Why Realtors love an erratic stock market

The last year has brought a lot of uncertainty in the real estate market. Where's the bottom? Where's it going?

When faced with uncertainty seasoned investors watch and buy when it makes sense. Novice investors wait until the market rebounds then try to get in with the rest of the herd.

While the investors wait for the real estate rebound they tend to put their money in the stock market to get a decent return.

These headlines:


Market Overview - Yahoo! Finance - The basics of investing.

The major indices were pummeled on Monday due to uncertainty over the details regarding the U.S. government’s $700 billion plan to fix the financial market turmoil and news that the two remaining major Wall Street investment banks converted to a traditional banking structure.


...typically are strong enough, and cause enough pain, to scare investors back out of the stock market and into real estate. That coupled with multiple offers on the low end of the market all work together for the real estate rebound.


So, stock market pain = realtor gain.

That's why realtors love an erratic market.

16 Groups of People Kept Me Busy at My Campbell Open House

It's been a long time since I was busy at an open house.

The last open house I did, I watched "the last lecture" on YouTube on my laptop! [Great inspirational stuff, and a great speaker! Watch Randy here, but not the reason to hold an open house!]

Yesterday I was busy the whole time! It was so great! I made chocolate chip cookies - which is always fun and loosens people up so I am not the hawk at the front door - and wore my fuzzy purple socks to keep my feet warm and to slide around the hardwood floors.

Some of my groups were entire families out looking together, most groups were 2-3 people. Not once did I hear "the market is uncertain" or "we're waiting to see what happens". Most of what I heard was "We need a bigger house", "I moved here for work", "I want to be close to downtown Campbell".

There are currently 7,059 properties on the market in Santa Clara County, 324 in Campbell. For the month 1184 have sold in the county and 46 in Campbell. Which is about on pace for August.

I think the big adjustment is over. There may be some little movement; 3-4% during the holidays but, I am worried that that dip will be negated by any rise in interest rates.

What have you seen in your neighborhood?

Why use an Agent? I'm pretty smart and I can find stuff on the internet.

I love this question because it's an opportunity to teach folks that they don't even know what they don't know.

Here's a great example that came up for me this week; I am also a writer and I was reading a fellow writer's blog. She just got a movie deal for one of her books and she was so excited. Here's what she wrote:


So we gave them two months. About a month later, I get a call from my lit-agent saying, really, more squeeing, that we're expecting an offer from The Weinstein Company! This was huge news because, beyond the obvious, Meryl was once Harvey Weinstein's right-hand gal, and the fact that they were reteaming on something meant they really wanted to get this done.

So I squeeed and squeeed and waited by my email for more details...and waited....and waited....and finally, like a week and a half later or something, we got the offer. I jumped up and down and squeeed some more and would have immediately accepted (because I am a writer, not an agent) but my agent is savvier than I am and prepared a counter-offer. (See, this is why agents are good things. Very good things. Because I would have squeeed forever and happily cashed whatever sum of money they shoved at me and called it a day.)

When you find the right property, you, my client, get so excited - dreaming about where you're going to put your cute little armoire - that the details of the deal become secondary - at least that's my experience in the last 20 years of helping people.

I am the same way! I remember when I had an accident on an outside terrace. The table we were sitting at blew over and my left hand was crushed. I required emergency surgery and had pins in my fingers then physical therapy. When I went to get re-imbursement, I had no idea what to ask for. So, I hired an attorney who charges 30% of the settlement. I thought, I am smart, I negotiate all day long, maybe I can save myself 30% of something. I thought about it overnight and hired him the next day. I had thought maybe I could get my expenses plus $20K ish for the hassle. My attorney negotiated a settlement of expenses plus $75K. After all was said and done - I more than doubled my money by hiring the attorney.

Now, I am not saying I'll make you double what your property is worth when I sell it but, I know that the value I bring to the table - in all areas of the deal, not just the money - far outweighs the fee I receive.