Presidential Candidates Silent on Housing

By John McGory

The Real Estate Swami said in his last post that he would listen to the candidates regarding their positions on housing as they vie for Ohio primary voters.

Well the Swami sees he won't have to waste his time since the candidates are refusing to talk housing and real estate.

TC Brown is covering the 2012 presidential election media coverage for the Columbia Journalism Review's 2012 Election Swing State Project.  Here is what Brown writes regarding the Republican candidates' position on housing:

The Blade article, penned by Tony Cook, zeroed in not on what Romney and Santorum are talking about, but what they aren’t—the housing crisis. Cook starts by paying close attention to the candidates’ rhetoric:

Attend a speech by Mitt Romney or Rick Santorum and you’re likely to hear all kinds of claims about the economy — gas prices are too high, deficit spending is out of control, and government regulations are hindering free enterprise.

But as the two leading Republican candidates crisscross Ohio and Michigan, an odd omission has emerged in their speeches. Neither has mentioned the housing crisis.

…Mr. Santorum didn’t mention the foreclosure crisis during Ohio speeches in Columbus, Akron, and Georgetown, either.

Mr. Romney also has avoided the issue during recent appearances in Cincinnati, Cleveland, Monroe, and Shelby Township, Michigan.

That seems a noteworthy omission since Michigan, which holds its primary Tuesday, has the fifth highest foreclosure rate in the country, while Ohio ranks 12th.

The silence may result from the candidates’ taking their signals from GOP primary voters. Cook does a good job exploring the underlying reasoning, first with insight from Don Haurin, an Ohio State University economist.

In wooing their Republican base, the two front-runners are emphasizing their conservative credentials. That means an emphasis on fewer government regulations and less intervention in the free market. That message doesn’t do much to reassure those who have lost their homes or are facing foreclosure, Mr. Haurin said.

“You’re telling them there’s no help and that’s not going to win you any votes,” he said.

Cook follows that gem up with a quote from Eric Herzik, chairman of the political science department at the University of Nevada-Reno: “The easy answer to why Republican candidates don’t talk about this is they don’t have any type of solution. You can say it’s tough love, but it’s not the 30-second sound bite you want.”

The Swami thinks this avoidance of the issue is unfortunate.  Ohioans continue to hurt from the recession and not talking about the housing crisis is wrong.

"Housing and real estate are a drag on Ohio's economy.  We want answers from those wishing to lead us, not sound bites," says the Swami.

John McGory is a licensed realtor and a partner in Webface, a content marketing company.  He can be reached at jrmcgory@gmail.com.

The Ohio Primary and Real Estate

By John McGory

The traveling political circus known as the presidential primary comes to Ohio this week.  Ohio is the main target for the Republican candidates. 

The Real Estate Swami will be listening for credible ideas from the candidates on how they plan to improve Ohio’s economy.

“Ohio’s economy, led by the real estate and building industry, has suffered long enough.  People of Ohio are hurting and need help.  We need enlightened leaders who put positive results ahead of poll numbers,” says the Swami. 

Swami credits Zillow.com for putting together a chart on where the presidential candidates stand on a few basic real estate issues. 

To see where each of the candidates stand go to http://www.zillow.com/blog/2012-01-20/what-are-the-presidential-candidates-positions-on-housing-plans/

The Swami encourages Ohioans to ask questions of the candidates via social media.  You can go to the candidates’ Facebook pages to get an idea of their positions on issues and what the campaigns see as important enough to post.

Here are the links to the four main candidates:

http://www.facebook.com/#!/barackobama

http://www.facebook.com/#!/mittromney

http://www.facebook.com/#!/RickSantorum

http://www.facebook.com/#!/newtgingrich

“It is important that we take the time to ask questions of the candidates and ponder where we go from here.  Real estate is the backbone of our country.   We need to protect and encourage home ownership and the candidates need to tell us how they plan to do it.  Glib 30-second sound bites will not work,” says the Swami.

John McGory is a licensed Realtor and is a partner in Webface, a content marketing company (www.web-face-solutions.com).  You can reach him at jrmcgory@gmail.com.

