El Paso Real Estate

2010-04-26T13:54:00.002-07:00

This country needs to address its needs for comprehensive immigration reform.

Yes, there are some deep divisive issues, like what do you do with the 15 or 20 million people that may already be here illegally. Is there a way to create a pathway for these people to become legalized without being rewarded for being illegal?

Maybe, something along these lines would start us thinking and coming up with solutions. Every person that is here illegally would be given a date by which they would have to register, get a social security number, a drivers license and be assessed a fine, (5K to 10k) that would be payable over a 5 year period, during this 5 year time they would be required to learn English, pay taxes and stay out of trouble. If they fail to register, once they are apprehended they would be deported and never allowed back into this country.

If an American, individual or Company hires an illegal that has not registered they would be fined an impressionable amount…$15,000 to $20,000 for each person they hired.

At the end of 5 years, provided they have complied with all the requirements, they would be granted citizenship. Ok I’m sure there is room for a lot of tweaking in this idea, so let’s hear from you.

The El Paso real estate market continues to be brisk.

2010-04-06T15:34:00.003-07:00

Community leaders!
I heard on a local radio talk show today that El Paso lacks leadership in its elected leaders…I say that there are many in this community who have the wisdom, vision and charisma to be great leaders..Since perfection is unattainable and we all have this in common these potential leaders also lack “perfection”. Who in their right mind enthusiastically steps in to the political arena and subjects their entire life to being analyzed, scrutinized and judged by people that are also imperfect.
So if we have great leaders, do also have a better real estate market?

2010-03-30T08:59:00.001-07:00

How do we know when the housing market has bottomed?

Waiting for the bottom is a tricky endeavor. You and I won’t know when the bottom is hit until after the fact Yeah it will be about 6 months later that the reports will come out saying that the housing market hit bottom on such and such a date and is now heading up..Oops, we missed the bottom!
If you’re looking to buy a home in the El Paso real estate market, consider these facts;

• As I write there is still an $8,000 tax credit for first time home buyers and a possible $6,500 for present home owners who are buying.
• Interest rates are at or near historical lows. Depending on your credit you can expect to secure financing in the low 5% or even high 4%.
• There are currently more homes on the market than buyers. This is a good time to negotiate a good deal.
• The impact of being about 8,000 short on rentals and the huge impact of the influx of new troops and their families has not been felt yet so it’s still an excellent time for buyers in the El Paso market.
• And finely if you’re currently renting, at the end of the year all you have is an accumulation of rent receipts and “O” equity.

So don’t put it off, the El Paso real estate market is ripe with good deals. Go out and get yours today!

2010-03-23T11:15:00.002-07:00

What do buyers and sellers want from their agent?

The Sunday paper is filled with agents who spend their hard earned money to simply gloat about how much money they have made. You have all seen the ads, “A Gazillion Dollar” producer all the way down to “One million Dollar” producer. The reality is none of these advertized figures are the amount of money that agent actually earned. For example a one million dollar producer may have earned as high a $26,000 or as low as $14,000. It’s not the dollars that the agent earned that matters it’s the level and quality of the service that the agent renders that makes a difference to the next client. In my opinion these agents are throwing their money away. The newspaper, on the other hand, is happy to see them run these ads.

I contend that buyers and sellers are not impressed by these ads and they aren’t dazzled by boastful agents, and no one wants to feel that they are being sold. What any buyer will welcome are the unmistakable benefits of choosing any particular agent.

Show the potential client what they get when they choose you to represent them! What is extraordinary about your services? Does your service start even before there is a commitment and is it sincere? Make sure that you’re not just offering ordinary service (service that is expected). Pride yourself in offering service above and beyond what is expected.

The El Paso real estate market is starting to heat up so make sure you get a great agent to represent you in your selling or home buying

Get Loan Approved before finding a home

2010-03-15T14:36:00.002-07:00

Get loan approved!

I hear buyers say, “I know that I can qualify for what I’m looking for! I will find a lender once I have found the home that I’m interested in”.

In The El Paso real estate market today, if you do not submit an approval letter from a mortgage company at the same time as you submit an offer, your offer will more than likely not be presented.

The real estate market has changed. Getting financing is not the slam dunk that it used to be and lenders requirements are much more stringent. So if you’re a buyer in the El Paso real estate market, you should position yourself as the absolute strongest buyer that you possibly can. It’s going to reduce stress in the buying process and allow you to negotiate the best deal you can.

