By JASON CLAYWORTH • jclayworth@dmreg.com • April 3, 2009

Low- and middle-income Iowans like Nikki Roe are far less likely than homeowners to benefit from proposed changes in the state’s tax laws.
Roe is a divorced mother with three children who works full time as a housing counselor at a Waterloo nonprofit group. She lives in and owns a mobile home but doesn’t itemize deductions on her tax returns.
Because of that, she has a greater possibility of joining more than 450,000 Iowans in the current tax year who would pay more if lawmakers end federal deductibility.

Almost 282,000 of those Iowans make less than $50,000, according to estimates from the Iowa Department of Revenue and Finance.
Those who would pay extra are more likely to be people who file simple tax returns and do not take deductions. Many times such people are renters or people like Roe who believe the lower value of their property isn’t worth the hassle of claiming deductions. They’re also more likely to be lower-income or recent high school and college graduates, said Mike Lipsman of the revenue department.
House File 807 will likely be debated next week in the Iowa House. It would end Iowans’ ability to subtract what they pay in federal taxes from their income when figuring their state taxes.

The bill also would reduce state income tax rates, offering low- and middle-income families the greatest breaks, Democrats say. The state would not take in extra money as a result, supporters say.
“Of course, with three kids, having more money in my pocket would be a huge benefit,” Roe said. “The more I have, the more I could provide for them.”
In addition, the proposal would increase the earned income tax credit.
Roe doesn’t know for sure how ending federal deductibility might affect her or the hundreds of people she helps in her job every year to avoid home foreclosures or bankruptcies.

Generally, individuals or families who make less than $125,000 per year would pay less in state income taxes. However, thousands of people in nearly every income category would pay more.
“It boils down to if you don’t itemize, you’re more likely to see your taxes go up,” Lipsman said.
Information from the Internal Revenue Service shows that of the 1,378,083 Iowans who filed taxes in 2006, 349,532 claimed a deduction for mortgage interest while 400,714 claimed a deduction for real estate taxes.

Rep. Tyler Olson, D-Cedar Rapids, and Rep. Thomas Sands, R-Columbus Junction, met with Des Moines Register reporters and editors on Thursday. Both acknowledged that the elimination of federal deductibility may not be as beneficial to families who don’t claim deductions.
Sands, like most of the members of his party, is opposed to the bill.
“Less than half of Iowans will see a benefit from this, whereas everyone else will either see no change or pay more to make up the difference,” Sands said, noting state revenue estimates.

Olson, who supports the bill, noted that two-thirds of Iowans would see either a tax decrease or no change at all.
“I’m hearing this hasn’t been thought through and we don’t know how this will affect taxpayers. I just totally disagree with that statement,” Olson said.
House Democrats decided to delay debate of the controversial proposal until next week, saying they were tweaking the bill. They declined, however, to go into details about what changes they are considering.

“If you make one single tweak to an area, it could have a $14 million or $15 million effect on your balance sheet one way or another,” said House Majority Leader Kevin McCarthy, D-Des Moines. “It’s very complicated.”
House Speaker Pat Murphy, D-Dubuque, hinted that the change would be in favor of giving more working families a bigger break.
“Our goal is to get as many people a tax cut with this, especially middle-class families,” Murphy said. “I’ll just tell you, we were ready to go on the bill but we’re working with the governor’s office to make sure he’s OK with every detail that’s in the bill.”

Some advocates for low-income Iowans urged residents Thursday to look at the bigger picture. Overall, more low- and middle-income families would win under the proposal, they said.
“It concerns me but, generally, in terms of good public policy, it’s good for Iowa,” said Victor Elias of the Iowa Fiscal Partnership, an Iowa City group that advocates for working families. “If you can help middle- and low-income families, then you’re helping the whole state.”

Here’s a little information about the 2009 Tax Credit for Home Buyers.  Contact Pat or Beth at 515.537.9922 for more information about how you may be eligible to get up to $8,000 from the government just for buying a home!

by Peter L. Mosca

No matter it be read in a newspaper or an online thread, heard out of the mouth of our president or a talk-show host on the radio, or watched on your TV or PDA, the consensus is that the economy is going to get worse before it gets better. According to one industry-leading watchdog, this economic nightmare is negatively impacting our nation’s homebuilders as a review of 33 U.S. firms with more than $10M in revenue shows that more than 30 percent are in financial distress and in danger of filing for bankruptcy, according to an analysis by Grant Thornton Corporate Advisory and Restructuring Services.

