Reno Home Blog

What I learned dealing with people in family and business

Superb photo by: Keith Yeung


I'm learning a lot when it comes to dealing with people--client or family.

I am learning new things and need to unlearn even more.  I learned that most of the time I have to be extremely accommodating, patiently quiet and understanding towards people. But I also realized that there times when I have to use some..  what I call 'emotional force'.  Some call it 'tough love'.  Every person is unique, and putting people in boxed formulas simply does not work in improving our relationships with them.  Just ask my wife. 

"Life is a paradox," somebody once said and we can't stick to one single map for the rest of our lives.  Core values like respect for others' individuality and "treating others how we want to be treated" should never change.  But our ways and actions and how we do things--our strategy needs to adapt to our ever increasing changing times. 

We need new maps, new ways of thinking but doing so does not mean forgetting--"a person who does not learn from history's mistakes is bound to repeat it".  It's mixing the old with the new. 

For some reason while writing the last sentence I thought of the T.V show Iron Chef-it involves cooking and serving food but they do it in a way so amazing and entertaining that you'll never see chefs in the same light.  They create edible art!  My mother once told me after watching an episode, that now she considers herself as an artist.  Absolutely.

Positive news from S&P/Case-Shiller Housing Pricing Index

Superb photo by: oceano mare 

I  received refreshing housing news  from S&P/Case-Shiller this morning. 

I don't know why but the mere mention of that name connotes 'complicated stuff', but don't fret friends it's just a neat housing health checker for the nation.  It tracks the national housing market through the eyes of the top twenty cities in the country (Las Vegas, L.A, Florida etc):

"Data out Tuesday offered some hope that the two-year housing slump is coming to an end."

It goes on to say that more people bought new homes in July than in June (2.4% more) and the number of unsold new homes fell 5.2%, the biggest drop since 1963.  But they also mentioned that "it will still take 10.1 months to clear the inventory of homes" if we base it from the current sales trend.

I welcome good news from the real estate market like how my children greets me coming home from work. I love it.  But I also have to remind myself that I have to give my kids equal individual attention.

I can't cherry pick the market.  If I welcome the good I also need to be wise enough to accept the not-so-good. 

"We may be starting to find a bottom. I'm not convinced of that completely yet but we may be getting close to it," said Nigel Gault, chief U.S. economist at Global Insight.

That's what I feel now.  Hopefully the market will go consistently in this positive direction. 

Here's the rest of the article: On The Home Front (investor's business daily)

You can find the S&P raw housing numbers here

To Sparks' First-Time Homebuyers: Do not miss this opportunity

Last week I had a big 'aha' moment. 

It was when we came up with the term 'hyper local'.  The concept of within market is another market.  Understanding  the Reno real estate environment is good.  But there is more.  You can dig deeper into price ranges ($200,000 - $300,000) or by area (South Reno vs North Reno).  And by getting acquainted with these data you can significantly cut down the avoidable financial risks in buying a home.  This is not rocket science and it's actually not hard to do this.

Last week we talked about a price range in Reno that I think have already bottomed.  In this post we'll see if it's the same case for Sparks' real estate market.

Sparks real estate:

Price range: $150,000 - $190,000

Time period: Two years (July 2006 - July 2008)

Median Price (sold)
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Number of homes for sale in Sparks
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Number of homes sold in Sparks
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As you have probably noticed both Reno and Sparks' reports looked very similar.

Bottom line: $150,000 - $190,000 price range has been stable the past two years.   Supply and demand has been going up (a very good sign esp. with the 2-year time span)

This is awesome news for first  time home buyers in Sparks.  One last piece of advice when buying in the $150k - $190k range.  Knowing that this market has a ton of demand it may be wise not to play it safe when making offers.  Make full price offers, even higher if needed.  You can be sure that competition will be present.

Why seeing The Reno Market as Hyper-Local can help you get ahead of the pack

"All markets are local." 

The chorus real estate people love to sing.  And it's true.  All markets are local--as Altos research clearly show us. 

Though I also believe that the general real estate market (mother) have influence over her little ones as well.  This would make more sense to you if you look at it from a psychological stand point. 

The general population is influenced--perhaps too much so--by the news media.  And my stand with the media has always been the same:  I don't think they are wrong, they are just unflinchingly tardy in reporting substantial real estate news; Especially the ones that will directly help buyers and sellers.  And I can't blame them, they have to 'pay the rent', I guess. At the end of the day revenue is still the name of the game.

And what the media reports--end up being digested as the truth.  And people munch on this whether we are aware of it or not. Then we tell our families and friends what we've heard and they tell their friends and loved ones--and the circle of life (jumble) begins.  

But I am not writing about this topic.  Yesterday Joe and I stumbled upon a fascinating realization.  People say all markets are local, we decided to add that all markets are hyper local.  Meaning, the United State's real estate market can differ from Reno's, but to add to that, Reno's general market can also greatly differ from an area up North in the first time home buyer price range. 

As we can see in the blog post yesterday.  You'd be surprised how Reno's $150,000 market is vastly different from the $350,000.  It is vital that you know what is happening in the market you desire-- is it recovering or still with a bad cold?--for this will give you a major boost in negotiating.  Joe had to offer a few thousand dollars over asking price in many of the first time home buyer price range.

So if you're a buyer feel free to ask us for a special report on a specific area you desire.  Don't forget to customize it based on your price range and desired area(Ex: $270,000-$360,000, South Reno).

It will pay handsome dividends.

