Realty World Northern California & Nevada

My wife, Mackenzie, and I often times find ourselves meandering through neighborhoods dreaming of what it might be like living in a different home, in a different neighborhood. Our eyes have been trained to hone in, spot, and identify the real estate yard signs like a childhood game identifying states of the license plates on passing cars during a family road trip.

We pass by what seem to be hundreds of signs and stop in front of dozens, but only make it inside a few of those homes. It just so happened that last weekend we came across a home that we not only felt the urge to stop and see, but we were compelled to walk in for a closer look.

To our surprise, there were many people walking in and out, upstairs and downstairs, in rooms and out of rooms. Apparently, the house was an REO listed at a drastically lower than market rate. By the time things were said and done, the house was only on the market for less than a week with more than 20 offers!

The word is out…

Buyers are out there.

It is pleasing to see so many Realty World Members comments regarding the rollout of our new online initiatives. Still there are a few who have attended that are a bit skeptical about growing their business by using these efficient Internet, media and productivity tools. Well, there once was a time when people asked ‘Who needs indoor plumbing?’ too.

Maybe what they need is a few of your success stories or thoughts about what you experienced by attending and participating in our new programs?

Please post them here so other can learn! THANK YOU!

The current economic crisis, growth in unemployment, and significant rise in foreclosures are ravaging the finances of homeowners everywhere. But people aren’t the only ones who are suffering through this hardship and finding themselves without a home… pets are fast becoming victims of foreclosure as well. There is a rise of pets being abandoned in foreclosed homes and left to starve or dropped off at animal shelters because their owners can no longer afford to keep them. And the numbers are staggering.

There is a growing concern about the fate of these animals. They arrive at shelters by the thousands each month, their owners surrendering them with a vague story of moving and give no specific details. But some shelters have a minimal numbers of pets they will except; hence, the reason why people opt to leave them behind in vacated yards, garages, or empty homes. Either way, their time is limited. Shelters typically hold an animal for a short period of time in hopes that someone will claim them before they are euthanized. The ones left behind usually aren’t found for days or weeks at a time, and when they are found, they’re usually dying of starvation or they’re already dead.

If you plan to get a pet this holiday season, contact your local animal shelters to find a pet that you can provide a loving home to, but understand that pets are expensive and you should plan in advance for them in case your finances take a nosedive.

An 83 year old woman in Ramona, California found out that she won’t be spending her remaining years out in her home due to foreclosure. Although she’s lived out a full life, nurturing dozens of foster children and abandoned animals over the years, she never quite imagined her life would turn out like this.

She signed for a loan three years ago. Just one year earlier, her husband, a Navy Chief passed away leaving her a fixed income of $1,200 month. The man who convinced her to refinance assured her it would be a sure way to hang on to her home. But it was not a sound decision. Her daughter found out about the loan too late and felt that her mother’s age and situation were taken advantage of. Her mother had agreed to take out more than $500k in debt. The monthly payments became impossible to make.

A Ramona real estate agent tried to help, approaching the bank with offers to buy the property, but the bank declined. They weren’t even willing to negotiate. The highest offer was $315,000 and the bank wanted at least $340,000 — a $25,000 difference between an elderly woman able to keep her home and live in peace, or lose everything she’s known.

So, considering that the bank would probably be wasting a lot more money in the whole process of a foreclosure sale, what’s your opinion? Was it fair for the bank to decline to negotiate an offer over $25,000? Should a person’s age be taken into consideration when it comes to foreclosure on a home?

Buy, fix, sell… buy, fix, sell… buy, fix, sell… better known as “flipping” is something the local government may be getting into soon. In these times, when foreclosures are flooding the market, it’s difficult for people to find the money (or credit) to participate in flipping for profit.

Some East Bay counties like Alameda and Contra Costa will receive $24 million to “buy, fix, sell” abandoned and foreclosed homes. The goal is to stabilize neighborhoods by cleaning, fixing, and selling houses that sit vacant to lower-income buyers. This program, due to begin early 2009, may also receive more funding from the housing recovery bill that President Bush signed earlier in the year.

Several agencies plan to join forces with non-profit groups as Habitat For Humanity to buy ravaged, unwanted homes from willing banks. However, the downfall remains that agencies are going to have to make incredibly low offers to the banks (approximately 10% to 15% below today’s market value) with no certainty that these homes will even sell. Another concern is that if the government pays more to buy and fix homes than they can sell them for, it may prevent buyers from seeing any profit when home values increase. And on top of that, the government is unsure if banks or lenders are even going to participate at this point.

Contra Costa County will be allocated $6 million and county officials say they plan to flip 50 to 100 properties in a five-year timeframe. The county has had approximately 4,000 foreclosures just in the last few years.

Too little too late? Do you know the same amount of money one year ago by the federal government could have been spent keeping millions of families in their homes?

Get more details on State and Local Neighborhood Stabilization Program Allocations

We visit the doctor for check-ups to ensure our bodies are healthy and also as a preventative to avoid a potential emergency down the road. Doesn’t your home insurance (and wallet) deserve the same care?

