Paul Pastore Team Blog by Pastore Team

Is Anybody Happy?

Just the other day I received a call from a seller who wanted to cancel his listing because he, "Wasn't happy". What in the world makes people feel entitled to happiness just because they listed their home for sale? Listing a home for sale should make a seller feel 'on the market', not happy! In the past month this seller had lost his job, was diagnosed with cancer, separated from his spouse, and his 401k lost half it's value. I shared books, tapes, and time with him. He had breakfast with my Toastmaster group. His property receiving a steady stream of buyers, but no offers. He was told he needs to be patient and periodically yet aggressively reduce his price. But in addition to a sold sign, he wants to be happy. In my opinion, it is imperative for Realtors to ask clients what they are looking for in an agent. In these turbulent times few people are happy. Many people smile, but few are elated. Agents need strong selling skills, bedside manor, compassion, and ..(read more)

I love Short Sales!

I Love Short Sales! A short sale is an oxymoron. They are seldom short and sometimes result in a foreclosure. In the past I detested them & rebelled at the paperwork jungle and frustrating lack of timely lender communications. Recently, I realized that short sales will be with us for some time. They can be a lucrative niche in a challenging market. It was time for me to experience an 'attitude adjustment'. Or, as Zig Ziglar says I had "stinkin' thinkin' and I needed a 'check-up from the neck up'. My favorite secular book Man's Search For Meaning by Victor Frankl exhorts that in life all we can ultimately control is our attitude. Cavette Roberts became famous for saying, "Don't tell people your problems. 80% don't care & the other 20% are glad you have problems". My short sale attitude needed to change. Years ago, my son Brandon went out for his school's cross country team. He liked the competition, but detested running up ..(read more)

Percent Change in Resale Value

Top Ten Seller Sins

Top Ten Seller Sins

1. Priceaphobia: The fear that a property will sell for less than a premium price. Price and greed combine to form a drug like addiction to unrealistic expectations. Researchers are split in attributing this to heredity or stupidity.

2. Shagitis: A burning sensation due to the realization that a home is not a castle when placed for sale. Shag carpet is not coming back. Get over it and have it replaced. Halloween is one day a year. Orange counters are ugly every day of the year. Hire a home stager.

3. Pet Addiction: the feeling that everybody loves your pet as much as you do. Symptoms include scripts such as, "His bark is worse than his bite". Or, "The cat must like you to nestle in your lap". Or, "Don't put your finger in the cage".

4. Photorea: A need to keep dozens of old photos hung to distract a buyer's attention from the real property. A variation of this virus ..(read more)

California Home Sales Revive, But Not Without Intense Pain

LOS BANOS, Calif. -- In this California city, one of the hardest hit in the national housing crash, there's good news: Homes are starting to sell again. Investors and first-time home buyers are snapping up foreclosed houses here, with the number of local sales up almost fivefold from this time last year. While the volume of existing-home sales across the U.S. fell 10.7% in August from the previous year, according to the National Association of Realtors, there are signs that the most damaged of markets are starting to heal themselves. Across hard-hit California, sales volumes rose 65% in September compared with a year ago, said MDA DataQuick, a San Diego-based real-estate information service. California's Crashing Market See some of the hardest-hit communities, plus more on Merced and Los Banos. The bad news is that the latest round of sales is unleashing another round of pain in cities such as Los Banos, a commuter community in California's Central Valley. With ..(read more)

Beward of Hidden Agendas

Beware Of Hidden Agendas

Today, real estate agents, more than ever should appraise people just as diligently as they appraise properties. If the seller's motivation is not strong enough, they should be dissuaded from competing in markets with elevated inventories, repos, and short sales.

In early 2008 I listed a friend's residence. Randy received a promotion and transfer to California from Arizona. He was elated. His wife Linda did not share his enthusiasm. She was eligible for early retirement in the next 18 months. Her frown, tacit approval, and reluctant signature on the listing agreement would undermine the marketing activities.

