Ray Carman – Auctioneer

At this time of year, it is always a good time to take a look back and review the year behind, and be thannkful! We have been given so much through our country, state, and local areas, it is amazing to see all we have to be thankful for.

Personally, I am greateful to live in a place where I am free to own and run my own company and serve people on a daily basis. Our career path has put us as Auctioneers and Realtors in a position to meet people and help them acheive their dreams! And although 2008 has had its share of bruises on our economy and local real estate market, we still have the lessing of having homes sell. For that, and all those I have been prvileged to work with, I am thankful!

Hope you have a great Thanksgiving!

Or better said, “Who should we be listening to?”

There are people out there on both sides of this financial fence. There are the positive thinkers who claim we will be out of this mess in the matter of months. There are also those who say we should be making preparations for the long haul in this mess. So, who should we listen to?

I hear it on every side. Just this morning I read a word I have literally started to abhore, “stable.” Several local agents have again been quoted in saying the Sumner County Market is “stable.” What exactly does that mean? It is such a loose term. I formerly used to when we were saying things were remaining the same. That is the essence of “stable,”, right? Remaining the same.

Unfortunately, that is not the case in Sumner County. We are NOT the same. Medium house prices have dropped a small amount, and amount of closings were down significantly in October. Chalked up to the presidential election for the most part. But the biggest sign we must watch is this, the number of listings. They are up nearly 30% from last year, and the foreclosure rate has risen as well! This means more and more homes on the market are bank owned. And because banks are not in the business of owning real estate, they have been dropping prices to the point, a home owner wishing to sell has to try and compete with “very low prices per square foot.”

Mostly, this has caused a stale mate in the market. Buyers are wanting to buy your home, BUT, they want you (the seller) to sell at bank prices. A stable market is when we close 15+ houses a day in Sumner County. We now have “large” days when we close 10 in a day. SO to say we are “stable” is not a true reflection.

Back to the original question, who do we listen to? Be your own judge, but it would be prudent in my opinion to “hide some nuts in your tree.” Spend a little less and be willing to agressively market your home. That is the only way to attract buyers! I am not a pessimist, but I believe some wisdom and prepartion would be prudent!

What do you think?

Actually, I have not been the biggest proponent of “positive thinking.” Neither am I one who thinks we should focus on the negative in our market. Rather, I prefer to simply look at what is “REAL” and act upon it,

The truth is, we have had a significant scaling back in Real Estate Activity this past year. Less people bought homes. More people decide to, or had to sell, and too many builders found themselves on the wrong side of the stick with the banks. This led to overstocking of inventory in Sumner County, and a real need for becoming a “realist.”

I have spoken to numerous agents who have had “decent” years, but have found things to have “really slowed down” over the past few months. Now this is normal in any given Election year and especially every 8th year when there is going to be a new president due to closure of term for the incumbant if they have been there for 2 terms.  That is what we faced this year, and the race was highly publicized and touted and fierce combat was waged. Emotions literally gripped people as they watched it unfold.

What was not so normal during this time was when the stock market started waivering and when big banks and companies started to fold. The next thing we knew were the words “bailout”, which enraged many and froze others in their financial tracks. In one day people lost 100’s of 1000’s of dollars and the turmoil has yet to stop.

Sounds all bad, right! Well, there has been a bright spot! AUCTIONS!

Yes, I know! Sounds like a plug coming from an Auctioneer. But in fact, it is true. Auctions have sprouted this year, and as any one who has been doing auctions for awhile will tell you, bad financial times lead to great auctions. And here is why:

1. The markets are overloaded and your property will become just another one in the sea overstocked with fish. Buyers can’t find you because you blend in!  In steps Auction advertising! All the sudden, buyers are drawn to your property because you put up a “blue light special” and gave notice you are serious about selling.

2. Auctions bring a definite time frame to a transaction and closing. There is no sitting and waiting for the market to turn, you are getting ahead of the slow traffic!

3. Banks will come to you instead of you going to them. Banks have found themselves attracted to working with auctioneers because of several reasons. 1) The auction brings a client with money (usually 20% down) and 2) bankers have had higher success rates over the past 20 years with loans made at auctions than “normal” loans they have made. (source: banker who works with an auctioneer locally.)

With lenders on edge and markets overstuffed, it only makes sense to at least check into this process for your property. There will be some qualifying factors for your property to be successful at auction, but, if you speak to an auctioneer with integrity, they will let you know whether or not your property is a good candidate or not.

If you would like to discuss an auction potential, give me a call at 615-428-4920. Typically you can book, conduct, and close an auction in 60 days. Call me and find out if your property would be best served by an Auction! – Ray Carman.

