George Harvey and Real Estate

Get On Your Hobbyhorse

2009-07-20T12:13:00.000-07:00

There’s a phrase that says all work and no play makes jack a dull boy. I don’t know about you but lately I’ve been a pretty dull boy. The effort needed to meet the challenge of today’s market has had me putting my nose to the grindstone in a way I haven’t for years.

Recently I rediscovered one of my hobbies, however, and I realized that part of me had been missing. Maybe you’re a writer, a musician or a painter. Perhaps you like to golf, read, jog or do some gardening. There are probably another 200 I didn’t mention but in an environment like this it’s so easy to forget those things that put a spring in our step and the joy in our journey.

So just a little word to the wise; make sure you’re making room for those interests that make you who you are. Get on your hobbyhorse…because nobody wants to be a dull boy.

Oh, by the way... even with a little time off here and there... I'm never too busy for your referrals.

Certified Distressed Property Expert

2009-05-27T14:43:00.000-07:00

I have just earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.

Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

In Stark County, more than 1 in 10 home owners are in danger of or considering foreclosing. It is happening in all price ranges. Even high-priced homes are not immune.

This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales, it is so rewarding to be able to help sellers save their homes from foreclosure.

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as George with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

The Distressed Property Institute opened in 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.

Our goal is to educate as many people as possible so we can help as many homeowners as possible.

OH, by the way... if you know someone considering foreclosure, please have them call me first. There is a significant difference between foreclosure and short sale.

Get Offensive!

2009-05-11T09:46:00.000-07:00

I just returned home from a convention with my mentor and coach Brian Buffini. I had the opportunity to compare notes with some of the top Agents in the country. Brian also shared his observations and national statistics … it was a very enlightening couple days which I wanted to share.

If you will remember it took the press 18 months to tell us we were in a recession that we knew long before. It looks like it will take another year for the press to report we have seen the worst in the real estate market and we are actually seeing strong signs of a recovery. Following are some interesting stats.

Over 50% of the nations foreclosures have been located in 3 states (CA, FL, CO) and two cities (Vegas, Phoenix); all of which are seeing improvement. In California the inventory of homes has dropped from 15 months (available homes / monthly sales) to current levels of just over 6 months (6 is a balanced market). Their current challenges include multiple offers and a housing shortage in the foreseeable future. It is said trends start west and move east, so let’s look at our local market.

In the last 7 months our local inventory of residential properties has dropped 20%, from over 2,600 homes to less than 2,150. Our inventory has dropped from 10 months to 8 months. In Stark County 37% of the new listings are selling in the first 30 days on the market; 20% more in the next 30 days. These are real indicators of a strengthening market. In other words, this IS a great time to buy and sell.

This does not mean we are out of the woods … unemployment remains an issue in our area and 1 out of 10 of our friends are either dealing with a foreclosure or are considering the possibility.

Many of your recent much appreciated referrals have been friends needing help with their homes … payments going up and mortgages for more than the home is worth. I will soon have my Certified Distressed Property Expert designation (first to have in the area) to better help these referrals understand their options. I’ll also be better equipped to work with the banks on their behalf to avoid foreclosure. Additional updates coming. We are here to help with all real estate related issues, no matter what the situation.

Oh by the way… I’m never too busy for your referrals.

Mastering the Six Inch Market

2009-04-27T08:46:00.000-07:00

In business there is so much that is out of our control. Unemployment rates, interest rates, and housing prices. Don’t ever get caught waiting for those factors to influence your personal income; or make decisions based on what is on the news. There’s only one market you can master and that’s the six inch market - otherwise known as the space between your two ears.

There are many new entrepreneurs and businesses doing well because they don’t know how the market is supposed to be. There are many veterans waiting for the market to turn to “normalcy”.

This is normal.

In each of the last five decades, there has been price growth and retraction; high and low unemployment; wars and peacetime. With respect to real estate, people are still buying and selling homes. In our area today over 1/3 of the new listings on the market sell in the first 30 days with another 18% in the next 30 days. Interest rates are low, selection is good and 90% of us are employed. Now is a great time to look into real estate … whether it is a personal move or an investment property. We are here for you.

Oh, by the way… I’m never too busy for your referrals.

It's Time To Freak Out!

2009-04-08T09:10:00.000-07:00

It has been a little while since my last entry… it has been a long winter with a flurry of activity, just not many buying decisions. Buying or selling a home is still a major decision … but people around here are still moving.

If you watch the nightly news, listen to the politicians and surf the net on a regular basis, you might as well get it over with and have a complete and utter meltdown. Although I have a desire to be informed, do my research and stay current with the market trends, I’m developing an allergy to the media and the messages from these outlets. And as much as I try to stay positive and focus on my attitude, I found myself recently being surprised with good news.

