The GOOD News: We're busy....REALLY BUSY. The bad news: It's all about homes under $400K in our market right now and in many places in the U.S.A. there is a similar dichotomy. What ever may be considered to be the 'upper end' is still suffering in many places, not yet having seen the benefits of 5% +- interest rates and the first time home buyer credit. If President Obama gets his way and eliminates the mortgage exemption for people who make more than $200K, well don't get me started. Let me just say this....it will DRASTICALLY alter the housing market in America in virtually every price price point. Oh, yes, the other bad news at least for me.....my PC inhaled the VUNDO virus about 10 days ago and it killed EVERYTHING on my computer including my video software. There should be more fun filled commentary coming shortly via video on all things real estate but in the mean time I wanted to share an appearance by one of my favs, Gary Vaynerchuk from CNN in the last few days. If you're wondering why I have all of the social media connects along the left side of this web site, just spend a few minutes with @Garyvee and think about the applications to real estate....and your business. Here's a taste: I sold a home in February of this year DIRECTLY as a result of a post on Twitter. Wonder what it may do for you?

A weird open house moment....

The most profound moment at my open house last Sunday came when a prospective buyer shared with me one of the lone bright spots of the current downturn. She believes that we will all have to become better consumers when it came to our investments. Kudos Diane...VERY true. The weirdest moment? Well here you go..........




OT......there's a GREAT new tool out there for keeping track of just about anything from crime in your area to shopping, store deals, entertainment to a variety of news updates. It's FREE (nice) and you can also create your own search terms that can be updated and sent to you at http://www.trackle.com/. I'm getting ready to set up a search for where my 14 year old is after the movies on Friday and Saturday nights!

Greg LIVE on WIBC 3/30 can be heard in it's entirety HERE.

The new market stats are in.....and they have a LOT of room for improvement. Better days are ahead but they were very challenged in the last 90 days.





Pricing and valuation, while painful, are not that complicated in Today's New World Of Real Estate:

**Greg will be on 93.1 FM, WIBC on Monday March 29th talking the latest live, local and late breaking housing numbers to be released 3/29!! (streaming @ www.wibc.com)


Remember 10th grade economics....where simple supply and demand ruled the day? Here are a few thoughts on supply and demand relative to value in Today's New World of Real Estate:

Visual Tour for 12069 Leighton Court Open Sunday 3-5

Trying to sell a home in this market is incredibly confusing for most home owners. There are a number of reasons why pricing is SO important in your quest to get to the closing table.....here's why

Just the Facts, Ma'am.

10 weeks into 2009 and we have some interesting data to start the year. The sales market has changed dramatically and is continuing to do so. The first time home buyer credit is having an impact on the market, but only for the actual first time home buyer, and not for the move up market.

Here's a look at the data for 2009 through early March for the entire 13 county metro Indianapolis area:

• nearly 50% of all homes sold were under $100,000
• 93% of all homes sold were under $300,000
• 95% of all homes sold were under $500,000
• 99% of all homes sold were under $1,000,000
• less than .06% of all homes sold were over $1,000,000

A major issue in this data starts with the low end of the market, or the first time home buyer. Of those homes under $100,000, over 50% of those were foreclosures. That tells us that of the owners of those homes under $100K, only half potentially went on to actually buy another property. That's why the sales numbers above $300K are so weak. What's selling is simply foreclosure inventory. While that's good and needs to happen, it tells us we are very VERY early in the recovery process if at all. Until the foreclosure inventory is absorbed and the foreclosure rate slows, we not recognize any value increase in the higher price points above 300K. At the moment we are simply absorbing unsold inventory. That inventory is the active inventory, not the secondary inventory which I would define as the complete set of homes that are waiting for any type of sign the market is recovering before coming back for sale. In other words we have several years of overall inventory to absorb before values begin to grow. If you're any type of buyer, this is good news because it means you are going to have opportunity to make a great buy for some time to come. Selling, will remain a big challenge for at least the next 24 months in our market.

Once Upon A Time In A Land Far, Far Away....