“It’s striking when you see just how much cash flow has continued to decline for the better builders," said John Bittner, partner at Grant Thornton Corporate Advisory and Restructuring Services. "This year it will be all about keeping cash flow positive by cutting operating costs and liquidating assets. It’ll get to a point, however, when builders get rid of the assets with the most value and expenses can’t be cut much further. After that, there’s not much they can do except wait for a turnaround in the housing market."

Records show 143 U.S. homebuilders filed for bankruptcy last year versus 80 in 2007. To remain viable, many will be forced to continue to reduce expenses and cut prices on existing inventory to increase cash flow, in contrast to their previous focus on revenue growth for the better part of this decade.

“It wouldn’t surprise me to see one or two of the top 10 homebuilders filing this year," said Bittner. "But in most cases, the current lending environment is unique in that as long as a builder has positive cash flow, the lender doesn’t want to foreclose or force a bankruptcy filing. Recovery is more likely if a bank can be patient with a borrower. Positive cash flow and ability to service interest on a credit facility provides for a better negotiation position with the lender."

According to Grant Thornton principal Tim Skillman, southern California and Florida are key markets to watch for evidence of a national turnaround.

“We won’t begin to see a recovery until these regions bottom out," he said. "The indicator will be not the quantity of sales, but the median price of homes sold."

Skillman believes expense reduction will be critical. Average revenue per homebuilder declined to $1.9M last year versus its peak at $3.7M in 2006 — a nearly 50-percent drop. Homebuilders that significantly scale back new-land purchases and maintain both positive cash flow and maximum cash balance on hand will be in an improved position to combat distress.

“In this recession, the decline in housing starts up to this point has been largely a result of the contraction in the financing market," said Skillman. "With unemployment rates rising across the country, we could see a ‘double dip’ in housing starts and home prices."

“We will not effectively stabilize the nation’s banks and financial system until we stop the wave of foreclosures that continues to drive down the economy and harm millions of families," Michael Calhoun, President of the Center for Responsible Lending wrote in a comment to Treasury Secretary Timothy F.At least 8 million families risk losing their homes to foreclosure in the next four years. These foreclosures drive down the value of all homes, and in turn prevent a recovery of the housing and financial markets. The financial crisis will not end unless these foreclosures are reduced."

The Center for Responsible Lending notes that this year alone there will be 2.4 million foreclosures. The 75 million families who happen to live near those properties will see their home values drop an additional $435 billion. That amount could more than triple over the next four years to nearly $1.5 trillion. Declining property values means less tax revenue to support schools, police, and other essential local services – and ultimately all of these factors will result in less activity for homebuilders.

[Note: Grant Thornton’s Corporate Advisory and Restructuring Services team works with underperforming and transitional companies and their stakeholders. They evaluate the financial and operational issues adversely affecting performance, assess strategic alternatives and develop and execute comprehensive plans to address the challenges.]

Published: February 25, 2009

Peter L. Mosca is president and founder of BAK Communications, Inc. He has over 22 years of communications and media consulting experience, serving a variety of nonprofit organizations, including the CCIM Institute and the REALTOR Association on all three levels – national, state and local. He is the Spokesperson Trainer for the CCIM’s Jay Levine Academy and trains hundreds of residential REALTORS nationwide to be effective industry spokespeople. He is consistently ranked as "excellent" by about 90% of those who attend his presentations.

While his principal consulting focuses are public speaking and media relations development and content delivery and management, Peter is also the host of the Voice America Network’s weekly radio program, "Income Property Investment Talk," a one-hour program that brings the powerhouses of commercial and residential real estate to property investors every Wednesday at 11 a.m. EST.

Peter is married 17 years to his wife Barbara. They have two children: Ashley, 15 and Kelli, 12. Hence, the name BAK Communications, Inc.

by Broderick Perkins

One holiday Blue Light Special appears to be working.

