Tuesday, December 16, 2014

The end of 2014

We are just a couple of weeks before the end of 2014 and beginning of 2015.  That means its usually time for a short slowdown, getting ready for taxes and goal setting (which is the most important). One thing I usually look at is how the market has reacted over the year and how we should make our adjustments in marketing and selling/investing.  What I do is read.....A LOT of reading!!!!  One thing I cam across was how the rental market is changing.  It has nothing to do with the economy; or less than you think.  For the past several years, there has been a growing trend for increased rental properties.  Vacancy rates are falling and rents are rising.  As much as you might think it has to do with the economy, you might be surprised.  Or maybe not, depending on your own personal situation.

Here are some points that are considered:

Job market - The job market is soft at best but up to this recession, the job market had changed from just one generation earlier.  It was expected that you work for a company 20-30 years, get a pension and live the 'good life' doing what you want.  Not so much now.  Workers are much more mobile and job stability is a thing in the past so workers are more nimble when it comes to working for companies.  Less loyalty, more focused on the job being a means to an end rather than the center point of life.  In my generation, you worked hard, climbed the 'corporate ladder' achieved promotions (sometimes at the expense of others along the way) to reach a pinnacle after 20 years, riding the wave to retirement.  Now, workers stay 3-5 years, find something more interesting with more money, taking the experience with them and probably moving.  Buying a house makes no sense if they are not going to stay there long.  In fact, it could be a real drag holding them down.

Recession - You may never knew there was a recession in your personal life.  However, you can bet you know someone that was affected.  Seeing others lose their home, file bankruptcy, start over makes most everyone nervous to commit to a long term mortgage.  Not knowing the future causes the most secure worker to have butterflies and hold on to renting over buying.

Millennial living in the basement - There is a generation of people that have seen their parents and friends parents work and sacrifice.  Some struggle and get knocked down and others succeed but the fact is, Millennials are staying home longer and staying single longer.  Not having a mortgage or family gives them more security and confidence in their future.  As a result, they will delay in long term commitments by renting a nice home over buying a fixer upper or starter home like their parents or grandparents did

Boomers rent again - As the boomers become 'empty nesters', they still have their health in their 50's and 60's and do not want to spend their lives mowing a yard.  Amazingly, you have couples married 30-40 years sadly divorcing leaving one to stay close to the kids and rent for a while.  Either way, healthier generations will mean they will want more to do than just maintain a house and will want their freedom to do what they want when they want.

There are always exceptions and other reasons but you get the idea that the real estate market is not what it was 40, 30, 10 or even 5 years ago.  Making adjustments as an agent, makes agents better and serve their clients better.  If you are considering purchasing a home for yourself or as investment, find a reputable Realtor that can professionally walk you through the process.  You should feel good about them and consider them a team member on YOUR team.  There are plenty of great agents out there too.  If you have questions, or suggestions for other posts, please drop me a note and let me know.

Merry Christmas to all and a very Happy 2015 New Year!!

Saturday, December 6, 2014

2642 East Walnut Street Springfield, MO 65802

Property Site: http://tour.circlepix.com/home/YY3B2W
First time home buyer or investor looking for a super location? This 3 bedroom 1 bath home is in good shape and is sold as is. Home has hardwood floors and kitchen has been updated. Double pane windows throughout. Home has a long lasting metal roof for low maintanence. Central a/c and heat and security alarm system included. Need to see this one soon.

Bedrooms: 3
Bathrooms: 1.00
Price: $67,000

For more information about this property, please contact Mark Broadway at (417) 887-6664 or mark.broadway@coldwellbanker.com. You can also text 2451813 to 67299.

See more listings at: http://www.thebroadwayteam.com

MLS ID: 60014294

Friday, November 21, 2014

Is it a bad time to sell in the fall and winter months??????

We have now entered into the slow months of the year for Realtors.  Everyone takes time off to rest and relax because no one is buying houses when it's cold and miserable right?  NOT EVEN CLOSE!!!