...homes appreciated 12% per year while their owners gleefully day traded their way into multi millionaire status. We all dreamed of the day when our homes would double in value, we could buy a vacation home with no down and no reason to document our income. Ditech.com would refinance our primary residence at 125% of it's value simply by doing a drive by appraisal. Interest rates hovered in the low 6's but no matter, our generous year end bonuses were just around the corner. The lawn never needed watering and the temperatures never went below 50 at night. Our kids all made straight A's and didn't scowl at us when we asked them to pick up their rooms. The neighbor's dog didn't squat in our front yard, nothing in our homes ever broke and the roof, furnace, AC and the appliances lasted for 50 years always appearing updated and new. Cell phones for kids and text messaging were just irritations we would never have to face. Forty hour work weeks were just a distraction, the unemployment rates were 3.9% and inflation was what we did to balloons. Vacations at the beach were a given, none of our parents ever got old or needed care and our pets lived forever. Wars were what happened in history books or places we couldn't find on any map and terrorists only existed at the '72 games in Munich. Television was for families before 9:00 and we never had to shield our kid's eyes and ears because of a promotional advertisement in a magazine or on TV talked about erectile dysfunction.

What's that? The real world is now the exact opposite of everything in the previous 22 lines? Well then, it's time for me to take my blood pressure meds, make certain my kid is really at the library studying and head back to work to try and keep my job for another 30 days. Do me a favor...next time don't wake me up.

(Thanks to Brian @ 1000 Watt Consulting and Boing Boing for the inspiration)

Five Questions To Contemplate For March of 2009

1) With the current market environment, should you be looking at your home as a long term residence or considering a change?

2) What should I do or not do with my current mortgage commitment?

3) Should I be investing additional money in updating my home?

4) Will my home appreciate in Today's New World Of Real Estate?

5) Is real estate the best investment for my future?

Think about these things relative to where you live and your future. We'll be exploring them further as February evaporates and we head for the Ides of March in Today's New World of Real Estate.

Today's Lesson From Tom Peters.com:
(yes, the guy who co wrote In Search of Excellence and many other phenomenal things).


"It" (the current economic mess) is 100% about psychology. Fixes must first and second and third and fourth be directly aimed at our inherent irrationality—times ten in periods of high stress, and at least as true of the "bestest and brightest" as of the rest of us.


Thank you Tom. Class dismissed. See you all next week.

[As a clarification, the stimulus package the president will sign may have an impact but not in the short term. At best I believe it will be mid 2010 before we see any potential affect on the housing market]

So What Will It Take To Sell Your Home
NOW?

The holidays have passed, the weather has broken slightly in some places and your For Sale sign is starting to look like a permanent fixture in your yard. Your impatience is growing and there seems to be no answer. But there is. Before I share the solution, you must as a home seller ask yourself the most obvious but pertinent question.

Do you really want to sell?

Not you would like to sell, maybe you want to sell, you hope to sell, you have a home you've seen that you would kinda sorta like to move up or down to.

NONE OF THESE WORKS IN THE CURRENT ERA.

If you are not 150% committed to the selling process than you are hurting yourself and wasting money. First of all, bar none, every day of unsuccessful history that your home has on the market costs you money. The initial question every buyer asks is 'how long has it been on the market?' Right there they have another tool to beat you up with in the negotiating process if the answer isn't just a short time. Do NOT forget this: If you are on the market and not selling you are hurting your own position! Get it sold or get it on the sidelines until things improve. Don't stick your big toe in the water...dive in or get out!

Still think you want to sell? Then consider the following solution. If your home has been on the market since before the holidays there is one thing you MUST do immediately.

Reduce the price today by 10%.

Not tomorrow, not next week, TODAY. The market is STILL DECLINING. If you have been on the market longer than 90 days you are less competitive today than you were in November. This is not rocket science. It's 10th grade economics. Sales occur when supply and demand meet. When someone's motivation becomes so great that they can't live without your home, they make an offer. In this market, PRICE DRIVES EVERYTHING.

"Well if they like it, they'll just make an offer." Wrong. That's what 100 other home sellers are thinking too. The problem is that the truly motivated sellers with homes equally competitive to yours have already lowered their prices twice while you've done nothing. Buyers don't have to waste time and emotional energy chasing your home when they have all of those choices from motivated sellers.

