How Do You Explain These Things to Retail Home Sellers?

The Ten Year Treasury is spiking and although 3% interest rates don't seem exorbitant, the hike in prices, taxes and insurances will make this a tough row to hoe. The stock market has taken notice, and put its head between its leg. That is very bad for consumer confidence.

If you are in the business, you know people in hot markets have crazy ideas about the worth of their property. "I raised my kids here". Nobody cares, probably not even the kids. "I'm not giving it away". No one asked you to. And those wonderful real estate agents that go behind your back and make promises they shouldn't make, have no talent or ability to deliver upon, and stir the pot so your rapport with the homeowner is shot.

It was 1980 I believe the first time I paid over 10 grand for a vehicle. After that, vehicles were sold by a monthly payment. It wasn't 10,000, it was $248 a month for 36 or 48 or however many months. The bite doesn't seem as bad. Same with homes, except we use still use prices, but the ability to pay is based on LTV (Loan to Value) and a monthly nut. Everything is added in. So, I get an offer of $300,000 on a property that was borderline, but I think I could have gotten it done. We added a roof. A buddy came down, repaired all the siding, fascia, soffits because I figured we'd get an FHA deal. All set. Except at the last minute, "I've been googling and I..... How much are title costs?" I get a GFE. "Well we want more. " "They aren't approved for more", and besides", I tell them, "your taxes are $1800, the estimate for the new people is $7200, and the insurance will be pushing 4, because we have some clamshell shutters "(this is South Florida. I'm sure you all have your own problems), and we'll kick these people up beyond what they can qualify for. "Well, that 's not our problem". Well, I'm here to tell you with 10% unemployment, rising rates, an added $900 a month on the buyers is a BIG problem, and collectively, it's our problem! All of us! That money is going to come from someplace, and I don't care how sparse inventory is, if people can't pay for it, they can't buy it.

So, I cancelled the listing, because I just don't deal with nonsense. And since my retail listing commission is 1%, since my contract lets either party cancel anytime with no fees, I'll be interested, well actually I won't, but let's just say you don't know what you have until you lose it. And today, for the first time in a week, my jaw doesn't ache from clenching my teeth. So I'm good with it.

Now, those were my problems. Here is ours. With Washington killing jobs, hiking taxes, making life difficult, with the taxes and insurance at least in Florida, who can afford a house? Fewer and fewer people is who. And the ones we shoe horn in today will be the foreclosures of tomorrow.

The next few months are going to be very interesting to say the least. I'm basically a foreclosure agent. I don't wish it on anyone, but I don't think undertakers root for people to die. They just know it's going to happen. But let me leave you with this.

If after this tremendous bull market, if you're a real estate agent and you are still living check to check, this isn't for you. It's a business for self starters. And if you're dogging other agents behind their backs, it goes double. If you are a mortgage broker, same goes. Out work the other guy. Study harder. Be more of a professional. Because the general public went to public school, and they may know the time of day Christopher Columbus scratched his ass, but they don't know much about finance. You're going to have to sell them, teach them, and give them a fair shake, even if they spit in your eye. It's your obligation, and it's why the State gave you the license.

Good luck. We're all going to need it.

And please. I can appreciate many of you are go getters, but connect with me if you like sharing ideas, talking about Patriotism, dirty jokes, anything but my buying leads. I know how to prospect, drive business, all that. But you don't let that deter you, because someone has to pay the taxes coming. I'm rooting for you!