In my opinion, using some of our local lenders also is an advantage because they use local underwriters who know our market as opposed to out of town underwriters who may lump the El Paso real estate market with real estate as a whole and that can cause some unfair biases. Another reason to use local lenders that have been recommended by your real estate agent is, the agent through experience has assembled a team of professionals that are critical to having a smooth stress free closing for your benefit. The lenders that they recommend are ones that have proven to be competitive, reliable, responsive and honest.

So when you’re out looking for a home and your agent recommends that you get loan approved they are insuring that your transaction flows smoothly and stress free and ultimately you are the winner.

2010-03-11T14:26:00.004-07:00

A case for the rate case!
The El Paso Electric Company filed a rate case with the Public Utility Commission to increase its rates in December 2009. The electric company’s franchise agreement with the city is also up for renewal and renegotiation. One of the perks or incentives is the electric company is offering:

• Go along with our rate increase and we will move one of our facilities down town, bringing 130 new people to the down town area.
El Paso has an average of 202 days of sun per year and is number 6 in the country for annual possible sunshine days. El Paso could easily be the solar capital of Texas. One of the keys for this happening is in the outcome of the negotiations taking place right now between the city and El Paso Electric.

• Without a favorable outcome for the electric company’s consumers, El Paso will never be able to reach its potential of being the mega solar area of Texas like the Permian Basin became for oil.

• It boils down to the fact that in New Mexico, the same electric company that serves El Paso, buys back the surplus renewable power generated through things such as solar panels from New Mexico consumers at a rate around 12 cents per kilowatt-hour.

• In El Paso they buy it back at a rate of around 3 cents. This is a huge disadvantage to El Paso.

I will get into the importance of the buyback rate in a moment. As the negotiating proceeds between the city and the El Paso Electric Company time is of the essence for the elected leaders at city hall to insist:

• That as part of any rate increase and Franchise renewal, the purchase of surplus renewable power generated on roof tops of private homes will be purchased by the electrical company at 12 cents per kilowatt-hour.

• That those 130 electrical employees be brought into the downtown area to.

If this happens you will see an explosion of installation of roof top solar panels, maybe even the manufacturing of solar panels here in the city and more research and development at UTEP thereby bringing more clean high paying energy jobs to this region. I fully understand that these negotiations are like a game of chicken or poker, lots of bluffing and posturing and ultimately if the utility company feels they are not getting a fair shot with the city they can take their case to Austin and have it heard by the Public Utility Commission. Here is where it’s going to take leadership and skilled diplomacy on the part of city leaders to persuade the electric company to do the right thing by being a catalyst in allowing El Paso to compete on an equal footing in trying to become the solar capital of Texas.

Here is why that buy back rate is so important. Today at the kilowatt-hour that the electric company is willing to pay you for your surplus renewable power (electricity), if you install solar panels on your home is around 13 to 15 years payback time. At 12 cents that payback is around 4 to 7 years, there are additional tings that the home owner can do that will help the payback time be shorter, such as installing energy efficient light bulbs, weather stripping and extra insulation. Buying a solar home and amortizing the extra cost of solar over 30 years is negligible compared to the savings every month on the family budget. If we can get to where, instead of having to be concerned about an electrical bill, we actually receive a check in the mail each month from the electric company, there would be an explosion in the El Paso real estate market, homes would become more affordable and as demand for solar increases, the cost of solar panels will decrease.

So contact your city Representatives and don’t let them be hoodwinked by the utility company. This is one of those rare opportunities for El Paso to put itself on the map. let’s not miss out on being the capital of solar energy in the South West. The outcome of this rate case and franchise renewal is pivotal to our future.

2010-03-03T16:01:00.002-07:00

Ok now the votes are counted:

We have some winners and some candidates that are in runoffs.

Let’s make El Paso the winner by holding our elected officials accountable. We elected them to get things done, move the community forward not entrench themselves as career politicians. How about this concept-we will continue electing you as long as you get things done for our city and not because you happen to be a Republican or Democrat. How long must we endure politicians or political parties that feel they are doing us a favor by us electing them?

El Paso is steeped in a rich history and culture, yet we continue to lag behind when it comes to believing in ourselves as a major modern city.

The rest of Texas ignores us and we continue accepting being the step child of Texas. We somehow have bought into the victim mentality, where we are at someone else’s mercy.

