Palm Springs, California Real Estate Podcast

http://talkrealty.com/robzwemmer

YOU CAN'T HAVE IT BOTH WAYS!

Walk into a totally dark room. What do you see? "Absolutely nothing," you say. Now, turn on the light. Where did the darkness go? Really - where is it now? Hopefully you will agree that darkness cannot exist in the face of light.

During a lifetime, we experience many types of "darkness." It may appear in the form of discouragement, fear, hopelessness, grief, ignorance, or poverty. Yet, in every case, there is a "light" in which such darkness cannot exist.

Fear, for example, cannot exist in the face of courage. Education denies ignorance any chance of survival. Grief disappears in the presence of peace-of-mind. Discouragement ceases when hope prevails. Wealth denies poverty its chance.

No matter what form darkness takes, it cannot exist when faced with its opposite. That also means we have the ability to send darkness on its way at any point in time. No matter how overwhelming the darkness appears, it is our thoughts and our minds that ultimately control the outcome. How powerful is that?

In the words of several favorite authors: "Think you can, think you can't, either way you're right." "Your life is what your thoughts make of it." "We are what we think about all day long." Finally, in the words of Tom Bodett, from one of his Motel 6 commercials: "We'll leave the light on for you!"

Increasing Sales:

The market absorption is underway. Last year we clocked at 27% sales increase here in the Palm Springs area compared to 2008. Prices don’t have to fall further by a large percentage (as they already have from 2004/2005 high ) for sales to be generated. The window of “best opportunity” is closing.   

 Nothing - good or bad – lasts forever.

Sellers Are Starting to Get It! :

Seller are realizing more and more each day that proper pricing at time of listing is their best marketing tool. This is still a buyer’s market. Unless you are the lowest priced, best maintained, best located property on the block it’s not a fair fight. Buyers have more cash and time than sellers. Plus even if you are lowest and best --- the marketis still not on your side.

Buyers Are Starting to Get It! :

Banks/Lenders are not looking at first offer received. They are imposing waiting periods such as 5 or 10 days +/- , from the day the listing first hits the market to seek multiple offers. Buyers are getting the message: You may need your best offer up front – and all cash offers beats financing. The Banks / Lenders are more likely to choose one rather counter back and forth with everyone.

Lenders Are Starting to Get It:

The Process of getting a REO / Foreclosure / Bank Owned or Short Sale to closing is improving. Everyone is simply getting better over time at making these transactions work. It’s still slower than anyone would prefer – but if you do something enough you just have to get better at it.

HOW'S YOUR CREDIT?

Ever hear someone say, "I have good credit"? They are probably referring to their credit "rating" - a score bestowed upon them by creditors, banks or rating agencies. Simply stating, "I have good credit" changes nothing, nor does the statement merit the attention of creditors. Credit can only be given by others for service to them, i.e. paying them on time.

So, credit is the result of serving others - in many ways. You cannot claim education, victory, experience, success, reputation, or a suave demeanor. Each of these is a gift from others, as a result of your service to them. Friends recognize your courage as a result of your being cool under pressure. Your success is recognized by others only once you have served them well. Knowledge of your career field is recognized by others only after it's been applied to situations in the form of more service.

In the accounting world of income and expense, a debit is something paid out, while a credit is something received. Thus all credits are received from others - not by our own making. The debits - what we pay out - are our efforts, persistence, and service. How they are rated is not under our control, but is determined by those served.

Without service, there are few rewards. Yet, you've seen those who insist on getting more attention than they deserve. They feel they're being short-changed, that they are not appreciated, that they are always the victim. If you look more closely at their contributions, you are also likely to see the dearth of service they are offering.

With service, credit follows. It may be subtle or quite visible - but it always follows. Concentrate on what you have to offer and forget the rewards. Those who are served will pick up the tab!

Have a great day !

Rob Zwemmer

We are already at years end, and what a year 2009 was.  The beginning of the year we got off to a slow start because of lack of inventory and uncertainty under homebuyers. When the summer came around not only the temperatures starting to heat up but also the Home sales here in the desert.