If you were thinking about taking your house off the market because it didn't sell this spring and summer because it's coming to winter, you might want to rethink your strategy!  Because most people think this way, fall and winter is actually a GREAT time to list a home.  Inventory begins to shrink making YOUR house stand out even more.  When buyers are looking at houses in the cold, windy, winter months, they are serious about buying a home.  They most likely NEED to buy a home and guess who's house will be on the market, maybe the only one available?  YOURS!!!  The basics of supply and demand kick in and as supply shrinks, your house becomes more valuable and less competition!!!

I am amazed every year when folks tell me they want to take their house off the market because of winter.  I know sometimes, families don't want others walking through their house with wet feet or when they have decorated for the holidays.  I do understand that and totally appreciate that position.  However, there is a reason people put their house on the market; that's to SELL it.  They want to relocate, get transferred, want to upsize/downsize, want newer, etc.  Whatever the reason, there is some motivating factor that may need to be revisited.  I have sold many homes in December.  In fact, the very first home I sold, was closed on December 24th.  When showings happen in the fall and winter, I'm excited because those people are more motivated to buy.

So, if you are looking to sell your home, do not discount your agent when they want to continue to offer your home in the winter months.  They are doing it for YOUR benefit.

If you are in the Springfield Missouri area and are interested in selling, give me a call and let's see if we can help you achieve your goals.  My wife and I do NOT take the winter off like some might do. Many times, December is one of our busiest months.  We are here to help you.  We only work with people that know, like and TRUST us.  We would like to earn YOUR trust too so let us know if we can help.

Deb and I hope you and your family have a wonderful and blessed Thanksgiving holiday and you are around friends and family.  Give thanks every day for what you have.  We are ALL very blessed to be in America and be here at this time.

Thursday, November 13, 2014

5117 North Farm Road 197 Springfield, MO 65803

Property Site: http://tour.circlepix.com/home/G2WV5S
Majestic oak trees shade this 4 bedroom 3 bath home on a hill in NE Springfield. You will have 3 bedrooms upstairs and a full bath and 2 bathrooms downstairs. Living room is spacious and includes a gas fireplace. Huge eat in kitchen for the family. Oh, did I mention the pool? Great place to gather the family and enjoy the sunset. 5+ acres to roam with a workshop and separate out building both with water and power. Workshop is 30x30x10 with a 10x30 overhang a stainless clad work bench,ac,propane furnace and a wood burning stove, also a 12x40 foot car port along side of it. has 220 service. Roof, AC are 5 years old. 1500 foot well. Property also has 2 bdrm apartment over garage for potential rental income or office. You will love the views from this property. 1 year home warranty.
Bedrooms: 4
Bathrooms: 3.00
Price: $199,900

For more information about this property, please contact Mark Broadway at (417) 887-6664 or mark.broadway@coldwellbanker.com. You can also text 2403376 to 67299.

See more listings at: http://www.thebroadwayteam.com

MLS ID: 60003537

Friday, October 17, 2014

Is a reverse mortgage a good idea

There is a lot of news out there about reverse mortgages and may have heard some bad things about them.  It's preying on the elderly, or just putting the heirs in debt when a house is left to the kids, etc.  While that happens......in ALL industries, there are some good things that a reverse mortgage could be an outstanding alternative for.  As the 'baby boomers' race to retirement, this will become a much more popular tool in the retirees lives.  So, let me give you some of the basics that you want to consider about a reverse mortgage and I'll start with the basics:

What is a reverse mortgage:  Simply put, a reverse mortgage is a mortgage that is placed on a free and clear home or almost paid for, where the owner can take out a lump sum payment or payments over time and supplement their retirement income.  To keep this simple consider this example.  These numbers may not be representative of an actual reverse mortgage and are only for examples to illustrate how this works:

             House value          - $100,000
             Amount owed       -       $0.00

             Reverse Mortgage - $75,000 (75% "LTV" or loan to value) it's technically not a loan!!

Option 1:  Take the $75,000 in a lump sum to pay off other bills, save, invest, etc.
Option 2:  Take the amount in payments over time of $312 per month for a projected 20 year period.

There is no interest charged or payments due until the owner is no longer living in the home. You don't make any payments while you draw on the equity in the home and you have no interest charged.  When you are no longer in the home, the company setting up the reverse mortgage will then take the home since they have a first lien and sell it or the heirs will negotiate to pay off the reverse mortgage and keep the home in the estate to be divided by the heirs.   It's a great way for someone not completely prepared for retirement financially to have much more security in their later years.  Now, that's the public face of a reverse mortgage that you see and hear in advertisements.

