“annul home values”

You need to hire me to edit this thing. ...

As an independent builder with my name on the sign, my clients want to know the person behind the company from whom they’re making most significant purchase.  To many, my ethics, and thus the foundations from which those ethics are derived, are just as important as my experience and financial stability as a builder.

I think anyone who knows me would hardly call me cultish, let alone intolerant.  Nor will I accuse you of intolerance despite the wording of your question being somewhat insinuative of intolerance towards builders who happen to be Christians.

Thanks for reading the blog.

-Jayson

That is starting to ease a bit, at least in the sense of fuel surcharges, which I now refuse to pay anyway.

What you’re referring to, though, in regard to the trending in the real estate market has nothing to do with cost to build, but rather with supply and demand of housing as an end product.  Could a continued downward trend in sales or home values have an effect on supply costs?  Probably.  But less from the standpoint of cost of materials than a re-evaluation of the materials being used in construction.  At least that’s how it goes in the circles I know.  Just because a house’s price drops doesn’t mean it will result in a cheaper way to make a brick.

I am curious about the last statement.

“...and costs to build will only be going up.”

With the housing and commercial real estate market trending down across the country (and world), why would costs to build keep going up?  Just wondering if there is something I am not seeing here. 

Hope you are well and glad to hear there is still some positive movement in the OKC housing market!

Bingo.

Dr. Mize says: “Bless him for spelling my name (Dolores) right. I noticed in on the name tag and I noticed it on the cutline.” ... And I thank you, too.

It was a fine shindig in a cool, beautiful house!

Mike Means, everybody!

Ryan, Slimfast has yet to be prescribed by the wife.

I mean, the writer *did* mention the surprising things, too, like Bricktown and the Chihuly art, and the eccentric shops along Western Avenue.

Take someone from Back East, up north or wherever to the stockyards. They will be pleasantly impressed that there’s an actual stock sale every week here in town. And that people eat steak FOR LUNCH. If you really want to freak them out, take ‘em to the Cattlemen’s in the morning and they’ll see people eatin’ steak for BREAKFAST. Seriously, I’ve flooored out-of-towners with that.

Anyhoo, since my white collar cain’t cover up my red neck, I’ll always stand up and holler if I think we’uns from off of I-40 and I-35 are gettin’ slighted in the least.

But then again, I was a card-carryin’ member of a rooster-fightin’ club in Sequoyah County. And we got beat down and beat out fair and square. And I’m a mite sensitive about that, myself.

Peace out, Dawg.

... Dang. I mighta just wrote a column.

--rm

I don’t deny that it was a well-written article, and a fair assessment of the sights Mr Jones mentioned, but it’s heavy reliance on old-west reference, with little airtime given to modern Oklahoma, simply feeds the incorrect impressions (stereotypes) that many outside of the Midwest seem to hold onto - that Oklahoma is still a fairly undesirable, dust-bowl-like land filled with Cowboys and Indians living off the land.

We’ve all heard the redneck references that quickly follow the assumption that we Okies are uneducated and unrefined.  It’s an undertone that flows through most national press that our beautiful state receives, even when the headline of the article is a positive one. 
I have no shame in our roots, and I embrace our heritage, but I also see the modern-day strides that our state has made that simply aren’t noticed or publicized by the national writers yet.  I’m sure there’s still a bit of the old apologist in me, that makes me sensitive to the stereotypes, but we can move forward and improve our image, without abandoning our roots, can’t we?

GO POKES!

If he really only saw Western, The Cattleyards, and Club Rodeo, I guess I could understand it.

In case you’re making a list.

http://www.oklahomacitynationalmemorial.org/secondary.php?section=2&catid=29

Thank you,

Mike Windham
President
NewSpin360.com

I’m the person who created all of the aerial panoramics and the one from the bombing memorial is on my website at:

http://www.hawkeyemedia.com/panos/Memorial.asp

Just want to make sure the actual copyright holder of the images gets proper credit.

We’ll have some cool and unusual venues for at least the next year, though, which we’d love you to be a part of.  And do keep December 12th open for you and the Dr…

Nonetheless, a good story for helping educate the consumer.

Any time I’m doing an interview, I really like to think ahead, do my homework on the topic, brush up on the precise facts and stats.  This one was kind of a rush deal, shot a couple of weeks ago, and just now aired. 

But hey, I had fun, and while my outlook on my performance may be down, prices, on the other, hand, certainly aren’t!

The first time I got interviewed for a newspaper article I described the location of the project by telling the reporter, “it is near a lot of big highways”.  Saying that it was near the intersection of I-40 and I-44 would have probably been more informative, but I was so nervous that I blanked and that was all I could spit out.  Wouldn’t you know, that was one of the few things from the interview they decided to put in quotes.

Cost, both in regard to the cost of the system, and how it affects insurance rates.

I’m working on the details of a rebuttal, I’m just not sure yet in what form it will be delivered...either here at MLR, or in a more formal rebuttal via industry leadership.

-J

P.S. Love yor blog. Very interesting.

If you can’t tell when electricity is used, you probably shouldn’t own a home.

Another big factor is this quote: “Sellers tend to overprice because of an emotional attachment...” I see this every day, and the overpriced homes affect more than just that seller.  They hurt the neighborhood overall by slowing activity and placing a stigma on the home and the neighborhood.

Then there’s this: “If I could do it again, I’d price it below $750,000, but try to keep it above $700,000,” Miller said. “I should’ve priced more aggressively. I lost out on that opportunity.” The initial momentum gained at the beginning of the marketing is critical to a successful sale.  Overpricing scares off those buyers who are looking at fresh listings, which is the majority of them.  You may never see them again once you’ve scared them away with a high price.