"Well those things don't apply to our home" or "our home will overcome those objections." If Ricardo Montleban was still alive he'd be saying "welcome to Fantasy Island!"

"Well it's our Realtors fault." Wrong again. By some estimates over 90% of buyers look online first and if your home is in the MLS you are probably everywhere. Buyers are seeing your home. They just don't like what they see at your price. While we can debate how your home is being marketed in it's presentation, if it's out there, people know about it.

Look, this isn't pleasant but do you want to know and act on the truth or live in the pain of make believe? This is not a market for pretenders. If you aren't adjusting your price to meet the demand of the market you are in fact pretending. That's fine....it is your money. It would just be our opinion not to waste any more of it than necessary.

Oh and by the way 10% may not work. It's possible you are farther off in your value than that and it could mean you need further reductions, especially if the market doesn't bottom out soon. Remember true value is what someone is willing to pay, NO MORE. Painful? You bet. I don't enjoy telling you this any more than you want to hear it but if you want to be lied to, this is the wrong place to come. I'd rather shoot straight with you now so you'll still respect me in the morning rather than be one of the Realtors who deceive just to get you into bed with them. They're the ones who will ultimately cost you a LOT of money.

Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG (4734).

This post is originally from June of 2007. Every day
that goes by I wonder more and more if it's not coming
true. Gary Vaynerchuk of WineLibraryTV.com is
constantly saying 'STOP DRINKING YELLOW TAIL.'
In Today's New World of Real Estate I would offer
'STOP SENDING OUT RECIPE CARDS!.'

Denny Crane says
'Who wants to be a Travel Agent?'

Welcome to my metaphor. Inspired by nearly a week of reading my new favorite blogger, Rich From Copywrite, Inc. (linked on the left side of the page), this piece is motivated by change. For my purposes, I'm speaking to the change in doing business or owning real estate. The manner of conducting a real estate sale is about to be swept away into an entirely new paradigm like a number of businesses have been in the recent past.


On ABC's Boston Legal, William Shatner, aka Denny Crane, constantly pops into scenes tossing out the painfully embarrassing, yet somewhat obvious line. In the real estate business, Denny would again be loudly asking the obvious of those of us helping to orchestrate real estate transactions and those who own real estate as an investment.

"C'mon.....who wants to be a travel agent?"

Why? Because those who conduct the business of Real Estate and those who own real estate are in the midst of a titanic shift in the process, much like the travel industry saw several years ago. For my skewed context here, there is no irony lost on the character of Crane, played by Shatner in his commercial endorsement role to PRICELINE.com . 10 years ago, the travel industry was respected, successful and storming ahead with it's service to people in every form of travel based need. America was increasingly affluent, mobile and loved to be on the move. That year, 1997, Priceline.com introduced itself to the traveling public in the form of William Shatner through a stream of wacky commercials that pushed us to point and click to find the cheapest air fares (and later in classic brand extension hotel rooms and rental cars). A decade later the travel industry has laid off thousands of workers. Essentially it's become a shadow of it's former self. Many other service industries are experiencing that as well along with the products they represent, like real estate.

Old school agencies who broker travel have basically been redefined to an Internet based business that fills a niche of customer service. The difference is there is no need to have legions of people seated at a desk to actually place the orders. There are some direct service agencies, but they are a small minority serving certain business and other pigeonhole clientele. To be fair, the change wasn't necessarily any fault of the travel industry and the huge numbers of it's successful representatives other than they never saw it coming. Who did? Can any of say we knew how the Internet was going to absolutely flatten so many businesses by the immediate accessibility it provides?

Well it's coming again to the business of real estate...this time precipitated by the current down turn in the Real Estate market. Anthony Robbins, motivational speaker and infomercial guru has written that 'things don't change when conditions are comfortable....change occurs when pain is present.' If that's the case, change is a full blown tidal wave heading directly for us. Dropping values due to foreclosures, excessive new homes supply, a sub prime mortgage fallout and other secondary factors are the norm today and it will affect most all of us. Falling equity in homes has driven the discount service brokerage movement in the past year and they will continue to gain strength (much to the chagrin of many of my colleagues). They will not, however, replace the affect of the most successful brokers but rather will feed upon those individuals who continue to try and charge a premium fee for less than top shelf service. It's the classic Wal Mart - Nordstrom example. The middle is disappearing to be replaced by the most cost effective (discount) and the very high end.

