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care

Each year can typically be characterized in broad strokes, as a prediction for the future.

This year appears to be the "year of the buyer." Here's why:

1. W a i t i n g h a sn ' t w o r k e d. We're now seeing sellers who've been waiting to sell come

to the table with realistic expectations, and their properties ARE selling.

2. Del inquenc ies a re VERY h igh . The total delinquency number appears to be at

13%+, so that nearly ONEINEVERYSEVEN homeowners is behind on his mortgage.

3. " REO" ( t he rea l est a t e t ha t bank s unw i l l i ng l y own ) i nven t o ry i s a t i t s h i ghes t

l eve l i n m any yea rs, and eclipses even the toughest times in 2008-2009. See the

graph, below, of the properties that FANNIE MAE, FREDDIE MAC, AND FHA all own. This

does not include properties somewhere in the foreclosure process, properties with

delinquent loans, and properties in some stage of loan modification. It also does not

include the properties that private banks (US Bank, B of A, Wells Fargo, etc.) own, but

the general trend is undoubtedly the same.

4. On l y 8 % o f l o an m o d i fi ca t i o n s a r e w o r k i n g. This means that for every loanmodification that is accepted, there are nearly 12 that are rejected.

Here's what you should do:1. I F you are a Sel ler , GET MOVI NG! Sellers have "chased the market down" for the

last several years, in an effort to get the most for their properties. The bad news is that

there will be a greater number of houses on the market, and prices will probably

deteriorate further over the next year. DON'T WAIT!

2 . I f y ou a re a buye r , g reat oppo r t un i t i es awa i t you t h i s yea r ! You won't be able

to "name your price" (banks still control how quickly inventory reaches the market), but

you will get the next best thing--an excellent opportunity. Most of us in the real estate

business thought that the banks would have gotten the message by now, but they

haven't, and they will now pay the price, through discounted pricing and (possibly) new

financing opportunities that have not existed for some time. Before you start your"house hunt," be sure you are preapproved for your loan and have proof of funds.

Seller's agents WILL NOT look at offers without preapprovals & evidence of cash for

downpayments. CALL US NOW FOR HELPW I T HTHI S.

Winter, 2011

1089 El Cajon Blvd. El Cajon, CA 92020

619-442-8833CA Dept of Real Estate, Lic. #01880085

Since 1953Business built onthe Golden Rule

2011--The Year of the Buyer!

We're on the 'Net!

Main Site:

www.mitchelrealtors.com

Facebook:

mitchelrealtors

@facebook.com

FANNIE MAE, FREDDIE MAC, FHA

inventory trends nationwide

Thanks to CalculatedRisk,

www.calculatedriskblog.com

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Know anyone who needs help with real

estate?

Have them g ive us a cal l a t

6 1 9 - 4 4 2 - 8 8 3 3

We Create Marketing Plans That Work For You:W h e n y o u w o r k w i t h o u r f i r m , ev e r y m a r k e t i n g p l a n i s t a il o r - m a d e t o f i t Y OU.

Within that framework, each marketing plan has common elements:

1. Every one of our properties is placed into the San Diego Multiple Listing Service as soon as practical. This is

THE most important element of selling strategy for every property. About 90% of sales result from MLS

exposure.

2. We advertise your property using the most effective means for that property. This includes local papers,

open houses, the internet, and all the real estate sites on the 'net.

3. We maintain a co-operative relationship with other real estate agents, and work closely with them to ensure

that your property has full exposure

5. We aggressively market to our extensive customer base.

6. We create custom marketing materials for print and for the internet,

7. When we obtain an offer, we present it to you with the "pros and cons," and help you with your decisions,

but we don't push you into something you don't want.

8. We provide our services throughout the escrow period, and even beyond the close, to ensure your success.

9. We look at the real estate business as a relationship, not a single transaction.

1089 El Cajon Blvd. Suite AEl Cajon, CA 92020619-442-8833