Every day the public hears more irrelevant/erroneous statistics about foreclosures and the media is enjoying the sensational results of comparing these figures to those during the 1930’s depression.

I’d like to set the record straight for those not interested in the hype.

A Few Facts

There are no statistics about the percentage of homes that were foreclosed during the great depression. The government does not track foreclosures or REO properties. The census refers foreclosure inquiries to the Mortgage Bankers Association, which only reports foreclosures back to 1990.

So why are these so-called “experts” parading all over the media proclaiming numbers and making comparisons? Sensationalism sells. It’s that simple.

Local Trends: Slower, Not Stagnant

When we talk about foreclosures we need to look at the figures region by region. Yes, some parts of the country have been hit pretty hard, especially California, Florida and Nevada. The Capital Region isn’t in Florida or Nevada. No, we are in Upstate NY, in the area we like to call Tech Valley.

Lets face it, our market has slowed down a bit — but prices remain steady and the number of foreclosures is not as big as people imagine.

One For You, Two For Me

We need to be careful how much “to heart” we take reports (from the media) saying the number of “people behind on mortgage payments” has increased.

I would assert that many people experiencing difficulty making their mortgage may well have both a first and a second mortgage. If someone can’t afford their first mortgage, they most certainly will not be paying that second mortgage (or home equity loan) either.

My conclusion is that some of the foreclosure reports have been artificially inflated by counting the two mortgages on a single property as two separate defaults, rather than a single property with two loans. This, in essence, would double the reported “foreclosure” rates on these properties, skewing the statistics and offering the media more fear-fodder.

When the new system is implemented, we will be able to tell how many buyer appointments are set for a particular price range, location, and type of house. This will allow us to present sellers with a true picture of the market now, not several months ago.

With all this said, I was surprised when I got a call from a reporter yesterday asking me about the system. After I explained to him what the system was all about, the reporter told me some agents were unhappy with this direction.

Today I got a call from a second reporter on the same story. He stated that maybe when times are tough, it is not the time to start something new.

I say, it takes money to make money.

The second reporter also stated that according to the National Association of Realtors, most buyers start their search on the Internet, so the need for an agent is not that great. I agreed that the search often starts online, and asked… “Where are people going to search for homes?” The answer, of course, is to a Realtor website.

Back in 1994, when the Internet first started to come on full force, I remember agents also resisting this change and commenting that the “thing” (the Internet) was going to replace us and we would become obsolete. Instead of replacing us, the Internet made us more efficient and changed the way that we do business.

I would encourage every “nay-sayer” to look at the facts and then make a decision base on reality and not perception.

Change is great. It shows that we are aware of our surroundings. Many agents forget that this is a consumer-driven business and not an agent-driven business.

Agents and brokers have to get ready for the future, before the future passes them by. Let’s be leaders and not followers. I believe that’s the correct path and that’s the way I run my company.

After watching those, if you are still interested in finding out more about foreclosures in your area, I’d like to introduce you to the Google maps tool that does just that… http://maps.google.com/ once there, click on the “My Maps” tab in the upper left hand corner and select the “real estate” radio button.

Select “foreclosures” from the type of listing and add the location you wish to search. This will result in flags or “map pins” for every foreclosure sale within the area you are searching.

Happy hunting!

We had such a run on real estate in this area that houses were routinely selling for more than the asking price.

I hate to break it to you, but those days are over. And… that’s ok.

We are now back to a traditional real estate model. Those agents who have been in the business for many years, may recognize it. And those companies who can offer the right type of support to their agents, will continue to flourish. The mass-marketing models for selling real estate don’t use a business model that is kind to their agents. Thus, the “big boys” are losing their most valuable assets — excellent agents.

You can’t change during the middle of a crisis… that’s stupid. And this is exactly what they are trying to do. Right now, why make the changes?

Now is the time to hold steady and not only continue to offer the best services to your clients… now is the time to improve your internal offerings to the best agents in the business. And that is what we do here at TechValley homes. It is what we have done. It is what we will continue to do.

What I mean is quite simple — the market conditions are such that we have neither a buyers market nor a sellers market. Now buyers can take their time to make informed decisions instead of rushing to make offers. Sellers can quit the panic mode and settle into the market as it is now.

Want to know why I think this a good thing? Because deals will close. That sounds simple, but it’s been challenging lately. Now, buyers will not sign a contract and then decide later if they actually want to buy the house. The current market will allow us, as Realtors, to do provide the best possible service.

By doing our homework thoroughly, we can ensure all the necessary details (many of them new requirements) are handled so the financing will go through. We can encourage potential buyers to weigh options and be sure that they really want the house before starting the process and involving the seller and the mortgage company. Most importantly, we can help sellers and buyers by helping to remedy and overcome any issues the buyer might have.