Interest rates are as low as they been since Freddie Mac started tracking them, refinancing applications are soaring and home buys are on the move.

Freddie Mac on Christmas Eve, bless them, said the 30-year fixed-rate mortgage (FRM) averaged 5.14 percent for the week ending Dec. 24, 2008. That’s the lowest the rate has been since Freddie Mac started the Primary Mortgage Market Survey in 1971.

The 15-year rate averaged 4.91 percent.

Five year hybrid adjustable rate mortgages (ARMs) were higher at 5.49 percent, but 1-year ARMs were below 5 percent at 4.95 percent nationwide and even lower 4.75 in the Northeast and Southwest.

Talk about visions of sugar plums.

With home prices in a trough, with all the money you’ve been saving on reduced holiday spending and gasoline conservation, with all those motivated sellers out there twisting in the frigid wind?

It’s a good time to consider refinancing your mortgage and it’s a good time to be thinking "Buy A Home — Now!"

Forget settling down for a long winter’s nap.

It’s obviously time to put on your refinance thinking cap or your buy-a-home lid, not that go-to-sleep winter topper.

Either way, you won’t be alone. Jack Frost can’t hold a candle to housing consumers who feel the heat.

On Dec. 24, the Mortgage Bankers Association’s composite index of mortgage applications to buy a home or refinance a mortgage — bless it also — rose to 1,245.4, the highest since 2003, from 841.4 a week earlier. The group’s refinancing gauge rose 63 percent and purchases gained 11 percent.

Low rates have you looking to refinance?

The average rates are so low, refinancing can benefit even those who purchased a home a year or two ago, even if they had a small equity stake in their home and used an ARM to buy.

The key, say the experts, is to examine your options.

• Visit your existing lender first, especially if your lender doesn’t sell loans and has a vested financial interest in keeping its portfolio intact. It will prefer to refinance you at the going rate rather than cut a loan modification and lose money.

  Also shop around at other banks, credit unions (especially credit unions) and other lenders that also retain loans.

• Trading an ARM for a fixed rate that’s slightly higher also isn’t a bad deal if that ARM rate will eventually explode with an upward adjustment.
• A 40-year mortgage also can help offset the cost of trading an ARM for a fixed rate, due to the longer term’s relatively smaller payments.
• If you have both equity in your home and pristine credit, bargain hard. You have the most options.
• Quickly pull your credit report from the only federally-sanctioned free service, AnnualCreditReport.com and check it twice for accuracy.
• Don’t overlook trading one ARM for another, especially if the new ARM is a hybrid that provides enough breathing room, say five or seven years or more before the first adjustment.
• A U.S. Housing and Urban Development-approved counselor, experienced mortgage broker or mortgage adviser can help you quickly sort through options from lenders, bailout programs and other sources to get you a refinanced mortgage — fixed or adjustable — that is most viable.
• Examine all potential options by comparing all loan costs of each refinance from a variety of sources — in-house lenders, secondary market lenders and brokers.

Low rates making you think about buying?

Budget. Know all sources of every penny and where every penny goes. You can’t know where you can cut costs until you know in detail what those costs are.

Save. Pinch Pennies. Save More. Being miserly isn’t lame. It’s a prerequisite to homeownership. If you don’t have a savings account worth three to six months of your net income, you are already a financial disaster waiting to happen should there be an emergency. In addition to money for the down payment, lenders today will expect you to have some cash left over for insurance, taxes, maintenance and other costs that come with homeownership.

Don’t just get your credit report, read the darn thing. Your credit report is a report card on your credit use — the good, the bad, the ugly — and, too often, the incorrect. Which is why you want to see it. If there are errors, follow the instructions to correct them.

Get professional help. Can’t determine what your credit report is trying to tell you? Not sure how to calculate what you’ll need to save for a down payment? Don’t know how to set up a budget? Most consumers don’t. It’s okay to ask for help. It’s smart to ask for help. You don’t know everything about buying a home, even if you are moving up, but especially if you are a first-timer. Save the pride for after the purchase.