Your Drop in the Bucket

By John McGory

The Real Estate Swami asks a favor of you.  Answer this simple question:  Are you environmentally friendly?  Most of you will answer yes, as did the swami.  But the swami knows he can be a better steward of the environment. 

The Swami found this list of ten tips to help him keep the environment in mind as he lives his modest life.  He would like to share it with you.

1.  Turn off lights when you are not in a room.  The mind sometimes forgets the little detail of flipping a switch.

2.  Don’t let the water run unnecessarily when brushing teeth and washing dishes.

3.  Upgrade insulation, especially in older homes.

4.  Check for air leaks around windows and doors.

5.  Buy earth friendly cleaning products including laundry detergent.

6.  Buy energy efficient light bulbs.

7.  Use cloth diapers.  A disposable diaper takes 500 years to biodegrade in a landfill.

8.  Unplug appliances when not in use.

9.  Look for Energy Star products.

10.  Recycle.

These are a few ideas that will allow us all to help the environment.   Many of you are already doing these and more.  The Swami begs a thousand pardons from you for not always doing his part for the environment.  He asks to keep the words of Mother Teresa in mind when considering if our small effort at helping the environment is worth it.

“We ourselves feel that what we are doing is just a drop in the bucket.  But the ocean would be less because of that missing drop.”

Everyone’s home is a nicer place if the environment is clean.  If you have questions regarding your home or you know someone who does, send us an email and we will help you find the answers.

John McGory is a central Ohio residential and commercial Realtor.  He is also a partner in Webface, a content marketing company (www.web-face-solutions.com) He can be reached at jrmcgory@gmail.com

The Swami and Home Equity Insurance

By John McGory

A new wrinkle in the real estate world is the home equity insurance programs being promoted by Home Value Protection and other insurers.  The Real Estate Swami says all should move carefully when considering such policies.

The equity insurance programs are aimed at protecting homeowners from steep drops in the value of their home.   

Here is how it works.  Insurance buyers pay a monthly premium.  The insured will collect on the policy if both of the following happen.  One, the house sells for less than the value determined on the policy.  And two, homes throughout the area have dropped overall according to a national home price index. 

So if your home drops 20 percent but the overall market only drops two percent, then the policy will pay you two percent of your losses, not 20 percent. 

The Real Estate Swami says there are several considerations to keep in mind if you are considering purchasing a home equity insurance policy.

“In the past five years local home prices have dropped 11 percent.  It is likely we are near the bottom since little new housing stock is being added to the market.  Also, home equity insurers targeted central Ohio because of stable home prices.  While certain neighborhoods may continue to suffer, it is unlikely our regional price index will drop another 11 percent,” says the Swami.  “Keep in mind your payment is based on the percent drop of the entire market, not your individual home.”

The Swami says if the entire market does drop another 11 percent in the coming years, then the chances of the home equity insurance companies surviving would be slim. The best advice is to continue to try and build equity in your home.

“Pay yourself,” counsels the Swami.  “Reducing the principle on your loan each month by paying a little extra will put you in a better position when you sell than most insurance policies.”

John McGory is a licensed real estate agent in central Ohio.  He is also a partner in Webface, a content marketing company.  Get more information at www.web-face-solutions.com

A New Year's Home Resolution

 By
John McGory

Do you have a New Year’s resolution for your home this year? The Real Estate Swami says that January is the perfect time to reflect on where you live and what your plans are for your house or apartment.

“The cold, gray days of January are the time to meditate on where you live,” says the Swami.  “Once you become one with your thoughts then you can begin to plan.”

The Swami suggests looking back before looking ahead.  What activities and events did you enjoy in your home last year?  What would have made those times better?   What limitations or drawbacks in your living arrangements brought discomfort or disappointment?  Thinking about the recent past can give you a clearer vision of where you want to go. 

It may be improving your patio, deck or outdoor space.  A bigger kitchen may bring needed space.  Or it may be that the house or apartment has too many issues and that a new address is the right answer.