Give your insurance policy a check-up:

• Given today’s market, know what it would cost if you needed to buy a comparable home and adjust your policy accordingly. Find out how much you’d be paid if you decided to move to a different location.
• Your possessions should have replacement coverage. Maintain a list of what you own and know the actual value of your belongings. It’s also a good idea to be aware of how much you might be paid on the depreciated value of your items.
• Know that if you’re in an area susceptible to strong winter storms, you may need flood insurance. Damage from rising water isn’t covered in standard polices, so ask an agent for help to get the proper coverage. You will most likely pay a higher premium, but it’s definitely worth it.
• If a claim is ever denied by your insurance carrier, ask them to provide you with a written explanation. You have the right to dispute it; however, if that doesn’t work you may take it a step further and file a complaint with the state insurance department. If you suffered any loss from a natural disaster, try to find other people who were also denied claims from the same insurer and challenge it together.

There are a number of things that influence the value of a home; one being local schools.

Did you know that…

• During the 1970s, California’s school spending per student was close to, or even higher than, that of the US as a whole. Since 1981-82, California has consistently spent less per student than the US as a whole.
• We rank 34th out of the 50 states in our spending per Student 34 at $8,607 compared to the national average of $9,566.
• We rank 34th out of the 50 states in the percentage of our state’s income on K-12 education.
• We rank 48th in the number of K-12 students per teacher at 19.1 compared to 14.7 for the nation as a whole. Source: http://www.learnmorecalifornia.org

I find it perplexing that we don’t fund our childrens’ education at a level in which our schools can properly maintain and build campuses, provide current technology, and hire and retain the very best teachers and administrators. With current budgets being slashed further, where will California rank next year? Lack of funding affects our ability to provide the resources necessary to educate our children, negatively infuencing our ability to continue to compete and succeed globally.

Funding is a large part of the equation; however, involvement in our local schools can also make a substantial impact. Your involvement, whether it’s volunteering in the classroom or office, supporting a music or sports program, sprucing up a school campus, or getting involved in the PTA, is an investment that can make a difference on many levels. Despite so much negative publicity, there are a lot of great things happening in our local schools. Stop by and obtain a pass to sit in on a class, sign up to be Principal for the Day. Get involved…not only will your local school benefit but you will too…both personally and professionally. Any other ideas out there on how we can assist our local schools?

With winter nearing, as well as Thanksgiving and Christmas just around the corner, there are many opportunities to help those who are in need. Giving back to your community shouldn’t seem overwhelming; it doesn’t necessarily mean that you must volunteer every minute of your spare time to help the underprivileged. Remembering that “it’s the little things that count” can motivate anyone to do a ‘little’ something for the homeless and make a huge difference to them this season. Below are some ways you can contribute:

• Pre-make bag lunches (i.e., sandwich, crackers, fruit, juice, etc.) and hand them out to homeless people on the street. Bag lunches/sandwiches need not be elaborate (peanut butter, bologna, etc.), but enough food to know that someone won’t go hungry.
• Hand out food/meal certificates from local fast food restaurants so they can get something to eat.
• Buy canned goods or other non-perishable items and deliver to a food bank.
• Order an extra meal when you go eat out, or bring home leftovers, and offer the food to someone hungry who is living on the street.
• Provide warm blankets, sleeping bags, coats, sweaters, or other clothing. This type of donation can be made to homeless shelters, but if your contribution is small or you’re not part of an organized group, handing one coat or blanket directly to someone living on the street will make a world of difference.
• Donate soaps/shampoos/deoderants/toothbrushes/toothpaste to a shelter program.
• Give your recyclables. In many cases, homeless people collect aluminum cans and bottles as a way of making money. If you have some that can be recycled, give it to a homeless person.

Never directly give cash to a homeless person because all too often this well-intended gift is converted to drugs or alcohol. Don’t get me wrong… their hardship stories may be true, but if the person is truly hungry they’ll take the food and beverage you’re offering them.

And, of course, you can always find local soup kitchens or shelters in your area if you do want to go the distance and volunteer some of your time. Shelters need volunteers all the time.

If you have additional ideas on how to help the homeless this season, please feel free to comment. No one should be cold or hungry this holiday season.

In a discussion I had with the father of a wonderful teenage daughter, he told me of an evening when he returned home and found his home full of ladies who had just finished an evening of games and refreshments. He told of how one of the ladies pulled him aside and proceeded to compliment him on his teenage daughter and how, without being asked or told, she served refreshments, cleared tables, washed dishes, and cleaned and straightened things around their home. This father’s reaction was, “Of course, it’s expected.” He never, however, expressed this to his daughter who was within range of hearing the conversation.

This moment in this father’s life found a special spot in my heart as I listened. How many times in our lives do we teach the correct principles and concepts of life to those around us and then ‘expect’ that it will sink in and automatically happen?

Life is more than expectation! In our relationships with our children, with our significant other, within our professional lives, and within our sphere of influence we should always convey the true principles and concepts of how we live, how we run our business, what our standards and core values are, and then allow whomever we touch to understand.

I would venture to say that this father understood how this lady could be impressed because the correct principles and concepts were taught and nurtured by example within the home. He did not truly ‘expect’ his daughter to do what she did, although he understood why she did.

If anyone has a similar story to share, I ‘d like to hear about it… please comment.

Of all of the issues I could present today none are more important than recognizing and thanking the men and women who have and continue to wear the uniforms of our armed forces.

Thank you for your service and every sacrifice that causes this nation to be free. Thank you for protecting a land that delivers the prospects of undying growth and prosperity for those who seek it.

God bless you and your families, and God bless the Untied States of America.