Want to sell your home fast for the best possible price? While here are many things to remember, here are few very important ones.
1) Price it right. Pricing it wrong and leaving too much room for negotiations will hurt you as the right buyers won't come thru the home.
2) Improve your curb appeal. If it doesn't attract from outside, many buyers won't go in. Would you go into a restaurant that appears very dirty but promises excellent food once you go in?
3) Keep it bright. Most people don't like dark homes. Let the natural light come in.
If you are working with a Realtor (not all agents are Realtors), follow the advise of your Realtor. You hired this person because you trust their opinion and expertise.
One other suggestion if working with a Realtor. Do NOT hire anyone who does not give you an UNCONDITIONAL PERFORMANCE GUARANTEE. Simply put, if you are not happy with their services, you should be able to fire them.
Good luck with the sale of your home. We are here to assist in any way we can, just call us!
Sanjeev Aneja, CRS
Broker/Owner
On Track Realty, Edison
732.494.2211
http://www.ontrackrealty.com/
Wednesday, January 11, 2012
Wednesday, June 1, 2011
The most often asked question at gatherings - "How is the Real Estate Market"?
When I go to any event or gathering, this question about the market is the most widely asked question, sometimes even more than "How are you?"
The honest answer always is, "It depends". If you are a buyer, the market is different than if you are a seller. Buyers today have a lot of inventory to choose from, interest rates are low, and prices are down, so a very good market for them. For sellers, the abundance of inventory and falling prices is not the greatest news unless they are planning to buy a bigger more expensive home.
The prediction is that the prices will continue to adjust lower for couple of years due to upcoming foreclosures. And if that is the case, should the buyers wait to buy or should they even buy at all? There is no one answer to this, it really depends upon the buyer's needs. If the buyer plans to move out and sell within next 4 years or so, they may want to put on hold their buying plans. But if they plan to stay long term, then all other conditions encourage the purchase - conditions such as good values, low interest rates, enough inventory to choose from, tax write offs, etc. By the way, no one has a crystal ball on when the market will bottom out. Please remember that the market is always local, so don't rely on national news, monitor what is happening in the area you want to buy in.
One advise for buyers. Don't buy a home just based on price, consider all other factors including the "WE LOVE the home" factor. Remember, you have to live there daily. You better enjoy going to it everyday otherwise the savings may not be worth it at all.
Should sellers sell in today's market? Well, if they have to move for whatever reason, then they don't have a choice. The best thing in that case is to price the home right for the current market conditions. But if they can wait, may be they should consider holding off for 4+ years for the market to come back. Now if they are buying a more expensive home in a similar market, then that changes everythhing. While it may seem like a loss on selling end compared to few years ago, the purchase bargain will way make up for that perceived loss!
All said, buying and selling is an individual need and an individual experience. No one answer fits all. Talk to your local agent who will give you an honest answer and guide you properly, based on your circumstances and needs. For the right agent, it shouldn't be just about making a sale, it should be about your needs first, selling or buying! Remember, price is but one component of any transaction.
Have questions? Need clarifications? Want to discuss your specific needs? Please feel to contact us.
Sanjeev Aneja, ABR, CRS, GRI
Broker
On Track Realty
732.494.2211
sanjeev@ontrackrealty.com
The honest answer always is, "It depends". If you are a buyer, the market is different than if you are a seller. Buyers today have a lot of inventory to choose from, interest rates are low, and prices are down, so a very good market for them. For sellers, the abundance of inventory and falling prices is not the greatest news unless they are planning to buy a bigger more expensive home.
The prediction is that the prices will continue to adjust lower for couple of years due to upcoming foreclosures. And if that is the case, should the buyers wait to buy or should they even buy at all? There is no one answer to this, it really depends upon the buyer's needs. If the buyer plans to move out and sell within next 4 years or so, they may want to put on hold their buying plans. But if they plan to stay long term, then all other conditions encourage the purchase - conditions such as good values, low interest rates, enough inventory to choose from, tax write offs, etc. By the way, no one has a crystal ball on when the market will bottom out. Please remember that the market is always local, so don't rely on national news, monitor what is happening in the area you want to buy in.
