What goes up must come down but when? 

Now that we have seen the rise and fall of the proverbial real estate bubble , when do you think the other bubble will burst?  I am talking about the inflation bubble.

That bubble launched just about at the same time as the real estate bubble but it has not even lost one pound of air, yet and it is still climbing. This bubble is becoming even more devastating than it's real estate cousin.

Up, up and away my beautiful, my beautiful balloon bubble.... (The 5^th dimension)

This week, Barb Van Stensel replied to my post titled: The New Jack The Ripper. She ended her response with “Just my two cents.” I thought, she gave me a reply that is far much invaluable that just “two cents.” Barb's and all of your inputs are not just responses; they are shared ideas, knowledge, experiences, mistakes, conquests and friendship, hence, priceless information indigenous to our profession.

Obviously, she used an old expression that survived history based on the value of goods once upon a not such distant past. Most of you youngsters probably are not aware that, not very long ago, for a penny, one could get two or three bubble gum balls, or a huge stick of licorice or a myriad of other candies. By golly, bubble gum is 25 cents a piece today and jaw breakers are 50 cents or more a piece.

Then, I got to thinking deeper (it's dangerous when that happens) about what else we did get cheap:

“A penny for your thoughts”, for example. Who do we hire to think for us? Attorneys, of course. For a penny? I don't think so.

“A dime a dozen.” is another popular saying. A DOZEN WHAT FOR A DIME, today?

What about the Dollar stores -- Can you find something for one dollar in them, anymore? Good Luck!!!

The “Nickelodeon”, hence, nickel, is now replaced by Blockbuster's $5.95 a movie.

The “sixty-four thousand dollar question” now, has to equate to “sixty-four million dollar question”, no doubt.

(I am entering a dangerous territory hereon Relib) This is the all-time favorite for men: the “two bit whore” Well, I think ex-NY Governor Spitzer is best suited to explain that one. (Monica was just a free-bee, guys.)

Those expressions are not obsolete for their metaphoric value but they are probably meaningless for the latest generation. Perhaps, we ought to pressure Wikipedia to revise or readjust those idioms par with present cost of living.  I.e “a thousand dollar for your thoughts.”

I am still trying to figure out what did the “doe” do for three “bucks"?

Haven’t you heard?  Lately, a new Jack the Ripper has emerged but this time he may be marauding your neighborhood.

As the result of angry and frustrated homeowners who are losing their homes to foreclosures, it is reported that “roughly half of all foreclosures are returned to the bank with substantial damage” delved the Sun-Sentinel newspaper, today.   Some people strip their entire property clean like maggots to a dead body just before they vacate it.  My first exposure to this occurrence was about three month ago when I showed customers a foreclosure house to find entire devastation – someone had ripped just about everything that could come off down to the front door lock.  

This latest vandalism phenomenon is spreading rapidly across the nation according to a Washington, DC research firm, Campbell Communications and Research.  Because it is perceived by homeowners that their ruin is always caused by the bank’s fault, people feel the need for vengeance. 

It has also been reported that other people are more honest; they won’t steal that which now belongs to the bank (maybe due to their religious beliefs because nowhere in the 10 Commandments is said: “Thou shall not vandalizest other people’s possessions.”)  So, they sabotage, instead.  I have already heard incredible stories of people pouring concrete cement in sink drains and toilets, throw dead fish in AC ducts, smash rotten eggs in the attic, hammer holes in drywalls and etc. 

Sometimes, the Ripper is not the homeowner.  Because of signs of distress clearly visible (Realtors® “Short Sale or Foreclosure), newspaper ads, etc. perpetrators are silently lurking around until the opportune moment to rip off.

Lenders have subsequently developed a counter strategy to this prevalence by offering cash incentives to homeowners up to $2000 if, upon closing inspection, the homeowners have not stolen or defaced their properties, either themselves or by a third party involvement.

Realtors®, the morale of this story is: if you are listing a Foreclosure property, keep a keen eye on your front yard sign and post because the new Jack the Ripper may even rip that off, too.

In my long lifetime sales career, I have listened to and read many great positive slogans, invigorating messages and success formulas that are uplifting to average salespeople --. Some were very clever and practical.

Even on Sunday, our coffee clutch meets for coffee at Pannera Bread shop. Last Sunday, I was the first one to arrive and someone had left a mall church pamphlet on our favorite table. I glanced at it through but, before I was ready to toss it, there was a headline called “SPIRITUAL SUCCESS”. Instinctively, I read it.

I was floored by its philosophical message.

Having been in sales for eons, I have listened to dozen of sales promoters, sales manager pitches, a bunch of articles and how-to literatures on how to succeed but this one is quite different. It demonstrates a progression of successful logic. Although this was meant as a prescription for how-to-lead-your-life, I think it can be equally applied to as a disciplined method for business success, hence, practicing real estate. Unfortunately, the author was not quoted.