Real Estate brokers and their companies must learn to do things differently. The effect of the current market downturn will demand that. Watch the numbers in the winter of '07-'08. The quantity of Realtors in this country is going to take a major nose dive (not all would think that's bad, I know). Likewise, the manner in which we all make investment decisions about real estate is also going to change. Dwindling demand for 'vinyl village' types of homes and increasing demands for prime locations will be highlighted. In our area, lots and neighborhoods with character (water front, heavily wooded, golf course) will be the most coveted for more than aesthetic reasons. At this moment they are the only locations selling at a premium and as the public becomes more and more aware of this as a business issue, their demand will rise even faster. The days of buying something slick, shiny and new just for those reasons will soon be a secondary decision. Consumers will be forced to look at the investment first which is not how many decisions have been made in the past. Consumers who blindly buy property for any reasons other than investment first will quickly become the 'travel agents' of the real estate marketplace. I can almost hear Denny Crane's thoughts on that......as painful as they may be.......

Questions? Comments? Donations? 317.848.GREG (4734) or Greg@GregCooper.com

Hear Greg on WIBC from 1/26/2009 HERE.

Read Greg's Interview in the Indianapolis Business Journal HERE.



It's Not Bad News. It's
Just the News.

If anyone tells you the 'for sale' home inventory is going to shrink this year, tell them to do some more homework. While the resale active market will see some up and down over the next 11 months, one thing is for certain: We ain't seen nothing yet (thank you Randy Bachman).

We're about to experience a torrent of lender owned or controlled properties hitting the market. The value of REO properties on the books of FDIC banks surged nearly 30% from the late 3rd quarter of 2008 through the 4th quarter. Those properties are going to be unleashed on markets around the country now that the TARP efforts have been so seemingly convoluted and are not being used to truly combat the foreclosure problems. Repossessions by Fannie Mae and Freddie Mac have blown sky high and in fact they had nearly 100,000 homes in their inventory at the end of September of 2008. With a moratorium on take backs over the holidays that expiring at the end of January by the nation's two big quasi lenders, there will most certainly be more foreclosures in the mix.

So this sounds like horrid news. Nope. It's just the factual reality of where the market is. As I continue to believe, as far as the market goes off track, there are opportunities that are every bit as positive. The media primarily uses information to take a position. I get that. But truth in advertising is a two way street. Look, it is a very challenging time for home sellers. The news coming out of Washington is getting more and more diluted each day for what the past/present bailouts mean. Forget the bailouts. Here's what it means for you and I: If we're selling doing so requires a major reality check on what the market will offer for your home. If you're buying there is plenty of mortgage money available and you are probably going to make a stunning buy in terms of overall value. Fear is driving the market now. You don't need to be afraid of making a purchase if you get good representation and understand this is NOT a short term investment. In this market the 'Flip My House' mindset is tanatamount to 'Take My Money'. Avoid that methodology and if you are in a position to do so, go ahead and make the home purchase you've been contemplating. In five years that's one thing you will be able to count on as being a 'no brainer.'

Questions? Comments? Donations? Greg@GregCooper.com or
317.848.GREG (4734)

I Would Have Rather Started Off With A Bang....

Today's Definition From Dictionary.com:

Transparent:
/trænsˈpɛərənt, -ˈpær-/ Show Spelled Pronunciation [trans-pair-uhnt, -par-] –adjective
(two of the definitions include)
4. easily seen through, recognized, or detected.
6. open; frank; candid: the man's transparent earnestness.

Having said that, how about a little real estate transparency? We're starting off the year in a VERY challenging way. Not with a BANG...more like a whimper. Here's the market data from 1/1/08 to 1/18/08 and then the same 18 days in 2009. Quoting my good friend Robert Plant, 'The Song Remains The Same.' Great time to buy, tough time to sell.