One advise for buyers. Don't buy a home just based on price, consider all other factors including the "WE LOVE the home" factor. Remember, you have to live there daily. You better enjoy going to it everyday otherwise the savings may not be worth it at all.
Should sellers sell in today's market? Well, if they have to move for whatever reason, then they don't have a choice. The best thing in that case is to price the home right for the current market conditions. But if they can wait, may be they should consider holding off for 4+ years for the market to come back. Now if they are buying a more expensive home in a similar market, then that changes everythhing. While it may seem like a loss on selling end compared to few years ago, the purchase bargain will way make up for that perceived loss!
All said, buying and selling is an individual need and an individual experience. No one answer fits all. Talk to your local agent who will give you an honest answer and guide you properly, based on your circumstances and needs. For the right agent, it shouldn't be just about making a sale, it should be about your needs first, selling or buying! Remember, price is but one component of any transaction.
Have questions? Need clarifications? Want to discuss your specific needs? Please feel to contact us.
Sanjeev Aneja, ABR, CRS, GRI
Broker
On Track Realty
732.494.2211
sanjeev@ontrackrealty.com
Tuesday, February 8, 2011
Don't let your circumstances keep you hungry!
Rich people have no shortage of food. Those below poverty level have many assistance programs to make sure they don't go hungry.
With the economy still struggling, many people are going without adequate food. Among the hardest hit are middle class, working families. They’re caught between having too much to qualify for programs designed for the poorest families, but not enough to make it without support. Middle income people struggling with foods bills, a new phenomenon in the United States, are unlikely to approach food banks and other support programs for a number of reasons, their pride chief among them
Why would this category not have enough money to buy food? There can be few reasons, common ones being unforseen major healthcare costs, a temporary loss in job of a family member, an unseen expense that cuts into their budget, etc.
We are pleased to announce a program for such families. If you are one of such families, please let us know and we will make an arrangement for few days of vegetarian food for you. Be assured, your name will not be disclosed to anyone outside our office (except volunteers who may offer help to deliver food), so no need to feel embarrassed. Many of us face such a situation in our life, one time or the other, and in most cases, it is a very temporary phase. 'This Too Shall Pass' before you know it and when it does you can payback by helping feed 2/3 families in this position then.
Contact us at sanjeev@ontrackrealty.com or call us at 732.494.2211 for any questions regarding this program. Here are some simple requirements to qualify for this program.The program may be modified, without notice, to serve the real purpose of helping those in need.
1) You must not be on unemployment or on any other assistance program
2) You must be currently working
3) You must agree to help feed 2/3 families whenever your needs change in future
Please provide us your name, phone #, home address, email address, your current income, how many members in the family and their ages, and a paragraph explaining the reason for your need. All information will be kept in strict confidence. You may email this to us at sanjeev@ontrackrealty.com or mail this to us at On Track Realty, 186 Lincoln Highway, Edison, NJ-08820. We will contact you if we have any questions.
Sorry, due to limited resources, we can only cover residents of Edison, Metuchen, and Iselin, NJ at this point
One needy family will be picked every day in 2011and food for few days will be delivered to them. We apologize in advance if we we can't help all due to the limited budget.
Don't need food but want to help feed the needy? No problem, contact us and we will tell you what items are needed so that you can drop them off for us.
Sanjeev Aneja, ABR, CRS, GRI
Broker/Owner
Ontrack Realty
http://www.ontrackrealty.com/
732-494-2211
http://www.forittobe.com/
With the economy still struggling, many people are going without adequate food. Among the hardest hit are middle class, working families. They’re caught between having too much to qualify for programs designed for the poorest families, but not enough to make it without support. Middle income people struggling with foods bills, a new phenomenon in the United States, are unlikely to approach food banks and other support programs for a number of reasons, their pride chief among them
Why would this category not have enough money to buy food? There can be few reasons, common ones being unforseen major healthcare costs, a temporary loss in job of a family member, an unseen expense that cuts into their budget, etc.
