Construction spending edged up very slightly in June, according to the Census Bureau, which reported last week that June’s spending reached a seasonally adjusted annual rate of $836 billion, which was 0.1 percent above May’s revised estimate of $834.8 billion.

While overall spending was up, public construction spending outpaced private spending in June, which, at a seasonally adjusted annual rate of $527.6 billion, was 0.6 percent below May’s revised estimate of $530.9 billion. Similarly, residential construction was at a seasonally adjusted annual rate of $258.3 billion, 0.8 percent below May’s revised estimate of $260.3 billion.

The drop is in line with the expiration of federal tax credits for homebuyers in June, and the nation’s ongoing shaky employment circumstances. (The latest employment news from the Bureau of Labor Statistics put June’s unemployment rate for the United States at 9.6 percent.)

“Support to construction spending via new homes should continue to remain dampened in the coming months,” Maxwell Clarke, chief U.S. economist at market researchers IDEAglobal Inc., stated in a note to the firm’s clients. “Ongoing difficulty of accessing capital for speculative commercial real estate ventures will continue to act as a deadweight in the overall construction measure.”

June’s lackluster construction performance was in line with last week’s report from the Bureau of Economic Analysis that personal income and personal consumption expenditures (PCE) for June were essentially flat for the month. Personal income increased $3.0 billion, or less than 0.1 percent for June, and disposable personal income (DPI) increased $5.1 billion, or less than 0.1 percent. Conversely, PCE decreased $2.9 billion, or less than 0.1 percent during the month.

Once again, consumers’ reticence to spend can be linked back to the job market. Note that personal savings in June were also up at $725.9 billion, compared to May’s $713.9 billion.

“It reinforces the general idea that consumers are busy deleveraging and saving money,” Dan Greenhaus, chief economic strategist for Miller Tabak, told the New York Times last week. “The problem with this type of a situation — where consumers become more concerned with reducing debt and constraining spending — is you have no idea how long it will last. It could be one month or one year.”

So you have been thinking about selling your property but have been listening to the media
and have decided not to sell. Or maybe you still want to sell your property but you are not
sure on what to do and how to do it in today’s market. We have been hit by the changes in
the market. It has in fact slowed and gone flat and many spout gloom and doom.I thought I
would share a few positive thoughts on one of the main things a seller is up against.

There are literally tens of thousands of foreclosure out there, and as you know when you have
foreclosures pop up in your neighborhood it means bad news for property value. That foreclosure
is out there at a price well below market. It may even be priced 50% less than market value.
Not to mention if it is right next door to your house then you immediately take a hit in value.
It may be good news when it comes to your property taxes but if you were planning to sell, that
foreclosure next to you or in your neighborhood immediately becomes your competition. You
have to match price or at the very least be close to the sales price of the property. Even
if you wait and the property sells at that discounted price it will come up in future comps
that are ran and lower prices in your area.The area begins bleeding equity.

Sounds bad right? Well it can be bad but if you get creative you can still command a fair
price for your property in a down market. Or some would say a buyers market. Personally I
like to think of it as a buyers market with no buyers since very many of them have low scores.
But enough of that short vent. Let’s get back to being creative on getting that price.My focus
here is on something that should always be considered when selling but has to be stepped up a
notch.

Property condition is vital. That foreclosure is going to be in bad shape. The
previous owners were already having a hard time paying their mortgage and were probably living
from had to mouth. Not being able to maintain the property over a extended period of time.
Not keeping its interior up to date and clean. Not having the funds to fix minor issues with
fixtures , lighting, flooring and the like. Then the external condition could have very will
gone down hill just as quickly. Old roof , not paint or power wash , the yard not being cut
on a regular basis and allowing it to grow like a jungle. Landscaping being none existent.
Once the bank takes over the property there will still be very little work done if any to the
property. All the Bank wants to do is get rid of it and off its books. The longer they have
it the more lose they take. So the property just sits there waiting for someone to come along
a grab it as-is where-is.

