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)

Coversation Of The Week:

Expired Listing Seller: "I'd like to speak with you about listing my home"

Me: "Certainly....tell me about your property's history"

ELS: "Well it's been for sale for a year with no showings and no price adjustments."

Me: "Are you aware of the available inventory, how many homes have sold in your price point and location?"

ELS: "No....but I built homes for several decades and I know what this property's worth."

Me: "Have you had an appraisal?"

ELS: "No....by the way you're not going to be one of those agents that keeps telling me to lower my price, are you?"

Me: "Why would I actually want to waste your time with nonsense about supply and demand, inventory absorption and silly little things like how buyers actually feel about your property?"

ELS: "Good....I think we're going to get along just fine...when can you come out?"

Me: "I can be there just after nine on Monday, July 21st, 2010. Looking forward to seeing you. One more question Mister ELS....are you aware that we're in the most challenging real estate market since the '70's?"

ELS: "No but I've got the entire Pable Cruise collection on vinyl. I loved the '70's!"

To think some people believe we Realtors are overpaid.

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

Potpurri and 'wagging the dog' in Today's New World Of Real Estate.

A random collection of Real Estate 'potpurri' is up for today's post.

Right now it's the 'Wag the Dog' Theory when it comes to the current state of the housing industry. Think about a dog chasing a car or for our purposes, the News Media and home sellers reacting to the housing market. No matter how fast the dog runs, it will never catch the car. The dog will never slow the car down. And, the dog will never bite a moving tire. What must the dog be thinking? In parallel, the media will continue to report on any and all bad news about real estate. The consumers will always react to that news. Buyers get more conservative. Sellers will slowly adjust prices accordingly in a group, never really getting ahead of their 'competitors' and never really catching or slowing down that 'car.' The media drives the market down psychogically and then the market declines only for the media to do it all again in a couple of weeks. The media (tail) wagging the dog (market).

Today, many sellers are running after the market, the same way dogs chase vehicles. What are these sellers thinking? Their home is the only castle for sale? Buyers will love the scent of their lilac bushes so much that it will temporarily cause them to forget the competition? Is it possible the smell of fresh baked bread will cause a buyer to pay yesterday's price in today's market?

In my opinion, it is imperative for a seller to price their property 10% below market in order to sell promptly and avoid being left in the long line of expired listings. It may be an election year, but it will be a long wait for the inventory levels to decrease to a balanced market. By suggesting a seller has an overpriced property, the real estate agent runs the risk of being the messenger that gets shot. Courageous agents tell the truth. Cowardly agents hope the overpriced property will generate sign or ad calls while the seller reduces the price and stigmatizes the property with additional days on the market. The next time you see a dog chasing a car, hopefully, it will remind you of the futility of chasing a declining real estate market.

Painful.... is the term I would use to describe the current level of bank owned properties. In Carmel, 271 are on the market, Lawrence Township over 600, Pike over 850 and on and on and on. Remeber every bank owned selling at .60 cents on the dollar affects the entire market.

Over night interest rates are fairly steady at 5.78% for a standard 30 year fixed. The qualifications have changed dramatically for every type of loan and are much more stringent. Check with your lender before getting too far down your buying road and make certain you have a mortage rep you can trust. Liar's poker means nothing in the lending and home buying world. They can promise you anything...delivering is another matter entirely.