I’m speaking generally of those who originally chose to inhabit a location below sea level, not so much the generations who came after.  But those who stay and rebuild may be fair game some day for the blame if they don’t do it differently this time around. 

Of course, these days, they, too, could be blamed for the act formerly-known-as-Biblical, you know, with global warming, and all…

I think we’re probably on the same page.

(And Richard Mize just said “Peeps”, yo!)

What decisions did the homeowners in New Orleans make that makes them responsible for a an act of weather of biblical proportions? I’m thinking that local officials who failed to heed the lay of the land are more to blame than everyday peeps. ???

The greatest challenge I see with the list is the expectation of getting “at least 2% of the purchase price of the house.” That’s double what most reasonably get.  Obviously, the magic in achieving this goal hinges on the purchase price being grossly under-valued.  ‘Not saying these opportunities don’t exist, but when you throw in the “minimal repairs to put in rentable condition,” then you’ve narrowed the spectrum of potential properties.  There’s usually a reason why a property is undervalued and that reason usually is because it is in disrepair.

The third challenge I see is achieving the above once a week.

More power to Justin, and my hat’s off to him if he’s pulling this off.  I just doubt it’s happening with such precise achievement of these numbers at this pace in this place.

I think the problem Murray is pointing to is not a change in production, but a change in liquidity. This is really a change in demand, not supply. Since it’s harder for people to get loans, those who would otherwise buy are not able to. As prices drop in half of the country because of decreased demand, LTV ratios go up and default rates increase, forcing lenders into margin call situations.

The ultimate cause is Federal Reserve monetary policy. I’ve written a bit about it here.

http://disasterinvestor.com/2008/05/13/liquidity-is-the-problem-not-interest-rates/

Things are getting progressively worse in the former bubble regions of the country. We’re working on a short sale now where the house appraised at $503K three years ago. The bank BPO just came in at $230K, and we have two offers: one at $197K, and the other at $189K.

Oklahoma City is a very unusual market. It’s one of the best places in the country to live for real estate. Demand and prices in our market are increasing despite the liquidity problems. This is happening because of a combination of factors, including rising energy and food prices, a low cost of living, and affordable median housing prices. Companies are moving out here in droves because they can’t afford to hire people in California. I should know, since I moved to OKC for the same reasons.

http://disasterinvestor.com/2008/05/13/liquidity-is-the-problem-not-interest-rates/

I agree with most of what you’re saying about the market in Oklahoma City. Let’s keep encouraging people to buy here, since I want property values to go up.

Thank you for commenting.

Yes, I agree. Justin buys one house a week that fits that criterion, but he has to do a lot of marketing and buy houses far below market value. These are usually small houses thirty to sixty years old.

Thank you for posting about the fatal flaws you see in his strategy. So far as I can see, this is working for him, as he’s bought over forty houses in less than ten months, but there may be something I’m missing. If you would like to clarify the problems you see in his strategy, I can ask him if/how he’s dealt with them.

Housing: 77.8

See here:
http://www.nbnnews.com/NBN/issues/2008-05-12/Politics+&+Government/3.html

I, for one, freely share my listing information in a variety of mediums, because I understand that many consumers today choose to do their initial research on their own.  The smart ones later turn to their trusted advisor to go view the homes, write the contracts, handle the inspections, and make sure all the loose ends are tied up so the closing goes off without a hitch.  They also understand that their risk is minimized by being represented by the right agent.

The ones who insist on going it alone to ‘get a better deal’ simply don’t understand that first, they won’t get a better deal 99% of the time, because the listing commission is already determined with the seller before they even come into the picture, so most times the seller will pay the same % with or without a buyer’s agent involved, and secondly, they are unprotected and generally don’t know as much as they think they do, which makes them far more vulnerable than they realize.

As for the reduction of commissions, I don’t see it myself.  There is no set % rate, and a good agent, who knows how to market a home correctly and get results, can charge whatever percentage they choose.  Simple economics.  The sellers who see value in an effective agent will pay for those services and get results.  The homeowner who doesn’t, has the option to go it alone and most times will sit on the market longer, and sell for far less than if they’d listed with a qualified agent.

Also, I do agree with your statement on late-game commissions.  This type of approach by the consumer only serves to muddy the waters more, and an agent who isn’t working diligently for their buyers deserves no commission.

Mortgage companies originated loans that were available through those hedge fund accounts.

Borrowers bought into the idea that they could buy a home with very little invested showing very little credit performance, and later realized they couldn’t handle the payments increasing and walked. 

Investors bought into the idea that they could speculate on real estate that was appreciating at amazing rates.  Investors saw 35%, 45% and 50% increases in value ... greed motivated ... purchases were made.

In areas of high appreciation, the public perception was that it would go on forever.

However, in 2000 the press began to report the real estate bubble.  Do they have responsibility for causing the bubble bursting?

So, are the mortgage companies guilty of providing financing to borrowers that was available to borrowers?

Is this a situation where mortgage companies are guilty of providing hot coffee to the public and is now responsible because the public got burned by a product they requested?  Where does the responsibility lie?  It seems to me that it is four fold:  1.  Hedge Funds 2.  Mortgage Companies 3.  Public 4.  The Press

Two words have been a part of the real estate business for centuries:  caveat emptor, let the buyer beware.

Apparently, it’s now Countrywide’s fault that this person was hurt and didn’t carry any form of disability insurance, resulting in her inability to pay her mortgage.  Those villanous mortgage lenders really stuck it to her.