More foreclosures, low interest rates, first time home buyers and a strong Canadian dollar where the causes for the high number of sales we have accomplished in the second half of this year.

In the last 6 months we have seen more buyers coming off the fence and taking advantage unbelievable opportunities here in the Palm Springs Area.

What will we see for 2010?

Interest rates will stay the same, the first time home buyer credit has been extended to mid next year, and a new wave of foreclosures will hit the market in the second and third week of January. We continue to get positive news on home sales. Real Trends reports that markets roared in October with the best year over year showings in all 4 years. The report shows that all regions were up in unit sales. Price declines are measurably less than they were than in the first 9 months of the year with every region showing improvement.

Much of this good news is the result of near record low interest rates and the federal and state first time homebuyer tax credit ...they are doing a great  job of assisting the housing economy.

The extension of the credit through next spring should have a positive impact on housing sales through the 4th quarterof 2009 and the first quarter of 2010. And...the tax credit extension to move up buyers should provide additional stimulus to keep the housing market on the road to improving results.

What this means to buyers is that it is a sweet time to buy and for sellers, this is the critical point to make sure your properties show their best. Ladies Home Journal magazine just published a great article advising sellers to Donate instead of dumping their home goods to local charities.  Streamlining the look of the property will help buyers, will help keep the economy green --and assist others in the process.

Let's talk about the new Extended Home Buyers Tax Credit.  It's NOT just for first time buyers

This program will touch a lot of people - it is very exciting!

Congress has extended the tax credit program to include current homeowners and repeat buyers, so expect to see some terrific opportunities in the months ahead. As you know, tax credits are a dollar-for-dollar reduction in your tax bill, so it's like getting free money from the US Government

Here are the  program details.

Between now and April 2010, first time buyers are eligible for a tax credit of 10 percent of a home's purchase price, up to a maximum of $8,000. And as I mentioned earlier, current homeowners are also eligible for a tax credit when they sell and purchase another home. The homeowner tax credit tops out at $6,500. I know a lot of people will take advantage of this program.

What's the catch?

Well, there are a few conditions that buyers need to know about, including a couple of income restrictions:

The full tax credit is available to buyers earning up to $125,000 a year, or $225,000 for married couples filing jointly.  If you make more than that, you may still qualify for some relief.

A partial tax credit is available to buyers earning between $125,000 and $145,000, or for married couples earning between $225,000 and $245,000. These increased limits allow more middle-income buyers to participate.

There are also a couple of limitations on the homes being bought and sold.  First, the tax credit is only awarded on homes purchased for $800,000 or less.  And second, homeowners who plan to take the $6,500 tax credit need to have lived in their current home for 5 of the past 8 years.  This is a limited program that runs through the end of April 2010, which is only a few months out.

Fortunately there is a grace period -- Under the rules, as long as a written binding purchase contract is in effect on April 30, 2010, the buyer has until July 1, 2010 to close.  So buyers and sellers need to get moving if they're going to take advantage. 

Folks need to strike while the iron is hot! Sellers - you have the best opportunity in years to attract motivated buyers! Price your home according to its CURRENT market value, not above it.  And make sure your property shows extremely well, especially during the holidays and winter months. 

To everyone who reads this:
May your holidays be filled with Family, Health, Love, Joy, and Football .

For those Men and Woman who are overseas and are not able to be with their families during this season.
Thank You for allowing me to do the things that I love so much.   Come home soon and be safe.

Rob Zwemmer

SPREAD THE TABLE!

Here we are in the midst of the holiday rush - buying gifts, attending parties, decorating, sending cards, and preparing for the feast of the season. We're doing all this for whom?

We tell ourselves it's for the ones we love. We want to make them happy, fill them with joy, and make their world bright. We want to make everything perfect for them at this special time of year.

In a way, that's like preparing the holiday feast for those who matter most to us, then eating it for them and commenting on how tasty it was. Truth is - we can't "make them" do anything, we can only spread the table before them.

