The Mondo Life- Real Estate, better living & fun.
Welcome to my inaugural blog for Patch. For those of you that have been following my tips and photos from my Facebook page, I'll be cross posting this on Facebook so you'll see this in addition to my regular photo/graphical posts. Those of you Patchians who want more info about homes/land or maybe even little ol' me, my business Facebook page is http://www.facebook.com/SteveburrellRMHG.
Well enough of the introductions let's get to it!
Real Estate blogs abound with titles like “Top 10 selling tips”, “5 ways for buyers to win big in today’s market”, “Don’t let these mistakes derail your next house purchase” and a dozen more you can probably come up with. While there is always good advice to give and relevant questions to answer, sometimes I feel it’s important to stop and ask why all of this IS so important. What makes this aspect of our life occupy so many words from experts, debate amongst friends and speculation by pundits? The National Association of Realtors spends millions of dollars a year telling you how home-ownership is a lynch pin of economic stability in America. But is it? What makes that property a home and why does the concept of hearth and home resonate so strongly with us?
Market trends and pricing are based on supply and demand. But in world of home sales we have a unique product. New homes can be built but there is only so much land to put it on. Location in real estate is often about convenience or views but sometimes it’s about availability and how much that location may cost. In this market many new homeowners are going to be dependent upon current homeowners making the decision to relocate to supply them with a place to call their own. In an area like the Cedar Valley, new construction prices are generally about double what the typical entry level home costs ($110- 130,000 +/-).
So, where does that leave us? With decisions to make! Issues like 100 year old construction, knob and tube wiring, additions put on by previous owners, homes with the same owner for 50 years or a house that was bought 18 months ago that is back on the market. Beyond the selection of a home we have the mortgage and lenders offering 30 year fixed, FHA/VA loans, 10/1 ARMS and 90% Insured Conventional products just to get started. Add to that seller pre-paids and closing costs, result of inspection requests including radon mitigation and the assorted underwriting questions about that $2000 deposit last month…have you glazed over yet?
My hope is to offer a blend of market information, how to advice and explanations of the real estate transaction process but beyond that, to reflect on the most important part; you and the place you call home. I have a close friend who is a pastor. We discussed that both our jobs bring us into contact with you at turning points in life. Graduations, new jobs, marriages, births are part, but we also are called on when there are separations, passing of a loved one or job changes. All these events are far more important than the simple numbers and dates that are often the central points of the paperwork. The feelings and needs of the client often require as much consideration and attention as any home inspection or financing contingency.
So in the time to come I hope you join me in exploring what makes a house a home, a sale or purchase a success and the best way to handle the challenges involved in all of it! Your input is helpful to directing my posts in a productive direction.
As always, the opinions expressed are mine. My wife and my office both grudgingly acknowledge their attachment to me but are in no way responsible for my statements!
Steve Burrell
Andrea
8:48 pm on Monday, August 6, 2012
Well done, Mr. Burrell. Having benefited from your real estate expertise personally, I think your honest, what's-best-for-your-family-at-this-time approach is refreshing to others. You're not just a real estate agent, you're an agent and steward of people's best interests. I like how you acknowledge that buying/selling a house isn't always all it's cracked up to be, especially at that those really hard times. I look forward to reading more of your thoughts and perspectives! A
Josh Sutton
11:09 pm on Monday, August 6, 2012
I couldn't have said it better! You are truly an agent and steward of peoples best interests and it is unfortunately very rare in today's world. Julie and I feel very blessed to have you looking out for us through one of the biggest life changes we have faced yet in our marriage and we have been amazed at the level of professionalism and expertise you have shown to us through our home buying process! Thank you for who you are and all that you do Steve! I look forward to reading up on all of your future posts! Josh Sutton
Bret
7:54 am on Tuesday, August 7, 2012
Kudos on the blog Steve, look forward to following your posts from rainy, cloudy Florida. As we have both found in our business models, there are still plenty of prospective homebuyers that appreciate a directly honest and open approach to dealing with this ever complicated process. Hendy
Alison Gowans
10:41 am on Tuesday, August 7, 2012
Welcome to Patch Steve!
Stephen Schmidt
10:44 am on Tuesday, August 7, 2012
Nice intro. Looking for to your future posts!
Jessica Miller
12:04 pm on Tuesday, August 7, 2012
Welcome. I found this comment interesting: "The National Association of Realtors spends millions of dollars a year telling you how home-ownership is a lynch pin of economic stability in America. But is it?" I've read that homeownership can increase unemployment because you are less able to follow the jobs.
Steve Burrell
2:43 pm on Tuesday, August 7, 2012
That's an interesting concept Jessica and one that's been offered up in such respected magazines as The Economist - http://www.economist.com/node/13491933 . I think where you see that being the case is in larger markets such as Phoenix, Las Vegas and other areas. With the interest rates where they are right now, purchasing a home in our market with an expectation of living there for 2-3 years is a relatively "safe" bet. The problem with a larger volatile market is that you can see 10-15% valuation swings in an 18 month period. When rates are at a more historically normal level the choice between renting or owning becomes a clearer budgetary decision. The other aspect of ownership is the proportion of assets/resources that are tied up in the home. This is not a huge issue as home equity loans can free up funds but it is there.
NAR makes that case that statistical and anecdotal evidence is there to support the idea that a stable market tends to create a more economically vibrant community but that's assuming a transient workforce or population. Long term rental occupancy can also foster such an environment. In the Cedar Valley we find that ownership is primarily the most affordable avenue for quality of residence and access to resources such as schools and proximity to employment.
Jessica Miller
3:43 pm on Tuesday, August 7, 2012
Do you mean that for Cedar Falls or for all of Iowa or just the college towns like Ames
Steve Burrell
8:00 pm on Tuesday, August 7, 2012
I was referred more specifically to the Cedar Valley but it is applicable in other areas of Iowa. Even Des Moines recovered fairly quickly all in all and while there are pockets of stagnant valuations, now that the excess new construction has been sold off things are trending back to a more normal sales rate.
Lindsay Pieters
3:38 pm on Wednesday, August 8, 2012
Jessica, Cedar Falls is a college town, too.
Steve Burrell
5:56 pm on Wednesday, August 8, 2012
Thanks Lindsay, I was just gonna let it slide since she grew up here ;^)
Jessica Miller
9:59 am on Thursday, August 9, 2012
Oh yeah the UNIdome I remember seeing that ;) But I was wondering if the housing market was doing well there because it's a college town (as is Ames and Iowa City.) I know here in Ames that enrollment swells every year and so more housing is needed and obviously some of that need is served off campus.
Steve Burrell
6:36 pm on Thursday, August 9, 2012
UNI doesn't have the impact in terms of creating a shortage of single family housing as much as setting the entry level of homes close to campus based on what a rental will earn per room. With the proliferation of apartments and new on campus housing options I don't see that driving prices up. The continued economic success of the various businesses in the industrial park and the strength of the job situation in the area as a whole keep the prices stable.