Balancing My World and Yours

The fact that I am a real estate agent does not ban me from pausing every November to be thankful. You see, I hear about agents that jumped up from a holiday meal to go show a house. I have heard the old wives tales about the biggest deals being done on a holiday.
I don't believe it!




I think that I have the right to sit down with my family and enjoy a feast celebrating all that has happened in the last year. I think those that are buying and selling have that same right. "Black Friday" will come soon enough. My feelings on setting aside time to share special days are not a secret. My friends and clients know that I am a more rounded person because I balance the personal and professional aspects of my life. I encourage them to do the same.






Halloween is now the start of the great American holiday festival. We start in mid-October, preparing for the night of children's delight. We decorate our walks and doorways with ghosts and goblins. Every knock is answered and we are treated to costumes, store bought and hand made, trumpeting the success of t.v., movie and books.



We begin our season giving treats to those that come and entertain us. Our journey into the fall and winter is a celebration of fantasy.




The decorations are no sooner packed away for another year, when we begin to prepare for Thanksgiving. It is a time for giving thanks. It is a time to see every glass half full and remember that there are so many less fortunate in this world.
Friends and family gather to enjoy the finest feast. Early in the day, the streets are filled with Thanksgiving parades that end much too soon to the jingling music that accompanies Santa, high on his float, arriving to hear first hand the desires of every little girl and boy.





By afternoon, football is found on every major channel. The meal is followed by a plethora of desserts that lead to many early afternoon naps. As night falls, hot coffee and one more piece of pie are shared while eager consumers go over the ads for the "Black Friday" sales. Then the countdown begins.


We are a nation of many faiths. This is a special time for all of them. The most ancient of religions celebrate the birth of Zoraster around this time. The pagans have always celebrated the beginning of winter. Christians have chosen this time to celebrate the birth of Christ.






Children of all ages and many faiths just wait for Santa Claus. I find joy in the season of giving. I don't mind waiting in the lines to make a purchase. The large crowd in front of me represent so many happy faces on Christmas morn. Even Scrooge found joy on Christmas morning.



So, how does one find balance between the demands of a profession and the desires of the heart? As a real estate agent, my job is dealing with people. They are celebrating as well. They have the added burden of either a home on the market or the need to find another house. I always have my home to return to at the end of a day. I find balance by pausing and .....

I put myself in their shoes!

I have been fortunate enough to be homeless. I have been fortunate enough to have been confined in a place that did not allow holidays. I have been fortunate enough to have gone long periods of time away from friends and family. I have been fortunate enough to not have enough money to pay for food for my family. I have been fortunate to have suffered along the road of life. I have been rich and I have been poor. I have learned the value of comfortable which resides somewhere between the two.


I put myself in their shoes, because I have worn them before and I know with a little support and encouragement, they too can rise above their situation.

It doesn't matter if they are trying to rent a one bedroom apartment or purchase a $700,000 home. The basic needs remain the same. When I try to juggle their demands with the life I have chosen to live, I set the stress aside, put myself in their position and seek a resolution.

When it is time to share the holidays with friends and family, I let them know what I will be doing and encourage them to do the same. The problems we all face, will still be there tomorrow. Today is a day for enjoying what we have, whom we love and the guiding hand that leads us.

Then I slip out into my studio..................

and I paint.

Sitting on the fence...don't get caught by interest rate increases!

So, you are sitting back waiting on those prices to fall even further. I understand. After all, it is rather safe on the fence.

The problem you have while sitting there, watching prices, is that the cold wind of interest rate increases is on the horizon. Just like "the hawk" that brings the chill to the frozen tundra of Lambeau field; the chill of rate increases will freeze you out of potential homes faster than you can say "jimmy crack corn and I don't care."

We have ridden the roller coaster of low rates to the bottom and watched them creep up and then take a moderate dip again. The rates remain, at what we in the business like to call "historically low". Of course, you don't pay your bills with historically adjusted money. You pay your bills with money earned today. I have to tell you, rising costs and inflation are reducing your buying power while you sit up there on that fence.

You're waiting.

I can't find many that would disagree that prices remain high on homes for sale. Not all of the homes, but many of them remain a bit out of reach. Of course, the prices on some homes will always be out of reach. While you are sitting atop that fence waiting for the really nice 4 bedroom colonial with a finished basement to drop another $25,000, the cost of that $25,000 may be growing before it exists. It may be more prudent to sit back and take another look at what you can afford today. You might have to pass on the finished basement, but you will be able to afford your house. You might be better off if you decided what you can afford rather than waiting on that fence until the market dictates what you can afford to you. It is always better to be the driver rather than the driven.

What danger is lurking in the ocean of uncertainty? What will the next wave of financial news bring to bear? The best possible scenario would be that interest rates remain stable. A quick look at the overall financial condition of the country as it relates to the rest of the world gives us a clue. Interest rates will have to rise. Everytime you hear that the value of the dollar overseas has gone down, understand, that will impact you, while you sit perched above the fray. Instead of bemoaning that a trip to Rome or London will be more difficult, you better realize that a trip to the local grocery store or gas station will soon be more unpleasant.