It’s our fault for letting ourselves be led like sheep and treated as insignificant. It doesn’t have to be that way; YOU and I can change things by letting our pride rise up and pour out like the flowing mighty Rio Grande, before it was harnessed. We have things in this city that many other cities would love to have for example:

• Our old west Mexican heritage dating back beyond the 1800’s.
• The only major city sitting right on a border of another country and two states.
• The most delicious Mexican food in the country.
• An unmatched symbiotic relationship with Mexico. (granted things are out of kilter right now)
• Our Franklin Mountains (the tail end of the Rockies) traversing through our city along with a historical river that runs through our mists.
• We are home to the oldest missions in the country.
• And yes we, not San Antonio, are the true gateway to Mexico.
• We have some gorgeous historic architecture that permeates our downtown area.
• Our spectacular sunsets and our abundance of clear and sun filled days.
• We have a young and thriving population.
• We also have a population that is starved for leadership that can paint of picture of the future where they can see themselves in a community that entices young bright minds to stay and build their own future; where there are opportunities and high paying jobs, diverse cultural activities and where illiteracy and poverty are the exception and not the norm.

El Pasoans, this can be our El Paso! It’s going to take people like YOU and me to have big dreams and not allow anything or anyone to steal our dreams. We have to come together as a united group. Let’s be proud of who we are and stop trying to be something that we’re not. We will never be a Scottsdale or Albuquerque or San Antonio or Tucson, we are El Paso. Let’s focus on all the positive things we have that make us unique. The future of this great city is in our hands, let’s never blindly hand it over to a political party or to politicians…you have cast your vote now HOLD YOUR ELECTED OFFICIALS ACCOUNTABLE.

My usual blog is about the El Paso real estate market, with the elections I decided to change it up a bit..then again elections and market conditions may go hand in hand

2010-03-02T12:46:00.000-07:00

When buying a home, should YOU have representation?

In the State of Texas a real estate agent can represent either the buyer as a buyer’s agent, the seller as a seller’s agent or with permission of both parties can act as an intermediary. I’m going to be talking only about YOU as a buyer.
Here are some of the benefits to YOU in having a buyer’s agent! These are legal issues that a buyer’s agent is bound by.

• The agent will have a fiduciary responsibility to YOU. Your interest will be held above anyone else’s in the transaction.
• Loyalty only to YOU, fairness to all parties.
• Anything you tell YOUR buyers agent in confidence will remain confidential forever.
• Anything that the buyer’s agent learns about a seller’s motive for selling or that would be germane to YOUR decision in what YOU might offer, or if YOU will even make an offer has to be disclosed to YOU.

There should be NO COST TO YOU in having an agent represent YOU. The El Paso real estate market will be easier to navigate with the help of a buyer’s agent, so provided YOU feel that the agent is a good fit with YOU and they understand YOUR particular needs, desires and time table for purchasing, my recommendation is have the benefit of representation.

When an agent represents YOU they anticipate that YOU will sign a representation agreement that states YOU will be loyal and work with them exclusively. What if after a couple of hours, or days, YOU realize this isn’t the right agent? (The agent can also come to this conclusion about a buyer and in that case the agent is probably going to fire themselves, while rare, this could happen.) YOU have a safety net in that if YOU selected an agent that is a confident, knowledgeable professional, they should add verbiage to the buyer’s representation agreement stating, “That if for any reason YOU are not satisfied with their service you can cancel the agreement”. At this point YOU both have an out of the agreement. If they are not willing to do this perhaps YOU do not have the right agent.

Let’s talk about the additional services that you should expect when YOU are being represented.

• The agent is working on your behalf and should demonstrate that they understand it is YOUR hard earned money that is at risk.
• The agent will make YOU aware of the properties that meet YOUR stated criteria after listening to all your needs.
• The agent will encourage YOU to ask questions and assure YOU there are no dumb real estate questions.
• The agent will walk YOU through the entire buying process to ensure that YOU understand each step and the potential hazards at each juncture. The agent will explain what they will be doing to ensure that it is a seamless transaction.
• The agent will have an “A” team, consisting of coming together to make your closing happen and on time. The agent develops trust and confidence in their team through their experience with many prior successful transactions.
• Helping you understand the El Paso real estate market is one of the critical responsibilities of a buyer’s agent.
• The agent will attend the closing with you and will have secured the closing documents, or at least the closing statement, before closing, thereby insuring there are no surprises at the closing table.
• Bottom line ordinary service is what you should always expect, extraordinary service, is what a good buyers agent brings to the table. Positive experiences that you did not expect. It is the subtle details that make closings flow seamlessly, effortlessly and smoothly.

