Real Estate Bergen County New Jersey | Homes For Sale

The FBI is now investigating the major Wall Street firms, to see if fraud was involved in the handling of their businesses in mortgage back securities, real estate and related matters. This is what we all knew was coming. I hope that the powers to be in the federal government can solve the mess we are in to get back our markets. Restitution, if and when wrong doing is found should accompany the prosecution of wrong doers.

Congress needs to stay the course and get this bailout over. It is being said by many that if they prop up this market and get real estate back on its footings, the government may event profit from their investment. The under laying real estate values may improve as people feel more confidence. There are assets, that no one knows their value, due to the complexity of their documentation. It will take time to unwind, while the market has a chance to regroup and regain some of its value.

Many real estate buyers are extremely worried about all that is going on. They are justified in their fears. However, the best deals are made in disarray. We prove this in the 1989-92 period, the deals that were bought then by my clients have never been seen again. The Savings and Loan bail out did this. It made many of my clients very wealthy by giving them huge discounts on great properties.

Congress will give the money to get the system on track, the sovereign wealth funds are ready to buy our real estate. When they do, with all this money pumped into the market look out!

Richard

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I think we must circle around the issue that rates may be in that 5.5 range for a 30 year conforming. We have lower prices, about 30+ percent below the highs in many areas. Realtors must rally around this and get the buyers to understand the opportunity. To many buyers they are still deer in the headlights. Realtors must present a case for a turning point here by the intervention in the main mortgage players, Fannie Mae and Freddie Mac.

I am not saying there are no more issues, there are, but when everything is fully resolved the market will be up 5 to 10 percent off the lows. The key to investing is to know when the ship is starting to turn around. I think there are hands on the rudder.

Point one, get a good lender. Find one that is left out of all this. There are some in every market. We have a few in ours. If you don't know, ask other agents who they are using and how they are doing. There is one big national that we all know who is in great shape and is writing mortgages in a good organized manner, Wells Fargo. However, you know your own area.  Meet with them and organize a presentation, for you and the mortgage representative. Get your buyers involve in this feeling of opportunity. They will thank you for it later with referrals.

We are a national sales force of over a million strong. This sales force if motivated, can do anything. Right now we have been given the makings of a tool, available mortgages at lower rates. Slowly the market will get it on its own, but we can move it and everyone will profit by it.

Have an office meeting with the mortgage rep. if needed and prepare ads, even local papers can give it a little PR.  Basically, there is a reason to call your clients and get them involved. A bit of movement could get it all going. I have been saying if rates could break 5.5 percent we would get going again. People are very rates sensitive; mortgages are up 9.5 percent already week over week with the rate changing so far. You must first believe to get anyone else to believe. You must believe what you sell.

Richard

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