Several weeks ago my daughter Jody decided to get into the market. As their family expanded by one grandson, Weston, so should their home. They started with a foreclosure and met with the same challenges we face everyday; a lack of motivation and slow to respond. In the meantime they put their current home up for sale … it sold in less than a week. Forced to look for a quicker turn around on a new home they found a beautiful 4 bedroom with very motivated buyers. SOLD / PURCHASED / MOVED … elapsed time 45 days. Congratulations.

This is not an unusual story. In Stark County over 30% of the new listings are selling in the first 30 days… just need to be priced right and in move in condition. The news in this market is not all bad… many choices and low interest rates are helping.

Don’t allow the negative voices to creep in to your thinking when you hear too much from the self-serving authors and media pundits who need drama to make money.

Is business booming like 05 and 06? Absolutely not and I hope we never see days like that again where people were taking equity loans at a record pace to spend money they didn’t have, on things they didn’t need to impress people they didn’t know. So yeah, it’s time to freak out. It’s time to get the messages from the freaked out media, the politicians and the pundits out of your head and life. As a man thinketh in his heart, so is he. I choose the good, I see the best and I believe my best days and yours are still to come.

Oh, by the way... I'm never too busy for your referrals.

What are you thankful for this holiday season?

2008-12-13T11:28:00.000-08:00

I believe gratitude is the ultimate sign of an individual’s growth and development. If you think about it, when you’re raising your children you have to work really hard at getting them to say ‘thank you’. Ultimately what you’re doing is helping to give them perspective so they can stay grounded and show appreciation.

As adults it is very easy to lose perspective with all the challenges we face on a daily basis. Being in the business world we see the difficulties of our market and the challenges our clients face. It’s so easy to forget what we’re thankful for.

Don’t get caught up in what’s going wrong; get caught up in what’s going right. What are you thankful for today? What are you thankful for right now? Maybe on finishing this blog you should make a list of the ten things you are most thankful for today. I promise you’ll have a better day. One of things I am grateful for is all of you and having the chance to serve in a time like this.

In times like this, it’s essential to have a new paradigm for success. Many people believe that in pursuing success you grow, your income grows and your numbers grow each and every year. That’s absolutely not true. In times like this you need to know what the average number of sales in your market is compared to last year, and compare your numbers to that. Now comparisons to other people are not always a good way to go but comparisons to the market are essential. Success in many businesses in 2009 looks like this:

* Stay in business.
* Have a good first quarter.
* Use your first quarter momentum to finish the year strong.

I’m excited and thankful for opportunities to come in 2009.

Oh by the way… I’m never too busy for your referrals.

A Thanksgiving Perspective

2008-11-24T15:17:00.000-08:00

Reality is, the election is over and whether your team won or not, America is an eagle: it needs its left wing and its right wing in order to fly. We all need get down to work. Whether we’re euphoric or we’re down in dumps, let’s go flap our wings. My focus is on making calls, writing notes and getting out seeing our clients and business owners.

Right now, with so many people worried about their finances, the market etc. it’s very easy to forget all that we have and all there is to be thankful for.

Your attitude has a lot to do with your perspective. Here are some facts to ponder:

More than 1000 banks closed in 1930 – only 14 U.S. banks have been taken over in 2008
There are 76 million households in the U.S. that own their home - 24 million of these homes are free and clear
There are 52 million homes with mortgages - 97.2% of these are not in foreclosure, 93.8% of these homes are current on their payments

On a sobering note:

Over 20% of homeowners with a mortgage owe more than their home is worth
40% of all foreclosures are non-owner occupied

How did we get here? Nine straight years of appreciation fueled and accelerated by cheap and easy credit in a very materialistic economy where having now was more important than saving and purchasing what you can afford.

Over the last 50 years the average run up has been 4-5 years followed by 18 months of correction. If we ran for twice the average, you may expect a 3 year recovery.

It will remain a great time to buy for at least the next 1-2 years. More programs are being introduced every month to address first time buyers and investors. Contact me anytime to discuss all the opportunities in our local market. This is a professional’s market.

Oh, by the way… I’m never too busy for your referrals.

Sources: Wall Street Journal / Moody’s Economy.com / RealtyTrac / NAR / Forbes

I'm running for office...

2008-11-07T09:43:00.000-08:00

This year has been the most politically fascinating season I’ve ever witnessed. We’ve had wall-to-wall media coverage, been deluged with political ads and campaigns and the rhetoric has been ratcheted up the closer we got to the election.

In the midst of an economy in recession and a stock exchange in turmoil I’ve witnessed a lot of people get paralyzed by fear and become spectators watching the news, surfing the net for stories and checking the market by the hour. It seems to me there are a lot of people who are in a personal recession. So here’s what we can learn from all of this: Can you imagine if you canvassed for your own business the way the presidential candidates have done so for your vote?