Maybe the changes are small but mighty ones.  A resolution need not mean spending a lot of money.   Sometime it is simple as painting or a thorough cleaning. 

Another idea is to practice the feng shui concept of moving 27 items in your house to change your life.   Many practice the Chinese art of feng shui to promote positive energy flowing through the home.  It provides balance and harmony to the home or office.  Here is a short video that explains feng shui

http://video.about.com/fengshui/Learn-Feng-Shui-Basics.htm

“Much can be done to improve the feeling of love and energy in the home.   It starts by uncluttering the mind and feeling the energy that is there.  Then you will begin to understand what needs to be done,” says the swami.

The Swami reminds all that peace starts in the heart and home.  He wishes each of you a joyous 2012.

John McGory is a partner in Webface, a content marketing company. He is also a licensed central Ohio real estate agent.  He can be reached at jrmcgory@gmail.com

New County Appraisals: A Snapshot of That Day

The Real Estate Swami sees confusion on many faces of people wondering what to do regarding lower appraisals of their homes by their county auditor.  Homeowners are concerned that the lower value will hurt them if they put their house or condo up for sale in the months or years to come.   

Generally, appraisers are looking at a couple of things:  1) The condition of your house and 2) The sales' price of neighborhood homes in the past three years.  The auditors are making lower appraisals in many circumstances due to the recession and its impact on the real estate market.

Many people will have a good argument if they contest their auditor’s new assessment.  But the Swami reminds homeowners that a lower appraised value will also lower your taxes.  If you plan on selling your home in the next three years, lower taxes are a treasure. 

Your asking price does not have to match the appraiser’s value. What matters is what comparable homes are selling for at the time you put your house on the market.  Remember, an appraisal is only a valuation at a specific moment of time.  They are a snapshot of the day the appraisal took place.

If you put your house up for sale and get a contract, the buyer’s lender will have a new appraisal done.  They will ignore the county’s appraised value and look at the condition of your home and the most recent comps in your neighborhood.  Those factors will determine your home’s appraised value at that specific time. And timing is everything, says the Swami.    

You can look up recent sales in your neighborhood at the county auditor’s web page. Just bring up your home and click on Recent Area Sales. That will give you a good idea on how your house is trending in the neighborhood.  

“Lower taxes are a good thing,” says the Swami.  “Patience and knowledge are keys as the real estate market moves forward.”

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 For more information on central Ohio real estate contact the Real Estate Swami at jrmcgory@gmail.com.
 

A Great Shadow of Burden

By John McGory

“It is said that hope is like the sun, which, as we journey toward it, casts the shadow of our burden behind us.” Samuel Smiles

Real estate continues to have a great shadow of burden in front of it as it struggles to recover.  The Real Estate Swami quotes Standard and Poor’s recent report that shows a shadow inventory of four to five million houses in the U.S.  Shadow inventory are homes either owned by the bank or in some stage of foreclosure.

“What holds us back from a robust real estate market are the many houses owned by the banks.  If they were to release them all at once the real estate market would crumble,” says the Real Estate Swami.  “Slowly they will come off the books and our shadow of burden will be behind us.”

The S & P report shows there has been some improvement this year on whittling down the shadow inventory.  A 52-month supply of houses existed in the first quarter of 2011, dropping to 47 months in the second quarter. 

There is much debate on how long our shadow inventory will slow down the real estate market.  The local economies across our nation will determine how quickly these inventories disappear.  Central Ohio is seeing some strength return to its economy.  Housing sales jumped 23 percent in July.

The Real Estate Swami says to keep an eye on new job creation as a sign on where the central Ohio housing market is heading.

“Many home owners want to sell but are waiting on the sidelines for house prices to increase.  Supply will continue to exceed demand so any increase in price will be gradual.   As our local economy adds new jobs our shadow will shrink as we move toward a rising sun.”

The Real Estate Swami is brought to you by Web Face, a Columbus marketing and communications company. http://www.web-face-solutions.com/

Don't get lost in the wilderness of opinions

By John McGory

The events of the past few weeks have shown that the American public is fractured and confused.   Contentious negotiations over the deficit, a credit rating reduction and the corresponding stock market roller coaster ride have made many nervous over the direction of our country.

