Category: Market Updates

Paul Wheeler is quoted in a very informative article which discusses the current effect of interest rates on the housing market.

Click on the following link to view the article.  http://goo.gl/pfn82

I want to take a moment to share with you my perception of the current real estate market.  I have been in the real estate business for almost two decades now and have never seen a market quite like this.  The Tulsa area has seen a five year decline in sales.  We are still selling a lot of homes, but we are seeing a decline in value of those homes by anywhere from10 to 30%.  This decline in value is attributable to the increase in foreclosures and distressed sellers – many who have sold homes through the short sale process.  With all of that said it is truly a great time to buy.  The interest rates remain low and inventory high.  There are always swings in the real estate market, so I expect values to go back up, but don’t expect it to happen quickly.  So in this market a home is like a fine wine or a good stock – classified as a BUY and HOLD. 

If you have to sell or really want to take advantage of the buyer’s market by selling your current home, it is more important than ever to hire an experienced and productive realtor.

My university degree is in psychology/sociology.  While making my way through my academic career, I remember studying an inordinate amount about the I.Q. (Intelligence Quotient).  While a measurement of intelligence may have some validity in psychological or sociological circles, I can think of few things less meaningful in the real world.

We all know people with great technical or academic intelligence who can barely survive, much less thrive, in the world in which we live.  Any successful leader or CEO will tell you that they strive to surround themselves with people who are more intelligent than they are.  Whatever value intelligence may have, it is a readily-available commodity in the marketplace that is not highly rewarded or compensated.  There is a much more valuable but far less known I.Q. known as Implementation Quotient.

 

Every month or two for the last several years, I have had a working lunch with my friend Paul Wheeler.  If you ask Paul, he would probably tell you that I mentor him, but in reality, I receive far more from our regular exchanges in personal and professional terms than Paul does.  Paul Wheeler is one of those rare individuals that I like to spend time with as often as possible because Paul is simply the best at what he does.

 

Whether it’s Steve Forbes, B.B. King, Albert Pujols, Brian Dennehy, or Louis Gossett Jr., I love observing, studying, and interacting with people who pursue their passion at the highest possible level.  Paul Wheeler is a realtor.  Paul and his company Accent Realtors are consistently among the very top performers in our city, region, and state.  Paul Wheeler sells more houses in a few days than the average realtor sells in a year.

 

I’ve had the privilege of observing Paul over a long period of time, and even though he’s my friend, I would have to state for the record that Paul is not smarter, better trained, or more talented than the hundreds of people whose performance he eclipses.

 

If you met Paul, you would find him to be very pleasant and unassuming.  But the thing most people overlook about Paul Wheeler is the fact that he has an extremely high I.Q. (Implementation Quotient).  At every one of our luncheon meetings over several years, Paul arrives with a notebook that describes the action items we discussed in our last meeting and how he has implemented them.  Then during the course of our lunch meeting as we discuss various ideas, Paul writes down the thoughts that he believes to have merit.

 

Everyone has great ideas of their own or great ideas that are presented to them.  What makes Paul Wheeler a superstar among a field of mediocre performers is simply the fact that Paul implements.

 

When it’s all said and done in our world today, there’s a lot said and very little done.  We don’t receive rewards for what we think, know, believe, or study.  We are rewarded for what we do.

 

As you go through your day today, think great thoughts, focus on new ideas, but be sure to implement them all.

 

Today’s the day!

 

Jim Stovall is the president of Narrative Television Network, as well as a published author of many books including The Ultimate Gift.  He is also a columnist and motivational speaker.  He may be reached at 5840 South Memorial Drive, Suite 312, Tulsa, OK  74145-9082; by e-mail at Jim@JimStovall.com; or on Facebook atwww.facebook.com/jimstovallauthor.

The additional tips that follow will help you save energy all year long:

Make sure that your home is properly insulated. This will reduce energy costs and keep you comfortable in summer and winter.

Plant deciduous trees around the south and west corners of your home; in summer they will provide shade, which will help to reduce cooling costs. In winter, when they lose their leaves, the sunlight will help to heat your home.

While summer presents a number of unique opportunities to make your home more energy efficient, it is important to remember that conservation is a year-round effort.

Most people don’t spend their time tracking FHA policy changes, unless of course you’re in the real estate industry. I received this information regarding some changes in the Federal Housing Administration (FHA) and wanted to share it for the benefit of those in the Tulsa area.

The bottom line is this:  FHA is tightening up its policies and instituting stricter requirements for providing mortgages. Their rationale is simple.  FHA is no longer a cash-flushed organization, quickly handing out loans to all who ask.  After the mortgage crisis, it seemed like nearly everyone wanted an FHA loan. Understandable. But, like any financial institution, the Federal Housing Administration needs to find out how it can serve the underserved while at the same time managing risk, all the while trying to assist the nation’s economic recovery.

Here is a quick snapshot of some of the major changes.

• Up-front mortgage insurance premiums will increase to 2.25% (formerly it was 1.75%). This will help increase the agency’s reserve fund, which is in dire need of replenishing.
• Successful loan applicants will have a minimum credit score of 580 to be eligible for the 3.5% down payment. Borrowers who have lower credit scores will need to find a way to provide a heftier down payment (10%).
• In addition, sellers get a shorter leash, too. Now, sellers are required to cap at 3% the amount they offer for closing costs. They used to be able to pay closing costs up to 6% of the home’s price. This requirement brings FHA loans in line with typical industry standards, while preventing the practice of inflating appraisals.
• Any lenders offering FHA mortgages must assume liability for the loans.  FHA is serious about this new requirement, and will occasionally publish lender performance reports for the general public.

Why all the changes? As I mentioned above, FHA needs to protect its assets (and thus its mortgages) as best it can. Everyone is adapting to the new economic climate—individuals, big business, and government alike.  As an indicator of their tenuous status, nearly 15% of all FHA loans were delinquent at the time of last year’s third quarter reports.  Don’t worry, FHA will probably not lose its stature as the biggest lending agency.  Almost half of all first time homebuyers use FHA loans, and last year, 30% of all loans came through the FHA.