Now, here's the part you DON'T hear about.  You can use the money for ANYTHING.  So, lets say you have always dreamed of having a place in Florida to live in 6 months out of the year.  Take a reverse mortgage out, purchase a 4 plex; which is within the rules of the reverse mortgage guidelines.  Now, rent out 3 of the units and live in the other.  Another rule is that you have to live in the home the reverse mortgage is on for 6 months out of the year.  Now, not only do you have your equity working for you but you have rental income to live on AND a retirement place you've always dreamed of that is paid for.  When something happens to you, your heirs will now have rental income that will more than cover the cost of the reverse mortgage so they can refinance the reverse mortgage at a favorable rate that is paid for by the rental income plus have a place to vacation over the years.

With real estate being at a bargain price (that's a relative term you understand), you could take advantage of a fantastic opportunity to ride the appreciation swing up over the future years.  Not to mention the tax benefits received from owning investment property.

So, don't turn your nose up at considering reverse mortgages as a viable source of investment money to meet your retirement goals.  It could be that you will make MORE money in retirement than you make working!  Now, THAT'S what I call "the Golden Years"!

Friday, August 15, 2014

Why in the world YOU would want to invest in real estate

The other day, I visited with a guy would was in the category of a 'don't wanter'.  Now, that is defined as someone that has real estate (or anything else for that matter) and does not want to own it any longer!  He had it rented and just didn't want to deal with it any longer.  In his situation, he was correct because of life circumstances, family illnesses and just tired of it.

It makes me thing though that for every one person that is a 'don't wanter', there are many more out there that really WANT.  And the reasons are numerous but just to name a few, here's a handful of reasons why someone should want to invest in real estate:

1.  Value - Real estate remains a very good value these days.  Prices are increasing but at a reasonable rate where it doesn't cause a frenzy in the market.  

2.  Inflation hedge - Because it's a hard asset, as inflation kicks in, so will the price of materials, thus the value of housing will also increase.  Rents, sales are all impacted.

Investment protection - with real estate, you have the opportunity to have investment protection like no other investment can provide.  Where else can you have equity in the property, property insurance, and cash flow.  On top of that, you have tax advantages through depreciation so you win, win and win.
Predictable results - as long as you don't get crazy and think your bullet proof from over leveraging or overly creative, you can predict with a good degree of certainty what your return will be.  Most of the time 7-8 times better than what a bank can offer

5.  Lifestyle - it can provide a lifestyle that many people dream of but never take the opportunity to jump into.  However, that lifestyle is more attainable than you might imagine.

If you want more information or have comments, I'd encourage you to leave your comments below.  I'd love to hear from you

Thursday, July 17, 2014

Selling your house yourself

Many people look at selling your home themselves rather than hiring an agent.  Believe it or not, you can find an agent that will work with you to make that happen.  I'm one of them.  Selling your home yourself is a very tricky proposition.  You have to consider many factors; like marketing!  Putting a sign in the yard will cover those that drive in your neighborhood but, what about all the others that don't?  Ok, take an ad in the newspaper.  Not many folks are looking the the paper these days and you still have to pay for the ad.  Internet!  There are some sites that advertise but, your still paying for the membership and you have no guarantees to find buyers.

Now, say you have a buyer.  What do you disclose that's wrong with the house?  If you don't, you could get into some trouble later with the buyer should you close.  What about paperwork, contracts, addendums, closings.  The list goes on and on.  Truth is, you will get more money using an agent and less headaches, at less costs than if you did sell it on your own.  FSBO's (For Sale By Owner) can be successful and there are stories where the right buyer comes along but, odds are much less that you'll sell the home for the highest price in the shortest amount of time unless you use a real estate agent.  I enjoy working with folks like that though and don't mind if they were successful selling their house on their own.  I know I've helped someone along the way and that will come back to me someday.

