As this cartoon depicts, snow was not what a lot of people were digging out of this Holiday season.  My new year's wish is that our economy starts to grow, that stimulus packages can fade away and don't continue to be the main topics on the news channels, that businesses don't need to be regulated to be ethical, and for wise consumers who make housing choices as they were meant to be - as shelter and a place of comfort for their families.      

This is article two in my series of questions concerning the future reductions in "Big" home construction.  How many of the past Big home deals were the result of creative financing (i.e. sub-prime loans)?  My best guess is more than you think.  The mortgage products that were available combined with the rapid appreciation motivated many to take the risk of reaching towards a bigger home than necessary.  With these finanical products no longer available, or put into hibernation until memories fade, there will be less demand for big homes for a significant  period of time and the significant supply that was built over the past 10 years, could fullfill nearly all the demand for the next five years, if not 10 years. Obviously, this will be market-specific, but it is a scary thought if "big" home construction was your bread and butter product.      

Steve Blank, a Realtor in the Denver metropolitan area wrote a great article in the Real Estate section about professionalism in his field and why - in this high tech world- it still is important to have certain personal qualities.  I think Steve hit it right on the head - not just for Real Estate Agents - but for all of us in all fields.  Steve calls Realtors that have these professional qualities the "Get It Club".  I couldn't agree more - but not only for Realtors, but all of us conducting business. Here's his list of qualities:

1. First Impression Must Instill Confidence.

2. Have Knowledge Combined with Experience

3. Flexibility to Meet Your Schedule

4. Sensitivity - Listens and Cares

5. Enthusiasm - Loves What They Do

6. High Self Esteem but Lowered Ego

7. A Sense of Humor - Adds to the Experience

8. Creativity - You Won't Know Until it's Needed

9. Honesty & Integrity - No Second Choice

10. Focused - ON YOU!

There are Realtors (and people) out there that possess these qualities and who can make your home buying/selling experience an enjoyable and profitable one. Don't compromise - Search them out.  They are more than likely the busiest ones in your neighborhood at this moment. I don't know Steve personally, but I got a good feeling he's one of the "Get it Club" members if not the Founder. Thanks Steve for your Insight!

There is a lot of negativity going around these days in the housing market, especially in the press.  You see images on TV of the insides of foreclosed homes that are in a mire of unkempt conditions.  I personally have visited homes for-sale that have a lot to be desired and have thought to myself - How can these sellers expect someone to want their home when it looks (and smells) like this? 

I personally feel like it is time for an attitude adjustment to change this negativity. A time where we start by doing a good deed.  How you might ask?  I look back to 1985 when I bought my very first house.  The seller was an elderly single widow.  After she moved out of the house and prior to me moving in, she had all the carpets cleaned.  At the closing table, she said she did it as a congratulatory gift to me on buying my first home.  She assumed I had to scrape most of my funds together to be able to afford the down payment and closing costs (and she assumed right) and that even though the house was nearly 10 years old, it would feel newer to me with the carpets cleaned.  Ever since that day nearly 25 years ago I still remember her act of kindness to me (someone she had never met until the day of closing).

I am a graduate of The Ohio State University and one of the university's most notable persons is Woody Hayes.  Many of you who are not familar with Ohio State, associate Woody Hayes with his fiery temper and antics on the field, which led to his firing as their football coach.  Those of us that are graduates of The Ohio State University know him for much more.  Woody spoke often of "Paying Forward" - that graduates of this great university with our great education that we received should Pay Forward - do something for others whose favor may not be returned but could possibly be passed on. 

I know that I have passed on the favor the lady I bought my first home from.  When I went to sell that home, I put fresh paint on the walls and had the carpets cleaned before the new buyer moved in.  The ironic thing is that these actions also got me a higher selling price and a quicker sale in what was a depressed housing market at the time.  I challenge everyone to take Woody's advice and think about paying forward a little bit when it comes time to sell your home.   I think Woody's silent message is you actually get real value right at the time you Pay Forward.                       

The following story comes from Earl Nightingale's Book, The Essence of Success, and a part of me feels the reason we are in this economic mess is summarized in this story.  As an introduction, the story revolves around a type of caterpillar called the processionary caterpilar. 

Don't Follow the Follower 

Processionary caterpillars travel in long, undulating lines, one creature behind the other. Jean Hanri Fabre, a French entomologist, once led a group of these caterpillars onto the rim of a large flowerpot so that the leader of the procession found himself nose to tail with the last caterpillar in the procession, forming a circle without end or beginning.

