Although new home sales have reportedly fallen to a 16 year low, many are finding the current real estate market an investment opportunity.  According to a recent survey, seventy-seven percent of the “wealthy” (discretionary household income of over $500,000/yr.) agree that it is currently an optimal time to invest in real-estate.  Out of those surveyed, nearly forty-one percent feel that owning a second home is “almost a requirement” for the wealthy and many are looking to invest in a retirement home.  This makes some of the hardest hit areas prime targets for wealthy investors.  Cities such as Orlando, Miami, Tampa, Los Angeles, and San Diego have experienced overbuilding and lending problems, placing them among the top ten worst cities for the real-estate market.  As each of thee cities is a prime location for retirement homes, the opportunity for second home investment becomes even more necessary for the wealthy.  But don’t expect the market to remain the same forever.  At the current sales rate, the supply of houses currently on the market would be sold in 11 months.

There is a new hot commodity on the list of targets for criminal thieves nationwide – copper.  With copper prices having quadrupled in the last five years, “copper wire has gone through the roof, well, copper by the pound has gone through the roof,” according to Captain Montandon of Metro, Nevada’s Police Department.  The increasing demand for copper in China, India, and Brazil continue to feed the rising worth of copper by the pound.  While most copper theft takes place by Methamphetamine users seeking to support their drug habits, other thefts have been connected to organized crime.  Hot targets for copper theft include new housing construction sites, vacant homes, renovation projects, existing homes and power lines.  Some thieves are desperate enough for copper that they are cutting through live power lines and risking flash burns and in some cases, death.  Thieves are also targeting agricultural sites because the irrigation systems are hotbeds of copper wiring.  According to Bill Yoshimoto, assistant DA for Tulare County, Ca, “This is the No. 1 crime affecting farmers and ranchers right now.”

 While government officials continue to fight this epidemic, the most effective source for ending copper theft comes from alert neighbors.  In order to encourage neighbors to report suspicious behavior to the police, a $500.00 reward is being offered by 1-800-2-SellHomes.  A Press Release will be released later this week regarding the reward offer but anyone who has questions regarding receiving your check reward should email Pam at pam@18002sellhomes.com.

  In recent years, the attractiveness of borrowing against the equity of houses has grown as a source of consumer credit.  While these loans have stimulated an economy based on consumer spending, it is coming to a distressing as the nation’s economy deteriorates.  As real-estate property value plummets, banks are implementing mass freezes or reductions by the thousands to home-equity borrowers.  According the Federal Reserve, customers who apply for home-equity loans are “using the equity in your home, [to] qualify for a sizable amount of credit, available for use when and how you please, at an interest rate that is relatively low.”  These home-credit loans became increasingly popular due to the potential tax deductions, low interest rate, and immediate gratification. According to Michael Kratzer, president of FeeDisclosure.com, over several hundred thousand statements, warning of the freezing of accounts, have been mailed in the last month to consumers.  Some of the bank lenders issuing such statements include Countrywide Financial, Mutual, and Citibank.  The freezing of home-equity credit lines not only prevents reconstruction projects, but also causes destructive penalties to consumers’ credit reports.  For many consumers who have used only a portion of their loan, when the bank reduces the limit of this loan, their credit report reflects a capping of the loan, resulting in a negative effect on the credit report.  These consumers are also losing the money they invested in the fees and down payments for the loan.  To make matters even more confusing, consumers throughout the nation are being affected.  Borrowers in areas such as Raleigh, NC and Urbana, Il., where real estate value is increasing, are receiving notification letters with no explanation as to how the bank calculated its most recent appraisal.  And of course on a larger scale, the reduction of potential renovation projects only reduces the amount of consumer money helping to ameliorate the falling economy.  As the real-estate market continues to tumble and bank lenders act with selfish ambition, little effort will be made to mend the nation’s economy and the mayhem of the financial market will be prolonged.

With the current market chaos and credit crunch threatening to erupt, many real-estate agents are in desperate need of increasing their profits, but are thwarted by the fear many reluctant buyers have of purchasing property during this unpredictable financial period.  But the Good News – by making a few minor adjustments to your approach in selling property you can easily multiply your sales, even amidst this erratic real-estate market.The Seven Tactical Approaches to Selling Property Now:

1. Focus your energy on active markets.  Don’t waste time in areas that are already struggling.
2. When counter-offering, have your sellers reduce the listing price.  When the potential buyers see the public reduction in listing price, they may sense a subtle pressure to purchase quickly.
3. Put in writing the additional costs first-time homebuyers will receive in waiting to purchase.  They will experience a loss of tax deduction as well as increased interest rates.  Be sure to clearly show a comparison of numbers on paper to the buyers.
4. Explain to reluctant buyers that the real-estate market is similar to the stock market.  If prices are low (which they are) people will begin to flock towards that product.  This is an optimal way to make money but beware – if you wait too long and buy at the peak, you may end up stuck with property not worth what was paid for it.
5. To save yourself time, set up a group tour, or “Bargain Bus”, with your potential buyers. Not only do you save time on grouping together your buyers, but the buyers will realize that they are not the only ones seriously looking.  This will encourage your buyers, as well as add a little pressure in overhearing the eagerness of other buyers looking at the same properties.
6. If you are not already providing additional financial incentives to your contract, don’t wait any longer.  They may come in the form of paying for closing costs, warranty policies, or even some handy-man work such as building fences, adding bathroom cabinets, and many more.
7. Finally…If you have a buyer looking to place a serious offer on property, beat him to the punch.  Implement a reverse contract in which you, the listing agent, begins the negotiation by drafting an offer with a slight reduction from the asking price.  It will likely come as a nice surprise to your buyer and will help eliminate some stress in creating a first offer as well as provide a little more encouragement for the buyer to simply say “yes”.

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The key to ending the current real estate recession is laying right in front of us – Illegal immigrants.  By offering green cards to qualified home buyers in exchange for purchasing a foreclosed home, we will be depositing billions of dollars back into the economy.  When a country rewards hard work, it multiplies the country’s capital.Think about it – First, illegal immigrants are a fundamental source of labor and are estimated to spend nearly $6 billion per year in Social Security taxes.  Second, there are approximately 2.4 million illegal immigrants who are able to place a 20-30 percent down payment on a foreclosed home.  Third, this solution provides for billions of dollars to be immediately deposited into the economy without costing the government or taxpayers a fortune.Granted, there are many details in determining green card status that I have not discussed in this article, but with some detailed planning and careful implementation, a well-calculated plan can be set into action and just might reverse the downward spiral of the current real estate recession.

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