So you have a advantage in regards to property condition. Make sure your property is in tip
top shape before you put it on the market. Landscape it to the last detail. Add flowers and
make sure you land is trimmed up to the best it can be. Make the external aspects of your
property be the best in the area.In other words curb appeal beyond the rest. Make sure the
property is immaculately clean on the out side. Fresh paint or complete cleaning from top to
bottom. Invest in a new roof and HVAC if need be. New windows or at the very least full
recondition of windows and doors. Bring the interior up to date by upgrading fixtures and
lighting. Flooring walls and ceiling being clean as a pin. Make it stands out being clean
enough to go from to room with a white glove and not pick up a speck of dust.

You might say this is to much to do and I will have to ask even more to recoup the money I spend
on updates. Actually the answer is no. You have to be frugal and search for deals with materials.
Do your home work and find the sales and use coupons. You will be surprised on the savings.

Once you have cleaning up and spruced up. Pick out the things about your property that makes it
special. Any extra amenities you have or maybe have added. Find the things that makes your property
special. May the yard is a bit larger than others, or a nice patio or extended deck. Island kitchen
counter tops or small nooks that can be used for quite time. Bonus rooms or extra space for home
office. Larger windows or well lit areas in different rooms. Any small thing that sets your home
apart may be important for that potential buyer. It may not mean anything to you but a buyer just
might love it and buy because of it.

Now that you have cleaned up and found all the little things that set your house apart, its time
to market it. When you go For Sale By Owner all that will be up to you. You will need the skills
to promote your home. Have the ability to sell your property and put it out there. Give it the
exposure it needs for the buying public. Be able to screen potential buyers and pre qualify them.
At the same time be able to weed out those that think they can buy but actually cannot afford the
property. You have to be able to field the many phone call you will get from your marketing efforts.
You will need to set appointments for showings and have the property staged to sell. You will also
need all the many documents involved in real estate transaction. You need a closing department and
or Real Estate Attorney to seal the deal. There are many other things required when selling your
property. To many to mention here that are involved in the selling process. Give it a try first!
But if it seems like it is to much or you simply will not have the time. Use a Real Estate Professional
to sell it for you!

Well if you would have came to me about 2 years ago with that question. I would not have hesitated to tell you sue lets find you the house you want and get a offer written. We would have sat down at the office and followed a buyer process that delt with various steps toward home ownership.

After a initial consultation and a few questions on what you were looking for. We would then search the MLS and look around the city for properties that would fit your preferences. Maybe lining up anywhere from 20 to 30 house and then narrowing them down to about 10 and then actually looking at about 5 of them.

After picking what you want we would write a offer on the property and begin to negotiate on price with the listing agent to reach a meeting f the minds to close the deal.
Not even a thought about financing in this scenario. Just going right along with the confidence that that we can get financing because then it would not have been a problem. Credit score at 580 no problem. Debt to income ration marginal, no problem, low income not quite enough to make the mortgage payment , no problem, no down payment and just enough for closing cost, no problem. Then a person could have all those particulars or a few of them and get down payment assistance and contribution form the seller and get 100% financing and get a loan.

That type of lending is what caused the damage to the housing market. Years of sub-prime lending caught up with us all. Went to the well a fe to many times and now the water has run dry. The cupboard is bare and the funds are locked up tight as a drum.
So you want to buy a house? Can you buy a house? Sure you can. You can still become a home owner and still get down payment assistance and also 100% financing. However you now must be fully qualified and meet the requirements for the risk of lending. Now you have to be and show that you are sound financially. You have to be able to show you have what it takes to be a home owner. You have to show you have paid your bills on time the majority of the time for a period of years. In other words you must have a middle score of 620 or better. You have to show you know how to manage your money. You have to have a debt to income ratio that allows plenty of income to comfortably pay your mortgage. You have to show that you have the ability to save money by having money in the bank even after you have put up the money for a down payment, anywhere from 6% to 20% of the sales price of the property. Those fly by night days of lending are orve and done. Yep you can buy a home but now you must show you got what it takes. Actually the landscape has gone back to the way things used to be. Now the traditional way of purchasing a home having a long term job, paying your bills on time, saving money toward a down payment, then finding a home to purchase.