We are pleased to announce a program for such families. If you are one of such families, please let us know and we will make an arrangement for few days of vegetarian food for you. Be assured, your name will not be disclosed to anyone outside our office (except volunteers who may offer help to deliver food), so no need to feel embarrassed. Many of us face such a situation in our life, one time or the other, and in most cases, it is a very temporary phase. 'This Too Shall Pass' before you know it and when it does you can payback by helping feed 2/3 families in this position then.
Contact us at sanjeev@ontrackrealty.com or call us at 732.494.2211 for any questions regarding this program. Here are some simple requirements to qualify for this program.The program may be modified, without notice, to serve the real purpose of helping those in need.
1) You must not be on unemployment or on any other assistance program
2) You must be currently working
3) You must agree to help feed 2/3 families whenever your needs change in future
Please provide us your name, phone #, home address, email address, your current income, how many members in the family and their ages, and a paragraph explaining the reason for your need. All information will be kept in strict confidence. You may email this to us at sanjeev@ontrackrealty.com or mail this to us at On Track Realty, 186 Lincoln Highway, Edison, NJ-08820. We will contact you if we have any questions.
Sorry, due to limited resources, we can only cover residents of Edison, Metuchen, and Iselin, NJ at this point
One needy family will be picked every day in 2011and food for few days will be delivered to them. We apologize in advance if we we can't help all due to the limited budget.
Don't need food but want to help feed the needy? No problem, contact us and we will tell you what items are needed so that you can drop them off for us.
Sanjeev Aneja, ABR, CRS, GRI
Broker/Owner
Ontrack Realty
http://www.ontrackrealty.com/
732-494-2211
http://www.forittobe.com/
Saturday, January 15, 2011
Biggest Myth in Real Estate!
Brand name is great for recognition. And in most cases, for consistency. Go to a pizza chain or another fast food chain, and you are pretty much guaranteed the same quality of food, no matter what. But will the level of service be same in all other similar franchises? And the answer is "Absolutely Not". The service is based on a person's attitude, it has nothing to do with the product, unless the training standards are very strict and so are the hiring standards.
This becomes worse and changes very quickly in service industry, such as insurance, finance, and real estate. While I don't know much about other industries, I sure can talk of real estate. And one thing I can tell you with 10,000% guarantee - no two agents, within the same office, are alike. No two offices (same franchise) are alike either. Sadly, the recruiting standards at the franchise level hardly exist. Can you breathe and do you want to join us - these are not great standards to recruit, don't you agree? While there are some offices in the country (and many are independent offices not affiliated to any franchise) that adopt an excellent standard of recruiting and training and making sure the customers come first, sadly most are not. Part time, no problem! Don't want to come to office meetings, no problem! Don't want to be trained, it's OK! Want to do just 2/3 transactions a year, it's OK too! Infact, some companies will even offer high commission splits to attract anyone and everyone!
So what do you do as a consumer to ensure excellent service and the knowledge to handle most likely your your largest transaction? Here are few thoughts;
1) Ask the agent about their current success and experience and training.
2) Ask the agent if they do this full time or part time.
3) Ask the agent how many clients they have helped in last 12 months.
4) Visit the office and check the environment. You will get a good feel about the office. Does the office reflect an environment that puts clients first?
5) Meet the broker/owner if you can to see what their commitment is to your satisfaction, specially if things do go wrong.
6) Ask them about their satisfaction guarantees. Will they tie you to them or will they let you go if you are not satisfied with their service? Ask for this in writing. Insist on Unconditional Guarantee!
7) Ask for names of last 3 clients they have assisted - last 3 (not just any 3). Infact, ask them for few (or all) of their current clients too.
