Here is something that has nothing to do with real estate… or does it! Every person and organization needs to change in order to survive. Michael Gerber, author of the E-Myth explains: The species that survives is not the strongest or smartest but the one that best adapts to change. Not having the capacity for changing and adapting leads to extinction, be that for a business, an idea, a concept, or an entire species.

We as human beings have a huge resistance to change. If you look at the last century alone we have made enormous technological advances, but as human beings, we have not advanced all that much, have we? We can put a man on the moon, but we’re still barbarically murdering each other all over the world.

How then do we bring about change? Many different ingredients are needed to bring about change but allow me to draw your attention to the ingredient that in my opinion is the heart of the matter.

Let me illustrate with a personal story. One day I felt like I was becoming my father, or a combination of my father and grandfather put together. Each one of them has great qualities, but with respect … I want to be me!

In observing myself and thinking about this, I realized that I was spontaneously acting out genetic behaviors, a certain way of thinking, a certain type of acting (or mostly reacting in my case).

I resolutely did not want to manifest this type of behavior and decided to take charge. I was going to eliminate everything around me that contributed to the manifestation of my genetic patterns… “You, shut up because you stress me out! You, stop that because it drives me crazy! You, get out!”

Here is where I discovered the big problem. “I” did not want to change. “I” wanted to change everybody else. I wanted those out there to behave in such a way as to not trigger my genetic patterns. Instead of changing, I wanted to control everybody else… and that my friends, is the moral of the story!

It seems like we never initiate change voluntarily, and when we are finally confronted with having to make a change, our first response is to try to control the situation and maintain the status quo. If that does not work and we realize we really do have to change (usually because we feel that we are going to lose something if we don’t), we generally move just far enough away from the fire not to get burned.

Today I am experiencing a whole new type of movement, one where we break away from the pack, change that is caused by inspiration, and by the experience of the unlimited expression of who we are.

It is also my experience that if we quit our own excuses, something rather extraordinary happens; besides experiencing the benefits in our own lives we inspire change by example, instead of trying to control. And, because we don’t put up with our own excuses, we no longer give space for anybody else’s excuses either.

So, where to start? Begin with what you already know you should be doing but continue to avoid.

Good Luck, Dimitri

Analysts from Bank of America have proposed that instead of further funding TARP to help distressed home owners hold onto their properties that the money go to property management companies, which would turn the properties into rentals.

In a recent research paper, Bank of America analysts suggested that the government spend as much as $400 billion to encourage property management companies to buy properties and rent them out, bringing the homeownership level to “a more natural level of 62 percent to 64 percent” from its current 67 percent. The investors would be prevented from reselling the properties quickly.

Source: The Wall Street Journal, Emily Peck (09/27/2010)

As a result of the mortgage meltdown and government stimulus programs that have sprouted, there are many agencies that offer assistance to help you in your home search and reduce your down payment requirements. While these may reduce the funds you need out of pocked, some place a ‘silent second’ on your home, meaning they may be required to be repaid at a later date.  Examples are:

• Neighborhood Stabilization
• Home Path
• Home Free
  
• American Dream
• CAMP
• Home in Five
• HUD Repossessions

Fannie Mae on Thursday announced an expansion of the company’s REO program, HomePath.com.

HomePath already offers owner-occupant buyers 3 percent down with no mortgage insurance. The expansion gives these home buyers up to 3.5 percent of the final sales price to use toward paying closing costs. A home warranty also will be available.

In addition, real estate practitioners who represent owner-occupants will receive a $1,500 bonus. Eligible offers must be submitted on or after Sept. 23 and must close by Dec. 31.