Whether it’s a financial planner, financial counselor, real estate agent, mortgage broker, loan officer, or real estate market nerd, ask family, friends, co-workers and others you trust for references to find those who can help you. Get help in setting goals, sifting through mortgage programs, understanding the title and escrow process, finding a home and keeping a home — all well before you are actually in the market for a home.

Learn about market and economic conditions that could impact your decision. Learn about home prices, mortgage rates, home buying costs and other issues surrounding what’s likely to be your most complicated purchase ever.

Attend workshops, seminars and classes.

Browse for housing information from online content providers, including MyMoney.gov, the Better Business Bureau (search "Tips for Troubled Homeowners") and Deadline Newsroom’s home buyers search results.

Pick up a few books, or save some bucks in the library reading "Buying Your First Home" (Nolo, $24.99); "The National Association of Realtors Guide To Home Buying" (Wiley, $19.95) and "Let’s Get Real About Money" (Financial Times, $19.99), among others.

Above all — refinancing or buying — move fast. The mortgage market is as volatile as it’s ever been. Rates could quickly reverse course and head back into Scrooge territory.

Published: January 15, 2009

Broderick Perkins parlayed a career in old-school journalism into a contemporary digital news service that really hits home.

The award-winning consumer journalist, originally from Wilmington, DE, is founder, publisher and executive editor of the bootstrap DeadlineNews Group, a Silicon Valley-based editorial content and consulting service specializing in residential real estate, consumer news and related editorial consulting services.

The DeadlineNews Group includes the website, DeadlineNews.com, offering real estate editorial content and consulting services, and its back shop, the Deadline Ne
wsroom, an open house on news that really hits home.

Perkins obtained his formal journalism education from University of Delaware and a journalism boot camp, the Institute of Journalism Education at the University of California-Berkeley. He went on to 20 years of service as a daily newspaper journalist at the Wilmington, DE News Journal and San Jose, CA Mercury News.

Perkins covered housing on the San Jose Mercury News reporting team which earned a General News Reporting Pulitzer Prize in 1989 for coverage of the Loma Prieta earthquake.

He has also produced real estate, consumer and small business content for the Wall Street Journal, Los Angeles Times, RealtyTimes.com, Nolo.com, Better Homes and Gardens, the National Association of Realtors, Homestore/Move and Intuit/Quicken among more than three dozen publications.

In addition to managing the DeadlineNews Group, Perkins most recently served as chief editorial consultant for Nolo’s Essential Guide To Buying Your First Home, Nolo, and writes real estate television scripts for RealtyTimes.com.

The continual drop of housing prices is expected to end but not before home prices slide a little more, according to a report by Moody’s Economy. This news along with the tax credit for eligible homebuyers, and further mortgage rate declines could mean now is the right time to buy.

"If you want to buy a house and are expecting to stay in the property for a long time — it’s not an investment property but a home — then now is probably not a bad time to be buying," says Chen, co-author and Senior Director of Housing Economics, Moody’s Economy.

According to the study, home prices in 381 US metropolitan areas have dropped on average 25 percent and will slip some more (another 11 percent) before stabilizing. The hardest hit markets include areas in California, Arizona, Nevada, Massachusetts, Florida, New York, DC, Virginia, Maryland, and West Virginia.

"Our finding is that we do expect on a national level that the housing correction will bottom by the end of this year. By bottoming we mean that home prices will have reached the lowest level and we expect that between the peak of the housing market in 2006 to the bottom that [housing prices nationally] will have lost 36 percent of their value," says Celia Chen, co-author of the report.

The bright side is that the "housing correction" is in sight, according to Chen; and may, in fact, close in faster with the help of the economic stimulus package.

"Our outlook depends heavily on policy measures that will help to shore up the economy and also to help mitigate foreclosures that are occurring right now," says Chen.

Chen says she believes that the stimulus package could help pull the economy out of a recession this year and "will help stabilize jobs which is a positive for the housing market."

She also expects that, "The Fed and the Treasury will work hard to keep mortgage rates low and, in fact, we do expect mortgage rates to fall to about 4.5 percent by mid-year. That will also help bolster demand for housing," says Chen.

"There is going to be some sort of foreclosure mitigation program put in place that will help forestall some of the foreclosures from happening. That’s not to say that all of the foreclosures will end. I think that we’ll still see quite a number this year but, at least, it will be better than if there is no policy at all," says Chen.