Remember that every agent and agency is going to adhere to their legal responsibilities. Where you need to be selective is in those extras…the “extraordinary” services!

Price Reduced (Not a good thing)

2010-02-23T09:21:00.004-07:00

Reduced!

How many times have you seen a reduced rider that seems to be ready to fall off but instead is just hanging on a For-Sale sign on a property?

If you’re a seller don’t let your agent do that to you. In my opinion “Reduced” signs sends the wrong message. It’s a message of desperation and puts you, the seller, at a disadvantage.

Agents should know better! If the home was overpriced or you’re selling in a declining real estate market and your agent is now telling you that a price reduction is needed, lower the price and make the changes through Multiple Listing Service (MLS).

Print new feature sheets -don't cross out the price and hand write the new one!!

Don’t advertise to the world that you’re now desperate.

While many real estate markets a cross the country are crashing, El Paso's real estate market has not plummeted. Slowed down yes! in some price ranges and areas more than others. The future for our housing market should be bright and all indicators point to that.

Follow my blog and I will keep you updated on why I'm optimistic about our housing market.

Economic drivers

2010-02-22T11:56:00.004-07:00

Economic drivers!
I will never again forget or underestimate the impact on our economy that is created by the jewel of higher learning that sits on the mountain overlooking the Rio Grande!
I’m not sure how many times I have mentioned that the main economic drivers in El Paso are:

• The growth of Ft Bliss
• Medical School
• The Research center that accompanies it, and of course the
• Downtown revitalization.

There is another driver that is not spoken about much and should….It’s UTEP and its march to becoming a Tier One University, considering that the definition of Tier One is generally a University that is spending $100 million in annual research, that is twice as much as UTEP is now spending.

It’s commonly stated that every great City has a great university as its foundation. One cannot overlook the impact that UTEP currently has on El Paso’s economy, and our real estate market. UTEP has an operating budget for 2010 of $335 million and 6,577 jobs are attributed directly to UTEP being here. The $250 million in Construction that is currently happening at the university has had a big boost in our local economy.

The purchasing of supplies and all the intellectual capital that UTEP brings to the region has a huge economic impact on El Paso already. There are thousands of people employed because of the University. Currently the annual research spending at UTEP is around $52 million. As a Tier One University that $52 million would double and it’s easy to see what an immense economic catalyst that would be.

There will be more professors, students, building, supplies purchased, bigger payrolls, and more demand on our El Paso real estate market. Achieving Tier One status at UTEP in part has to become a community effort! The business sectors along with individuals need to realize all the benefits that this will bring to the region. An investment in UTEP is an investment in the future of our community.

So let’s not under estimate the “Jewel” of higher learning that sits on the mountain overlooking the Rio Grande,” UTEP”.

In the Cross Hairs!

2010-01-16T17:31:00.008-07:00

In the Cross Hairs!

Thousands of soldiers and their families are coming to El Paso, most of these families will be young and most of them will be renters. All the soldiers get a Basic Allowance for Housing (BAH) some will get less some will get more on average that allowance will be around $979.00 per month, this allowance is for rent and utilities. Take away the utility allowance and their left with about $790.00 for a mortgage payment or for most of these soldiers for a rent payment. Average rents in El Paso today are around $700.00 per month; The El Paso real estate market has always included a strong rental market.

Here is where it gets interesting; these Soldiers will start arriving in mid 2010 or shortly thereafter. The city of El Paso does not have enough rentals to meet their demand; projections are, in 2010 there will be a shortage of rentals to the tune of 4500. Then the shortage will increase to around 8,000 as we approach 2013.

Since no one can deny that we are facing a massive demand one would think that the normal pressure of a supply and demand market would encourage an increase in supply. However, here are the cross hairs I see us in:

The highly acclaimed real estate advisory firm of Alvarez and Marsal conducted an El Paso real estate market study on what could be done to stimulate development….as a part of their study they figured out what it would cost, today, to build a 250 unit apartment complex in El Paso and what rents or BAH would have to be for the developer/builder to satisfy the loan and make a return on their investment. They presented their findings to City Council last Tuesday. According to their report on this one issue, it would cost $25,000,000 to build. Taking into account the current BAH of soldiers and the average rents in El Paso, there would be a $6,000,000 short fall in this hypothetical project. Assuming soldiers are the primary tenants, their BAH would have to be around $1,300.00 in order for this project to work! What builder is going to go into a project knowing that he is looking a losing Six Million Dollars? What bank is going to lend money on this project?