Go enjoy this video!

that things are readjusting in Sumner County. The October sales report showed little change in prices on average, but the drop in numbers of homes closed, and especially the “new pendings” were significant. Nearly 100 less contracts were written in October of 08 than that of 07.

Another recent indicator has been the drop in prices per square foot that banks and builders have recently put on the market. You can now buy a new home in the Hendersonville area, 3100 sq ft, for $214,000. That same house a year ago was running in the 280-290k range. A bank recently closed a 2500 sq ft home for 157,000!

SO what are these indicators pointing to? Simple. Coming back to reality! When anyone and everyone could buy a house regardless of credit, prces started to inflate at a speed much to great for the market. This also spurred on a major upswing in new construction, especially in the 250-500k range. Two years ago experts begin to warn of overbuilding the absorption rate we could handle. And all that was needed for a “meltdown” was a hic-up in the economy. Well, here we stand, and the hic-up has come, and now people are starting to feel the pressure.

BUT, here is the bright side! Re-adjustments are both common and necessary! We could not continue at the rate we were going or we would have hit a much bigger wall and the fallout would have been to much to overcome. As it stands now, a small percentage of the area will suffer through foreclosure and loss in value. But the “sky is not falling” (at least not completely). Once we are able to take a breath, and the foreclosures have leveled out, and banks have reduced inventory to proper levels, we will find ourselves standing in a place called reality, from which we can grow!

If you would like to discuss this further, or want to know how this is going to affect you personally, feel free to give us a call anytime, 615-824-0044! We will be happy to give you a free consultation regarding your real estate and all your options!

My father is a preacher, and he often uses an illustration that a light bulb can provide light to a room, BUT, take that same energy from the bulb ans pinpoint the light into a single beam, and with that laser you can cut through steel!

What can this story tell us about Real Estate? Simple:

You can run around and try to use every technoligy available, You can replicate yourself on many sites, You can input listings in virtually innumerable websites. You can spread yourself across the board representing all kinds of properties and clients. And you will light up a room.

Or, you can find your “groove.” Stick with what you are knowledgable ;of. Narrow your web prescence and input to a single site with many contributing factors. And choose your area of passion in Real Estate and FOCUS! If you do that, you will succeed in cutting through the “steel” in your market and grow stronger in your passion for your work.

What is your “laser beam” area?

and it is good for you! Thanks to the agent who took time to post this for our enjoyment!

For weeks, months, and even a year now, we have been grasping onto the hope and dream that our local Real Estate market would somehow skip our nations current quagmire! We have used words like “stable” to comfort our hearts and those of our clients, both buyers and sellers. We have propped our hopes on the fact that we have continued to sell homes, only at a slower rate.

Well, for many people reality has set in! Brand new homes are now in the hands of the lenders, as builders ran out of money. Tennessee was at one time, 7th in the nation on the foreclosure list! More and more homes are piling up in lenders hands, even being reported by Fox News that foreclosures are up 71% from a year ago and now we are closing in on 1/3rd of all homes nationwide are owned by banks. All the while, government regulations are requiring that banks unload their surplus, which means prices are being dropped to accomidate our nations current lending debacle.

Why all the gloom and doom you may ask? Why bring it up? Two reasons! It is honest, and, it is necessary for a true portrait of our current market to both buyers and sellers. The nation is not uneducated and they are fully aware of what is going on, therefore, it is absolutely necessary that we be honest when they speak to us. Otherwise, they will take their business elsewhere! Yes, they want results, but results start with honesty!

Therefore, don’t be afraid of news that may sound bad. If it is true, then that is all they could ask for, and your honesty may not get you their business the first time, but it will earn their respect, and they will probably come back to you in the future!

My New E-book is here! The Three P’s of Success,  What Every Realtor needs to know to Succeed in Today’s Market and Beyond! (A Priority One Handbook for Realtors!)

As the market has tightened around the globe, people everywhere are offering us new technology or gimmicks that guarantee success. Their leads system, marketing campaign, or latest web trend offers hope in the midst of the storm. And as these have given hope to some, they have simply drained the life from others. What we need is not another gimmick, but rather foundational methods that have stood the test of time!

I was blessed to be born into a family with nearly 100 years of Real Estate heritage. As a young boy, I remember the stories told by my Grandfather and Father of how they survived the extremely tough times in the Real Estate World! As the years passed by, I began to see a set of keys for their time tested success! And these very keys have been what have allowed me to succeed as a Realtor, even in our market of today!

In this straight to the point e-book, I am offering you these same truths that were instilled into me. They are nothing new, and have no special twist! BUT, they are time tested and proven by the results they bring!

You can get your copy today for just $3.95. Click the Paypal button on this site and once your payment is received, you  will receive your copy of Three P’s of Success within 24 hours!

Thanks again, and May God bless our journey!