Don’t delay, time doesn’t wait for you…

October 12, 2012

“You may delay, but time will not.” (Ben Franklin) from the Jack’s Winning Words blog.

Procrastination is an all too common human tendency. The ability to convince ourselves that we’ll get to something later is way too easy and all too convenient. Unfortunately, so is the resulting cases of “coulda, woulda, shouldas” that tend to follow. You coulda taken the time to call that expired listing and you woulda gone and knocked on the door of that FSBO, ‘cause you know that you shoulda been doing more prospecting all along.

Procrastination is one of the biggest issues that I have to face every day. It is just so easy to convince myself that sitting here writing a blog post is a better use f my time than prospecting – or at least it feels better. And at the end of each day, there are things that I can look back and say to myself,” I shoulda gotten to that, maybe tomorrow.”  I’m gonna work on that tomorrow.

Some of the biggest regrets that many people have revolve around things they put off doing – visiting that sick relative or friend before they passed away or perhaps not taking some action to stop or prevent some neglect or abuse before it was too late. Many people look back over their lives and feel regret for not having been more generous or more involved with charitable works. Some feel remorse for relationships gone bad that might have been saved by timely action. Because of a fifty year celebration that I missed, I recently learned how many of my old classmates from high school are already gone and regretted not having made the effort to stay in touch somehow.

Time marches on with our without us in tow. Things don’t stop happening just because you hesitate or delay; they just happen without you. Potential clients will buy goods or services from someone else, whether you call on them or not. Not calling just assures you another coulda, woulda, shoulda moment. So don’t delay. Make the calls today and you’ll always have plenty of things to do tomorrow. And in your personal life, don’t wait to call that old friend or relative until you get word that it’s too late. You can’t really talk to a memory – call today.

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Posted by Norm Werner

Go simple and go small…

October 10, 2012

How small of a space could your family live in? That question was sort of asked and certainly answered in a recent web site article at HouseLogic .com about a family that built and is living in a 320 Sq Ft home in Virginia.

Now this is no one man-one women “family”; this is a family of four with a 90 lb dog all sharing 320 Sq Ft of living space – About the size of a modern master bedroom. The 8 foot by 21 foot home has a loft for sleeping, but everything else is in the 8 by 21 main floor. There is a nice outdoor patio area that they make extensive use of during the warmer months that helps a bit. The whole thing is heated by a 60” electric baseboard heater in the winter.

OK, so maybe this is an extreme example of downsizing; however, it does demonstrate that we can probably all simplify and downsize a bit. The couple that lives in this house with their children lost everything in the recession in Florida, so they were beyond just motivated to downsize. They made up their minds that they were not going to get into another deep debt situation on a home. The husband also had a reasonable set of building skills, so he did most of the work. They made extensive use of Craigslist to get cheap building materials.

Go read the story to see what they live in. It’s sort of like living in a camper trailer all the time. The family in the story already has plans to expand their lifestyle a bit by building a second tiny home of 16 X 24 foot, with a stand-up loft space (their current loft has only 3 foot of headroom).

So what’s the point of any of this for the rest of us? I think if you read the story and think about it you may start to think about all of the room and how much “stuff” that you have crammed into that space and how much you really need. Many of us probably live in much bigger spaces than we really need and all of us have more stuff than we know what to do with. I know that I do.

I’ve met people in my real estate business who’ve made the conscientious decision to simplify their lives, which included dramatically restricting their possessions. These are not people who are attempting to live in 320 Sq. Ft. tiny homes, but they are folks who don’t buy more space that they really need and who are also very deliberate and careful about what “stuff” they have. Not surprisingly they are also people who are in great financial shape. They do not have huge mortgages or maxed out credit cards; in fact, some have no credit cards at all and live on a cash basis.