Here is the rest of the story; As the demand for rentals increases, there is little doubt that rents will go up. So let’s say that Soldiers BAH goes up and we reach that $1,300.00 per month. While the soldiers with higher BAH may be able to pay that rent, the everyday renter who’s salary has not gone up will not be able to…..then what?

Here is where the opportunity is; as a city as a community the citizens need to bring together bright minds with fresh ideas and catapult this situation in to an unprecedented opportunity. We should be thinking about higher density complex’s (maybe even high rise apartments or building smaller homes with common walls, using zero lot lines as the norm, or how about “green technology” that uses modular construction as a cost savings devise.) Why not smaller yards, in exchange for common gathering areas, like parks with gazebos and play areas for the neighborhood to come together, we already have models right here, like the Kern area. Where should this type of project be developed? What do you think? How about in the downtown area or say along the medical corridor. My vision is of a mixed use area with retail, grocery, a daycare center, etc. The City should be aggressive in helping to incentivize projects that incorporate mixed use and smart growth principals. How about adding a solar component to this project, like solar panels on each unit and get the electric company involved in buying back the excess wattage that is produced. We might venture into uncharted waters but out of the cross hairs. I’m just throwing out ideas; remember I said there needs to be a collection of “bright minds” working on this.

While I believe the city has a role to play in all of this, it has to start with the private sector. Throw in Innovation motivated by capitalism and a desire to move this city forward and we have the recipe for success. One thing is for sure the City has got to be careful not to impose onerous regulations that are going to discourage new development (and if currently there are such regulations remove them.) We can solve this and turn it into a model for other cities but we have to do it collectively and we have to do it now.

El Paso real estate markets and the city as a whole will forever change in a short period of time. We can’t sit here and do nothing. If we wait it will be a huge problem. If we address it today it can be a huge opportunity, either way we are in the cross hairs and Uncle Sam has already pulled the trigger.

Dan Olivas is the President of Dan Olivas and Associates.

Ideas for selling your home in 2010

2010-01-04T12:56:00.002-07:00

2010 looks better for home sellers:
Happy New Year!!

If you’re trying to sell your home in the El Paso real estate market during 2010, what can you expect from the market? Here is a list of things that I think will help sellers;

• Interest rates have been at or near historical lows, this means that more buyers can qualify, as long as interest rates stay low it will help buyers and therefore sellers.

• The continuation of the first time buyer’s $8,000 tax credit and the addition of a $6,500 tax credit for repeat buyers will surely have an impact on sales in 2010.

• There is a lack of housing for the needs of the troops and their families coming to Ft. Bliss, even though this housing need is more about rentals than it is about homes for sale. The pressure on rentals will have a positive impact on the sale of homes at least for those in the $250,000 and below price range.

In the 30 years that I have been in the business of helping families moving in and out of El Paso, these are 4 things that I have learned when it comes to putting a home on the market and especially in a challenging El Paso real estate market

• Do yourself a favor, make sure your home is priced correctly; this market is unforgiving if you don’t! Don’t let your home be one of those in the Multiple Listing Service that are used as examples to demonstrate what a deal the competitor’s homes are.

• How can sellers be assured their home is priced correctly? The short answer is to hire a licensed appraiser and pay $350.00 to $500.00 for an appraisal.

• Hire a professional real estate agent who has a proven track record of understanding the El Paso real estate market and will do a comprehensive market analysis, including visiting the homes that they are using as comparables to yours.

• Your job in this process is to keep your emotional biases in check, more often than not sellers, and that includes me, become overly emotional in pricing our homes. Example: we made sure there was extra insulation in the walls or we converted the garage to a play room…while that’s great, we did it for our benefit and it probably won’t bring us a higher price at the time of sale. Here are a couple of other things about the pricing process; If your home has a new roof you are not going to get more for it than the home down the street that has a perfectly good 8 yr old roof…sorry that’s not the way it works. The same goes for new carpet and air conditioning (now if you just converted from evaporated to refrigerated that’s different) If you have a in ground pool you will only get a portion of its original cost, from $0 to about $8,000 dollars..Good professional agents will advise you of all these peculiarities in the selling of your home.