Here is the philosophy:

                                                When you change your thinking

                                                  You change your beliefs.  

                                                When you change your beliefs

                                                  You change your expectations.

                                                When you change your expectations

                                                  You change your attitude.

                                                When you change your attitude

                                                  You change your behavior.

                                                When you change your behavior

                                                  You change your performance.

                                                When you change your performance

                                                  You change your life.

I think this the key to all successes! 

Trying to reconcile with the extreme polarities or real estate of recent years, something extraordinary happened lately that finally made me understand the value of real estate versus asking prices.

Price is something we can easily grasp, usually retail items that we deal with on daily basis. Occasionally, some people have treasured and preserved some of those retail items and over time they have become valuable and even priceless. For some other treasures, there is not enough money in the world to buy them like one's child's kindergarten finger painting.

Approximately a month ago, the Miami Herald did an exposé about a 78 year old artist painter, Jasper John. One of his paintings sold for $80 million at a recent auction at Christie's in NY. I had never heard of him before. Naturally, a color photograph of the painting was displayed with the article. My interpretation of the painting was an essay of fall colors of things resembling foliage layered in rows on top of the others. Because I don't understand that kind of art, I was amazed of its price, incapable to understand its value.

Three weeks ago, the South Florida Business Journal (SFBJ) posted an article about an exclusive area south of Palm Beach called Manalapan. Manalapan is a short and very narrow key that is directly on the ocean and also on the Intracoastal Waterways where Highway US1 runs alongside the Intracoastal so poor people can see how the wealthy live. That stretch of land is grossly littered with nouveau-riches flaunting their wealth; the ocean side hosts their palaces and the Intracoastal is lined with their luxury ships. The article featured a young developer, probably under 40 years old, whose looks is reminiscent of Chippendale dancers with long wavy frosted blond hair, blue eyes, dimples and a Donnie Osmond generous teethed smile. Chippy, finished building a $25 million dollar enclave in Manalapan that just went on the market but the sensationalism of the article was that Chippy had just been approved by Bank of America (BOA) to take out his golden shovel and start building a $142 million single family home extravaganza on the 5.5 ares empty lot next door of that $25 mil painted lady. That project will probably degrade the historic Biltmore Landmark down to a home for the new owner' servants. I was bewildered trying to phantom that somewhat unfairness considering that eventually one person will be fortunate enough to claim that future property. The reason why BOA is endorsing this project is they claim that there are over 50,000 people in the world who can afford to buy such glitz.

Then, last weekend, our local Sunday newspaper reported another sensational event: a mansion in Palm Beach sold for $81 million (if you live in West Palm Beach or on Palm Beach island, those homes-of-the-gods are not referred to as castles but as “compounds.” I think the idea for that name was introduced by the socialites to make the populace think that those palaces are not that pretentious.)  The closest I ever got to compound is when I use that gritty paste to remove scuffs off my car. Stunned, I continued flipping through the paper's business section when I came across a jeweler's full page ad announcing some kind of auction: precious stones, vases and wrist watches – Wait a minute, am I reading this right, a Patek Philippe wrist watches over one million dollar and a bunch of other snazzy diamond ornate watches starting at $500K? Diamond studded gold Rolexes were not even mentioned, for God's sake!

My left brain was instantly catapulted to the right side (the area that is vacant, so I am reminded all the time). That asylum part of my brain helped me from blowing a “head gasket” over those high priced revelations until later in the week when I got closely connected to another high priced shocker.

My 81 year old uncle and aunt are retired with modest means. In Montréal, Québec, they live in the same home since they got married sixty years ago where they raised ten children. Ten years ago, they bought a twenty-eight year old mobile home in Hallandale, Florida (close to Miami) to spend the winters. They paid only $17,000 for it, then. They have done some improvements (upgrading mobile homes consists of replacing existing dark wood paneling with light pickled wood paneling, Home Depot Formica kitchen cabinets assemble-yourself specials and fresh Linoleum flooring. To really impress neighbors, converting the carport into a Florida room and painting the driveway floor using gray paint with sparkling flecks gets the envy of theentire park residents). Anyway, it is, nonetheless, a very well maintained mobile home park populated with only French Canadians to which owners own the land parcel. About two months ago, my relatives placed their mobile home on the market asking $165K. Needless to say that I laughed inside because a mobile home is nothing but a match box covered with tin. I did question them, though, how did they arrived to that price? They replied that there is such a strong demand by French Canadians to buy in this mobile home park and each unit is almost entirely sold by word-of-mouth among Frenchies. They added that one unit fetched $475K in January 2008. I didn't believe them but in respect for my relatives, I didn't argue. Low-and-behold, last Wednesday they got a full cash price offer and they are closing on April 18.

