The horror of Chicago school reform
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Monday, August 17, 2009
Sunday, March 29, 2009
Sandman's Auction Review
Who says the homebuyers and investors are sitting on the sidelines? This weekend, Hudson & Marshall came to town to auctions hundreds of homes with most selling absolute! The deals were a pretty with Friday being the day with the sweetest deals. My newest client flew in and picked up four great buys. The 2600 sq/ft duplex built in 2005, has 3 beds & 2.5 baths. The 18 X 13 master boast a fireplace, huge bath with separate shower. The living room overlooks the lower level family room which also has a fireplace. My client purchased all this for the auction price of 105K plus the buyer's premium of 3% for a total of $108,150.
Saturday, word must have trickled into the investor sphere, because bidders started coming out of the floors and walls! They had to move the auction to another room to handle the increased volume of buyers. Literally, people were standing around the walls as the auctioneer verbally induced you raise your hand, wave a bid card or just holler out your bid. It was great to see the excitement as buyers envisioned the profits reaped in a down economy buyer's market.
It was apparent that the auctioneers were at a significant disadvantage. They had a huge inventory of homes and though the crowd was big, they were stingy. Most came prepared with properties already identified and maximum bid amount firmly established. At one point, an angry bidder stormed past the high bidder scolding em’ for bidding higher than pre-auction MLS list price. Obviously, the high-bidder was an owner occupant and not an auction regular.
Saturday, word must have trickled into the investor sphere, because bidders started coming out of the floors and walls! They had to move the auction to another room to handle the increased volume of buyers. Literally, people were standing around the walls as the auctioneer verbally induced you raise your hand, wave a bid card or just holler out your bid. It was great to see the excitement as buyers envisioned the profits reaped in a down economy buyer's market.
It was apparent that the auctioneers were at a significant disadvantage. They had a huge inventory of homes and though the crowd was big, they were stingy. Most came prepared with properties already identified and maximum bid amount firmly established. At one point, an angry bidder stormed past the high bidder scolding em’ for bidding higher than pre-auction MLS list price. Obviously, the high-bidder was an owner occupant and not an auction regular.
Below is a snap shot of Sunday's auction results:
Friday & Saturday had better deals!!! The early bird sometimes gets the juicy morning worm!!!
Sunday, March 22, 2009
Alice in Realty Wonderland
Real estate... your dream piece of property, should be filled with the things you LOVE. People are the most important part of life. Moments and memories filled with laughter is what your property will HOUSE for a long time. You need as much space required to comfortably spin around, jump, dance, live and enjoy it. Of course, you want to get a good deal on your dream so that it is sustainable. Getting a good deal always makes us feel Warm & Fuzzy. Your property should be held on to through many generations; it is an heirloom. Your HOME is not a short-term investment, value is created by your use and enjoyment of your dream space. Your primary residence is your security net. Other properties can be purchased, fixed and sold for extra income, but it should never affect your security. Besides, who likes moving all the time anyway? Other than the benefit of getting rid of a lot of junk stashed away over the years, moving is a pain in the ass.
Saturday, January 24, 2009
Keep the dreamer alive!
For most people, home ownership has long been a standard of achievement. It substantiated the attainment of the "All American Dream", a home Fee Simple Absolute. Ultimately, for most, home ownership signifies wealth, responsibility, and maturity to adulthood. For some people, it projects an image of profound independence. As children, our parents proclaim, "While you’re under my roof, you will follow my rules." Hearing that, over and over, would motivate most to want their own roof over their heads. Innately, as practically every other species or being we have shelter as a basic human need.
Once we move beyond the basic need of housing, many other benefits are realized through home ownership. The most valuable benefit of home ownership is wealth. The huge disparity between the haves' and have nots' is a result of the equity most wealthy individuals have in their primary residence. The devastating decline in current market value has decreased the equity in most homes. Despite this fact, over time, homeowners will undoubtedly reap far more value in exchange than renters. As with most markets, the real estate market is cyclical, with ups and downs. Until recently, the real estate market reacted slower to shifts and changes in the broader economy. Over an extended period of time, real estate, like the stock market has produced handsome returns for long-term investors. On the other hand renters receive absolutely "Zero" return of the funds used to cover housing expenses. Most low-moderate income individuals never realize homeownership, which certainly contribute to reduced net worth. The old 80/20 rule is probably 95/5! It wouldn't be very farfetched to believe 95% of the people share 5% of the money, and 5% of the people split 95% of the money.
As a homeowner, responsibility is like the cost of doing business. Something breaks the owner has to repair it, whether paid directly or through a homeowner association fee. Usually, residential tenants simply call the owner or property manager, and it is thier duty to remediate the faulty item. If the owner chooses not to repair the item, the tenant may choose a constructive eviction. Constructive evictions allow the tenant to terminate the lease due to the owner’s breach of the lease contract. While there are certainly pro's and con's regarding ownership versus renting, the generation of wealth and prospect of passing wealth to the next generation is possible with ownership.
Whatcha think?
Once we move beyond the basic need of housing, many other benefits are realized through home ownership. The most valuable benefit of home ownership is wealth. The huge disparity between the haves' and have nots' is a result of the equity most wealthy individuals have in their primary residence. The devastating decline in current market value has decreased the equity in most homes. Despite this fact, over time, homeowners will undoubtedly reap far more value in exchange than renters. As with most markets, the real estate market is cyclical, with ups and downs. Until recently, the real estate market reacted slower to shifts and changes in the broader economy. Over an extended period of time, real estate, like the stock market has produced handsome returns for long-term investors. On the other hand renters receive absolutely "Zero" return of the funds used to cover housing expenses. Most low-moderate income individuals never realize homeownership, which certainly contribute to reduced net worth. The old 80/20 rule is probably 95/5! It wouldn't be very farfetched to believe 95% of the people share 5% of the money, and 5% of the people split 95% of the money.
As a homeowner, responsibility is like the cost of doing business. Something breaks the owner has to repair it, whether paid directly or through a homeowner association fee. Usually, residential tenants simply call the owner or property manager, and it is thier duty to remediate the faulty item. If the owner chooses not to repair the item, the tenant may choose a constructive eviction. Constructive evictions allow the tenant to terminate the lease due to the owner’s breach of the lease contract. While there are certainly pro's and con's regarding ownership versus renting, the generation of wealth and prospect of passing wealth to the next generation is possible with ownership.
Whatcha think?
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