Are they more than mobile phones?

Most of us remember in the late 1980's when a friend or colleague told us about a phone he/she had recently had installed into his/her car.  It was called a cellular phone, or more commonly, a car phone.  Another application of the same technology was a phone contraption packaged in a bag, like a back pack.  In both instances, the handset resembled the wired phone we had at home.  The new technology was special, but before too long, it was common to own a car phone or bag phone.

Technology progressed and the prices came down.  The next iteration was a smaller device that was handheld, often called a flip phone. Blackberry created a new combination of technologies and linked the telephone application to the Internet (note: the Internet was a notion unknown to most of us when we purchased our first cellphone).  The functionality of the Internet component was awkward and the download time was slow, but at a minimum, the Blackberry brought email to our cellphones.

In 2007, Apple introduced the iPhone that brought a quantum leap to the technology applications available on our cellphones ("smart phones") and made vast improvements in the speed of data transmission and quality of visual presentation.  A competing set of devices were introduced within a year, generally known as Androids (or droids).  Eighteen months ago, Apple brought to the market a hugely popular devise that is between an iPhone and laptop called the iPad.  The second version of the product was introduced last month and sales have outpaced production.  Most of us either have or want to have the iPad.

What we used to call a cellphone is now more aptly called a mobile device.  We call them smart phones, but realistically, they are small, handheld computers that include telephone capabilities.  In 2010, 30% of the US cellphone users owned a smart phone.  Of the smart phone owners, 29% own one of theDroid products, 27% own Blackberries and 27% own iPhone. Within 18 months, that number of smart phone users is projected to reach 70%.  Technology experts are also suggesting that by 2013 there will be more connections to the Internet from mobile devices (smart phones and iPad type products) than from PC's or laptops. The implications for the delivery of information is significant. Many consumers will no longer be willing to wait until they are home to research a query on their computer or a resource book.  Instead, they will desire to have the information immediately retrievable on their smart phone.  It is an exciting change from a real estate perspective. We now have an opportunity  to deliver property information to any consumer who is sitting in front of a home they find attractive by pushing it to them on their smart phone

The next few years are going to be interesting and fun. Hold tight, it looks like the best is yet to come.

Nanshan America: what a happy story for Greater Lafayette

It certainly isn't fresh news, but what great story behind our community's ability to court Nanshan America's Advanced Aluminum Technologies to Park 350.  The China based multi-industry conglomerate will expand its soft aluminum extrusion enterprise into America with a $100 million, 435,000 square foot facility on 50 acres in Park 350.  The enterprise is expected to open in 2012 and will employ 150 Hoosiers within two years.

We should tip our cap to the local leaders in both the public and  private sectors ability to work together in harmony and with efficiency to make the deal happen.  The State of Indiana, Purdue, Ivy Tech, Oscar Winski Company, Lafayette Urban Railway (the property owner), Greater Lafayette Commerce, the two Mayors and the three County Commissioners all deserve credit for making this happen.

Our company was honored to be a particpant in the real estate transaction.

Coldwell Banker Shook 2011 Awards Breakfast

Earlier in the month, Coldwell Banker Shook hosted is annual awards breakfast and the Holiday Inn.  The keynote speaker was Mayor John Dennis, followed by Mike Pro from Coldwell Banker and Charlie Shook. A rousing trivia contest was conducted with no question left unanswered.  Prizes ranged from movie tickets, Civic Theatre tickets, dinner for two at the Bistro 501 to a full page ad in Homes and Lifestyles.

When the program was complete, Lu Ann Heitert proudly announced the following 2010 awards.

