Antonio & Alexia's Blog

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Who are the winners and losers of a slow real estate market?

Taking buyers and sellers of real estate out of the equation, I thought it was going to be difficult to find anyone who could possibly be enjoying this depressed market, but once you start looking carefully you will find them! People who are actually having a ball in this market! There are some real estate service providers who are enjoying an all time high because houses aren't selling.

Home stagers: They are running out of furniture and since they make money by renting it, the longer it stays put the better the margin of profit. Staging houses to look good is their job. But on a market where PRICE seems to be the only issue, sometimes staging doesn't even help. To borrow a line from the politicians that applies very well to our real estate market: If the pig has lipstick... it is still a pig!

Appraisers: Almost everybody wants to know how much is their house worth, banks want to know the true value of their properties, equity lines of credit need to be adjusted, and an appraisal is the key. I recently discovered a new twist: A review appraisal when providing new purchase loans. Just over 3 weeks ago, at the last minute the lender required 2 more appraisals to verify the value! An appraisal to appraise the appraiser? The buyer refused to pay for those appraisals and the loan officer took that loan to another lender, there was a 3 week delay but we closed the escrow. We used to have only ONE appraisal per house, no wonder the appraisers are busy people.

Property Managers: The high number of foreclosures have been a boom for these people, they don't have enough rentals to go around, their vacancy factors are very low, and they are getting pretty good tenants, former homeowners who know how to take care of a home. A foreclosure prevents them from purchasing another house for years until their credit improves. Good property managers are in high demand right now.

Landscapers: I always thought that these people have a very steady job. Weeds keep growing, trees go out of shape, lawns turn brown and die, houses for sale with un kept landscaping loose value, nature simply goes all out if the gardener quits, and everybody notices his absence.

The Sign Company: What a good job to have right now. Their existing inventory of "For Sale" signs is all out; some of their signs have been planted for good in some cases... like in one of my listings! I have a house that has been for sale for almost 2 years with a for sale sign planted on the same spot, I think I noticed the other day that it has sprout some twigs and leaves, if it ever bear fruit I'll quit selling real estate!

"Credit Restoration Consultants"... whatever that is... they are making money too! You see, not EVERYBODY is suffering from a bad real estate market, some of them are actually having fun! 

The Realtors In Motion       Antonio & Alexia Cardenas   

                  "The Realtors In Motion" 

         CRS, GRI, E-Pro Certified. SFR (Short Sales, Forclosure Resource) Serving the east shores of the San Francisco Bay, Alameda county: specially the following cities: Castro Valley, San Leandro, San Lorenzo, Hayward, Oakland, Pleasanton & Dublin.

                  Visit us on line at:

www.listedbyantonio.com or call (510) 326-4263

                     Call us, We'll come and TANGO with you!

Comment balloon 2 commentsAntonio & Alexia Cardenas • September 16 2008 05:26PM

Comments

So very true, while some may be down, others are certainly thriving. 

Posted by Tim and Pam Cash, Real Estate Professionals - Clarksville TN (Crye-Leike (Sango)) over 11 years ago

Mortgage brokers have disappeared.

Richard

Posted by Richard Stabile, Bergen County New Homes Builder Realtor (Re/Max Real Estate Limited) over 11 years ago

Participate