She says without this help from the government, prices could fall "even further than what we’re expecting."

The $789 billion economic stimulus plan aims to save and create 3.5 million jobs, pumping up consumer activity through spending programs, and tax relief efforts including a credit for homebuyers. (At the time of this writing, details are still being worked out but it appears the tax credit for eligible homebuyers will be around $8,000).

The National Association of Realtors predicts that the tax credit will stimulate an additional 200,000 home sales, according to reports by the Associated Press.

Published: February 20, 2009

Phoebe Chongchua is an award-winning journalist, an author, customer service trainer/speaker, and founder of Setting the Service Standard, a customer service training and consulting program offered by Live Fit Enterprises (LFE) based in San Diego, California. She is the publisher of Live Fit Magazine, an online publication that features information on real estate/finance, physical fitness, travel, and philanthropy. Her company, LFE, specializes in media services including marketing, PR, writing, commercials, corporate videos, customer service training, and keynotes & seminars. Visit her magazine website: www.LiveFitMagazine.com.

Phoebe’s articles, feature stories, and columns appear in various publications including The Coast News, Del Mar Village Voice, Rancho Santa Fe Review, and Today’s Local News in San Diego, as well as numerous Internet sites. She holds a California real estate license. Phoebe worked for KGTV/10News in San Diego as a Newscaster, Reporter and Community Affairs Specialist for more than a decade. Phoebe’s writing is also featured in Donald Trump’s book: The Best Real Estate Advice I Ever Received and The Complete Idiot’s Guide to Buying Foreclosures. She is the author of If the Trash Stinks, TAKE IT OUT! 14 Worriless Principles for Your Success.

Contact Phoebe at (858) 259-3646 or phoebe@livefitmagazine.com. Visit PhoebeChongchua.com for more information.

[Note: To follow is an excerpt of an interview with the professional team at RealSource: Kent Anderson and John Schmelzle, Equity Services and Kerby Petersen and Sean Gove, Client Advisors. To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/020409.]

Mosca: With most, if not the entire brokerage marketplace basically leaving tenancy in common or postponing their efforts in 2008, RealSource continues to be successful with tenant in common investments by placing investors into offerings, into opportunities, and this reflects a significant part of your business model. What is enabling RealSource to be so successful at a time when others are either backing out or postponing this particular part of their business model?

Anderson: It is a little eerie to watch some of the big names out there in the business back off over the last several months. RealSource is able to find deals because of our market approach. We have several economists on staff including a Ph.D. where we work on a model that has been developed since 1989 to help us find those markets that are at the right time and the right place and to find those deals within that market. In working with John Schmelzle and others, we are able to find much better deals than what many of our peers have been able to find, which makes our deals very attractive. While it is true there is not as much cash and 1031 money available, we have deals that make sense.

Schmelzle: In the past good sources for our investments were from our existing network of brokers and management companies. In the past, that was the preferred way of finding deals. However, now that the market is changing the better way to go through the process is to go through a bid process. A lot of the change is a result of a difficulty in obtaining financing. Fortunately, we have a very fine mortgage brokerage arm at RealSource and they do a great job finding us favorable debt not typically available to the majority of apartment owners.

Mosca: Can you explain how the company has been successfully put investors in the right place at the right time since 1989?

Petersen: The research of our economist. We research the 363 metropolitan statistical areas or MSAs each quarter. During those quarters, we are finding out where growth is going, where job potential is going, what new jobs and opportunities are going in, plus we are checking on inventory and the ability to raise rents in the certain markets that make economic sense. Then we are micro-marketing that down into very specific submarkets within the large MSA. That’s where we get the majority of growth and economic improvement on the property, rents, and the ability to have occupancy at 100%. We get down to the specific micro-market within a market to help our clients reach the best value possible.

Gove: The key is being really specific in a market. For example, we all know that where we live there are specific areas that are performing better than others. Every market is very similar to that. As client advisors we can add value because we are talking to property managers and the local brokers on a daily basis. We get a good feel for market trends, rents, concessions, all within a specific submarket of a larger market. That’s where we add value.