International Sterling Society Award:
Jan Dowell
Sharon Schlott
Kent Upton

International Sterling Society Team Award:
The Junius Group (Amy and Mary Ann Junius)

International Diamond Society Award:
Kathryn Oreovicz
Kelli Stump

International Diamond Society Team Award:
Corbin/Flock Team (Linda Corbin and Janet Flock)
Mary Holtz and Kent Brewer Team (Mary and Kent)

International President's Circle Award:
Cheryl Butcher
Olga Jeffares
Kathy Lafuse
Sherry Peck
Kelly Schreckengast

International President's Circle Team Award:
Weaver Dream Team (Leslie and Kevin Weaver)

Five Year Anniversary:
Janet Becker

Ten Year Anniversary:
Sherry Peck

Robert Shook Award for community service:
Dave Huffman and
Kelly Schreckengast

Marilyn F. Wilson for outstanding service
Maggie Stark

Rookie of the Year:
Mike Ellrich

Speaking on behalf of the company, there is not a broker who could be prouder of the competency, professionalism and unselfishness of the team of sales agents and administrative staff/management who choose to call The Shook Agency their real estate home. We are excited about what 2011 has to bring us and look forward to even further increasing our level of achievement.

For pictures from the breakfast, check out our facebook page at the following link.

Pictures from Coldwell Banker Shook facebook page

Charlie Shook

2010 Residential Real Estate Report: Residential Observations and Projections

Here is an except from the 2010 Annual Real Estate Report (the local residential observations and outlook).  If you want a complete report, contact one of our agents. They will happy to send one your way.

Tippecanoe County Observations and 2011 Outlook


1. Observations

a. Tippecanoe County experienced almost identical patterns, successes and challenges associated with the Federal homebuyers’ tax credit as the nation, as a whole. All told, it had the effect Congress desired: to offer a fast and simple jump-start to the housing segment of the national economy. Did it, in and of itself, establish momentum upon which we still prosper? Probably not, but that is okay. I believe our current optimism is based more on small, but sustainable, improvements in core components of our economy (jobs, consumer confidence, business investment, etc.).

b. Mortgage loan underwriting standards continue to become more stringent. Documentation is required at every level of the approval process. Personal financial or credit activities outside of the norm do not unilaterally prevent a loan from being approved, but they make the process lengthy and stressful.

c. Appraising property is a challenge for both the appraisers and the users of the final document. Lenders are establishing tighter definitions of what qualifies a property to be a comparable sale; distressed sales, when used as comparable sales, drag down value; and the final appraisal is often underwritten/reviewed by an individual without the knowledge or experience of the local or regional appraiser who performed the assignment. We are seeing longer completion times and more appraisals below the sale price. Like many trends, this will pass and appraising standards will become more balanced.

d. There are bright lights on the local economic horizon. Many of our local employers are experiencing increased sales, creating demand for higher levels of production. They include, but are not limited to Wabash National, Caterpillar and SIA.

e. Both new hospitals are open, operating successfully, and receiving strong community and regional accolades.

f. We live in a state that leads the nation in strong fiscal control. The state will face large challenges as its legislators seek ways to create a balanced two-year budget, but we begin from a position of financial strength and respect. There are many states that would be happy to trade their financial positions with Indiana’s.


2. Projections

a. Economic progress will become more sustained and less sporadic.

b. Net job growth will equal the number of new workers entering the market. Unemployment will not decline significantly. However, the factors leading to job growth will continue to improve: GDP, the length of the average workweek and consumer confidence.

c. The state will find a way to balance our budget, but it will require cuts in dollars allocated to education and establishing new forms of tax revenue (i.e. sales tax on selected services, more user fees)

d. Existing home sales will increase by 2-4% with most of the growth coming in the $150,000 to $300,000 price range.

e. New housing starts will increase at the same pace, almost exclusively in existing developments

f. Home values will not increase in 2011, but on the other hand, they will not go down.

g. Buyer activity at the top end of the residential market will continue to be subdued in 2011. Confidence in this segment of the market will be the last to come back.

h. 2011 will be a year of moderate and mostly consistent improvement. The economy will need three to four years of gradual improvement to reach a new and sustainable healthy plateau.