In my opinion, Real estate is not at all about franchises (I have been on both sides of it). Same franchise will give you 2 offices in the same town, both with totally different attitude of service. Forget the franchise, even the same office will give you agents with different outlook on how to serve clients. So don't just choose any agent. Choose the one who will put your interest over theirs - Not just as a slogan, but sincerely believe and do so.
One last thing about most franchises. They are independently owned and are only as good as their leadership wants them to be with their internal policies, just like any other non-franchise office. It is great for name recognition but that is about it, in many cases.
Want to share your thoughts and experiences on your dealings with franchise and non-franchise offices? Agents in general? We would love to hear from. Your input will help us further improve so that we can offer even better service to our clients.
Sanjeev Aneja, ABR, CRS, GRI
Broker/Owner
On Track Realty
http://www.ontrackrealty.com/
732-494-2211
http://www.forittobe.com/
This becomes worse and changes very quickly in service industry, such as insurance, finance, and real estate. While I don't know much about other industries, I sure can talk of real estate. And one thing I can tell you with 10,000% guarantee - no two agents, within the same office, are alike. No two offices (same franchise) are alike either. Sadly, the recruiting standards at the franchise level hardly exist. Can you breathe and do you want to join us - these are not great standards to recruit, don't you agree? While there are some offices in the country (and many are independent offices not affiliated to any franchise) that adopt an excellent standard of recruiting and training and making sure the customers come first, sadly most are not. Part time, no problem! Don't want to come to office meetings, no problem! Don't want to be trained, it's OK! Want to do just 2/3 transactions a year, it's OK too! Infact, some companies will even offer high commission splits to attract anyone and everyone!
So what do you do as a consumer to ensure excellent service and the knowledge to handle most likely your your largest transaction? Here are few thoughts;
1) Ask the agent about their current success and experience and training.
2) Ask the agent if they do this full time or part time.
3) Ask the agent how many clients they have helped in last 12 months.
4) Visit the office and check the environment. You will get a good feel about the office. Does the office reflect an environment that puts clients first?
5) Meet the broker/owner if you can to see what their commitment is to your satisfaction, specially if things do go wrong.
6) Ask them about their satisfaction guarantees. Will they tie you to them or will they let you go if you are not satisfied with their service? Ask for this in writing. Insist on Unconditional Guarantee!
7) Ask for names of last 3 clients they have assisted - last 3 (not just any 3). Infact, ask them for few (or all) of their current clients too.
In my opinion, Real estate is not at all about franchises (I have been on both sides of it). Same franchise will give you 2 offices in the same town, both with totally different attitude of service. Forget the franchise, even the same office will give you agents with different outlook on how to serve clients. So don't just choose any agent. Choose the one who will put your interest over theirs - Not just as a slogan, but sincerely believe and do so.
One last thing about most franchises. They are independently owned and are only as good as their leadership wants them to be with their internal policies, just like any other non-franchise office. It is great for name recognition but that is about it, in many cases.
Want to share your thoughts and experiences on your dealings with franchise and non-franchise offices? Agents in general? We would love to hear from. Your input will help us further improve so that we can offer even better service to our clients.
Sanjeev Aneja, ABR, CRS, GRI
Broker/Owner
On Track Realty
http://www.ontrackrealty.com/
732-494-2211
http://www.forittobe.com/
Wednesday, January 6, 2010
Is This The Right Time to Invest in Real Estate?
Investment real estate is different than buying a home! It does not have (& should not have) emotions involved, it is all about numbers.
With that said, it is always a right time to invest in real estate if your numbers make sense. Keep these things in mind (& there are many more to consider) when buying an investment property.
1) Are you buying for monthly income or future growth/appreciation? Higher monthly return will normally mean a slow appreciation and vice versa.
2) Is the rate of return what you are looking for? Word of caution here - higher the rate of return, more the chances that you are taking a risk. And what is the right rate of return? It is different for everyone. Some people are happy with 2%, other want 15%.
