E-NEWSLETTER - JUNE 15, 2009
HARRY'S COLUMN
HOLD ON TO YOUR HATS ..IT'S INFLATION TIME
In the June 10, 2009 issue of The Wall Street Journal, Arthur B. Laffer, noted economist, warns us that the coming, unprecedented expansion of the money supply could make the 70's look benign. To quote from the article,
"It's difficult to estimate the magnitude of the inflationary and interest-rate consequences of the Fed's actions because, frankly, we haven't ever seen anything like this in the U.S. To date, what's happened is potentially far more inflationary that were the monetary policies of the 1970s, when the prime interest rate peaked at 21.5% and inflation peaked in the low double digits. Gold prices went from $35 per ounce to $850 per ounce, and the dollar collapsed in the foreign markets. It wasn't a pretty picture."
What does this mean to the real estate market? Well, to those of us who were lucky enough to be tied into a low-interest mortgage during the 1970s, and who saw the value of our homes skyrocket and our low interest mortgage payments become the envy of all of our friends, it means that opportunity is knocking. If Mr Laffer's predictions are correct (and we believe they are), the house you buy today will become the best investment you ever made.
The declining inventory of homes, plus the very favorable mortgage rates still available, plus the looming inflation all make it obvious that, in the years ahead, your investment in today's real estate market will turn out to be "as good as gold".
DISCOUNTS, ANYONE ???
Salzman real estate Services has just been approved for membership in EC Purchasing. As a result, we can now offer our clients some significant discounts on several major brands. These discounts range from 20% - 50% on the products and services represented by the participating organizations. Some of the companies now offering discounts through Salzman Real Estate Services are: FedEx, Kinko's, HP, Dell, Xerox, Hyatt, Hertz, to name a few. For a complete listing of discounts available to Salzman clients, click on www.ecpurchasing.com.
HERE'S SOME WORTHWHILE POLITICAL ACTION, FOR A CHANGE
We are often asked why we contribute to our Political Action Committees. The following links explain why. Our real estate lobbyists are working hard to drum-up support for Sen. Johnny Isakson's legislation which would expand the Homebuyers' Tax Credit. The proposed Bill, which was just introduced on June 8, 2009, would extend the tax credit through 2010, award the credit to all homebuyers (not just first-time buyers) and increase the credit from $8000 to $15,000. To learn more about this significant proposed legislation, click on:
http://rismedia.com/2009-06-11/senate-renews-push-to-expand-home-buyer-tax-credit-to-15000/print/
or:
http://isakson.senate.gov/press/2009/061009housing.htm.
NEW CLIENT BENEFIT ANNOUNCEMENTS GET A BIG REACTION
The two new client benefits announced in last week's enewsletter have triggered a lot of response from our readers. The newly-established Mortgage Payment Protection Program and the Market Forecasts for Individual Homes which we now offer to our clients (and, in the case of the Market Forecasts, to our prospective clients) are both significant steps forward in professionalizing the real estate industry and we are very pleased to introduce these programs to the Colorado Springs area. If you are interested in either or both of these revolutionary new programs, please contact us for more information
THERE'S MORE TO BEING A REALTOR THAN JUST SHOWING HOUSES
I hate to give away trade secrets, but I couldn't help but get a kick out of a recent article from Inman News which detailed the negotiating process that results in a sale. Titled, "Secrets of a Master Negotiator", the article explains how an experienced real estate negotiator can overcome the common stumbling blocks which crop up in all real estate transaction. The author lists 10 steps in the negotiating process, some of them serious, some of them tongue-in-cheek (for example, "Flinch and Vise", which explains how to "flinch" when an unrealistic offer is made and how to "vise" the prospective buyer into raising the ante).
The article reminded me that the difference between an effective real estate agent and a "salesman" is experience in negotiating.
And, please remember, I would be honored to serve as your broker for all of your residential real estate needs.
Also if you know of anyone who desires to buy or sell local real estate, or, who is moving in or out of the Pikes Peak region, remember that, with over 35 years of providing relocation and Real Estate services to clients throughout the country, I am uniquely qualified to assist them with the relocation process, including buying and/or selling their homes on both ends of their move.
JOKE OF THE WEEK
Sherlock Holmes and Dr. Watson went on a camping trip. After a good meal and a bottle of wine, they lay down for the night, and went to sleep.
Some hours later, Holmes awoke and nudged his faithful friend.
"Watson, look up at the sky and tell me what you see."
Watson replied, "I see millions and millions of stars."
"What does that tell you?" Holmes asked.
Watson pondered for a minute. "Astronomically, it tells me that there are millions of galaxies and potentially billions of planets.
Astrologically, I observe that Saturn is in Leo.
Horologically, I deduce that the time is approximately a quarter past three.
Theologically, I can see that God is all-powerful and that we are small and insignificant.
Meteorologically, I suspect that we will have a beautiful day tomorrow.
What does it tell you?"
Holmes was silent for a minute, then spoke.
"Watson, you idiot. Somebody has stolen our tent!"