Source: Fannie Mae (09/23/2010)

The days of easy qualifying, no money down and stated income type financing have all but blown away. In our market today, lenders are requiring more money down and higher credit scores.  There are, however, a few alternative options to consider if you are cash strapped; USDA, FHA, VA, and Down Payment Assistance programs

VA – Veterans Administration
The VA allows a qualified veteran to purchase a home with ZERO down as well and has offered this program for years! Interest rates for VA loans may be slightly higher than FHA loans, but they are well within market guidelines and offer veterans a terrific opportunity to finance their home.  Check with your lender to find out details on the VA guidelines to be sure.

The days of easy qualifying, no money down and stated income type financing have all but blown away. In our market today, lenders are requiring more money down and higher credit scores.  There are, however, a few alternative options to consider if you are cash strapped; USDA, FHA, VA, and Down Payment Assistance programs

FHA – Federal Housing Administration
FHA is an old, but now popular option to consider when purchasing a home with little money down. Currently, FHA requires a down payment of 3.50%.  While it isn’t ZERO down, it is definitely an affordable option for homes located in a metropolitan area.

Benefits of FHA financing include reduced monthly mortgage insurance and low market interest rates.  Also, FHA allows the borrower to obtain their down payment from a gift.  These gift funds can come from a relative, church, non-profit entity or even an employer.  To further reduce required funds, the seller is allowed to contribute to the buyer’s closing costs as well.

The days of easy qualifying, no money down and stated income type financing have all but blown away. In our market today, lenders are requiring more money down and higher credit scores.  There are, however, a few alternative options to consider if you are cash strapped; USDA, FHA, VA, and Down Payment Assistance programs

USDA – Rural Housing Development Financing

The United States Department of Agriculture has for years made ZERO down financing for homes located in rural areas. While this may not sound appealing at first, the rural areas depicted on their maps have, in many cases, crept into suburban metropolitan areas.

In the Phoenix metro area, Queen Creek, Buckeye, Goodyear and even Maricopa are areas that may qualify. Lenders have access to the USDA website to determine if the property you’re considering qualifies for this loan program.  With NO MONEY DOWN, a buyer can purchase a home and possibly finance even their closing costs!

Take a look a the numbers. STAT is a new ARMLS® initiative that gives us the most current market statistics. Click here to view report!

ARMLS also introduces the ARMLS Pending Price Index™ (ARMLS PPI™) which predicts the direction of the market four months into the future based on pending sales in flexmls. Click here to view report!

Sales of multifamily housing is picking up nationwide, commercial practitioners say. Buyers believe the sector is a sound bet because current prices are below construction costs in many cases and rental business is improving. Plus, there has been little additional development in the past couple of years and some industry analysts believe that shortly there will be a shortage in some markets.

Financing for apartment buildings is at a 50-year low, with seven- to 10-year mortgages available for as little as 4 percent. The sector could face some pain. Yields are about 5 percent while a year ago investors were getting close to 6 percent with about a quarter of the transactions involving distressed sellers.

Source: The Wall Street Journal, Dawn Wotapka (09/22/2010)

Sellers think their homes are worth more than their real estate professional recommends, and buyers think these same homes are worth less. It’s a difficult disconnect that makes selling properties a challenge. Successfully marketing a home requires that the price be set carefully — or it will languish on the market. Among the considerations:

• How many homes are for sale in the neighborhood? The more homes on the market, the more important it is to list at the lower end of the scale. “I want buyers to ask why is this house priced so competitively,” said NAR President-elect Ron Phipps of Phipps Realty in Warwick, R.I. “I want the answer to be an offer.”

• Take short sales and foreclosures into consideration when pricing. If the competing properties are in lousy condition, they are less of an issue, but if they are well taken care of, yet priced 25 percent below market, they can be a serious factor.

• Negotiate decisively. “Buyers are not interested in back-and-forth negotiations these days,” Phipps said. “They are less emotional and more disciplined. They will walk away.”

• Cut the price when you have to. If no one shows up for an open house, if no one calls and if there are no offers, then the price is too high. That means it’s time to make a meaningful price cut.

Source: The Washington Post, Associated Press (09/18/2010)