Real Estate Changes

Change is constant, and that oxymoron is one of the constants in life.  So why are we always so surprised when change occurs?  Probably because as humans we resist change.  Sameness is comforting.  It doesn't require adjustments in our own lives.  It's predictable, and therefore, easy to accept.

Change, on the other hand, creates unrest and makes us ill at ease.  It's not predictable.  We don't know what to expect so we become anxious in anticipation.

Changes in the real estate market have challenged real estate agents tremendously.  Agents who will survive this downturn are having to change with the market instead of holding fast to old ways of doing business.

Some changes observed recently in the St. Paul real estate market include:

• New terms have become household words.  Terms like "short sale", "negative equity", "registered vacant building", and "bailout" are discussed over beer in the bars.
• A foreclosure on a person's credit no longer is a permanent credit problem.  The number of years for recovery of good credit after foreclosure can be counted on one hand.
• Prices have plummeted with ramifications on many levels including lower commissions for real estate agents, losses for sellers, and good buys for buyers.
• Listing agents and home sellers are often requiring pre-approval for a mortgage from more than one lender because some lenders have withdrawn their mortgage funding at the last minute.
• City loans like those offered in St. Paul are being used more frequently for acquisition of a house and for fix-up money after the home is purchased.
• Real estate agents are working longer hours for less pay because much of the listing inventory is foreclosures or short sales.  Many times a buyer has to submit an offer on several houses before finally getting an acceptance causing many more showings and much more paper work for their agent.
• The public as a whole has become more aware of how intertwined different aspects of the market are.

Comments

[1031 Tax Deferred Exchange]

Good description about changes.Thanks for your great information!