People who live simple lives do not live the lives of hermits; in fact the ones that I know are very active and engaged in activities like kayaking, hiking and other outdoor activities. What they don’t have are closets full of clothes that they don’t actually wear or basements and garages full of other stuff that they don’t use. They have simplifies their lives.

Lots of retirees end up having to simplify when they finally decide to give up their McMansion and move to a condo.  Nothing forces simplification like giving up a few thousand Sq. Ft. of space. Those moves make for great garage sales. I would say that we all should probably hold a garage sale every 2-3 years and sell off anything that we haven’t used during the last year – that would make our lives simpler right away. You’d be amazed how much of your stuff falls into the garage sale category, if you do that. Once your excess stuff is gone I suspect you’ll be surprised that you don’t really miss any of it.

So I guess the moral of this post is that you can simplify your life and go small without having to live in a tiny house. Of course, if you do a good job of simplifying and getting rid of stuff you might be tempted to downsize from whatever size home you’re in now. I don’t have any 320 Sq. Ft. homes that I could show you right now, but there are some nice condos around 1,200 Sq. Ft. that might fit.

 

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Posted by Norm Werner

When you lose,make it a win…

October 9, 2012

“You gotta lose ‘em some of the time. When you do, lose ‘em right.” (Casey Stengel) from Jack’s Winning Words.

Casey was talking about baseball games of course; however, his words ring true in business, too. We don’t always win, whether it’s a multiple-bid situation or competition for a listing. Don’t you just hate it when you hear someone whining or bad-mouthing over a lost sale or listing? Stuff happens and it does no good to try to bad-mouth the competition or whine that you got cheated out of a sale. Rather that you should use the incident to try to learn what you could do differently or better the next time.

The ability to look back over a losing situation and see what you did and didn’t do that might have affected the outcome is not necessarily an easy skill to develop. Human nature licks in right after a loss and the tendency to find someone or something else to blame is a strong human protection reflex (at least it protects the human ego, which often refused to believe that you could have done anything wrong yourself).

Eventually logic kicks in, along the realization that if you didn’t do anything wrong and yet you lost, there must be something else you could have done (or done better) to win. One very consistent characteristic that you’ll often hear about winners in sports (no matter what sport) is that they are “students of the game.” Sports greats like Michael Jordan and Tiger Woods have often been called students of the game. They study the history of the game and learn what things impact success or failure. Quite often athletes like that go on to become coaches in their sports.

In business (including real estate) there are lots of books and courses available to help students of the game better understand every aspect. Even people who are naturally outgoing and friendly need to understand the nuances of the business game that they are in; otherwise they just become that great fellow that everyone loves, but who never seems to succeed.

So, listen to Casey’s advice and when you lose one, lose it right – learn from it. Discuss it with someone; preferably someone who can help coach you through the process of learning from it and making changes in your approach the next time. If you are just starting out, seek out a mentor in your office – someone who will work with you to learn the ropes and develop your skill at learning from mistakes or losses.  It does no good to beat yourself up over loses. Turn them around into teaching moments and benefit from them.

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Posted by Norm Werner

Occasionally let the fairies and elves return…

October 6, 2012

There is an age of innocence when fairies and elves, trolls and witches are real to us all. Usually that is a very young age and we all “outgrow” that age and that innocence all too fast. We don’t actually outgrow it, we are forced to give it up; dragged into the world of “big boys and girls” who don’t believe in that stuff by adults and older children. It’s sad really, because the world of imagination that is abandoned in that passage into the “big” world is one of wonder and delight.

I remember one summer when my eldest grandson was little I would occasionally take him on walks with our dog, Odie. There is a small area of dense woods close by, behind the Muir Middle School, of not more than an acre. Those became the magical “woods” that he and grandpa walked through that summer. It was magical because someone (or something) had built a series of little shelters amongst the fallen trees and limbs in those woods.

