My New Blog

Hey! Of all the problems our economy is experiencing related to real estate, one could say that financing is the biggest problem for the buyer and values are the biggest problem for sellers. Rules of lending have changed. Actually, let's say that rules have been re-established. We may need to have a real job, real income, a real minimum 5% down payment, and a little reserves to qualify. (However, congrats to Ms. M who just closed on her first-time home with a 95% lien at 5.75% from a major lender who did not care that she really had a great job and tons of reserves...because of her fantanstic FICO.) No problem for me, this is the world of real estate that I grew up in and work with. The sellers who's value is tumbling have a completely different set of issues. These, however, are related to anyone making any investment, looking for their best ROI (return on investment). It's a matter of buying low, selling high, for them. Most who have found themselves stuck with a decreasing home value cannot move for awhile. If they have to sell/move, they are feeling the pain of lost value. It's all relative, however, because what they lost on the sale, they will gain on the lower value of the home they purchase (as long as they do repurchase, otherwise it is a loss).

Hang in there, guys! It's not over yet, 2008 will be a rough year for buyers and sellers.