The next day, I went on the County Records site and verified those fantastic sales. I also extended my search in neighboring mobile home parks and I found one more exclusive park on a huge lake also populated by French Canadians where three mobile homes sold for over $610K in the past six months.  I guess, the value of those mobile homes is kinship in a foreign territory.

The evidences are before me: price of gasoline is $3.39, mobile homes sell for $600K, wrist watches for over one million, paintings for $80 million and homes for $81 millions. I now concede to inflation. 

Next week, I am having a garage sale and I can safely ask $1.5 mil for my paint-by-numbers masterpiece I did when I was 12 years old. Anybody interested? I'll trade for a completed jigsaw puzzle and a macramé flower pot holder, though.

With the sudden rise of residential property “short sales” and “foreclosure”, I don't know how your County Property Appraiser is assessing recorded sales but, here in Broward County, Florida (Greater Fort Lauderdale), our Property Appraiser has been excluding short sales and foreclosures as viable recorded sales to keep assessed property values high, hence, keeping property tax revenues high.

Do you think Property Appraisers should leave out short sales and foreclosures from all residential sales to keep tax revenues as high as possible?

Do you think you are a positive person?  (People who really know that answer are our peers, our friends and family.)

Since the decline of the real estate market in the past two years, everyone gradually psyched  down and now they are crying the blues.  I am afraid that having been surrounded by whiners all that time has affected me too, consequently, my performance suffered accordingly.

Last week, I found out from a reliable source that one of our local relentless Realtor® icons sold over $32 million in residential real estate in 2007.  In fact, before I went on my own, I worked in the same office as he did for almost six years and that man has always maintained his position among the top .5% of most successful Realtors® in SE Florida, year after year.  This man, now in his 60ies, has always shown an unparallel  positive demeanor.  I have never known him to be negative.

I have been pondering over why does he still have that colossal success while most Realtors® are barely surviving?  Because he constantly keeps his battery charged with so much positive energy, I came to the conclusion that he truly believes that the market has never plummeted and  that is undoubtedly what makes him so  triumphant.

To prove my theory, I called him and three other local successful icons pretending to have a buyer interested in one of their listings.  I was overwhelmed by each of their positive attitude and self assurance.  Those guys and gals didn’t whimper that the market is bad, instead,  they affirm that this is the best time to buy, that the market is better than ever, that their listings are priced right and they are the best things on the market, and  so on.

I hate to bring politics into this, even at the risk to cause Gary Szolosi to have a conniption, but  take Barack Obama, for an example of pure positive attitude.  The inexperienced, young underdog who is stealing the Democratic votes.  Who would have believed?  HE DID – HE STILL DOES!

Perhaps it is time for most of us to get a mental tune-up and add positive additive to our consciousness.

Before “Green Earth”, Ireland was ahead of the curve for centuries symbolizing green with its mythological mascot, the leprechaun. But, is the leprechaun a myth?

Everyone knows that Martians who live on that red planet are green (endearingly called “Green Martians”) but, coincidentally, leprechauns are also green. Hummm, am I on to something here?

Erin Go Bragh (Ireland Until Eternity) - times certainly have changed, now-a-day, Erin goes bragh-less.

Sorry guys but, somehow the picture on my post "Go Away" has vanished and has been replaced by that red X, at least on my screen.  The picture did show up last night, though. Is is a picture of a fox that burries its head in the snow. 

The HELP page tells me that it is possible to edit a post if there has been no replies,  I tried for the past hour to do so but, to no avail. 

Well, can't win them all.  

Times must be scary - like the ostrich, our wise fox sellers are sticking their heads in the sand (well, in the snow) pretending that this whole real estate debacle is not really happening. 

There is not much difference in principles involving casino gambling and real estate – they are both driven by human emotions.  However, the only variation between the two is that casino gambling, whether one wins or loses, happens fast, usually at one table sitting.

Despite the fact that everyone knows from having repeatedly been told many times growing up since childhood “Don’t you ever gamble at casinos, gambling will ruin you.  Casinos always come out the winners and players are losers” or “The odds are always in favor of the house”, people grow up and eventually will go to casinos to gamble, disregarding those warnings.  In fact, casino gambling is a healthy and flourishing industry rapidly spreading through the country.

When players are on a winning streak at casino tables, greed immediately sets in while Lady Luck seduces those players to hook them tight so they won’t quit until they eventually lose a hand (or dice throw), and lose another, and another.  Players continue playing hoping that Lady Luck will come back around to reverse their nightmares. 

Residential real estate practice of late has emulated casino gambling. From 1998 to mid 2005, selling homeowners were having a lucky vein.  They named their prices and buyers bought as if their properties were the last one for sale in the entire Nation. In January 2005 warnings that the proverbial “balloon is about to burst” were written all over the media.  Assuredly, Lady Luck soon abandoned sellers.  In spite of hearing constant warnings, sellers held on gambling and continued asking higher prices for their homes.