These crude little shelters that we found in the woods were not much more than a few sticks stacked carefully against a fallen tree trunk, or sometimes free standing, with a few boughs on top to form a roof. They each clearly had an entrance. I’m sure that someone had great fun making them, perhaps as little shelters for rabbits or other small animals. Each little “house” was only a foot or so tall and not much more than that around. So, I told my grandson that these were the houses that the fairies and elves of the forest live in and he had the best time imagining that this was true and telling his mom about seeing their homes.

Of course the innocence that allowed him to believe that there were fairies and elves in the woods and that we had seen their homes didn’t last. By the next year he was already questioning who had built those little shelters and why. He had already become a big boy. The fairies and eves were gone for him.

It was, on one level, that age of innocence and the ability to believe in fairies and elves and dragons that was the subject of the famous Peter, Paul and Mary song, Puff the Magic Dragon. Of course the big boys of the world saw a different level and meaning to that song; but the songs story played out much the same as my story with the little houses. For a while the magic of innocent imagination allowed Puff the Magic Dragon to exist and then he disappeared under the sobering weight imposed by growing up.

There is still within us all a capacity to recapture a moment or two of that wonderful childhood innocence. Most of us are too much “in control” to allow those moments to happen; but some can relax, sitting by a campfire on a cool Autumn night, perhaps with a small creek babbling away nearby, and allow our minds to wander and our eyes to defocus. In those moments, if you let them back into your lives, you might see the fairies dancing in the flames of the fire or hear the elves scurrying around the edges of the campfire light. No one else need see the smile that will come to your face when the fairies and elves return.

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Posted by Norm Werner

When is your credit score not THE credit score?

October 4, 2012

Everyone has credits scores – multiples of them because there are multiple different credit rating companies, each with their own credit scoring approach. Now a report from the Consumer Financial Protection Bureau (CFPB) states that consumers may also have different credit scores from the same rater, depending upon who pays for the report. A story on the RealtyTimes Web site reports on a recent study done by the CFPB.

Lots of people use credit scores for a great variety of reasons, obviously usually having to do with extending credit; however, in real estate they are also used as a part of the vetting process for would-be renters. Usually I advise people looking ot lease to go to one of the free credit report sites and pull their free credit report. Those reports don’t usuascoringlly include a credit score, which the sites charge extra for; however, they do provide documentation of the current state of the credit of the would-be renter. Most landlords will accept just the report and not demand a credit score.

It is a bit disturbing to read that a potential creditor might get a different credit score if he/she pays for it than you would get if you paid for it yourself. The CFPB report puts the chances of that at up to 19 to 24% of the time. So, almost a quarter of the time a creditor might see you in a different risk category that you saw yourself in when you pulled the report – usually towards the low side, by the way. That’s disturbing. You may still get rejected for credit and not even know why.

So, what is a good credit score? I guess that depends a little on who is asking and what criteria they are using. At the site credsitscorereange.net a poor credit score is shown as between 340 – 619, a fair credit score is between 620 – 659, a good score in the range of 660- 749 and an excellent credit score between 750 – 840.

 

Here’s another credit score range from oskie.com

Between 700 & 850 = Very good or excellent credit score

Between 680 & 699 = Good credit score  The Average American Credit Score = 682

Between 620 & 679 = Average or OK score.

Between 580 & 619 = Low credit score

Between 500 & 579 = Poor credit score

Between 300 & 499 = Bad credit score

 

I think it’s valuable to see that the U.S. Credit Score Average is 682. So, if you are above that you should be in good shape. Below it, watch out!  What credit score do you need to buy a house? Most lenders want to see a 620 credit score or better for an FHA, VA or USDA loan. For a “conventional loan”, not backed by one of the government bodies, at least a 650 score is what the lenders want to see.

The advice for consumers that came with this article was fairly consistent with past advice – consumers should check their credit reports at least once a year and should aggressively work to clear up any mistakes or old issues that have lingered on the report after the issues were cleared up.  It is probably worth the $10-15 once a year to pay to see what the company is reporting as your credit score, even if it might be a little off compared to what they would report to a potential creditor.