The Real Estate Swami preaches patience for those who have real estate and are considering selling.  He says that getting caught up in the rhetoric of the day is to be lost in the wilderness of opinions.

The swami points to comments made by Fannie Mae Chief Economist Doug Duncan that the U.S. is probably a little more than halfway through a 10-year adjustment period following housing market peaks in 2005 and 2006.  The value of U.S. housing stock has dropped eight trillion dollars since 2006.

“The long–term structural problems with the real estate economy will take time to correct.  Getting distracted by the wrangling in Washington can cause a confused mind,” says the swami.

Central Ohio average sales prices are down 3.5 percent from a year ago.  That indicates that buyers will continue to have the upper hand, says the swami.  Foreclosures have slowed due to banks moving slowly, which means another wave of foreclosed homes will be coming.

The swami warns not to become too passionate when considering your next real estate move.  He points to the words of the Buddha:  “As rain penetrates an improperly shingled roof, so passion overwhelms a confused mind.”
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The Real Estate Swami is brought to you by Web Face, a Columbus communication and marketing firm, http://www.web-face-solutions.com/

A Bright Star in Columbus' Future

The Real Estate Swami sees that MSN Real Estate ranks Columbus the 9^th best city in the country to rebuild homeownership.  The Swami perceives this as a bright star in central Ohio’s future. 

The survey ranked mid-to-large-sized cities.  Columbus was the largest city in the top ten, with Scranton-Wilkes-Barre, Pa. at the top.

The Swami’s crystal ball shows this trend to bode well for central Ohio.  Many affordable houses were constructed here in the fifteen years prior to the real estate crash.  Swami sees this stockpile of homes as an eventual benefit to central Ohio as the economy starts to grow.

“The pain of overbuilding is real to many in our community.  But the suffering will end when the jobs begin to return,” reveals the Swami.  “Many communities do not have the available infrastructure in place to accommodate growth.  New housing is not being built.  Communities that have good housing stock in place will be attractive to those who produce jobs.”

Swami believes that man creates his own destiny.  He considers Columbus’ selection as a top place to rebuild homeownership as a blessing.  Our challenge will be to take care of all our brothers and sisters.

“Our region is blessed with gifts including an ample water supply, a strong logistics component and enlightened young workers.  Our strengths can help all of our people blossom.  The region needs to focus more on taking care of its own and then the fruits of our labor will multiply.”

The Real Estate Swami is a service provided by Web Face, a marketing and communications company helping companies and central Ohio grow in responsible ways.  Learn more at www.web-face-solutions.com.

Selling Your Ashram or House

The Real Estate Swami says follow the experts for enlightened  advice on selling your  house.  They will not lead you astray.

Whether a seller is listing a home or an ashram for sale, following certain paths will entice buyers to make an offer.         

            Experts at HGTV have several pointers:

1.  Keep the first impression the best impression. Make sure the curb appeal is welcoming with a well-trimmed lawn, fresh flowers and a clean front door. Make sure the entryway is inviting to visitors and not cluttered with coats and car keys.  The swami says less is more.

2.  Once a house is listed for sale, agree to show it whenever a Realtor calls. Keep it ready to show, with beds made, dishes put away and bathrooms sparkling.

3.  Forget a massive makeover. Do projects that pay off including fresh paint on the walls, clean curtains, updated cabinet handles and fixing leaky faucets.  Spending money will not bring happiness.

4.  Put personal items in storage. The family photos, the knick-knack collections, the sports trophies all need to be boxed up. Once the home is de-personalized, a buyer can imagine living there.  Each soul wants to live in their own home.

5.  Finally, embrace the light. Clean windows, change lampshades, trim the bushes to let in sunshine – if a house is bright and cheery, buyers will be inclined to make an offer.

The swami sees more home sales in the future if sellers follow this path. For more tips on selling a home, see www.hgtv.com/reale-state/10best-kept-secrets-for-selling-a-home/index.html