Category: Lake Tahoe News

Your Summertime Guide to North Lake Tahoe

Posted on by Liza Muhl

NORTH LAKE TAHOE SUMMER EVENTS LINEUP

 

FREE WEEKLY MUSIC AND EVENTS | ALL SUMMER LONG, VARIOUS LOCATIONS

North Tahoe is home to an incredible lineup of free weekly events:

TAHOE CITY SOLSTICE FESTIVAL | JUNE 8-18, TAHOE CITY

To celebrate the kickoff of summer, this 10-day Solstice Festival will bring together artisan food and wine, acclaimed musicians and artists, and the celebrated shops, restaurants and galleries that reside on Lake Tahoe’s Tahoe City & West Shore.

TAHOE CITY FOOD & WINE CLASSIC | JUNE 10, 1-4 PM, TAHOE CITY

Enjoy a lakeside stroll downtown while tasting delicious wines and beverages paired with scrumptious bites from acclaimed North Lake Tahoe restaurants and caterers. The Classic is a fundraiser for the nonprofit Tahoe City Downtown Association.

TAHOE JOY FESTIVAL | JUNE 11, 12-5 PM, TAHOE CITY

Celebrate the local music and art community during the family-friendly Tahoe Joy Festival. During this free inaugural event, enjoy regional musicians Peter Joseph Burtt & the King Tide, Matt Axton & Badmoon and Jenni & Jesse of Dead Winter Carpenters, as well as youth performances, vendors, artists and food trucks. The festival benefits the Tahoe Truckee School of Music and the Tahoe City Downtown Association.

BROKEN ARROW SKYRACE | JUNE 16-18, PALISADES TAHOE, OLYMPIC VALLEY

The three-day racing event consists of eight iconic distances (plus a kids’ race) that showcase the beauty of Lake Tahoe. Designed in the vein of the classic European Skyraces, the Broken Arrow Skyrace represents a unique style of mountain running characterized by off-trail climbing on steep terrain with massive amounts of vertical gain and loss at altitude.

CRYSTAL BAY CASINO CONCERTS | JUNE 29-NOV. 4, CRYSTAL BAY CLUB CROWN ROOM

Ben Bailey, known as TV’s Cash Cab driver, will bring his comedy act to Crystal Bay Casino on June 29. Other acts scheduled to appear during the summer and fall include: Led Zeppelin cover band Zepparella on July 1; Tainted Love on July 22; Petty Theft on Aug. 26 and more.

LAKE TAHOE SHAKESPEARE FESTIVAL | JUNE 30-AUG. 20, SAND HARBOR BEACH, NEAR INCLINE VILLAGE

The festival’s 51st anniversary season is headlined by productions of the wild musical comedy, Little Shop of Horrors; and Young Shakespeare’s entertaining adaptation of William Shakespeare’s romantic comedy, As You Like It. In addition, the festival’s Showcase Series will feature performances by orchestras, tribute bands and more from July 21-Aug. 21. This stunning venue is a favorite among visitors and locals alike.

CLASSICAL TAHOE | JULY 9-AUG. 17, INCLINE VILLAGE

Experience a summer of wonderful music by the lake on the Sierra Nevada University campus. The Classical Tahoe Ricardi Pavilion is the site of outdoor orchestra, jazz and chamber music concerts by some of the leading classical musicians. Children will delight to the sounds of the Family Concert and Music Makers Faire, held from 11 a.m.-2 p.m. on July 30, with proceeds benefiting the festival’s educational programs.

GAMBLER’S RUN MUSIC FESTIVAL | JULY 14-16, CRYSTAL BAY CLUB CROWN ROOM

Fancy a unique blend of music, mountains and gambling? Twenty bands are scheduled to perform at Crystal Bay Casino’s inaugural three-day festival. Move to the quirky tunes with artists such as Pigeons Playing Ping Pong, Shovels & Rope, SunSquabi and Big Sam’s Funky Nation heading the lineup.

LAKE TAHOE REGGAE FESTIVAL | JULY 22-23, PALISADES TAHOE, OLYMPIC VALLEY

Enjoy a dozen-plus band performances and more at the 6th annual Lake Tahoe Reggae Festival. Among the scheduled bands are Rebelution, The Expendables, Pipe Down, Pepper, Stick Figure, Iya Terra and Claire Wright.