• Markets are driven by what willing buyers are willing to pay and what willing sellers are willing to sell for….Generally this is the criteria that is interpreted and used to come up with an opinion of value by licensed appraisers. A good market analysis will mimic or come close to what an appraiser does. A word of caution- Appraisers in most cases will try to use comparable home sales that took place in the last 6 months only.

The bottom line is that 2010 should be a much better market than 2009 was. If we know what dictates the pricing of homes, we should be able to sharpen our pencils and price our properties competitively. Beware that maneuvering in a challenging
El Paso real estate market is easier and more profitable with the help and guidance of a real estate professional.

Have a great 2010 and may your home selling be smooth and profitable.
I invite your comments.

2010-01-01T13:49:00.002-07:00

How to choose a real estate agent in El Paso to sell your home!
1. Proficient in marketing on the web.
2. Minimum experience of 500 sales.
3. Continue to educate themselves in their profession.
4. Have good negotiation skills.
5. Is assertive.
6. Has a strong base of repeat customers and good references.
7. A good clear communicator.
8. Has a specifically designed, marketing campaign for you.
9. They are good listeners.
10. A written personal guarantee stating that if you are not satisfied with their service they will let you cancel the listing agreement.
11. Choose an agent that can demonstrate they are good networkers.

(1)The key ingredient here is how proficient is the agent at marketing on the web? All real estate agents are different; each one has their own unique attributes. It’s commonly stated that about 10 to 15% of agents sell 85 to 90% of the homes. The
El Paso real estate market is no different. An agent that reaches large number of buyers provides you with a better chance to sell your home.

(2)The more homes sold-the more experience. Experience is certainly something that you should look for; let new agents learn the business on your competitors homes. The true gage for experience is how many transactions the agent has been involved in, not the dollar amount that they have sold. Experience is particularly important in challenging markets, El Paso’s real estate market is challenging today and that’s when you want someone who knows how to get creative and proactive. Experience also helps an agent be alerted to red flags during the transaction and prevent problems.

(3)Education, degrees and certifications that have been earned demonstrate a pride and a determination in polishing business skills. It also shows that they are keeping up with an ever changing industry. An agent that has the initiative to better themselves and is constantly improving their skills will outperform an agent that does not, when it comes to marketing your home.

(4)Good negotiation skills come from experience of having done this over and over again and the payoff is in being able to bring the sides together by logically articulating ones position. Negotiating is also about knowing where to take and where to give in order to achieve the client’s objective.

(5)Assertiveness is a way of behaving and thinking. Maintaining good eye contact, good posture and a strong positive presence….Assertive attitudes and behaviors is the very core of effective advocacy. An assertive person is always going to understand that standing up for your position is their responsibility while respecting the position of others…They will invariably wind up with a win, win solution. They tend to face problems promptly and they will focus on the opportunity for solutions rather than the depth of the problems.

(6)Repeat customers and good references- this is an indicator of a successful solid track record. A true professional agent will welcome you calling their references and in fact references will be part of their initial presentation.

(7)Being a good communicator means several things: for one, they will have a systematic system of keeping in touch with you on a regular basis. There is nothing more frustrating than not being kept in the loop as to what is transpiring in the marketing of your home. A good communicator will also make it clear to you what is changing in market conditions and price points and how that might mean the necessity of a different strategy in positioning your home or in its marketing. The El Paso real estate market is an evolving market.
(8) Developing of a marketing campaign is something that is unique to each property and to current market conditions. Your agent should have the ability and vision to put together a strategy as to how they plan on making your home stand out to potential buyers. This marketing plan should have flexibility and should be presented to you along with a schedule of how often it will be updated.

(9) Good listener- Being a good listener is a learned ability. Having an agent with this ability pays huge dividends not only when you are trying to voice your concerns but also when negotiations are under way. Make sure the agent is interested in hearing and understanding your point of view...Do they ask questions that indicate that they are interested in your view point, such as...”I’d like to hear your thoughts on…” “What does the situation look like from your perspective?” Do they let you know that you have been understood? Remember that understanding is different from agreement.

(10) A personal written guarantee- You should have a guarantee that states that if you are not satisfied with their service, they will cancel the listing agreement, at no cost to you...Not withdraw it “cancel it” and allow you to hire another agent.