Mosca: Let’s talk specifics. Can you give us a quick overview of the tenant in common offering available to investors right now?

Anderson: It is a rather large, 264-unit Class A apartment complex in southwest Houston. We like this area for quite a number of reasons. Job growth is doing incredible things for the occupancy on this project that was built and completed in 2007. It leased up rather quickly and despite not granting concessions, they have been able to maintain occupancy since the mid ‘90s. The other thing we like about it is that it’s the right type of property. Lastly, we’re getting terrific terms on a non-recourse loan. Those are two reasons it is forecasted to do so well; job growth and the incredible loan we were able to get on the deal.

Schmelzle: It is in the Fort Bend submarket of Houston. It’s one of the fourth largest housing markets in the United States so it provides you exit liquidity. It’s one of the only markets in the United States that has shown year after year job growth but at the same time, Houston historically has gone through some periods of rebuilding. Right now I believe there are roughly 17,000 additional units expected to the Houston market as a whole, or about three and one-half percent of the current inventory. When you’re entering a market like Houston, you have to be really diligent on what submarket you go into. That’s what our economic staff does, it pinpoints what submarkets outperform others. In this case, we determined that the Fort Bend submarket, which is Fort Bend County in the southern part of Houston, has historically outperformed Houston as a whole. In this case, we were put in contact with a large national developer that was finishing up a project and had an interest in selling it. We were able to lock in a rate and our loan application in time. The asset is 95% occupied, is a brand new community with resort-style amenities, and sits on a scheduled four-lane highway connected to the US Highway 90. While we are seeing 95 percent occupancy, there’s going to be a lot more traffic generated to this property over the next few years and that’s ultimately what is going to allow us to increase rent and maintain traffic at the property.

Mosca: Why is important for investors today who are holding cash, equity, and IRA funds and are sitting and doing nothing because they are scared of the Bernie Madoffs of the world to get off the fence and invest?

Gove: One of the main thing investors are worried about is risk. Consider, if the economy continues to fall and everything went bad, and the property is unable to perform. What will happen to you as an individual investor financially? Is the bank going to be able to come after you? A nonrecourse loan states that an individual investor is not liable if the property does fail. The bank has no recourse to come after an individual investor’s asset.

Petersen: Each one of the properties has its own expectations. As the investor gets involved in this, he purchases a fractional ownership based on the amount of money they put down on the property or a percentage of the total invested. The real benefit of being a member of a TIC is that you don’t have to do the day-to-day management tasks, that’s being done by a roup, and the returns that typically come back. Cash on cash and appreciation varies per project, and today that varies per market more than it does per project. We expect to get a higher return on appreciation than most areas because of the due diligence we put into our market research.

Gove: That (due diligence) has made all of the difference. Remember, money is made on the buy side.

Mosca: Is there a profile or certain characteristics of the typical investor?

Petersen: It starts with the client and diversifying their portfolio. When I first started working with investors, more of them were entrepreneurial, wanting to hold property on their own. In the seven years that I have been associated with RealSource, that number has dropped because more are willing to diversify into triple net leases or TICs opportunities. They like the returns and the simplicity of not having to do the day-to-day operations.

Gove: Every portfolio should have some form of a triple net lease investment. A triple net lease is similar to a CD as far as in the world of real estate investment. A multifamily investment is going to fluctuate;
the income can fluctuate based on occupancy and expenses. In a triple net lease you don’t have that issue; you have consistent cash flow. You know exactly what you’re getting over a certain period of time whether it’s a 5, 10, or 15-year lease. There are no hiccups as far as expenses are concerned. Everything is thrown on to the tenant.

Mosca: What is your golden nugget for today?

Schmelzle: My golden nugget has to do with real estate investing as a whole. Keep in mind as a long-term investment, 33% of the U.S. population is made up of ecoboomers, the children of the baby boomers. The majority of this generation is still living and supported by their parents so within the next 5 to 20 years we’re going to see roughly 80 million people in the United States in need of housing, office space, retail shops, etc. Demand will continue making real estate the most appealing long-term investment.

Anderson: There is going to be opportunities in different types of markets, be sure to have the information and tools readily available to be able to determine when to get in and when to get out.