Whether they choose to consume the feast, or be happy doing it, is their choice - not ours. We can give the presents, offer our own good holiday spirit, or bake the cookies, but we cannot "make" anything happen.

Epictetus once said, "Happiness and freedom begin with a clear understanding of one principle: Some things are within our control, and some things are not. If you think that you have free rein over things that are naturally beyond your control, or if you attempt to adopt the affairs of others as your own, your pursuits will be thwarted and you will become a frustrated, anxious, and fault-finding person."

Why not take a little of the pressure off yourself this holiday season? Feel free to give whatever gifts, energy, creativity, or love you have to offer, but let go of the desire to control the outcome. The gifts that will make the most difference are those that arise from the heart with no expectation of reward. My wish for you is the joy and freedom that results from giving. Happy holidays and best wishes to you and yours!

My first thought, wow! what a blunt and harsh statement! But the writer,
Mark Roth, uses this headturning title to get your attention to make excellent points for those who are on the fence.

Namely that interest rates are at an all time low, in fact, the lowest in 40 years. He noted that in the late 70s, rates hit a high of 18%! Can you even imagine buying a house at 18%? 

In the 80s, when rates dropped from 12% to 9%, my parents practically danced their way to the 1st refinance of their home. Generation X'ers probably would never dream of purchasing a home above 7% given all we have ever known
are super low rates hovering between 5-6%.

Mr. Roth points out the history of previous interest rates as well as the impact of rates on one's purchasing power. I happen to agree with his prediction that as the economy becomes more stable, interest rates WILL rise to hedge inflation. 

My prediction has been that by this time next year, rates will have risen 1-2% at a minimum.

Mark Roth summed up the article, "What I'm trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime."

If You Don't Buy a House Now, You're Stupid or Broke

Interest rates are at historic lows but cyclical trends suggest they will soon rise. Home buyers may never see such a chance again, writes Marc Roth

By Marc Roth

Well, you may not be stupid or broke. Maybe you already have a house and you don't want to move. Or maybe you're a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don't act soon, you will regret it. Here's why: historically low interest rates.

As of today, the average 30-year fixed-rate loan with no points or fees is around 5%. That, as the graph above—which you can find on Mortgage-X.com—shows, is the lowest the rate has been in nearly 40 years.

In fact, rates are so well below historic averages that it should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity.

And it is exactly that, based on what the graph shows us. Let's look at the point on the far left.

In 1970 the rate was approximately 7.25%. After hovering there for a couple of years, it began a trend upward, landing near 10% in late 1973. It settled at 8.5% to 9% from 1974 to the end of 1976. After the rise to 10%, that probably seemed O.K. to most home buyers.

But they weren't happy soon thereafter. From 1977 to 1981, a period of only 60 months, the 30-year fixed rate climbed to 18%. As I mentioned in one of my previous articles, my dad was one of those unluckily stuck needing a loan at that time.

Interest Rate Lessons

And when rates started to decline after that, they took a long time to recede to previous levels. They hit 9% for a brief time in 1986 and bounced around 10% to 11% until 1990. For the next 11 years through 2001, the rates slowly ebbed and flowed downward, ranging from 7% to 9%. We've since spent the last nine years, until very recently, at 6% to 7%. So you can see why 5% is so remarkable.

So, what can we learn from the historical trends and numbers?

First, rates have far further to move upward than downward; for more than 30 years, 7% was the low and 18% the high. The norm was 9% in the 1970s, 10% in the mid-1980s through the early 1990s, 7% to 8% for much of the 1990s, and 6% only over the last handful of years.

Second, the last time the long-term trends reversed from low to high, it took more than 20 years (1970 to 1992) for the rate to get back to where it was, and 30 years to actually start trending below the 1970 low.

Finally, the most important lesson is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home.

Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed. While different in each region, for the sake of simplicity, let's assume that the average person is putting $40,000 down and borrowing $200,000 to pay the price of a typical home nationwide. Thus, over the course of the life of the loan, each quarter-point move up in interest rates will cost that buyer $12,000.