Can you imagine if you were as focused in your daily endeavors as these two guys have been? To my friends and colleges, now that the election is decided, its time to turn off the tube, stop surfing the net for stories and get out the vote.

Personally I’m sticking with my familiar election slogans,

“If you know anyone who’s thinking about buying or selling a home please give me a call with their name and number.”

“If you know anyone who’s in need of the level of service I provide I want you to know I’m never too busy for their referrals.”

It’s time to get back to business; there’s been no better time in recent history to get into the real estate market. We educate and help people reach their real estate objectives.

Warren's Not Worried

2008-10-30T15:04:00.000-07:00

During recent conversations with friends and family members I’m asked where the housing market is headed and if I think there’s another Great Depression coming. The fear is real estate will lose another huge portion of its value; when will it all stop.

Well I’ve never shied away from giving my perspective on such matters and I think something we should all note is the attitude of the man who is considered the greatest investor of all time – Warren Buffet. As I have mentioned before, he has purchased $8B in preferred stock. Even more dramatic is that $5B of it went to a financial company (Goldman Sachs).

Not only is he not running scared, he’s running strong with this market – taking ground and improving his position. We all know there are some tough times ahead, and so does Warren. But he demonstrated his ultimate faith in the economy, in the markets and in the fact that now is the time to gain ground and not pull back.

Well done, Mr. Buffet, you’re a good role model for all of us.
The fact remains over 2,000 residential properties have sold in Stark County in the last 6 months; 30% of which sold in the first 30 days they were on the market. It is a great time to be in real estate, particularly if you are a first time buyer, moving up to a larger home or an investor. Interested in more positive facts, contact me anytime.

Stay tuned. And oh by the way... I'm never too busy for your referrals.

A Crisis of Confidence…

2008-10-22T14:24:00.000-07:00

At times like this, the one thing you need most is confidence. Do you believe this is a good time to buy? Do you believe in the value of real estate? It’s amazing to me how many people, including fellow Agents are asking themselves if this is a good time to buy real estate. My answer is, “Interest rates and home prices are as low as they’ve been in ten years, and there is a great selection of homes … trust me that the intrinsic value of real estate is going to increase. If you want to know what opportunity in real estate looks like … it looks like this market, right now.”

I’m not asking anyone to be Pollyanna or to ignore the current circumstances, but to embrace 100 years of empirical data which shows without questions that if you hold real estate long enough you will see an increase in its value. It’s time to get informed. That’s what we do; we pride ourselves on educating our clients. As an Agent, I’m confident in this market and am planning to stay with it full-time for the long term. What we offer our clients is a trusted professional; a trusted advisor. The credit markets will sort themselves out. Banks need to loan money to make money. Like you and I need air to breathe.

Real estate is the only industry in the world that when our products are at a deep discount and we’re having our ‘lowest prices in ten years’ sale, we get depressed and act like someone just shot our dog!

There are deals to be made. Warren Buffet’s buying right now, why shouldn’t we? There is no reason not to be confident in real estate. I’m a local Agent, a local expert in a local market; we have the facts. I’m also part of a national network of the best Agents in North America. So whether you are interested in NE Ohio or Las Vegas, NV, we have the experts available to help you take advantage of 'opportunity'.

A final thought; did you know there are eight times more millionaires made in a down market than in an up market? You can take that fact to the bank.

Great Depression?

2008-10-16T08:12:00.000-07:00

I’m getting asked on a regular basis where do I see this market going. It feels like we are going into a depression based on the news reports of doom and gloom. Appears many people are reacting to the news when they should be taking a step back to understand where we are and how we got here. It is very important to go back to the facts; nationally and our local market.

Panic doesn’t cause depression; bad policy does. Foolish decisions regarding increased taxes, trade tariffs, and monetary policy are what caused the Great Depression. A great read on the subject is a book called The Forgotten Man – A new history of the Great Depression by Amity Shlaes. You’ll see how the 1929 stock market crash did not cause the Depression.

Another great example of how different a time this is to 1929 is that during the Great Depression countries, especially America, were isolationist by nature and tried to enact a win-lose economic policy. Just last week the Fed, European/British and Canadian Central Banks all lowered rates in unison and even though this cut won’t do much to bring up the credit market, it is a radical contrast to what took place during the Depression.

We are obviously in a recession and will be for a time but, as we are already seeing out West, there’s plenty of demand for discounted homes. Many short sales and foreclosures are in multiple bid situations. There’s money to be made in times like this but it requires us to take the emotions of our fears and apprehension and pour it into the diligence of our daily activities to generate leads.