ALL PENDING SALES FOR THE 1ST 18 days of 2008 and 2009

-

Hamilton County

2008 - 209 sales

2009- 124 sales

-31.3%

-

Marion County (Indpls. proper)

2008 - 501 sales

2009 - 413 sales

-17.6%

-

Boone County

2008 - 39 sales

2008 - 24 sales

-38%

-

Hendricks County

2008 - 89 sales

2009 - 63 sales

-29%

-

Johnson County

2008 - 102 sales

2009 - 47 sales

-54%

-

Yes, we all realize it's a short sample but last year was also down from the year prior. What this shows is that we have a LONG way to go before a recovery takes place. The only reason Marion County (Indianapolis proper) did not get banged so badly is that they got clobbered so significantly last year. Again and again and again I say: If you do not have to sell, park your home until 2010. Any questions? Please review the data above.

-

Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG (4734)

I Have Issues

********

Listen to Greg HERE on WIBC on the State of Real Estate

I'm in a foul mood. Last week I went to our city's 'State of Real Estate' conference. It was depressing. Lots of stats. Perfectly dressed people with perfectly coiffed hair gave us 94 minutes of bull roar in neatly packaged speeches. Just once I wanted someone to walk to the edge of the stage and talk to me. No notes. No cards. Just speak from the gut about the mess that was 2008 in Real Estate. Unfortunately there were no takers.

Seems like our industry takes one step forward and two steps back. At the very least there is a widening gap between those real estate professionals who understand where the future is going and those who have no clue. It's not that hard but there are plenty of people 'in the biz' that are headed for a rude awakening and a career change VERY soon at the rate we're going. Consumers...you need to ask more questions than ever before. Do you really need representation? Yes, but be careful where you tread or you may just end up in that gap between those that get it and the clueless who hang a license on the wall and want to collect a check from your sale. Yet there is hope. Last week the best and the brightest in the real estate profession also gathered in New York for the semi annual Inman Connect Real Estate Conference. Some stunningly great real estate minds. Some truly great solutions to the overall market's woes. So where are they in many local markets? Few and very far between. That's why, today, I'm irritated by how, on the local level, we practice real estate.

Here are some of my reasons:

1) Where's The Transparency? We don't get it in the Real Estate Industry. Tell the truth, the whole truth and nuttin' but the truth. Stop spinning the data. Stop giving sellers false hope. Stop encouraging buyers to offer 50% when the prices are already down 30%. Whether you like it or not your cred, your very survival depends on it as a real estate professional.


2) What happened to the Media? What the heck does the media want? You give them the straight scoop and still they twist it. Right now there are clearly two sides to the market. Great buying time. Tough selling time. Challenges mean opportunities...really REALLY great opportunities. Media reporting of anything has become totally about the agenda of the author.

3) Why the confusion about Marketing (industry)? I had reps from one of the major 'homes' mags tell me they would be around for 10 years (hard copy). I told them they should just focus on the next 10 minutes (if they were lucky). Print is dead. Broadcasting has terrible R.O.I. Online is the key to the immediate future.

4) Why the confusion about Marketing (sellers)? Quick - Mr. and Mrs. Seller. Can you name 10 web sites your home is advertised on? Can your agent? Think about it.

5) Social Networking Technology. Most Realtors don't even know what Social Networks are. Many Seller's kids are more proficient at this than those who are the professionals. If you don't know what they are, how can you leverage them to market real estate?

6) Proprietary Information is Dead. Real Estate, like many other businesses is no longer about being the 'gatekeepers.' It's not about the info...it's about knowing what to do with it. Clients no longer pay Realtors for their time but their expertise. If you don't have it, get it or practice saying 'welcome to Wal Mart, can I help you?'

There's plenty more....and I'll probably add to this list. For now, as my good friend Steve Simpson from WIBC says....'It makes my hair hurt thinking about it.' There's growth and opportunity ahead...as well as tremendous challenge. Step lightly and do your homework consumers. Much of the risk in the market is up to you to find.

GAME OVER.

As cultural shifts go, this was a blitzkrieg. We can all say we're shocked, amazed, saddened but this happened quicker than I had ever imagined. It's been no secret that media was shifting as print has become a dying art, but the economy has made this an occurrence of speed multiplied by 10. Tribune media has filed for bankruptcy protection that also includes their print and broadcast media outlets as well as other second tier magazines and niche hard copy products. For the love of all things Mark Cuban at least the Cubs were not included in this. This bankruptcy and it's affects are punctuated locally by the massive layoffs the Indianapolis Star announced in October .