2010 Real Estate Report

Our company released its 2010 Annual Real Estate Report.  If you would like a copy, send me an email and I'll promptly send you either an electronic or hard copy, whichever you prefer.

Charlie Shook
cshook@shook.com

 

Company History

The co-founder of our company, Robert Shook, was a traveling salesperson in the early 1900's.  He sold Hoosier cabinets to individuals and builders who were upgrading their kitchens.  A small sample of his product is still in our resource room.  His home town was Dwight, Illinois, but his territory included parts of Indiana.  His son, Charles Shook, attended the University of Illinois and graduated in 1915 (his sheepskin diploma hangs in our office). 

With the encouragement of his wife and son, Robert decided to get off the road and plant roots in a new location.  His favorite destination while selling cabinets was a college community in Indiana named Greater Lafayette.  He was particularly impressed with its bustling downtown area and the reputation of the University.  So after Charles's graduation, the three Shooks moved to Greater Lafayette and opened a two personal commercial and residential real estate company in the Lafayette Loan and Trust Building.

Since those days, The Shook Agency, now known as Coldwell Banker Shook, has played a vital role in shaping our community.  96 years later, Shook continues to be the leading real estate brokerage company in Greater Lafayette and is proud to be a home for outstanding real estate agents who are leaders in their  profession.

For more information about our history, check out our website at http://www.shook.com/.

An Op-ed piece in the New York Times

I can't resist reproducing an Guest Editorial Alex Perriello, president of the company that owns Coldwell Banker (and a great real estate guy) placed in Wednesday's edition of the New York Times.  He offers a pretty nifty idea for the 25% of American homeowners who's homes are worth less than the mortgage balance.

OP-ED PAGE – NEW YORK TIMES


“Home Team”

By ALEX PERRIELLO

Published: January 5, 2011

Three years after the mortgage crisis began, there are still 11 million to 15 million homeowners who owe more than their home is worth, meaning that about 25 percent of all mortgage holders are underwater. As a result, foreclosures continue to mount; many homeowners can’t make their payments and are tempted to simply walk away from their debt. Meanwhile, the lenders and investors who own the loans are unwilling to work out a deal if, as is usually the case, it means losing money.

Fortunately, there is a solution. Rather than be at odds, homeowners and investors should partner in long-term equity-sharing arrangements.

Here’s how it would work. Let’s say a homeowner purchased a house in 2004 for $300,000 with no money down, and the property is now worth $150,000 — a 50 percent drop in value.

In an equity-sharing arrangement, the lender would write a new loan for $150,000, retire the original $300,000 loan and, to make up for that loss, take a 50 percent deeded ownership interest in the property. The homeowner would also agree to split 50 percent of the net proceeds of any future sale of the property with the lender. The new arrangement would also include a buyout provision, so that if the homeowner ever wanted to take over the lender’s share, he would simply pay the lender a predetermined amount of cash.

Such a plan would be relatively easy to put in place, assuming the lender held the loan in its own portfolio. In most cases, however, lenders immediately sold their loans to investors and merely performed loan-servicing duties like collecting monthly payments and sending statements.

In those instances, the lender would have already made its money when the loan was originated, the proceeds from the new loan and the 50 percent deeded interest in the property would go to the investor, not the lender. The investor would also benefit from any future sale or when the homeowner exercised the buyout provision.

Equity-sharing would be a boon for everyone involved. Homeowners could stay in their houses and preserve their credit (assuming they stay current on the new loan). The neighborhood would avoid a foreclosure, which can depress property values. And the lender or investor could participate in the upside potential when the house eventually sells. Best of all, it wouldn’t cost taxpayers a dime.

A major reason the mortgage mess has gone on so long is that homeowners, lenders and investors assume their interests are at odds. An equity-sharing arrangement would bring all three onto the same side — and help solve America’s foreclosure crisis.

Alex Perriello is the president and chief executive of a real estate franchise organization.