Timely Real Estate News…. …………………………………15 December 2008
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Merry Christmas, Happy Hanukkah, and Kwanza
It’s that time of year….and baby, it’s cold outside... Winter doesn’t officially arrive until December 21, but it sure feels like it’s here already. And with the Christmas, Hanukkah and Kwanza seasons in full swing perhaps we can reflect and count our blessings. We have much to be thankful for. Those of us living on the Westside are still enjoying better real estate news than in many other parts of the country. We have held steady on prices for much of 2008, and we have few foreclosures in the communities of Bel Air, Brentwood, Beverly Hills and Beverly Hills Post Office. Yes, there are some, but compared to the rest of our nation and region — we’ve hardly been touched.
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The Stats
I apologize for not supplying you with the stats that are usually included in the Schiffer Line. As you know I get them from the multiple listing service, and they are installing new programs that unfortunately has affected the quality of the stats. They will have the corrected information after the first of the year. And for Coldwell-Banker, it’s been another banner year — its market share for all Westside communities for 2008 for both the “buy” side and “sell” side is a combined 24.56%, nearly 150% more than its closest competitor. While total sales are down under 40% for all communities I specialize in, that’s still better than the over 50% decline in most all major metropolitan areas in the United States.
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What to expect for 2009? When you have major disagreement between learned and respected economists at USC and UCLA, you can count on me NOT making any predictions. UCLA recent forecast predicts there “might be” a turnaround in 2010…. The forecast says the economy isn’t as bad as UCLA says it is and thinks 2009 will be tough but believes that recovery will be spurred by Obama’s inauguration. But if recent history is any clue, the Westside will continue to fare better than just about any other market in the United States. We’ll see.
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The “Six Personalities” in my Real Estate World….I’ve seen them all — short ones, tall ones, fat and skinny ones…but after my years in the real estate business, you can pretty well ‘spot’ the type of client you have a first glance. I’ve been blessed with having the best clientele on the Planet since my earliest days in the Marina — so I wanted to share with you the Six Personalities that one runs into in our business. I have detailed three typical buyer types and three typical seller types — each one has their own peculiar patterns of behavior (some good, some bad)….so here there are:
Seller Personalities
Living in the past seller — Believes home value is what it was in the past – even 6 months ago….Has the attitude that their home is exempt from changing property values…..doesn’t believe the listing agent with the present “comps” – what is a comp? (the comparable active listings, properties in escrow and close of escrow prices)….Refuses to consider current market realities…Dreams about making huge profits….Wants an inflated price because it is their house…Waits and waits for buyers who never come….Property languishes on market; value plummets….Frustrated – sees therapist
Not a seller — States they are a real seller — says things like: “I really want to sell this house”….Emotionally unable to take any reasonable offer….Doesn’t get home up to market expectations or priced it accordingly….Presentation is weak or horrible – threadbare carpets; paint chipping; no landscaping….When a reasonable offer comes their way — they find an excuse ‘not to accept”….Home languishes despite reasonable offers….Gets therapy
Strategic seller — Sophisticated seller who understands market conditions….Selects Realtor who knows the neighborhood — listens to an ‘expert’….Prices home realistically from the onset….Puts home in pristine condition to achieve maximum price….Establishes an acceptable range of what minimum price will be before putting house on market….Adjusts price to fit market conditions….Works with their agent if the pricing strategy does not work….Sells house at or near asking price.
Buyer Personalities
Wishful buyers — Thinks the market downturn means every house is priced too high….Wants 30% discount on homes in best neighborhood because they can do whatever they want….Loves to look at houses – especially out of their price range….Doesn’t get pre-approved by their lender before shopping….Doesn’t continue to work with their lender as the lending conditions change. Clueless about what they really want, where to live or what they can afford….Never buys a house – blames the seller and the agent
Bottom feeder buyers — Only looks for sellers in distress….Makes offers so below asking price – wastes everyone’s time….Switches real estate agents like changing their socks….Doesn’t appreciate good advice….Becomes nightmare for agent, escrow officer, lender – who all seek therapy
Strategic buyers — Does extensive research – online and with agent….Knows their price limitation….Has been pre-approved and given the current credit conditions to work with the lender….Continues to check with lender to make sure they are still in the same price range they started out in….Knows where they want to live and what they want in their home….Picks a qualified agent who knows the neighborhood….Always on top of credit and loan documentation through process….Ends up with dream house….
I’m sure that each of you is either a Strategic Seller or a Strategic Buyer, of course.
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Fan Mail….From Sheila Speer…”Dearest Carole….I just truly enjoy your newsletter — what a treat. It is unique and informative and sooo well written. I will always “Count on Carole”. Thanks Sheila. It’s always nice to hear compliments about the newsletter and if you would like this sent to anyone you know, don’t hesitate to e-mail at ceschiffer@aol.com.
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Degradable, Biodegradable, Compostable
The world of green, like any other industry, has its own language – for the person trying to make some environmentally changes to their life, it can get awfully confusing – take for instance the terms degradable, biodegradable and compostable when used in relation to plastics. There is a difference between the terms and it may play a role in your purchase decisions.
Biodegradable Plastics
Biodegradable products break down through the action of a naturally occurring microorganism, such as bacteria, fungi etc. over a period of time. These products are usually made from plant or animal sources. Examples of biodegradable include paper, vegetable scraps and some forms of plastics made from ingredients such as corn starch.
There are some disadvantages to biodegradable waste. When dumped in landfills, it’s often dug under where the “good” bacteria can’t survive in the oxygen depleted environment. It then breaks down under anaerobic conditions which creates methane, a greenhouse gas with over 62 times the GWP (Global Warming Potential) of carbon dioxide. Also, biodegradable waste can contain toxins. For example, human and animal waste, which is considered biodegradable, may contain traces of all sorts of toxins such as heavy metals and pesticides depending on the person/animal’s diet.
Degradable Plastics
Degradable plastics are oil based and break down through chemical reactions rather than the activity of micro-organisms, so they can degrade in an anaerobic environment into water, CO2, biomass and trace elements.
Compostable Plastic
This is pretty close to biodegradable plastic but “greener”. According to the American Society for Testing & Materials, for plastic to be considered as compostable, it must be able to break down into carbon dioxide, water and biomass at the same rate as paper. It also needs to look like compost, should not produce any toxic material and should be able to support plant life. Compostable items are made from plant materials such as corn, potato, cellulose, soy and sugar.
So:
Biodegradable – green, but can leave traces of toxins
Degradable – made from oil, but breaks down into harmless materials
Compostable – green from start to finish… perhaps
It looks like the greenest choice is clear – compostable plastics are the most earth friendly option.
Or is it?
Green plastic challenge
One of the problems involved with creating green plastics is the amount of energy needed in production. In some scenarios, the fossil fuel input is more than what it is to create the equivalent in crude oil based plastic product.
All breakdown of the above three kinds of “green” plastics also creates carbon dioxide. We’re somewhat caught between a rock and a hard place in this. The compromise appears to be using the plants that the plastic is created from also as an energy source for production.
Instead of carbon emissions being generated from sources sequestered under the ground such as coal and oil, the burning of corn stalks and other plants would not increase net carbon dioxide in the atmosphere, because new plants would absorb an equal amount of the gas.
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I hope you all have a wonderful holiday with your friends and family, and look forward to a better 2009 for all of us.