Last month I linked a video by marketing king Gary Vanyerchuck where Gary expounds on where marketing dollars are being spent and more importantly where they are not. Gary, as usual, was dead on in his theory but gave print a bit more of a lifeline than the reality of world economics. The only question now is where and when will the other shoe drop.

I've been astounded lately by listening to both my local radio stations and networks like ESPN radio to hear with some consistency what amounts to public service announcements touting the benefits of radio advertising.

ARE YOU KIDDING ME?

Running self serving marketing ads in the middle of the holiday season that is the broadcasting equivalent of black Friday? Absurd....and revealing. Radio is hurting badly. Television is no different. Soon you will see cut backs at the local level affecting everything from how you get your 11:00 news on T.V. to potentially what people (or lack there of) that deliver the live, local and late breaking news, weather and traffic coming out of your car radio on the way to work. Some of you won't notice because you're already on to an Ipod or Satellite radio. Hence the problem. I've been saying for years that all media is getting to be THIS < > WIDE. With the Tribune bankruptcy filing, it just got narrower.

What does this mean for Today's New World Of Real Estate? Marketing, access and transfer of properties are going to look A LOT different in the months and years to come. Open your mind Mr. and Mrs. consumer. Change has come to the real estate industry and the learning curve will be steep for you and those Brokers who represent you.

QUESTIONS? COMMENTS? DONATIONS? Greg@GregCooper.com or 317.848.GREG (4734)

Could
Gordon Gekko
have been right?

"Greed is good. Greed is right. Greed works. Greed clarifies, cuts through and captures the very essence of the evolutionary spirit. Greed, in all of it's forms, for life, for money, for love, for knowledge - has marked the upward surge of mankind and greed, mark my words, will not only cure Teldar paper but also that other
malfunctioning corporation known as the United States of America." -Gordon Gekko (Michael Douglas) from Wall Street, 1987

Considering the current mess on Wall Street this
is not exactly a 'feel good' diatribe from a 'feel
good' character from over 20 years ago but there's
a point here. Greed, for lack of a better word, has already begun to save the real estate market in several places across our country and ultimately will do so in every city and town in America. In California where home prices have plummeted 40% or more, home sales in units have actually increased at least in part because of greed. Yes, we would all use different identifiers here (free markets, capitalism, opportunity) but the bottom line is that Mr. Gekko had it right in one sense.

When the markets get down far enough that opportunity is present, greed takes over. Recent buyers in California are not making purchases because they're feeling altruistic. They buying for investment and personal opportunity. They're buying because the free market is working. In fact when prices fall to that tipping point in many other markets in our country, homes will begin to sell again with regularity. If we updated GG's infamous speech with the words free markets, I can almost hear that booming voice calling out the housing mess in Today's New World Of Real Estate.......

"Free markets are good. Free markets are right. Free markets work. Free markets clarify, cut through and capture the very essence of the evolutionary spirit........"

QUESTIONS? COMMENTS? DONATIONS? Greg@GregCooper.com
or 317.848.GREG.

SIDE NOTE: Michael Douglass has been asked to resurrect the Gordon Gekko character for a sequel to 1987's classic picture and he's considering it. Douglass has been asked repeatedly about the current mess on Wall Street with one reporter actually questioning him in character. Douglass' reply: "I'm not Gordon. He's simply a character I played 20 years ago and if you would pay half as much attention to nuclear proliferation as Wall Street, we'd be in a much better world."

Changing a Life:
My most Thankful Experience.

It was roughly 20 years ago and I was a real estate newbie. I had been assigned a relocation couple who was going to be transferring from the San Francisco area to Indianapolis as a part of the United Airlines move of their maintenance facility. Ping and Dao were an incredibly nice pair of customers to have but we had challenges. They were an Asian couple who spoke broken English at best and I was a clueless Hoosier who had little experience with people of different cultures.