(11) Good networkers are people who know the value that social capital brings to the marketing table. Social capital is what a person accumulates by having many people know you and more importantly they know what you do for a living. When people believe in you and trust you and become invested in your success, they will refer their friends and co-workers to you. This is when social capital pays off. This separates the professionals from the novices.

With a professional in your corner the El Paso real estate market becomes easier to navigate

What If I had a magic wand?

2009-12-29T14:26:00.000-07:00

What will it take for the real estate market in El Paso to have resurgence? The biggest boost to this market would be for there to be an infusion of consumer confidence. If consumers concentrate their focus solely on the local economy, they will see that there are many reasons for us being somewhat economically insulated from the devastation taking place in other parts of the country, but there could be so much more.

If I had a magic wand this is what I would do ….El Paso would be transforming itself into the alternative energy Capital of the USA and especially focusing on Solar. That would mean a clean industry, new companies, and higher paying jobs.
My magic wand would bring together our elected officials; Federal, State, City, County, the Presidents of UTEP and Community College, The Chambers and the best and most futuristic thinkers in the community….. Everyone would leave their egos at their office’s (ok I know that’s asking a lot, but remember I have the magic wand) and they would map out a strategy and aggressively pursue capital from the Feds, the State, and private funds. There would be a way to incentivize companies, Our University would need to demonstrate the research and development that they are conducting and the Community College would show how they are training the labor force for these new jobs.

To all the naysayers I say, “if El Paso doesn’t do this, other surrounding communities will! The alternative renewable energy industry has a tremendously bright future. If this were taking place right now along with the Ft. Bliss expansion, The new medical school and research center, the new children’s hospital the downtown revitalization and the growth at UTEP, El Paso’s real estate market and our overall economy would be sizzling”.

What I would give to have that magic wand…..but you know what, other communities have transformed and shaped their future. So…..I know it’s possible! The real magic wand is held by leaders with vision and the ability to put their own egos aside for the good of El Paso… yes it also takes voters who demand that our leaders earn their vote by leading us to greener pastures..Hey! San Antonio did it!

I invite your comments!

Uncertainty provides perfect timing!!

2009-12-23T09:12:00.000-07:00

What is happening in the El Paso real estate market? El Paso continues to have a better than average market, prices have not tumbled and activity has not come to a screeching stop.

Homes under $250,000 continue to move although days on market have increased from 111days, 6 months ago to where they are now at 116 days. The number of homes sold (545) through multiple listing in November 2009 increased by 170 over the same period a year ago, so that’s good.

There is no doubt that El Paso’s real estate market has an underpinning of unrealized upward pressure. I say this with a certain watchfulness on what continues to happen in Washington, DC and how new legislation will affect the psychological reaction of potential companies thinking about moving here and also the effect it could have on buyers who are already here… will they be hold back and see what will happen? If this happens, locally we could see a flatting of our real estate market.

While there are certainly reasons beyond our control to be concerned,there are plenty of reasons to be optimistic, for example: Fort Bliss will continue its growth in becoming the premiere base in the Army and the largest one too. This means more people moving into El Paso, but what’s interesting is that with a Battalion of Helicopters being stationed here there will be a demand for jobs that are not here today, different types of mechanics and support jobs. There is the possibility of new companies coming into the area that would already do work in this field. With just the growth at Ft. Bliss El Paso’s population will increase by around 70,000 to 90,000, counting troops and their dependants.

It’s easy to see that the needs of this community will also grow. There will be a need for more medical and day care personnel and facilities. By 2013 there will be an additional 11,000 day care age kids in El Paso. This information comes from a just completed million dollar focus study by a Fortune 500 firm out of Washington, DC. Think of the needs, day care facilities, new elementary schools, more jobs, and these things are just the tip of the iceberg. I haven’t even touched on the new medical school and research facilities or the new children’s hospital and the opportunities these will create for high paying jobs.

The bottom line is that today is a perfect time to buy real estate in El Paso, Texas. Interest rates are way down, there are governments incentives ranging up to $8,000 in tax credit for first time buyers and up to $6,500 for repeat buyers. There is still an uncertainty in the market so sellers are still helping buyers and this will not be happening once the un-certainty goes away and sellers realize that the pent-up, upward pressures are their friends.

I invite your comments. Have a Merry Christmas and may 2010 be your best year ever at every level!!