3) Will you be able to carry the property for sometime in case of vacancy? Multiple tenants in the property reduce that risk.
4) Are there any major expenses that need to be planned? This can be a back breaker if unknown major expenses pop up. Make sure the price reflects an adjustment if it is obvious that repairs will be needed soon.
So you ask, what is better, income producing or potential growth property? Again, that depends on your needs and capacity. Example - If a $100,000 non income producing property has a potential of becoming $200,000 in 5 years, should you buy it? YES, because it offers a huge rate of return when you sell it but NO if you can't afford to carry the property for 5 years without income to pay for the mortgage and expenses.
And you ask, should I invest if it is giving me 4% return? And the answer again is, it depends. If your money is currently earning you 1%, then 4% looks great. If you are getting 7% already, then 4% is no good. Unless ofcourse, this property has future appreciation possibility and will result in higher return. Example - you buy a property for 100K, and put 20% down (20K). After all expenses, you get 4% per year ($800). If you would have left in your current 7% a/c, you would have gotten, $1400/yr. So you lose $600/yr (3K in 5 years). But in 5 years, you sell this property for $150K. Which means a 50K profit on 20K investment (thereby making it a 30% per year return apart from 4% you already got, minus the 3K). See how this 4% was many times better than the current 7%? Please keep in mind, these numbers are there to explain simply - we have not considered compounding, we have not considered closing costs, we have not considered depreciation benefits. So there is a lot more to consider but you get the idea!
There is one other advantage of investing in real estate and a huge one - it's called leveraging (just be careful and don't over do it, keep enough reserves for rainy days).
Wishing you the very best with the purchase of your investment property. Please fell free to call if you have further questions or if you would like us to assist you with an investment in real estate.
Sanjeev Aneja, CRS, Broker/Owner
On Track Realty
www.ontrackrealty.com
732.494.2211
With that said, it is always a right time to invest in real estate if your numbers make sense. Keep these things in mind (& there are many more to consider) when buying an investment property.
1) Are you buying for monthly income or future growth/appreciation? Higher monthly return will normally mean a slow appreciation and vice versa.
2) Is the rate of return what you are looking for? Word of caution here - higher the rate of return, more the chances that you are taking a risk. And what is the right rate of return? It is different for everyone. Some people are happy with 2%, other want 15%.
3) Will you be able to carry the property for sometime in case of vacancy? Multiple tenants in the property reduce that risk.
4) Are there any major expenses that need to be planned? This can be a back breaker if unknown major expenses pop up. Make sure the price reflects an adjustment if it is obvious that repairs will be needed soon.
So you ask, what is better, income producing or potential growth property? Again, that depends on your needs and capacity. Example - If a $100,000 non income producing property has a potential of becoming $200,000 in 5 years, should you buy it? YES, because it offers a huge rate of return when you sell it but NO if you can't afford to carry the property for 5 years without income to pay for the mortgage and expenses.
And you ask, should I invest if it is giving me 4% return? And the answer again is, it depends. If your money is currently earning you 1%, then 4% looks great. If you are getting 7% already, then 4% is no good. Unless ofcourse, this property has future appreciation possibility and will result in higher return. Example - you buy a property for 100K, and put 20% down (20K). After all expenses, you get 4% per year ($800). If you would have left in your current 7% a/c, you would have gotten, $1400/yr. So you lose $600/yr (3K in 5 years). But in 5 years, you sell this property for $150K. Which means a 50K profit on 20K investment (thereby making it a 30% per year return apart from 4% you already got, minus the 3K). See how this 4% was many times better than the current 7%? Please keep in mind, these numbers are there to explain simply - we have not considered compounding, we have not considered closing costs, we have not considered depreciation benefits. So there is a lot more to consider but you get the idea!
There is one other advantage of investing in real estate and a huge one - it's called leveraging (just be careful and don't over do it, keep enough reserves for rainy days).