If you would like to see some of the houses on the market in Springfield and surrounding area, go to our site; www.thebroadwayteam.com.  On the home page, enter the criteria you would want to look at, save your search and keep up to date on all the properties in the local market.  This can help you have a better idea what your house could be worth.  Now, you might ask, why in the WORLD would an agent put that information out to help someone sell their house on their own?  It's simple, I really love real estate and if I can help someone with information on their house, they will remember me and maybe refer me to someone that needs my help.  I realize not everyone wants a Realtor but, when you do, you'll hopefully think of US!  Thank you for taking the time to look at my blog and hope you have a terrific summer!!!!

Monday, May 12, 2014

Growing a business

I am a part of a local networking group in Springfield call the MOB; Masterminds Of Business.  It's a fantastic group of business men and women that get together to pass along referrals and to close business here in the Ozarks.  I was privileged to have an opportunity to teach an orientation class today of new members to help them get the most out of the group. 

I am always amazed how similar businesses are and how they all deal with similar problems, challenges and solutions. 

Growing businesses are not always easy.  It takes patience, time and some hard work to produce the luck you have in being successful.  (Notice I do believe in producing your own luck.)  Networking is one of the most efficient ways to rapidly grow a business and sustain any business......even real estate.

One of the very basic fundamentals of business is that people do business with people that they know, like and trust.  In our meeting, trust came out as the most important factor of referring someone.  It was interesting to note that trust will be almost automatic when referring business.  Here's an example.  In our business, we have people that can do many things; HVAC, plumbing, etc.  We stay in touch with those people to make sure they know us and we know them.  We have a client that we sold a home to almost a year ago that they were working on remodeling.  We gave them the name of a person we've worked with before that we felt would do a good job.  About a month later, we asked how all that worked out.  We were shocked to learn that not only did they do the job we had discussed, they hired him to do many other projects around the house as well!!!!  The homeowners didn't know him when he started but trusted us to give them a good person.  The worker earned more trust just doing a good job.  That's all the selling he had to do.  Needless to say, it was a win/win/win for everyone.  Yes, it was a win for us because we have happy clients that will recommend us and use us for their real estate needs in the future because we earned even more trust.  But it was a great win for both our client and the person doing the work too!

That being said; anytime, as agents we make a referral of a business for a service to a client or prospect, it pays off to have the confidence in the folks you work with because you never know when that referral causes you to earn more business or lose more business.  Either way, you get MORE!

Now, since it's spring, we are fortunate to get to watch some robins grow out just outside our kitchen window.  Very fun to watch these little guys be cared for and grow.  Yesterday was Mothers day so as a tribute, here's a picture of 'mom' doing what they do best.  Taking care of the little one.


Wish everyone a very good a prospers week.


Monday, March 31, 2014

Wealth Building with Real Estate

There are TONS of people out there that are dedicated to 'teaching' you how to invest in real estate, quit your job in 90 days by investing in real estate and other catch phrases that get you to buy a course only to start out excited and encouraged to invest but quickly get discouraged or worse yet, FEAR that you will FAIL because of lack of experience or knowledge.

It is true, knowledge is power.  As a private pilot, you NEVER stop learning and improving.  Same for real estate.  I think that's why I love this so much because it's never boring and always evolving making different ways to make or create wealth.  But, knowledge is only good if you USE IT.  So, you can study and listen, network and observe but until you get out and PRACTICE your knowledge, you won't go anywhere.  FEAR is the worst enemy to investing or dealing with real estate.  Fear of failure, embarrassment, making mistakes, being taken advantage of.....you name it, it's gone through my mind and I'm sure it goes through may others too.  So, what do you do?  Well, this may sound very odd to many but the first thing I do is pray about it.  If it's not the right thing to do, don't let it happen.  Make it go away.  Using your knowledge to the best of your ability is the next thing, trusting your instinct and 'gut' once the deal is presented.  Once you've done your first deal, they all get easier and easier.

I watched a first time investor get their first investment property 2 years ago.  I know they went through the exact same process.  They own 8 now and love every minute of it.  It's their retirement income.  Have they made mistakes?  Absolutely!  But, the successes outweigh the mistakes making them very small.  Here's an example, I told my wife one day that if you only have 1 rental and it's full, you have 100% occupancy but if you have 1 rental and it's empty, you have 0% occupancy.  So, what is a bigger risk?  If you consider owning 10 rentals vs 1, going from 100% to 0% with 1 rental or 100% to 90% with 1 rental empty?  Pretty clear huh?  The odds of having 10 rentals with all empty are so minimal but having 1 rental, the odds are pretty good it will be empty at some point.