Talking over lunch

2009-12-21T10:16:00.000-07:00

2009 comes to an end

Another year has come and is about to be gone. Over lunch yesterday a friend and I were talking about El Paso’s good fortune during this down turn in the national economy. While we haven’t seen a complete melt down in our local economy we are definitely feeling a slow down.

I mentioned real estate in El Paso, Texas and how it’s harder to get people qualified for home loans and the difficulty small businesses are having in getting loans, He talked about being a small business owner and how he was afraid he would not be doing any hiring and in fact he said “I can see myself having to make some cut backs, kind of belt tightening”.

He brought up a good point, “During all this national turmoil, El Paso’s unemployment numbers are at 9.5% about 1% point higher than the rest of Texas, is that good? I don’t think so! Why don’t we have more jobs coming into this area, the recession? I saw in the paper a few days ago that in Albuquerque a company involved in the solar energy sector, Schott Solar, was hiring 60 new employees. Give me a break why is Albuquerque ahead of the “Sun City” when it comes to spearheading the emerging alternative energy industry, especially solar?

Why Does El Paso seems to be so enamored with the auto industry and its sub manufacturing divisions? We are letting other communities hone in on the obvious up and coming, renewable energy sector, above all, the solar industry...”Hello El Paso” I have nothing against the auto industry, but isn’t that industry in the doldrums today? Why not go after an industry that has a tremendous amount of potential, the auto industry is not where we should have our primary focus today”.

He went on to say ”This city, El Paso and the surrounding region including Juarez should be focusing on being the headquarters for research and development of alternative energy, focusing on solar energy and all that it includes. Where best to manufacture, Juarez has all the facilities and labor. They might have the edge over just about any region when it comes to manufacturing. Yet I don’t see us doing much to take advantage of this resource. It’s frustrating to sit here and know that we have the climate, the manufacturing facilities and the manufacturing know how to be among the leaders if not the leader in an industries whose time has arrived and could be a catalyst for the creation of hundreds of jobs. I read somewhere that 1 out of 8 people in El Paso work in Juarez now. What would it be like if we had the corporate headquarters of companies in the solar industry right here because this was the epic center of research and then the manufacturing was taking place a stone throws away in Juarez? Why are we not aggressively pursuing it? If we are, we need to step it up”.

My friend is right, the opportunity is here, and it’s up to us to capitalize on it. Wow! Imagine, El Paso being the leader in research development and manufacturing of solar technology…hundreds of good paying jobs being created, and not just manufacturing jobs, corporate headquarter jobs too!! It’s up to us to capitalize on it.

It takes everyday people getting involved, speaking to our elected leaders and giving them the marching orders to commit to attracting high-quality clean technical jobs. Let’s quit listening to the reasons why we “can’t” and insist that “we can” And we need to quit being complacent.

I welcome your comments!

Dec 16, 2009

2009-12-16T15:54:00.001-07:00

Just an observation:

Over lunch with a friend the other day the conversation turned to El Paso's affordability index. His observation was very interesting and I am paraphrasing him from our conversation.

He said," I see reports that constantly show El Paso's affordability index as being very high, meaning that in El Paso our average household income is lower than in comparable sized cities.

I've always wondered if these reports take into consideration dollars after all living expenses are calculated. For instance, here in El Paso, in many cases there are families with young kids and both parents work. More than likely they have an Abuelita (a Grandma) who takes care of the kids for them. In other cities, I would bet the expense of day care is a choker.

In El Paso there is the existence of close net families that provide help and that may not occur in other communities throughout the country and that could translate to higher expenses. I am talking about everything from construction to car repairs- so El Paso's affordability index might be quite different if all these factors were just taken into account and an affordability index were computed based on the back end dollars and not just on dollars earned at the front end."

I think he had an excellent point. I was at a fundraiser last night for a local politician and in attendance were two people, who during my conversation with them, who made mention that Grandma (Abulita) was taking care of their small children for no charge. Come to think about it, I was working with a young couple a month or so ago trying to find them a home in El Paso and they wanted to find a home near her parents so that it was convenient for Abulita to take care of them. Since they were looking in an older neighborhood many of the homes did not have enough bath rooms but she has an uncle in the construction business that was going to add that extra bath for them as a present.

The more I think about it the more I believe there is validity to my friends reasoning and the more it makes sense now. What do you think? I invite your input