Loan Costs

Stay with me now. We are at 5%. As you can see by the graph above, as the economy stabilizes, it is reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is humming again. If every quarter of a point is worth $12,000 per $200,000 borrowed, then each point is worth almost $50,000.

Let's put that into perspective. You have a good stable job (yes, unemployment is at 10%, but another way of looking at that figure is that most of us have good stable jobs). You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is "more stable" and it's safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.

If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you're borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.

What I'm trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.

FEELING WIRED?

Feel on edge? Not sure what to expect next? Nerves frayed? Feeling overwhelmed by today's complex world situation? How is it that some people are calm, fearless, and content, while others are frightful, worried, overwhelmed, and uncertain about the future?

In the 1950's there were only three models of Chevrolet, about four dry cereals, two or three types of soap, etc. Mom went grocery shopping weekly. There were no shopping malls, computers, cell phones, portable CD players (or CD's), 401(k)s, Internet, or co-ed dorms. Life was simple and calm - and revolved around the family. Technology didn't dominate daily life.

Today, our choices have expanded exponentially. There are hundreds of vehicle models, 50 different cereals on the shelf, software for every occasion, hundreds of cable channels, and millions of pages on the World Wide Web. Think that might clog your thinking just a little? Want to get back to simplicity, peace, and security?

Try a few of the following suggestions. Begin limiting your choices. Spend less than you earn. Limit trips to the store. Spend the evening at home - with your family - with the television OFF. Go directly home after work. Identify your principles - and live them. Count your blessings daily by entering them in a journal. Read. Treat yourself to a hot bath.

Think of your life as an extension cord with too many appliances plugged-in. Each vies for the limited energy you have available until a short-circuit or fire occurs. Start unplugging all those peripherals now, and you'll notice your life-light begin to shine.

3847

My dear Friends & Family,

A Happy Thanksgiving,  and let's not forget those who have and are giving us the opportunity to be with our families. Let's Feast, Celebrate, Remember, Laugh and watch Football.

Rob Zwemmer

If you go to this web site, 

http://www.letssaythanks.com 

you can pick out a thank you card and Xerox will print it and it will be sent to a soldier that is currently serving in  Iraq . You can't pick out who gets it, but it will go to a member of the armed services.

 

How AMAZING it would be if we could get everyone we know to send one!!!    It is FREE and it only takes a second.

 

Wouldn't it be wonderful if the soldiers received a bunch of these?    Whether you are for or against the war, our soldiers over there need to know we are behind them.

 

This takes just 10 seconds and it's a wonderful way to say thank you.    Please take the time and please take the time to pass it on for others to do.  We can never say enough thank you's. 

GOBBLE! GOBBLE!

Remember when you were a teenager leaving the house on a date? Your parents' last words as you went out the door were, "We'll leave the light on for you". Think about that. So what if they did or didn't leave the light on? Their words were really more of a verbal hug. They cared about you - wanted you to know it - and applied the hug with kind words.

With Thanksgiving in just a few days, why not take the time to "leave the light on" for someone who may not get many hugs? There's still time, and it's easy.

First, learn who needs hugs. Check with your local fire, police, or sheriff's department. Ask whether they know of three or four families or individuals who could use a hug. Ask also whether they would consider delivering your hugs at the appropriate time. Two groups stand out as needy - the elderly and families with small children. Of course, we're talking about individuals who are experiencing difficult circumstances in their lives, be they physical or financial.

Next, consider what type of hugs you have to offer. Perhaps you might prepare three or four Thanksgiving turkeys with all the trimmings. Live in the country where people heat their homes with a wood stove? Deliver firewood. Live in a cold climate? Add some warm socks or a sweater to your dinner box. It's really not that difficult to come up with ideas that would make a difference to your chosen recipients. If you aren't able to provide "things," consider visiting with some nursing home residents. Brighten their day by listening for a while.

It goes without saying that our country is truly blessed. Although practically invisible to most of us, however, there are some individuals who are being challenged. They need a hug, and we can brighten their lives by way of simple gestures. Make a family project out of it - involve your kids. Do it anonymously. Afterwards, when you get home, we'll leave the light on for you!