the overall local / regional marketplace. It is not determined by an individual party to the transaction. What you need or what you owe is irrelevant. The market is the market; it is bigger than you or I.

Bottom line: Real estate sales are taking place every day. We can choose to %&$#@ and moan about the market. Or we can choose to do what it takes to be part of the market. The choice is yours.

Donn

I am sharing my favorite Japanese Restaurant in the Portland Oregon Metro Area with a bit of trepidation. However, I will overcome my selfish tendencies and continue with this review... ;>)

Saburo's Japanese Sushi House
1667 SE Bybee St
Portland, Oregon 97202
503 236 4237

There! I've done it, God help me and don't make me wait in line longer than I deserve. In fact here is the deal. In return for this review, you have to promise to give me "cuts" in line if you see me there. I mean fair is fair, right?

We had heard about this restaurant for quite a while, but every time we went by there was a line out the door and around the corner of the building. I being a rather impatient soul when I'm hungry always talked my wife out of waiting in line. BIG MISTAKE! I could have been enjoying this taste treat many, many months before.

We finally took the plunge one evening and got in line and boy am I glad we did. The food is great, the portions large and the price is reasonable. What more could you ask for from a restaurant?

Our favorite standby is the Teriyaki Salmon Dinner. They start you off with green tea to drink, next is a nice bowl of miso soup. You then get a cucumber salad before the main course. And now the main course: A very generous portion of grilled teriyaki salmon on a large bed of veggies with a bowl of steamed rice. But wait, that's not all! What meal would be complete without desert! They give you a bowl of ice cream with your choice of 4 different flavors to make sure you're full. All of the above for only $11.95 woohoo! I'm in foodie heaven. ;>)

Now what great Japanese dinner would be complete without sushi? Make sure you try that out also! We keep threatening to just eat just sushi for our dinner, but we love our salmon so much we just can't bring ourselves to do it!

Now remember, I get "cuts" in line. And just so you recognize me, I've shaved my mustache. Also I'll be the guy who tells you "hey look over there!" and when you turn back; I'll suddenly be in front of you in line. ;>)

I wonder if they will give me a "free dinner" for blogging about them??? Now that would be sweet! ;>)

Happy Dining...

Donn

Residential Real Estate sales are slightly down this year so far for the Portland Metro Area compared to this time last year. If you compare solds for 2011 year to date 1/1/2011 to 3/18/2011 (2755 units) with the same time frame of last year 1/1/2010 to 3/18/2010 (2,825 units) you will see that solds are down approximately 2.5%.

Not bad considering all the doom & gloom in the news about the real estate market and the economy as a whole. It is also important to remember what was going on at this time last year to keep things in perspective. Last year there was a huge push in the real estate marketplace to take advantage of the soon to expire $8,000 tax credit incentive. Many buyers who would have waited until this year to make a purchase felt pressured to act back then, so they wouldn't lose the tax credit.

Personally I am seeing my business picking up from last year. My buyer clients are very happy with the deals out there.

For example; there is a wonderful young family, I've had the pleasure of working with for the last couple of months. We just signed final docs on their purchase and will be closing escrow tomorrow. They purchased a FHLMC owned, foreclosure home that was in great condition. We feel that they got a great deal which was re-enforced by the bank appraisal, which came in at $25,000 over the sales price! WOOHOO!!!

The deals are out there if you team up with a knowledgeable real estate broker, educate yourself, map your strategy out, have the financial ability and are prepared to take action to achieve your goal. Interest rates will not stay down at these historically low (4.81%, 30 year fixed) levels forever. If you are in it for the long haul (5-7+ years), you will be fine buying now. You can buy a home for a monthly cost that is less than renting right now, so what are you waiting for?

Donn