Wishing you the very best with the purchase of your investment property. Please fell free to call if you have further questions or if you would like us to assist you with an investment in real estate.
Sanjeev Aneja, CRS, Broker/Owner
On Track Realty
www.ontrackrealty.com
732.494.2211
Monday, November 16, 2009
Are we on the right path, Part 2?
As discussed in part 1 of this article, the real question is - Are we on the right track?
Since the publishing of Part 1, the $8,000 credit has been extended and expanded. And that is a great news for many buyers. But the question remains - will this fix it?
As an industry, we do believe that this will help with sales. As an individual taxpayer, I am concerned! Why, because while the money is being given, there are no checks and balances. We are doing many of the same things that got us in to this mess. And if this continues, we will most likely be in this mess again, perhaps even worse.
Problems:
1) Thousands and thousands of fraudulent cases are under investigation. Many people abused the system. We MUST have a way of punishing those who cheat!
2) A huge one - we are still lending to those who can't afford it. We want to encourage people to be homeowners and that is EXCELLENT! Every one should own if possible. But do they know how to take on the responsibility? Are they putting down enough to know that they can't just walk away? Do they have a good credit indicating atleast a good past history?
Even today, we are seeing programs with 3.5% down (money that can be borrowed from friends and relatives) without a perfect credit. Is it too hard to figure that these will most likely result in a default, if circumstances change even a little? Put 3.5% down, get 10% back (up to $8,000) - what are we thinking? What is the motivation to keep the home when things or circumstances change? Atleast I can't figure this out! The real sad part of this is, these homeowners will have to go thru more hassles, if and when things change, making it even harder for them to recover later. Why put them in this situation knowing that the odds are not in their favor?
3) While we are too liberal in some cases, the lending is still an issue where banks are not lending to those even with good credit, and with good down payments. And that slows down sales unnecessarily. Bringing back lending programs that lend to those who have enough vested of their own is crucial. What's wrong in lending to someone who is putting 25% down and has good credit? We don't need this person to provide many documents, his/her own money is at risk!
4) Bad appraisals can be a huge problem. We need to make sure appraisals are done by local people who understand the local market. And there should be some way of a random checking to make sure these appraisers are following proper rules and appraising right! A lot has changed and the appraisers are careful now in making sure they are not part of any fraudulent activity that appraises the property higher than the market. There should be penalties for those who don't follow the rules.
We need to do what is right, instead of doing what serves a segment. We need to look at long term consequences, instead of short term fixes. And biggest of all, we need to reward right behaviour.
Imagine this - send a check to all those who act responsibly and encourage them to do so! Novel idea, least popular perhaps, but one that will stop many on the edge to make a wrong decision. And thank those who act responsibly.
All this said, we must not walk away from those who became victims of the market conditions. But let's do this right in the beginning so that there are less victims when things change.
Sanjeev Aneja, CRS, Broker/Owner
sanjeev@ontrackrealty.com
Since the publishing of Part 1, the $8,000 credit has been extended and expanded. And that is a great news for many buyers. But the question remains - will this fix it?
As an industry, we do believe that this will help with sales. As an individual taxpayer, I am concerned! Why, because while the money is being given, there are no checks and balances. We are doing many of the same things that got us in to this mess. And if this continues, we will most likely be in this mess again, perhaps even worse.
Problems:
1) Thousands and thousands of fraudulent cases are under investigation. Many people abused the system. We MUST have a way of punishing those who cheat!
2) A huge one - we are still lending to those who can't afford it. We want to encourage people to be homeowners and that is EXCELLENT! Every one should own if possible. But do they know how to take on the responsibility? Are they putting down enough to know that they can't just walk away? Do they have a good credit indicating atleast a good past history?
