Wenceslao Fernandez Jr

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Credit is important. Today, more than any other time in recent history. However, the way out of this mess, as I see it is to revitalize housing and help it find its bottom. Patience is a virtue, but these days (and nights), seem longer than usual because of the pain (financial and otherwise), being inflicted on to homeowners. Fortunately, Jim Cramer of CNBC's Mad Money seems to think the real estate bottom will happen on June, 2009. He arrived at this conclusion after noting in a recent show that home prices had topped exactly a year after builders' stocks had topped. He then noted that builders' stocks had bottomed in June, and that therefore, housing prices will bottom a year later, making June, 2009 the magic date for all real estate nationwide. Obviously, this will not happen all at the same time. Several markets would have seen a recovery as we approach the magic date. Obviously for many, this is too long to wait. Things are not moving faster for a number of reasons, including the still uncertain path our president elect will take after January 20, 2009. I firmly believe that, housing got us here (with the help of ill Fannie and Freddie), and housing will lead us out. Once confidence that prices will no longer drop (or at least not by much), inventories will begin to drop. As a matter of fact, in Miami-Dade County, Fl (actually, in all South Florida combined), we have seen 3 consecutive months of sales increases. If it takes 2 consecutive months of negative GDP to call a recession, then certainly 3 consecutive months of increased real estate sales must be a recovery. Therefore, if Jim Cramer is correct, and So. Fla. is already experiencing some sort of a recovery (considering Florida is one of the states with the worst foreclosure rates in the nation), then perhaps we will in fact begin to see the silver linning widen over the next few months, certainly after Obama is finally sworn in. Credit is important. But stopping spiraling prices with purchases will do more to restore confidence and help get us back on a good horse than most anything else. www.MiamiRealEstateKing.com Certified Distressed Property Expert Miami-Dade County, Florida.

Great job, Jack. California, Nevada and Florida are among the hardest hit states for foreclosures. However, I still recommend my "upset" would-be sellers to stay the course if they're able to. I typically ask them if they have made a car purchase in the last 4-5 years. If the answer is yes, I then ask them how far along in their payments are they and if they realize that they are and will continue to be upside down on their loan of this car for typicially, about 4 out of a 5 year loan. Why does it seem that it is OK to be upsidedown in a car loan when the car they are driving will NEVER appreciate (unless they hold it and keep it in mint condition for 25+ years)? Why then is it difficult for them to stay put during an economic cycle rather than wait for the innevitable rise in property value and appreciation they will likely enjoy again? For someone having no trouble making payments, being upsidedown is only a concept, while it is only on-paper that they are currently in this situation. They will not realize a loss unless they sell. Like the dollar lost its value against the Euro, only to gain strength in a time when the Euro itself may now be in jeopardy, home values will in fact regain their value. Just hang in there! This too shall pass! Remember the elections are tomorrow (November 4th) and soon thereafter (remember Florida recounts?), we shall have this point of uncertainty behind us. Then comes January and the new president will be innaugurated. According to Jim Cramer of CNBCs Mad Money in a show aired a few weeks ago, he predicts (and explained during that show), how he has come to the conclusion that the absolute bottom in real estate will be upon us come June, 2009. If this prediction is right, we're at the tail end of this terrible period (we've been here for arguably some 2 years already, depending on when you call the crest of the market - accoring to Jim, it was in June, 2007). Therefore, in a few more months, we will begin to see property values accross the board rise (though it should be noted that there are markets where this is already evident, even today). So...once again, if you are not in trouble and needing to sell, take several deep breaths, relax and position yourself to perhaps even buy real estate at rock bottom prices, then sell it in 36-60 months at a gain that may dwarf any perceived loss in your current home value. www.MiamiRealEstateKing.com Certified Distressed Property Expert Miami-Dade County, Florida.

All great tips, Dian! Today, few markets aren't competing with distressed sellers. This simply means we are in a price war and beauty contest. Regardless of your upgrades, buyers first shop with features in mind, then price, then goodies. A buyer shopping for a 3/2 with a 2 car garage, patio and/or pool in x dollar price range, will likely start looking at the lowest price homes that meet their general criteria, then pick the cheapest among them, along with possibly one that has other added benefits. Therefore, a buyer who finally finds his/her dream 3/2 with a 2-car garage, a patio with pool which also has lots of upgrades, this home will be under contract before a higher priced similar home that may or may not have upgrades. Often, the difference in price between a home that has not been upgraded and one that is, is too high because sellers think they can recoup their investment. What ends up happening is that, after doing the math, buyers find that it may still be cheaper to buy the cheaper home, renovate it to their taste, and still save a bundle in today's market. Therefore, homeowners today must be certain they understand their motivation to sell, listen to their Realtor (remember that not all real estate agents are Realtors - members of the National Association of Realtors who adhere to a strict Code of Ethics), and be prepared to price their home according to local market conditions, keep the home show-ready at all times, and make it available as much as possible, even under electronic lockbox for easy showing. If you are in distress, it is also advisable to select a Realtor who specializes in distress home sales such as those with a CDPE designation (Certified Distressed Property Expert). www.MiamiRealEstateKing.com Certified Distressed Property Expert Miami-Dade County, Florida.