It was a nice idea trying to make it possible for everyone to have a home. But the result ended in disaster and damaged the market. Not everyone is supposed to have a home because to many people cannot manage their finances as they should. Too many live above their means. This is a drawback of living in a material world. Wanting more than what you can afford.
As a Real Estate Professional I have not given up on the market. If you cross my path and ask for help in buying a home be ready. My first question is what is your middle score? Then how much do you have on have in cash for a down payment closing cost and pre- paids. Then how long have you been on your job and what is your gross income. If you can’t answer with good answers well….. it’s a no go. I will however help you prepare to purchase if you have the discipline to get it done. Home buying is no picnic anymore.

Sitting here in my easy chair and thinking about where my next deal can come from and what I will do next to close a transaction. I was thinking about the extension of the Home buyer tax credit and all the buzz that is going on about it. Heck the first article I posted in this new blog was about the extended tax credit. It is accurate from a very good source from Renee Powell. I had been looking for a collaboration with a good mortgage person form a very long time and actually never really ran across any that worked how. I have done deals with several but they were spread out over the lot of them never really settling down with a source. Since I primarily did listings selling instead of working with buyers I would run across the Lenders from buyers seeking to buy my listings.

Now the down turn created a buyers market and listings seem to dry up because sellers can no longer get the prices they did in the past . Most seller think their property is worth more than what it will sell for anyway. That was something I learned early on when I started in the business a few years ago. I managed to sell however because of my ability to explain to seller that a reduction in price was what was needed after a period of time on the market. Being able to back it up with statistics and information instead of just talking about it with no proof. Most listened and reduced price that resulted in a sale.

I wonder what is ahead for the market. Since I was one of many that has survived the down turn. Many did not survive and just dropped out of the game. Me I am still in it to win because it is one of my passions. I have a gut feeling the market will pick up in 2010. I think as the tax credit extension really take root with buyers and the many buyers out the that have worked on their credit score come around the market will pick up. The problem is to many in the area have low scores and really need to be 620 or better with middle scores. On top of that they need to have money for closing cost , down payments and pre-paids. Most time about 5 to 6% of the sale price. With out those criterion they will be hard pressed to get financing. I just don’t see it happening like back in the old days before the bust. I no longer consider those that approach me about buying with out asking those key questions about scores, income , job history and available funds. Those questions now are even more important than in the past. Back then you could get away with low scores and even no money down. But I guess that is why we got into this mess in the first place.

As the economy picks up and more jobs are available that will help things in a big way. The Median income in Mobile is well below the national average but the property values and property taxes are also low. If the income level picks up from new industry we will have a real nice market in Mobile and it will pick up even more. We really did not get hurt to bad like the rest of the country. Foreclosure rates went up but no where near as high as some part as the country or like in Florida. We stayed at a steady rate just enough to provide that good deal for the bargain hunter or investor. Even now they hold steady but are not on the rise.

As I continue my thought I now wonder where and how I will pick up a few buyers and have them prepared to purchase. There are not many around now with good scores. I actually know how to find them by networking and staying out there in the field talking about Real Estate everywhere I go . But the results have been the same. Low score low income and no money saved. Until things get better with jobs and income the pickings will be slim. But I have confidence in the economy and the countries ability to bounce back from all the financial issue we have endured these last 2 or 3 years. It will come back to being good again. Maybe not as hot as it was but enough for a deal here or there. The other thing I think about is the investment portion of rental properties. The rental Market is hot now because no one can get a loan. They are forced now to rent. I think about monopoly! Think I’ll start to play that game in a few months in 2010!

This is blogging on steroids! Since Mobile Alabama is relevent this is the blog for the spot! Set up for all Agents in Real Estate. Need a Blog? Set up a blog for your city. You are welcome to sign up and create your own Blog and get busy with it. Enjoy the site.