As a seller you need to do your own homework. The days of putting a sign outside and sitting back to take orders (contracts) are over. As a seller, you need to make sure you hire an excellent real estate professional to help guide you on what needs to be done to make the home sell. This is not a job for your next-door neighbor that sells real estate part time.

Before signing on with an agent, you should ask the hard questions and check references. One of the big question sellers focus on is the commission. Honestly, that is the not as important now. Focus on the performance potential of the agent and their track record and satisfied clients. After all, if the agent can’t produce a contract, there’s no commission base. There’s also no sale.

I would strongly suggest to ask the agent the following:

• Have you ever been through a changing market?
• What is your response time for potential buyers?
• What kind of advertising will your company do for my property?
• What kind of Internet presence do you have?
• Is the decision maker for the company available?

Remember that agents usually don’t have the authority make decisions for the company, make sure you call the office and speak to the owner directly.

Ask the agent to show you a copy of one of their current listing fact sheets. Remember when a buyer comes through they will spend on an average 30 minutes on the house, so the fact sheet they take with them may make the difference between choosing your house over another.

The last test you should perform is to determine how quickly the agent will respond to your emails. Many agents do not respond on a timely basis.

Again we are in a normal market and you need the best possible service, so be sure to find out who has the tools to get the job done for you.

The way it works is quite simple.

I will be locked up on May 20. I need to raise bail. Yes, some of my friends might want me to stay there for a long time, but (trust me) I will get bail money eventually anyway, so you might as well help me raise the money ahead of time, right?!?

Otherwise, if you wait til the day of the event, It will cost you more, I have made it quite simple for my friends & colleagues to donate just go to the MDA site and be generous. The faster I raise bail, the faster I can get back to work!

I have set my goal at $3,200, but I’d love to raise even more — so why wait?

The Council of Real Estate Brokerage Managers (CRB), an affiliate of the National Association of REALTORS®, is the leading professional organization for brokerage management. The Council is dedicated to providing quality professional development programs, products and services that continually enhance the management productivity and profitability of its more than 7,000 members.

The CRB Designation is recognized industry-wide ad the highest level of professional achievement. It is a symbol of excellence in brokerage management. The most successful brokerages are owned or managed by professionals having the coveted CRB designation.

The Council awards the CRB designation to those individuals who successfully complete the requirements and demonstrate excellence in real estate brokerage management. Candidates must complete academic and professional courses covering such topics as finance, marketing, training, recruiting, and strategic planning.

Personally, I’m extremely pleased with Jill’s achievement. Agents like Jill are central to the growth and health of TechValley Homes Real Estate. We continue to be the “forward thinking company” and strive to maintain excellence in the real estate industry. As the market changes, we continue to have the best prepared management in the industry. What broker could ask for more?

As such, we have made a commitment to support the Bethlehem Tomboys Girls Softball League, which supports youth softball for 450+ girls in grades K-12.

When I spoke to the league president, Steve Piccolino, he told me that no other Realtor had stepped up to this particular challenge. We strongly believe in supporting our community. After all, this is where we do business and live.

“This year we’ll host 37 teams and 450 girls from grades K-12 in our spring recreation league. From June through July, we will field 5 travel teams and host many teams from surrounding towns at our facilities. In the fall, we have a ‘fall-ball’ travel league as well.
We have been in existence for over 30 years and we need the support of the business community to help us provide the safe facilities and fun atmosphere that is important to the girls’ positive experience. We thank TechValley Homes for helping us in this regard. This is what community is all about,” said Steve Piccolino

I would encourage every business to support community efforts this the only way we can make sure our future is secure.

I had him as a guest on the March 23th episode of my weekly radio show, The TechValley Real Estate Report, on Talk AM 1300 and was quite impressed with his ambition and drive. I don’t think many 11-year-olds today would willingly take on such a difficult task in order to help others, less fortunate than themselves, to live a better life.

This Bethlehem Central Middle School sixth-grader’s family will be footing all the expenses of this trip so every dollar he raises will be going to support his cause. Max is currently training for the trip with his mother and 4-year old brother who is their self-proclaimed coach and navigator.

You may see Max training all over the Capital Region (just keep an eye out for him and his brother in the bright yellow buggy attached to his Mom’s bike).

Max will be on the road this summer from July 6-13th.

He has already raised over $4000 and continues to work to raise more. I have donated $1000 to his cause and encourage others to donate to this impressive project.

Best wishes and happy trails to Max!

This is my attempt to help the media sales slump — while giving you the real story about housing markets in Albany, Rensselaer, Saratoga, Schenectady and the entire Capital Region Multiple Listing Service (CRMLS) area.

Want to know more about stats and see more graphs? Read on…

Average Sales Price for Upstate New York Residential Homes:

Residential Sales in Local Upstate New York Counties:

Total Number of Listings, By County:

There have been expected fluctuations in the real estate market in the past four years, but overall the trend is increased sales and improved sales prices over 2004 figures. I think these speak volumes about the quality of the market here and the trend that continues to improve overall in the last four years.