Let me put it in basic terms. If you can afford a $450,000 loan today, a one percent rise in the interest rate will reduce the power of that money to $400,000. Just a half point will drop the power to $425,000. Now, before you go grab a calculator, these figures aren't based on some fancy program. It is just principle and interest at 6% for today and then 7% or 6.5% in the future.

Sitting on the fence, you may find that if and when prices drop, interest rate increases have wiped out your buying power. I don't have a crystal ball, but I can guarantee that the first rate increase will be followed by others quickly. If you wait to act, you may find that you are "chasing the market".

Maybe it's time you stopped sitting on the fence and became proactive about the purchase of your next home. It is rather easy enough to get in touch with a real estate agent. (God knows there are about 20,000 in this area). Find one, get comfortable and at least find out what you may be able to do today. The facts regarding your situation may not be as pleasant as you would wish. Knowing the facts will allow you to act. Acting now will prevent you from losing the power of your dollar while you were waiting for prices to fall.

It will never only be about price. It will always be about what you can comfortably afford. I just thought you should know, the house you are watching and waiting for the price to drop may be out of your reach by the time the price falls. Don't let the media keep you perched on that fence. Get the facts. Knowledge is power.

If you would like to discuss this information with me, I can be reached at 301-537-4377. If I can't help you in your area, I have a personal relationship with agents in most areas and I will put you in touch with one that will help you.

There is no room for anarchy in this business....

Shakespeare offered "Much Ado About Nothing". I was perusing this morning's Washington Post and came across an article regarding an email sent by the owner of Long and Foster exhorting his agents to use the in-house lender. I was surprised to see that his note caused enough of a stir to reach the level of prominence that the Post gave it. Then, I stopped and realized this is the same instrument that has been extolling the death of the real estate market for months.

Later today, doing my usual reading of blog entries, I came across one from an Active Rain member. I had read some his other blogs and realized that even on Active Rain
outlandish self promotion through "McCarthyism" techniques occurs. It is no mean feat to point at supposed enemies in our midst and create a stir with what, on the surface, appears to be sound, rational and probably factual statements. The problem occurs when the facts are checked and they don't quite measure up to the "sky is falling" impression left with the original post.

Today's entry actually reminded me of the accuracy shared in most political advertisements. You have seen them. Statements taken out of context used to paint an opponent in a corner. The advertising camp can sit back and rejoice how we put a spin on that one. Voters are left to ferret out the truth.

There was an anonymous quote in the article.

An agent offered, "I'm thinking that some agents will feel psychic pressure to use only Prosperity Mortgage," the agent said. "I'm supposed to give my clients the best service, and that means helping them find the best loan."

I had to read the sentence a few times. I was not sure if it bothered me that there was an agent that thought helping a client find the best loan was part of her service or if I was concerned that the agent actually believed that statement.

In either case it is a rather sticky web of self importance she is weaving.

Claiming to be responsible for finding your client the best loan certainly opens a larger can of worms than referring a client to an in-house lender for pre-approval for a loan. What authority gives any agent the right to determine what is the best loan for any client? Does that agent truly want to accept the liability for every loan that she recommends? The only person that can determine if the loan is the right loan is the client. You do need to make sure that they understand the terms and conditions of the loan. They decide.

The law is pretty clear. You can not advise a client about anything except real estate. You can not step in and give financial advice. You can not step in and give legal advice. You can not.

You may have wonderful intentions. You may feel you are doing the right thing protecting your client. You are only stepping outside the boundaries of your fiduciary responsibilities and leaving yourself exposed to unwarranted liabilities. Our profession is based on the law. Everything we do is deeply entrenched within the law. Using your personal opinion to direct a client anywhere is outside the law.

If a client says, "I don't have a lender". You can not reply "Here is a lender's number, call them."

You can share with them, "There are several good lenders in this area. I would recommend that you contact a local lender, so that we will not run into problems getting the necessary documents to the settlement office in a timely fashion. I have worked with XXXXXX in the past and they have always funded closing within the contractual time. If you would like their number, I will provide it." "As soon as you decide who you wish to use, I will be glad to contact them and set up an appointment. I will go to the first meeting with you. It is important that I have a relationship with whomever you choose to fund the transaction. Also, you do not have to use the first lender that you speak with. They will provide you with a Good Faith Estimate, which you can use as a bench mark in speaking with other lenders."

It is up to them to decide whom they wish to contact. It is up to them to decide whom they choose. If any agent thinks that they are going above and beyond the call duty by choosing the lender, they are not. They are stepping outside the law. This practice could lead to anarchy.

There is no room for anarchy in this profession.


As always, I welcome your questions and/or comments. Feel free to write me an email if you have specific issues that you would like me to address.