Through sheer force of habit and instinct, the ring of caterpillars circled the flowerpot for seven days and seven nights, until they died from exhaustion and starvation, even though an ample supply of food was close at hand and plainly visible.

Earl Nightingale follows this up by stating; People often behave in a similar way. Habit patterns and ways of thinking become deeply established and it seems easier and more comforting to follow them than to cope with change, even when that change may represent freedom, achievement, and success.  So many people "miss the boat" because it's easier and more comforting to follow - to follow without questioning the qualifications of the people just ahead - than to do some independent thinking and checking.

Here's where I chime in: One of the primary reasons many homeowners are in such a mess these days is that they just followed the herd - whether it was a neighbor, a co-worker, or the advice of their loan broker.  It may have come from envy, jealousy, laziness, or one-upsmanship.  They didn't do their independent thinking and check to determine if their purchase or refinance decision was right for them.  They anticipated the line would keep moving - and in the context of home prices and job incomes - linearly and upward.  They never thought about possibly losing one-half of a two-income household, that home prices could go down, or that lending restrictions may get tighter.  They forgot that a home owner's budget is more than just principal, interest, taxes and insurance and that it requires funds for utilities, maintenance, and upkeep. They let others do the thinking for them and now blame them.  They let others convince them that Comfort in a home means the biggest house with granite countertops and stainless steel appliances.  What is REAL comfort in a home - To me its having peace of mind and knowing that you can sleep at night.  It's buying and living in a home that YOU know YOU can afford - not what somebody else tells you can afford.  My advice is DO YOUR OWN THINKING - don't be that processionary caterpillar.        

OK. You're discovering that I like satirical cartoons depicting current events. Credit for this one goes to A. Chringle for tying Ground Hog Day with the state of affairs with the nation's housing market. Here's to wishful thinking this economic downturn and housing calamity would last only six more weeks. I think we all would accept a few more weeks of winter if this was the case!

In my travels over the holidays to Ohio I saw this in the Dayton Newspaper.  I just had to share.  My guess selling a house is the least of Mr. Obama's worries. Hats off to the artist - Mike Luckovich. 

Although the news and print media continue to paint a gloomy picture for home sellers, there couldn't be a better opportunity to be a home buyer, especially if you are a first time home buyer, a person looking to move up to a larger home or a real estate investor.  Yes, in all of these cases the lending criteria is tighter, but opportunities abound with lower home prices, large inventories and historically low interest rates.  As a first time home buyer, you benefit from not having a home to sell.  As a person looking to move up, you may have a home to sell at a lesser value than what it was worth a year or two ago, but you also have the ability to buy a bigger home at a lesser value than what it was worth a year or two ago, as well.  A 10 percent reduced value of your current home can equate to a 10 percent savings on a bigger home, allowing you to actually realize an overall gain for the long term. If you are a real estate investor, opportunity is occuring from the bad luck or poor planning of others. 

Bottom line - if you are thinking of buying - get after it! - your real estate agent can help you find great values right now.  The pendelum will swing eventually and usually it occurs sooner than you think.

In the military, the best leaders are the ones that can see through the turmoil - while it is happening.  They are always on the offensive, even if they are not currently involved in the battle. They are creating a plan while others are panicked and mind-locked.  This can be you. Are you one of the many people out there wanting to sell your home, but now waiting until the economy improves until you do so?  If that's the case, you shouldn't be sitting idle right now.  Take this idle time to make a plan on getting your house prepared for when you do decide to put your home on the market.  It will increase your odds of having your home sell faster and at a higher price when it comes time to sell and it will put your home ahead of those that are not prepared.

Number one on that list should be fixing all those maintenance items you have been putting off.  Contractors and repairmen are hungry for work. Replace or repair those damaged trim pieces, caulk around windows and doors, repaint the front door, have the shrubs and trees trimmed, tighten the door and cupboard handles, etc., etc.  If that worn or torn carpet has been driving you nuts - Replace It - It will drive a potential buyer nuts too.  How about a little de-cluttering.  Charities are hurting big time right now - Consider making donations of stuff you no longer need or clothes you no longer wear. If you have children, have them go through their toys and give away the ones they no longer play with.  Spend a weekend deep cleaning that neglected basement or garage.  All these tasks will enable you to be better prepared and less stressed when you do decide to put your home on the market.   

Even though you have decided now might not be the right time to put your home on the market, it is the right time to start preparing your home for when that time comes.  Like a good General, you will be ready to compete with a significant advantage over those less prepared.