So, how does all this tie in to building wealth with real estate?  Well, to many, in today's market buying real estate immediately becomes a scary thing because of the amount of money it takes to control the property.  It's a lot of money to think about.  On top of that, for those thinking about rentals, thoughts immediately go to 3am calls, move outs in the middle of the night or worse yet.....repairs!  Honestly, many of this can be minimized with just a little common sense and planning up front.  That's really all you need.  Think about this, if you owed $1,000,000 but had the cash flow to pay for $2,000,000, does that seem like you can handle that debt?  All of a sudden, $1,000,000 doesn't sound so bad.  That's kind of the way it works with real estate.  I haven't even gotten into tax benefits, multiple streams of income opportunities, leveraging and exit strategies that you can take advantage of using real estate as a vehicle of investing.  It's truly an amazing thing.  Just buying a home to live in builds net worth.  For most Americans, the primary residence is the largest single investment for them.

Deb and I take a tremendous amount of pride and care because of this.  Regardless if it's investment property or primary residence, we know it's a big deal for the majority of people so it needs to be done correctly.  If you would like more information about us and any of the properties available in the greater Springfield area, visit our website; www.thebroadwayteam.com and get some answers.  Set up your own search and stay up to date on activity in the market.  If we can help you buy or sell your home, we stand ready to serve you and get the best deal possible.

Monday, March 24, 2014

Renting vs. Buying in today's market

I know that I probably sound like a broken record (or CD as it is today), but I gotta tell you, if you're even THINKING of buying or selling your house, now is as good of time as it's been in YEARS!  Interest rates are low, prices are low and banks and mortgage companies are interested in lending!

With all the positives, there can't be any negatives right?  Not exactly.  Inventory is still low but improving now.  As I mentioned in the previous post, you're seeing more construction which is a great sign things are shaking loose but it takes time to see the improvement.  But, believe me, it's there and moving.  Prices are on the rise which is great news for sellers and those that tried to sell in 2010, 2011, and 2012.  I've talked to several folks that have made it through those years and are starting to think about getting their houses back out there on the market.

If you need more information, he's yet another reason to buy in todays market:



Note the comment on what interest rates need to be to break even on renting vs buying!  Pretty astounding huh?

So, if you know someone that has tried to sell their home over the past 3 years and didn't have any luck in the Springfield MO area, let Deb and I know and we'll take good care of them.  If your nervous about house values, don't be because values are on the rise.  If you're nervous about values because you can't get 'what you want' out of your house, think about how much MORE house you can get for the money your paying.  In some situations, you can come out much better than you might think. 

Thursday, March 13, 2014

New Construction

Have you noticed that new home construction has picked up significantly in your area??

It has around here.  That's a very good sign for the housing industry too.  First, it lets you know that lending institutions are beginning to have confidence in the market.  Second, builders are feeling confident because they believe they won't have to hold the house(s) for a long time. 

You might say, 'I'm not interested in a new house, I'm happy where I'm at' or, 'that's all great news but I can't afford a new house.'  Well, it impacts you regardless.  As new homes are built, those that want a new home, will be purchasing which means they probably have a house to sell.  That means more supply and demand will begin to follow and prices will begin to tilt upward!  Now, how do you feel?  Whether you're moving or not, you're going to feel the impact on the new housing starts with increased values.

In this area, we've seen about a 7% increase in prices.  A little under the national average which would be expected.  I anticipate another good year this year and next year even better!!! 

This is a time that is rarely seen in the real estate market.  Prices AND interest rates are relatively low!  Almost a perfect storm of opportunity.  Those that can take advantage, will reap the benefits for years to come.

I wanted to share with you this years promotion for Coldwell Banker.  Personally, I think it's very well done but let me know what you think:

Coldwell Banker 2014

Let me know how your market is doing now.  It's been a long time coming but things are picking up.

Hope everyone has a fantastic rest of your month!