Even today, we are seeing programs with 3.5% down (money that can be borrowed from friends and relatives) without a perfect credit. Is it too hard to figure that these will most likely result in a default, if circumstances change even a little? Put 3.5% down, get 10% back (up to $8,000) - what are we thinking? What is the motivation to keep the home when things or circumstances change? Atleast I can't figure this out! The real sad part of this is, these homeowners will have to go thru more hassles, if and when things change, making it even harder for them to recover later. Why put them in this situation knowing that the odds are not in their favor?
3) While we are too liberal in some cases, the lending is still an issue where banks are not lending to those even with good credit, and with good down payments. And that slows down sales unnecessarily. Bringing back lending programs that lend to those who have enough vested of their own is crucial. What's wrong in lending to someone who is putting 25% down and has good credit? We don't need this person to provide many documents, his/her own money is at risk!
4) Bad appraisals can be a huge problem. We need to make sure appraisals are done by local people who understand the local market. And there should be some way of a random checking to make sure these appraisers are following proper rules and appraising right! A lot has changed and the appraisers are careful now in making sure they are not part of any fraudulent activity that appraises the property higher than the market. There should be penalties for those who don't follow the rules.
We need to do what is right, instead of doing what serves a segment. We need to look at long term consequences, instead of short term fixes. And biggest of all, we need to reward right behaviour.
Imagine this - send a check to all those who act responsibly and encourage them to do so! Novel idea, least popular perhaps, but one that will stop many on the edge to make a wrong decision. And thank those who act responsibly.
All this said, we must not walk away from those who became victims of the market conditions. But let's do this right in the beginning so that there are less victims when things change.
Sanjeev Aneja, CRS, Broker/Owner
sanjeev@ontrackrealty.com
Sunday, October 25, 2009
Why is the Real Estate Market in turmoil? Are we on the right track to fix it? Part 1
Hindsight is always 20/20 and we can all now make our comments and think we are the smartest. Here are my 2 cents too, on why it is so. The main discussion then is - are we really fixing this (& we look forward to your comments on that)? Most of our discussion in this article and part 2 of this article, to be posted later, will be about that!
Why are we here?
Many reasons, greed being # 1; carelessness being # 2 (by banks and lenders); short term investors being # 3; the list goes on. This was all working well (on the surface) but when the banking crashed, it started showing it's toll.
The market was never a problem for qualified buyers who were buying their homes for long term living, and put enough money down. It did become a problem, however, for those who borrowed 100% or more of purchase price; for those who had bad credit and didn't know how to manage it any better; for those who left nothing for unforeseen circumstances; and then unfortunately for those - who did everything right but lost their job and couldn't afford to stay in their home. While the banking mess was huge, major factor the greed & carelessness.
And now, the banks have taken a 180 degree turn and won't lend to even the qualified buyers, so that adds to the problem. Add to it the bad economic news (though showing some signs of recovery) and job losses, plus some short term fixes w/o long term consequences by our leaders and the things just get worse.
Another major factor resulting in short sales and foreclosures is those bank executives making wrong decisions/policies even today. Instead of working with those who are paying in time but struggling and requesting a payment plan or reduction in interest, they tell them that they will talk to them when they are late on their payments. What an incentive to a homeowner who wants to do it right!!!
This can go an on and on. Let's go to the real question - Are we on the right track?
My answer, for very long time, has been NO. The only way to do it right, for long term benefit, is to reward the right behaviour, not wrong. To reward those who keep on doing it right instead of those who don't care. To help those who really did everything right but are now victims of the market conditions or their personal circumstances (not because of their doing). Reward the good ones, and encourage those at the bottom to get the reward too, goes a long way instead of encouraging people to do it wrong and benefit so that others can follow the same.
Those who need genuine help, MUST be helped. We must evaluate their past profits and their current circumstances. I know this is not an easy task but we are not talking about easy. Long term is never easy, but always the best.