The property was situated in a great location. The initial list price was at the high end of the range in a soft market. The first two reasonable offers were countered by the sellers and then rejected by the buyers. The property was appraised & reduced as the market softened. The sellers ..(read more)

Phoenix Housing Update

Phoenix Housing Update: September Sales Surge 81%; Prices Plunge 28%
Analyst(s): Paul D. Puryear & Buck Horne
[Industry Classification: Real Estate/Housing] * During September, existing home sales in the greater Phoenix metro area increased a remarkable 81% y/y, bringing the number of transactions recorded last month to the highest level seen since June 2006 (near the peak of the housing bubble). Similar to recent months, this volume improvement continued to be stimulated by sharp declines in home prices and foreclosure activity, with Phoenix area median prices falling 28% y/y to $170,000 (the largest y/y decline yet cycle-to-date). Compared to September 2005, when the median price stood at $260,000, prices have declined 35%. Blended together, the aggregate dollar value of residential re-sale transactions in the Phoenix market increased 29% y/y in September.
* Inventory listings fell 6% y/y, but despite the increased sales activity, September's listed ..(read more)

Problem of Home Prices Remain

The Treasury Department's rescue plan for the U.S. financial industry doesn't directly address the root cause of the crisis: falling home prices. The government's plan, which includes taking stakes in major financial institutions and temporarily guaranteeing certain new bank debt, could cushion the economy and thus the housing market from further blows. But many economists say additional measures are needed to stimulate demand for homes and to reduce mortgage delinquencies and foreclosures. At the heart of the rescue plan is an effort to keep the credit crunch from sending the economy into a tailspin. "If the financial system doesn't get working again, then the economic downturn is going to be much worse, and that means the housing market will be a lot worse than it otherwise would be," says Frederic Mishkin, a Columbia University economist who stepped down as a Federal Reserve Board governor in August. But some economists say the government needs to do more to address ..(read more)

The Secret of Selling Houses

The Secret Of Selling Houses Albert E.N. Grey once said in The Common Denominator Of Success that, "The secret of success of every man who has been successful lies in the fact that he formed the habit of doing things that failures don't like to do". The same quote applies to home sellers. Unsuccessful sellers (called expired listings) have formed bad habits such as: not listening to their agent's advice, not pricing the property aggressively, not making cosmetic changes, and not periodically reducing the listing price. Successful sellers don't enjoy doing the items above, but their motivation mandates that they focus on the goal of selling as compared to micromanaging the marketing. Successful sellers 'respond proactively' to no showings, no offers, low offers, or elevated inventories. Unsuccessful sellers 'react emotionally', defend their egos, and are quick to shoot the messengers. Warren Buffet said, "Price is something we pay when ..(read more)

The Price is Wrong

The Price Is Wrong Have you seen the new real estate reality T.V. show called The Price Is Wrong? The old Price Is Right was remade to reflect the tumultuous times. Thousands of frustrated sellers batting zero (fsbos), cantankerous cancelled listings, and exhausted expireds, in addition to agitated agents vie for the right to sit in the studio audience. Several lucky contestants will be selected to pick one of three doors on stage which indicate why the property did not sell. In order to attract the attention of the game show host, the audience members are cleverly costumed in real estate revolting attire. Lime green shag sweaters, dresses with pet odors, textures & colors that don't match are a few examples. Some sit in the aisles to mock poor locations. Others go without bathing for days to suggest unclean rooms. One shrewd seller came dressed as an enclosed garage. But, every guest says they are unaware of why the property remains unsold. As ..(read more)

Paul Pastore's Top 10 Financial Tips for Realtors

1. As John Wesley once said, "Make all you can, save all you can, give all you can." 2. Spend less than you earn. 3. Check your credit report. 4. Know your FICO score. 5. Measure your wealth not by the things you have, but by the things for which you would not take money. 6. Have a 3-6 month reserve fund. 7. Don't invest in anything you don't understand - except possibly a spouse. 8. Keep good records. The No. 1 reason for small business failure is poor record-keeping. 9. Always save with pretax dollars. 10. Remember that disciplined savings will outpace any investment scheme.

MLS Inventory 9/15/08

Stupid is As Stupid Does

Stupid Is As Stupid Does

One of my favorite movies is Forest Gump. In my opinion, one of the best lines in the film is, "Stupid is as stupid does". Today, I did something really stupid as a real estate agent. Hopefully, you can learn from my mistake.

I was in a Washington Mutual bank branch and noticed a large sign in the window that said 5%. The teller said the rate was for a 14 month CD with a $1,000 minimum. After a little research this appeared to be a good place to 'park' some funds that were earning half this rate. The teller impressed me because she asked for my CD business on several occasions.

One half hour later, I had a cashier's check for a six figure amount that is now a WaMu CD. As I drove away in my car I was pleased. The teller was pleased. Then a little voice whispered in my ear, "Hey, Mr. Experience; did you give out any business cards? Did you mention you were in the real estate business? ..(read more)

MLS Inventory Valleywide- 9-8-08

MLS Inventory- Valleywide 9-1-2008