The best indicators of a turning housing market are inventories and properties sold. In Stark County we continue to follow a very predicable seasonal trend. We typically have two “bumps” in the market; early Spring and late Fall. In fact September sales did jump after declining over the Summer. Inventories remain steady.

There are good values in the market today. Based on 100 years of National Association of Realtors data, home sales will again appreciate. For at least the next 2 years this will remain an ideal market for first-time home buyers, home owners wanting to move up to a larger home and investors.

I don’t know about you, but I am keeping my eye on the situation and putting my head down and getting back to work. OH, by the way… we’re never too busy for your referrals.

Housing Issue? Bank Issue?

2008-10-07T18:55:00.000-07:00

I have shared with you that I don’t believe we have a serious real estate problem; we have a banking problem. This week has certainly confirmed that. These are turbulent times indeed and nobody has a crystal ball. However…the world’s greatest investor just bought $5B of Goldman Sachs stock and several $B GE shares – which is why he is the world’s greatest. He is buying when everyone is bailing.

How this whole government bailout program works out is anybody’s guess but I do know this; people keep having babies, folks are living longer and economics is based on supply and demand. As time goes by excess inventory will be picked up, prices will continue to stabilize and the market will find a new normal. Even now in the Stark County market activity is increasing as we realize there are some very good values available.

Real Estate is local. Inventories are moving down as we see a couple months of consistant sales. These are good signs for our market. Stay tuned for additional updates, trends and opportunities.

Our $700 billion investment

2008-09-25T08:54:00.000-07:00

I know many of you are concerned about the troubled financial markets and are wondering how the federal government’s actions will help resolve this banking crisis. Here is the latest information on what is happening in the housing market and the National Association of Realtors (NAR) position on the government’s plans to rescue Wall Street from our NAR Chief Economist, Lawrence Yun.

This massive $700 billion bill will be fast-tracked through Congress this week to give the U.S. government the authority to buy bad mortgages off the books of Wall Street firms. The principal goal of this new Treasury authorization is not to make money but to unclog the financial pipelines through the purchase of certain mortgage backed securities. Treasury intervention will help restore the proper valuation of these illiquid assets. Currently they are being significantly unvalued.

Hank Paulson (heading up implementation) has a tough task. He must permit capital to move around. That is the essence of capitalism. He must at the same time also protect taxpayer money. The return on the taxpayer gamble depends on two things: at what price the Treasury will buy bad mortgage debts off Wall Street books, and the future mortgage default rate. The default rate, in turn, will depend on the housing market recovery. Knowingly or not, we are now part of the 75 million homeowners and 100 million taxpayers who have become the key stakeholders on the side of housing market recovery.

You are welcome to read Lawrence Yun’s entire September 22nd commentary, which explains the reality behind the government’s proposed “investment” in the financial markets. Visit http://www.realtor.org/research/commentary_700_billion

Now what’s this mean for us? You have heard me say, real estate is a local business. We have our fair share of foreclosures and short sales which have affected all our property values. The market will come back; we are seeing the activity. It remains a great time to buy, particularly for 1st time home buyers and those moving up from a less expensive home to a more expensive home.

We have buyers that are looking for homes that are in “move-in condition and can be priced right. Who do you know that has been talking about a move? We are here to help you understand all your options. What are your conserns?

One word describes best how to ride out the current market environment: Patience.

Welcome!

2008-09-19T09:52:00.000-07:00

The end is in sight...

If you’ve been following the national news recently regarding the bankruptcy of Lehman Brothers, the stock market getting hit and Fannie and Freddie being taken over by the government, these are all the classic signs of the bottom of a market correction.

Right now, we don’t have so much of a real estate problem as we do a banking one. Prices have mostly stabilized across the country and in the short sale and foreclosure market we’re seeing multiple offers. Although I do believe there are a couple more banks in trouble and there’s not yet a full complement of mortgage products to satisfy all the buyers in the market, trust me that will get sorted out. For thousands of years lending money has been one of the most profitable businesses in the world. Banks make money by lending; not by deposits. So they will figure out ways to package loans and get cash into the hands of consumers. I believe this is the final cleansing process and in the next six months we’ll start to come out on the other side of this.

Make sure you don’t get caught in the “cudda shudda wudda” of taking advantage of this market. It remains a great market for first time home buyers, move up buyers and investors. We won’t know what the bottom is until after but I believe it’s pretty close.

In Stark County and the surronding areas it is still not a bad time to sell. Over 30% of the new listings are selling in the first 30 days. We have buyers that are looking for homes that are in very good condition priced right. If you or someone you know is thinking about a move, now is a great time to talk to a professional about your situation and goals.

Remember, the market is local and so are we.

Oh, by the way... we are never too busy for your referrals.