Side note: I've learned since then that understanding and accepting diversity is not about being open minded, I'm embarrassed to say. It's about the actual experience of successfully interacting with and appreciating people of other cultures. Many of us in Indiana think diversity is simply not being bigoted. That's half the battle. Real understanding comes from true experience...not just saying you 'get it.' Those of you in HR are now free to have your heart attack after what I've just written.

They had an additional challenge that weighed heavily on their lives as well. They had recently lost a young daughter to a horrible illness. They were grieving and being uprooted from the only place they'd ever lived, California. Their family was giving them significant pressure to leave United and find other work out west. The opportunity they were being offered to move to the Midwest was in their minds the best for the two of them and their young son. That recognition didn't make it any easier.

We did a great deal of 'attempting' to communicate before that weekend they were to visit and make their home purchase. I understood they lived in a home that would be about $650,000 where they lived near Vacaville, California. It was to be sold or bought out by United after 60 days on the market so that Dao and Ping would be able to make the move and get settled on the right deadline. They wanted to be in reasonable proximity to the Indianapolis International Airport where Ping would work and in a home of similar value of what they were in. Sounded simple enough but with a major language barrier it was still an uncomfortable anticipation for both they and I as their trip neared.

On that Thursday I picked them up at the airport, took them to their hotel and waited patiently in the lobby while they got settled and came back down for us to begin looking for houses. I think we all had a headache trying to understand each other at the beginning but as time went on we worked through it. What happened that day is something I will cherish for all of my real estate career. As we drove up the driveway of the first home, they were engaged in a very animated conversation that I couldn't understand a word of. Ping looked at me before leaving the car and through great effort asked if in fact the price on the home was correct....that it was priced about the same level as their home in California. It was. He shared this with her and there was silence as we walked to the door.

We entered the foyer of the home as I wondered what was wrong...what had I done or not done? Almost immediatly Dao burst into tears. With her face in her hands standing in the main entry to our first house she couldn't control her gentle sobbing. I waited while Ping spoke with her in hushed tones. The next words, I presumed would be the order for me to take them back to the hotel. What Ping said suprised me. 'She's crying because she's so happy,' he explained. 'In California we live 90 minutes each way to my job in a 1700 square foot home on a 90 by 60 foot lot.' 'Here we'll be living in a home we could have never dreamed owning.' We'll have 2 1/2 hours more a day together as a family as my communte will only be about 10 minutes each direction.' 'We'll have a huge yard for our son to play in and be close to his school where we are far away from it now.' 'Our family told us we'd be coming to live in the middle of a corn field.' 'Instead we'll be starting a new life that we never could have imagined for it's quality.'

I was stunned. I couldn't have imagined their perspective. In all of their stress and pain, they recognized in the entry of that first home they had made the right decision. I felt incredibly humbled to be a part of that transition.

Today, their family has expanded by 2, their son is approaching high school and Ping has started a successful business outside of the airline industry. They are happy and content and having a quality of life they never seemed to be in reach of where they were before they moved to Indiana. I got to experience a true life transformation for a family that badly needed it. Every year when the calendar nears Thanksgiving Day, I think about that Thursday in Brownsburg, Indiana when Ping and Dao saw their new life. It's one I will never forget. It's the reason that through all of the pain of 2008 that I will press on in my chosen profession. The profession that allows me, on rare occasion, to play a role in the changing of a life. God bless you Ping and Dao...and may God bless us all in our country on this Thanksgiving week.

Hey
Congress.
Where's
Our
Personal
Bailout?

Apparently everyone is now unofficially eligible for applying for their 'fair share' of the bailout. Cities are doing it. Companies are doing it. Homeowners are doing it. So where's our share?

It's now obvious that any additional bailing out should be viewed and analyzed with the highest degree of skepticism. Not being able to see who's getting part of the initial $250T allotment is bad enough. Why would we trust these clowns in Congress when they have denied us total transparency on where the dollars are going. You can get the best information available at BailoutSleuth.com but don't think you're going to get the full story.

[EDIT: I am not an insensitive ass. There are people who genuinely need help in this world and as human beings we need to do what we can to help. What I'm NOT in favor are idiots who choose to be victims and exploit the system. Let them eat cake.]

Again...where's my personal bailout?