Another thing is this $8,000 credit to the first time buyers. Is this a good thing, you bet!! But not if it doesn't come with conditions like evaluation of bad past behaviour such as too much debt, bad credit, bad spending habits, taking out equity to buy luxury items and vacations, etc that has no explanations. Selling homes just for the sake of it will only bring those homes back on the short list and foreclosure list not too long from now. And if we stay in this mode, when will we get out of it? How long will those with proper habits and commitment to take care of their obligations keep paying for those who just keep spending and then don't know how to pay back?Our politicians can't just look good by taking short term decisions, they have to look beyond. Their problem ofcourse is long term thinkers won't get re-elected because they didn't make a popular decision or because their decision didn't show the quick results we all want. And most politicians worry about the polls first, right way after.
So the buck stops at us - we must reward right behaviour - of our politicians and of ourselves. If someone puts themselves in the situation they are in due to their carelessness or no care attitude, they MUST NOT be rewarded. But those who become victims of their circumstances, despite their best efforts, should be helped no matter what it takes. We must not do things just for the sake of doing them.
More to continue. Send us your thoughts.
Sanjeev Aneja, Broker/Owner
sanjeev@ontrackrealty.com
Why are we here?
Many reasons, greed being # 1; carelessness being # 2 (by banks and lenders); short term investors being # 3; the list goes on. This was all working well (on the surface) but when the banking crashed, it started showing it's toll.
The market was never a problem for qualified buyers who were buying their homes for long term living, and put enough money down. It did become a problem, however, for those who borrowed 100% or more of purchase price; for those who had bad credit and didn't know how to manage it any better; for those who left nothing for unforeseen circumstances; and then unfortunately for those - who did everything right but lost their job and couldn't afford to stay in their home. While the banking mess was huge, major factor the greed & carelessness.
And now, the banks have taken a 180 degree turn and won't lend to even the qualified buyers, so that adds to the problem. Add to it the bad economic news (though showing some signs of recovery) and job losses, plus some short term fixes w/o long term consequences by our leaders and the things just get worse.
Another major factor resulting in short sales and foreclosures is those bank executives making wrong decisions/policies even today. Instead of working with those who are paying in time but struggling and requesting a payment plan or reduction in interest, they tell them that they will talk to them when they are late on their payments. What an incentive to a homeowner who wants to do it right!!!
This can go an on and on. Let's go to the real question - Are we on the right track?
My answer, for very long time, has been NO. The only way to do it right, for long term benefit, is to reward the right behaviour, not wrong. To reward those who keep on doing it right instead of those who don't care. To help those who really did everything right but are now victims of the market conditions or their personal circumstances (not because of their doing). Reward the good ones, and encourage those at the bottom to get the reward too, goes a long way instead of encouraging people to do it wrong and benefit so that others can follow the same.
Those who need genuine help, MUST be helped. We must evaluate their past profits and their current circumstances. I know this is not an easy task but we are not talking about easy. Long term is never easy, but always the best.
Another thing is this $8,000 credit to the first time buyers. Is this a good thing, you bet!! But not if it doesn't come with conditions like evaluation of bad past behaviour such as too much debt, bad credit, bad spending habits, taking out equity to buy luxury items and vacations, etc that has no explanations. Selling homes just for the sake of it will only bring those homes back on the short list and foreclosure list not too long from now. And if we stay in this mode, when will we get out of it? How long will those with proper habits and commitment to take care of their obligations keep paying for those who just keep spending and then don't know how to pay back?Our politicians can't just look good by taking short term decisions, they have to look beyond. Their problem ofcourse is long term thinkers won't get re-elected because they didn't make a popular decision or because their decision didn't show the quick results we all want. And most politicians worry about the polls first, right way after.
So the buck stops at us - we must reward right behaviour - of our politicians and of ourselves. If someone puts themselves in the situation they are in due to their carelessness or no care attitude, they MUST NOT be rewarded. But those who become victims of their circumstances, despite their best efforts, should be helped no matter what it takes. We must not do things just for the sake of doing them.
More to continue. Send us your thoughts.
Sanjeev Aneja, Broker/Owner
sanjeev@ontrackrealty.com
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