Announcing: The first market bottom in Reno real estate (hint: it's in the 100's)

 Spectacular photo by: Austie1

A bullish real estate market is lead by a strong demand and strong supply.

For months now Joe has experienced multiple offers in the first-time home buyer price range, specifically in the $150,000- $200,000 mark.  However intriguing, this was not a big surprise. 

Our train of thought was that all this 'sudden' increase in demand was just seasonal and due to the bank owned properties (priced significantly lower than normal sale homes).  Thus, buyers have been very aggressive in making offers.

Then I came across this:

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Price range: $150,000 - $190,000
City: Reno

Before I inadvertently confuse anyone, I want to be clear that this is not for the whole of Reno and Sparks.  Just Reno.  I hope this is clear for I wouldn't want to mislead anyone in saying that the Reno-Sparks real estate market has already reached a bottom.  I wish. Unfortunately-- like you my dear reader--I'm still waiting for that to happen. 

But with confidence I can say that if you're buying in the Reno area in the price range of $150,000 - $190,000 the market is stronger than ever-- as you can see in the above graph--the median home price has been steady in the last two years. 

Here's the supply and demand in the same area.  This will shed light to some of your other questions.

Supply

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Demand

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Number one secret in investing

Superb photo by: Lady-bug

I stumbled upon a blog post today that was entitled, "the secret of the web(hint: it's a virtue)."

If you haven't guessed it, it's patience.

Ever since the Olympics started this month I have been following the games obsessively.  

Indeed,there's something heroic about these athletes; Spending countless hours training, often times without a crowd to cheer them on, injuries plague most of them (at least) once in their careers and most of the lesser known athletes spend their own money just to do what they love.  And watching them in Beijing reap what they have sown for the past four years is simply breathtaking.  

For all of them, patience was their number one friend in getting where there are now.  It takes that and a ton of hard work to endure all that they have just to even qualify for the Olympics. 

I can't help but wonder if we use the same mindset in real estate how much more effective will we be? If we developed a mindset of a marathoner instead of a sprinter maybe we won't be as exhausted as many of us are now.

I love what Seth said, "It still takes ten years to become a success, web or no web."

Here's Seth Godin's article

Here's another article related to the subject (about Jerry Garcia)

For Buyers: The Reno real estate market in the last 6 months

What's been happening in our market in the last six months?

I usually check 2-year graphs of recent real estate activities in the Reno area.  But I also found that 6-month graphs tell a clearer story on where the market will be headed. 

So hope this helps:

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"Do you have other questions about the Reno-Sparks real estate Market? Call Joe today! (775-338-7653) for a FREE-No Hassle-No Sales Pressure-30 Minute Phone Consultation"
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Homes under contract(Reno) Mar 3-Aug 4 2008
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Number of homes sold (Reno) Mar 3-Aug 4 2008
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As you can see demand has gone up since March and even before that. Yet home prices seem to continue to go down:

Click here for full page view

Why is that?

Homes in foreclosures being sold by banks are priced way below what normal sellers can sell their house for. And because of that more people can afford to buy a house now than ever before(explaining the rise in demand).

What will put a stop to these price declines? One is when foreclosed homes gets sold out and buyers flock to 'normal' sale homes that are priced right.  Thus, more buyers compete for these homes putting stability in the prices.  Home prices stabilize then goes up again.

For more information about how home prices will increase after we reach the bottom click here

One of the things I've Learned Since Starting This Blog

'Evidence of spring'
Amazing photo by: Sam's Place

"Evidence does not lie"

I was reading a book this morning that talks about consumers shunning old marketing ploys that so many companies (not to mention organizations too) are guilty of.

When I started this blog I had some apprehensions about the content that I will be sharing to the world.  I knew that if I was to start this site I needed to reveal the truth based on what the market was saying whether I agreed with it or not.  But are the people ready for this? Quite frankly, I wasn't sure. But I decided to jump nevertheless.  I'm glad I did.

It didn't take long for me to realize that people were starving for facts and evidence about the Reno market.  They wanted the truth.  Sure, not a few people disagreed with me but more often than not even if they didn't like me they appreciated the data. 

I also realized that people are inclined to do what they want and need to do and that they just wanted to know what they were getting into.  Rightfully so.

Truth based on evidence--when clearly presented for the benefit of the people--I realized, is one of the best marketing ploys one can use to gain more clients.  And real estate, for me, has never been this pleasurable.

Why short sales take so long to get approved: By Jillayne Schilecke

Photo by: ONE/MILLION

I stumbled upon this article from Rain City Guide, one of the most respected real estate blogs in the country.  It will shed light to our questions regarding the all too-many-delays we experience in short sale transactions. 

This phrase hit me straight: "Banks are under no obligation to approve your short sale.  I know what you’re thinking, reader. You’re thinking, “Well if the G.D. bank would just approve my short sale faster, they wouldn’t be losing so much money!"

I used to grumble saying that if the banks were just smarter, they would approve the short sales faster.  Well, I now realize it's not that simple really. 

Here's the complete post: Jillayne Schilecke On Short Sales 

Reno Homeowners: Housing Counseling Program Available!

A friend of mine sent me a flyer from the Washoe County Senior Law Project.  It's a program by our County that helps homeowners who are having trouble with their home payments.  I think it's something many people should look into.

Here's the ad:

Click here for full-view

Contact Information:

located at Washoe County Senior Center
1155 East  9'th Street (corner of 9'th and Sutro)
(775) 328-2592
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