Phillip's Blog

A couple of months ago I cheerfully predicted that we would be out of the housing slump in this area by the spring.  Well, here we are.  It’s spring and the slump continues.  Shall I be man enough to say I was wrong? 

Ok, I was wrong. And not just with resales but with new homes as well.

The National Association of Home Builders reported last month that housing starts were down all across the nation -- in every region. But the South saw a hefty decline of 12.6 percent.

NAHB President Sandy Dunn, reported that: “Builders are dramatically limiting starts of new homes in an environment of weak sales and heavy supply, ratcheting down production of single-family units to its slowest pace in 17 years."

Yeah, well, it’s ABOUT TIME!

What I had not predicted (nor did anyone else for that matter) was the huge run up in energy costs that have so seriously affected every aspect of our day to day lives.  As I write this, gasoline is at $3.599 per gallon.  I always got a kick out of that 9/10ths of a cent they have always tacked onto the price of a gallon.  Why not just call it what it is - $3.60 per gallon?

It’s not just the price of gasoline either; it’s the price of oil.  Think about it.  Oil prices impact us everywhere, from the asphalt streets we drive on to the roofing on our homes, to the clothes on our backs.  We as a society are completely controlled by the oil barons.  This is the 21^st century version of slavery; the only difference is that we willingly placed our necks in the shackles.

In response to the housing market the Fed has slashed and slashed and slashed the interest rates.  To what end?  In their attempts to alleviate the cyclical nature of the economics of the housing industry, they have dumped money onto the streets like never before.  In doing so they have killed the value of the dollar and dramatically increased the cost of anything imported into this country.  And what is the single largest dollar cost item imported into the US?  Oil.

By going so far with the interest rates trying to stop the downward trend in housing, they have actually exacerbated the problem by creating the environment for the huge upswing in energy costs.  It’s a catch-22 and the Fed played right into it.  They should have stopped cutting about two cuts ago.  But what can I say?  This is an election year.

Now we have the worst of all worlds…way too much inventory, declining prices, and buyers with the jitters.  That’s the bad news for everybody.

The good news is that finally all the economic gurus tend to agree that we are in the “belly” of the recession.  And like my old boss used to say, “When you are at the bottom, there ain’t no where to go but up.”

But then he was wrong once too.

Q. We’re selling our home soon, but don’t want to spend much money on home improvements. Are there any inexpensive ways to fix up our home?

A. Here are just a few low-cost improvements (outdoor and indoor) that can really make a difference and help you sell your house at a higher price:

Outdoor Improvements:

• You’ll also want to pay close attention to your home’s curb appeal. Remember, that first impressions count!
• Painting – While painting is not inexpensive, it is the best way to improve the appearance of your home.
• Replace The Front Door – If your front door is in poor condition, either paint the door, or replace it. You can also install quality decorative features (doorknobs, lock, knocker) to dress up the door.
• Repair Screens – Repair any screens. Your local hardware will do this for about $15 per screen, or you can do it yourself.
• Patch Holes In Walkways – Concrete patching costs less than $10 gal.
• Reseal Your Driveway – Repave your driveway if it needs it.

Indoor Improvements:

• The best way to add to your home’s value is to make sure your house is “sparkling” clean...so it shines!
• Replace Worn Carpeting. You can get quality carpeting installed at about $20 square yard, a good value that will transform the look of your home.
• Painting – A new coat of paint, in neutral colors, will brighten and add value to your home at a reasonable cost to you.

If you are in the market for a home or need to sell your home, and need competent and caring representation, please call me at (615) 957-9921.

Here's some more information that can help round out your knowledge of real estate in general.

Q. We are thinking of buying a new home. What are the trends in new home building?

A. Buyers have their own personal preferences in what they like in a home. But a recent survey by the National Association of Home Builders found the top 10 new home trends:

1. No Living Room. Over 30% of homebuyers will buy a home without a formal living room, preferring special interest rooms.

2. Fewer Open Floor Plans. Semi-open arrangements are preferred with partial walls and columns to separate space.

3. Extensive Wiring. Wiring for high-tech equipment and entertainment is a must for new home buyers.

4. Activity Rooms. Many homebuyers want home offices, dens, exercise rooms, and game rooms.

5. Spacious Garages. Buyers want lots of storage space and workshop areas.

6. Traditional Exterior. Homebuyers prefer traditional American and European architectural styles.

7. Storage Areas. Homebuyers favor walk-in pantries, special interest cabinets, and walk-up attics.

8. Lower ceilings. Fewer two-story rooms are being built today.

9. Unique Kitchens. Over 78% of buyers want a walk-in pantry.

10. Future Options. Homebuyers plan for their future years. They want wide hallways, main floor suites, and walk-in shower stalls.

If you are in the market for a buying or selling a home and need competent and caring representation, please call me at (615) 957-9921.

As many of you know, I subscribe to several email newsletters in my ongoing effort to expand my knowledge base.  If you don’t, you should.  Regardless of the industry there are numerous opportunities to sign up for this type of free learning.  More than anything it helps you keep up with what is going on in your industry.

Recently I ran across an article by Julie Escobar, a real estate industry strategist/ guru, which I found very interesting.  In her article, Julie espouses a belief that I have long held:  that you must love what you do or you will eventually face defeat.  Somewhere between the dreams of our youth and the everyday reality of adulthood, many of us lose our passion.  This loss of passion is what deprives most of us from achieving our full potential and eventual success.  The seed of greatness is within each of us, but somewhere along the way we cover it over and it is lost in the daily “busy-ness”.

In addition to Passion, Desire is another element that moves us up out of mediocrity and into success.  Desire by another name is sense of purpose.  As Will Rogers said “If you want to be successful, it’s just this simple: Know what you are doing, Love what you are doing, and Believe in what you are doing.”  According to Julie, the following are six proven ways to do just that:

1.      Expand Your Belief System.  Consciously chose Faith over Fear.  Fear and passivity are two of the greatest roadblocks to success.  Think big, believe big and you will achieve big.

2.      Follow Your Passion.  Every industry has certain people you feel connected to and like to be around.  When the chemistry is right, you have a tremendous opportunity to go beyond business relationships and develop true friendships.  Finding your niche and following your passion will excite, energize and invigorate you in ways you never thought possible.

3.      Embrace Abundance.  Most people who are stuck in a rut – unable to move beyond mediocre income or achievement levels – have placed that glass ceiling on themselves.  Get rid of the limited thinking and give yourself permission to succeed – now!

4.      Find the Fun.  The more fun you have in your career, the more time and energy you will invest in it.  Find the fun, mix it up, do something different and you will discover a spark that you never knew existed.

5.      Discover the Magic of Momentum.  Think about the rush you feel when you are “in the zone” – enjoying a streak where everything seems to fall into place and you are at the top of your game.  Memorize that feeling, internalize it, then us the magic of that momentum to propel you forward at times when things in your life are flat.  The best way to do this is through daily affirmations.

6.      Be True to Your Core.  Nothing stops momentum faster than being untrue to your core values.  You need to know, without compromise and with unwavering clarity, who and what you are.

These 6 guidelines are from Julie’s article and put to writing many of the beliefs that I have held dear for much of my life.  To these I would add a 7^th, and I think the most important way to fuel your life with passion.  That is to develop a personal relationship with Jesus Christ.  Seek out His plan for your life in every thing that you do, and success is certain to follow.

Warmest Regards!