Throughout 2006, sellers were stunned by the sudden real estate turn around, buyers became confused and everyone stayed put.  The time of awareness of the "real estate meltdown” for both sellers and buyers came about at the beginning of 2007 following the side effects of the sub-prime loan crisis which fostered a plethora of “short-sales”, foreclosures, and personal bankruptcies. Yet, many sellers continue to hold on to their prices – “I am not giving it away” they said while buyers were low-balling their purchase offers.  Most of 2007 was a tug-of-war between buyers and sellers.

Sellers now recognize that the real estate market has reached bottom and they are more amicable to entertain offers par with present real estate market values. 

Undoubtedly, buyers are in the driver’s seat and they persist on gamble their hands.  Buyers are holding back convinced that Lady Luck is on their side and she will make real estate prices go down even more next year and beyond.

In Kenny Rogers’ song, The Gambler, he sings: ” You got to know when to hold 'em, know when to fold 'em, know when to walk away and know when to run.”

The bottom (Inflation) has risen significantly in the past five years.  Consequently, sellers’ real estate prices have since reached bottom.  Ultimately, NOW is the best time for Buyers to quit gambling and make great buys!

The Star Burglar is back again. 

Isn't that odd that all of us who were given 5 stars on our posts since yesterday have been robbed of a few stars each except for Becky?

It has been clearly apparent to all of us that lately Mary campaigned arduously and competitively to conquer over Becky’s glorious title.  Mary’s relentless blogging participation on Relib ascended her rapidly to where she is now, a few blogs away from overthrowing Her Majesty, Becky, off her long rein as our sovereign. Thus, Becky sensing the eminent danger, that makes her a prime suspect to wanting to sabotage anyone who menaces to remove her crown.

To conceal her heinous act, she allegedly attacked everyone who got five stars creating a diversion to confuse all that her obvious target is Mary.

At first, I was leery of Mary’s hurried climb.  I thought and even accused her once of using dubious subterfuge to attain her goal at all costs to oust Becky of her throne but, considering the evidence at hand today, I was wrong.  Mary certainly attained her second position fair and square. (Will you accept my humble apologies, Mary?)

The “Relib Right Act”, unlike the Miranda Right Act, decrees that offenders DO NOT have the right to remain silent, DO NOT have the right to an attorney and everything they say will definitely be held against them.

Now-then:

Becky, where were you Monday the 11^th between the hours of 8:04 PM until now except for the time you did post your blog today at 7:27 AM? 

Can you account for your whereabouts in between and provide us with names of witnesses, if any? (Cathy is not a viable witness for she is known to be a professional witness) 

I am getting a subpoena from the Hillsborough County Sheriff Department to search your computer tomorrow. There will be intense investigations to find the guilty party.  I strongly recommend you co-operate fully for the sake of clearing your name and reputation.

I’ve heard that Gregory, Gary, Mike and Mary have already placed a bounty on your head.

This is very disturbing for all of us.  Don’t risk to be impeached; please, come forth and exonerate yourself.

Oh, I forget, DO NOT LEAVE TOWN until this investigation is over.

John

Today, almost all over the world, the cellular phone has become incontestably the most indispensable tool ever. Almost every one has a cellular phone (included the homeless). We are inflicted with a "stay-in-touch" addiction even to indulge in the most insignificant conversations. I can’t imagine how can a real estate agent or any business professional conduct a successful enterprise without a cellular phone.

Wireless communication giants are raking in droves of money by the minute. But do you realize how much money they are swindling from us by stealing one minute at a time?

Except for Metro PCS service, for a fixed minimal monthly service fee, one can talk anytime, day or night, local or  long distance within the continental United states until the battery goes dead and as long as you are within the geographical zone of the service, all other wireless providers defraud users with their automated operator who s-l-o-w-l-y walks you through the process of leaving a message to the party you are trying to reach as if this is the very first time you are using a cellular phone device in your entire life. First, you get the recipient’s outgoing voice message, then you get the automated operator who comes on saying: "Your call has been forwarded to an automated voice message. If you wish to leave a message, press 1 or stay on the line; after the beep record your message. When you are finished recording, hang up or press 1 for more options, or if you wish to leave a call back press number 5."

There is another service which I have not identify yet who is even bolder. That one has an automated operator who comes on saying: "Please stay on the line and listen to the music while I reach the party you are trying to call." Then, 15 seconds later, either the recipient answers the call right away or it goes to the voice mail box where you get the whole spiel I mentioned above.

Please write your Congressman, Senator, State and local Representative for them to put a stop to this sneaky petty theft which amasses to grand larceny in the long run.

By-the-way, I use my cell phone as my "Sell Phone."  I have been advertising my phone number in that fashion for the past three years. Under my name I write Call my "Sell" phone (954) 529-xxxx.

John