Petersen: Financing writes the rules of how a property is sold and negotiated upon. Negotiating the best terms possible means having actual numbers on today’s properties.

Gove: IRA funds, IRA funds, IRA funds. Don’t let an old 401(k), an old employer sponsored plan slip through the cracks. I have too many clients that forget that the have 50, $75,000 in an old 401(k) or even if it’s 10 or 20,000 and even an active traditional IRA, a Roth IRA, whatever the case may be. You don’t just have to stay the course in the old style of investing and watch your life savings go away. It’s a very simple process. Don’t be intimidated by it. We can work through the process of self-directing those IRAs into real estate.

Published: February 26, 2009

I’ve been saying it for months, and I’ll say it again.

NOW is the time to get off the fence and buy!

And you’re doing a huge disservice to your clients if you don’t make sure they hear that message loud and clear!

Why am I so convinced that the time is now?

Well, it’s a combination of things. Regardless of whether you’re building a new deck, or whipping up a batch of cupcakes, you need the right ingredients in order to ensure success. For the buyer considering a purchase, the right ingredients are at hand.

Today, right now, is the time to act. Here’s why:

Mortgage rates are low, lower than they have been for many years. In fact, they’re approaching historic lows! Yes, you actually have to qualify for a loan now. But I guarantee you there are lenders out there who are ready, willing, and able to lend you mortgage money at very attractive rates.

Inventory levels are high. Unfortunately for sellers, buyers have an enormous number of homes from which to pick. In many markets, inventory is at an all-time high. As a result, buyers no longer have to "settle" on a home that’s not what they want.

Sellers are motivated. Whether they are in trouble with their financing, worried about their employment, or having to make lifestyle changes as a result of losses in the stock market, many sellers need to sell and are willing to negotiate accordingly.

First-time buyers can also get a $8,000 non-repayable tax credit from the government. And you can apply it to either your 2008 or 2009 taxes.

We may already have reached the bottom of the market. Some buyers are still waiting, trying to buy at the very bottom of the market. Funny thing about that – you never know you’ve hit the bottom until prices are on their way back up. And many buyers don’t realize that an increase in their mortgage rate will completely eliminate any advantage they may have gained by waiting for prices to decrease by a few thousand dollars more.

So, yes, I feel strongly that buyers who don’t make a move right now are missing a huge opportunity. Be the agent that encourages them to make what could be a very wise move!

Published: February 26, 2009

The founding partner of The Lones Group, Denise Lones, brings over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the go-to for all things "real estate.” Denise can be reached at 369.527.8904 or at www.thelonesgroup.com.

The realtors and staff of the Prudential RealtyCenter.com family of home-ownership companies celebrated the success of their associates for the 24th year in a row on Friday. The event included a gala banquet and casino party for the attendees.
Ben Kelly, owner of the firm, remarked on the evening, “Even with a tougher marketplace, we have superstars and rising stars making a great career in real estate. We always gather to celebrate the hard work our professionals dedicate to their clients day in and day out.”
The top individual agent awards for the company were Kim O’Leary- third place, Paula McDaniel – second place and Linda Brock – first place. The top three teams were The Colvin Team- third place, The Shaw Group- second place and the Lawrence Team- first place.

The rising star for the company was Shannon Wilson of the downtown office.
Top individual sales awards for the five branches were Ned Weigel – downtown office, Linda Brock – East Brainerd office, Pam Gilbertson in listings and LaRay Gardner in sales – Hixson office, George McDowell- North Georgia office, and Sue Gee in listings and Travis Close in sales – Signal Mountain Office.
Leann Moses of the Hixson office won the Staff Service Orchids and Jack Deaton, broker of the North Georgia office won the President’s Award.
Over 50 realtors were honored with membership in the Circle of Excellence for 2008.
“Our awards banquet is a great forum for our professionals to celebrate with their families and colleagues. The hours a Realtor works are long and varied; a night like tonight allows us to refresh and power up for the busy year we see ahead. The economic downturn is real, but our company and agents have weathered market cycles for three decades now with a proven record of success for our clients and communities,” said Byron Kelly, broker with the firm.