GM, Ford and Chrysler are an absolute joke asking for a bailout. First, they're paying their workers an average of $78 per hour in total costs and benefits adding over $2000 per car to the expense. Toyota pays only $36 per hour for the same product and is subsequently kicking our clueless American butts in the auto industry. Next, you have industry executives like the president of GM who made $15.1 million dollars last year sitting in front of Congress asking for a bailout. Absurd. This is the same guy who thinks the Cadillac Escalade is a mass appeal product getting about 11 miles per gallon. Give it up big 3. You're in way to deep to recover. You don't get it and it's too late to change. A financial reorganization is the only way for you to go. Get rid of the costs and start building cars that are financially competitive again. Yes I have empathy for the workers but they're toast anyway if there's not a complete reorganization of the auto industry. Stop asking for a bailout and do something about the mess YOU'VE created.

Meanwhile I'll ask the question again. Where's my personal bailout? Perhaps my national trade organization who keeps saying 'it will get better very soon" will get off their sunshine and butterfly back sides and get us Realtors a bailout.........NOT.

Questions? Comments? Donations?
317.848.GREG (4734) or Greg@GregCooper.com

Culture Anyone?

This weekend marks the 11th anniversary of the Carmel
International Arts Festival in Carmel, Indiana.

For starters, here's a hint: Get there before 10:00 a.m. on Saturday morning if you want to see the Chinese Dragon Troup in parade formation. It's a highlight.

When this festival began I remember buying a beautiful sweatshirt that had the festival's logo on it and sure enough when I wore it through Midway Airport, I got numerous questions about Clint Eastwood, Sony Bono and what other famous people did I see around town?

Sorry, that's the other Carmel. Pronounced differently with more water.

In fact, for a FREE festival that has come from nothing but a brainchild, this gathering is a great way to spend a Fall Indiana afternoon. With hundreds of
vendors exhibiting in watercolor, oil, 2D, jewelry, photography, 3D, wood, sculpture, pottery and more, it's a remarkably full art event. The Indianapolis area has Penrod which takes place on the grounds of the
Indianapolis Museum of
Art around Labor Day but for $15 to $20 a pop for admission, frankly it's gotten expensive. If you want a day of wandering booths, galleries
and stores with no pressure, great art, food and people watching, take a trip this weekend to the corner of Main Street and Rangeline in Carmel, INDIANA. While there may not be sand or famous celebrities (unless you count Sony Bono from BEECH GROVE), you will find a totally relaxing way to spend your time and possibly
diminish that credit line a bit.

Bill Engvall and Real Estate:
Giving Us Signs

Comedian Bill Engvall established his own trademark bit while appearing on the Blue Collar Comedy Tour several years ago. He would share an anecdotal story with an obvious, humerous punchline and conclude with the slogan "here's your sign" meaning the story's ending was a foregone conclusion. Right now we're seeing the empirical evidence of where our real estate market is headed based on the last 45 days through home builder stocks. I think with some certainty we can now speak of the direction of the market and say, "here's your sign."

Like clockwork over the past 4 decades when the direction of the real estate market has turned, it has done so on mark, 9-12 months after the stock prices of national home builders have changed directions. It happened in late 2005 when the builder's stocks peaked and began going down translating into an actual real estate market that showed it's ugliness beginning in late 2006. It was obvious to those of us in the business that post Labor Day in 2006 home sales were the pits. Needless to say they still are BUT......here's your sign.

On or around July 14, to the letter, national home builder stocks have changed direction and for the most part are now trending up as the housing bill was signed. In fact on this day the 15 most impactful builders in the dow are all up.







Take a look at the direction of these national builders and see if the trend isn't more than a bit obvious:

Pulte, Toll Brothers, D.R. Horton, Centex

The stock market isn't stupid (well, most of the time). There's a reason the investors of some of our nation's largest home builders are buying back in. NOT because it's going to turn tomorrow. The investors in these companies are looking at all of the market factors and believe that there's light at the end of the tunnel. What does that translate into for consumers? I'll take a look at what home SELLERS and home BUYERS should do over the next 9-12 months in part 2 of Here's Your Sign coming Monday September 1st.

Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG (4734)