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Posted by Norm Werner

Local business referrals…why should you care?

October 3, 2012

I have a section on my Move to Milford web site that is dedicated to giving referrals to local businesses. Why should you care?

Well, lots of people who might be moving into the area (hence the name) might not know who to call for a plumbing problem or what is a good bank or credit union or where to go to get their hair done. Let’s face it, when you move to a new area you don’t know anybody or anything about the area. It’s like starting over again. Maybe you’ll have a helpful and friendly neighbor to advise you on a few things; but, for the most part you’re on your own.

I’d like to think that my Move To Milford web site can provide you with some help. I don’t have recommendations for everything that you might need. But I do have quite a few categories to look at and the locals who are highlighted there are people that I either use myself or would use if I needed their services.

These are all businessmen and women that I have met through the Chamber of Commerce, either the Huron Valley Chamber or the Lakes Area Chamber;  which is one thing in their favor already. They are people with good reputations and with lots of satisfied local customers. I don’t keep businesses on that list if I’ve been unhappy or I hear of unresolved issues with unhappy clients.

So go to MoveToMilford.com and click on the Local Business Referrals button at the top (it’s the Recommended local businesses choice on the index page, if you’re on the mobile version of the site) and choose from the various categories of businesses that are there. You’ll generally find 1-2 recommended business in each category, some times more.

If you don’t find what you need, send me an email from the site – Go to the About Me Page and send me an email from there. I’ll see if there’s someone that I can recommend locally for that need.

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Posted by Norm Werner

The year is 3/4 over…

October 2, 2012

With 2012 now ¾ over it’s time to see how we’re doing so far in terms of the housing market locally. The stats for September and the year-to-date are now posted for September on my Move To Milford Web site.

I wouldn’t call the stats bad, but there are things to be disappointed about – mainly the slowing pace of sales and average sales values that have started to decline again. We are also literally running out of houses to sell. Many people who would like to sell and move on can’t, because they are underwater on their mortgages and many people who would like to move up are still scared by the current economy.

Here’s the chart from Altos Research showing the Milford Market’s average home values and inventory levels. This chart was as of October 1.

         

You can clearly see the nice run-up that we had this summer in average home prices. You can also see that when the inventory level didn’t follow prices up, we stalled out and the market turned down again.

Almost the same thing has happened in the Commerce market, althought the Commerce market peaked a bit later than the Milford market. Distressed sales in the Commerce market have stayed above 40% for much of the year, while Milford and some other markets dipped down below 20% –

The Highland market followed a different path, with inventory initially trailing and then overtaking the sales average but both eventually declining dramatically. Highland sort of peaked out early, back in June; while both Milford and Commerce continued strong into August.

Finally there’s the White Lake market, which trailed all of the other markets but which is still on a roll. You can see the beginning of the same pattern with that market thought, since inventory remains stubbornly down.

I’ll do some further analysis of the data that I’m collecting and report more on any other trends that are apparent. In the meantime to see all of the sales data for the year go to www.movetomilford.com.

One interesting stat that I watch quite closely is the average sale price cost per square foot. In the depths of the recession almost all of the local markets had fallen well below $100/Sq Ft, some as low as the mid $70’s/Sq Ft. That was mostly driven by low foreclosure prices, but it impacted all prices. Now several of the markets that I track are back above $100/Sq Ft. with Milford leading the way with an average of $103/Sq Ft and a Median of $111/Sq Ft  in September. Good homes in excellent condition in Milford can now command prices in the $110 –  $115/Sq Ft range.

There has also been a dramatic increase in New Build sales as builders have jumped back into the market to fill the void left by owners who can’t, or are reluctant to, sell right now. It’s a good time to be a builder, if you can put a product on the market in the $200 – $300K price range – the sweet spot in our local market.

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Posted by Norm Werner

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