LAKE TAHOE DANCE FESTIVAL | JULY 26-29, VARIOUS VENUES

A highlight of summer in Tahoe City has become the Lake Tahoe Dance Festival, known for bringing first-rate artists from around the world. The 11th annual outdoor dance festival is a presentation of the Lake Tahoe Dance Collective and offers main-stage performances, audience participation demonstrations, meet-the-artist talks and more.

49TH ANNUAL LAKE TAHOE CONCOURS D’ELEGANCE | AUG. 11-12, HOMEWOOD

Widely regarded as North America’s premier wooden boat show, Concours d’Elegance will feature the world’s best antique and classic utility boats from various manufacturers. The event benefits the Tahoe Yacht Club Foundation to help preserve the environment and history of the Lake Tahoe Basin.

BREWS, JAZZ AND FUNK FEST | AUG. 12, 2-8 PM, THE VILLAGE AT PALISADES TAHOE, OLYMPIC VALLEY

At the Brews, Jazz and Funk Fest, you can sip on a wide array of tasty beers from more than 10 different breweries, as well as enjoy an incredible lineup of music on multiple stages from ALO, Monophonics and Sal’s Greenhouse. All proceeds from the event benefit the Humane Society of Truckee-Tahoe.

TAHOENALU FESTIVAL | AUG. 12-13, KINGS BEACH

The 17th annual TaHoeNalu Festival celebrates fun, family, friends and the Hawaiian spirit with an event that has grown from a grassroots dedication to the love of stand up paddleboarding to a multi-event festival. Novice paddleboarders and experts alike are welcome, with races, clinics, demos and a vendor village. There will also be live music, food and raffle drawings each day.

TAHOE CITY ART BY THE LAKE | AUG. 18-20, 10 AM-5 PM, BOATWORKS MALL, TAHOE CITY

Set on the North Shore of Lake Tahoe, the 13th annual Tahoe City Art by the Lake gives visitors an opportunity to meet with more than 30 artisans showcasing a wide variety of arts and crafts, including photography, oil paintings, ceramics, jewelry and more. The event area offers a stunning view of Lake Tahoe.

TAHOE CITY OKTOBERFEST | SEPT. 30, 11 AM-5 PM, THE VILLAGE AT PALISADES TAHOE, OLYMPIC VALLEY

The fun celebration of beer, music, dance and food returns on Sept. 30. The traditional Oktoberfest event features authentic German beer and Bavarian music and dance, as well as games and live entertainment. Authentic brats and pretzels, European desserts and pastries, and root beer floats for the kids make this an excellent event for all ages.

For more information about North Lake Tahoe events and festivals, visit www.gotahoenorth.com/events.

Photo Credit: GoTahoeNorth

Changes to LLPA’s on May 1st

Posted on by Liza Muhl
BY EPHRAIM SCHWARTZ
Partner, Mortgage Consultant CMPS
O’Dette Mortgage Group
April 27, 2023

We’ve been getting a lot of questions about the new LLPA (loan level price adjustment) for Conforming loans and if people with worse credit will really get better rates than borrowers with excellent credit.  The short answer is NO, and your clients should never intentionally damage their credit.  Surprise, surprise, there’s some entirely incorrect information circulating that your clients may be exposed to.  Below is an explanation and FAQ’s:

What is changing?

Fannie May & Freddie Mac base pricing adjustments for credit scores & down payment are changing.  Borrowers with a lower credit score & lower down payment will not be as heavily penalized.  And, borrowers with best case scenario credit scores & down payment will receive less of a benefit than before.  So, the difference in rates between best case credit profile vs. lower credit score will be less significant.  These changes apply to every conforming loan funded by each & every mortgage company.

Does this mean borrowers with lower credit scores get better terms than those with higher credit score?

No.  People will still be in better position with a better credit & more down payment.   The difference between excellent & lower credit tiers will be less significant.

When does this go into effect?:

It’s been priced into rates for over a month now.  The May 1st date is when these adjustments go into effect for the mortgages purchased on the secondary market by Fannie/Freddie.   Banks knew this was coming, so these changes have already priced in and borrowers will not see any changes to rates over the next week, outside of the normal day to day bond/rate fluctuations.

What is the FHFA trying to achieve with these pricing adjustment? 

We all know Fannie/Freddie’s mission to increase access to affordable housing.  It’s always been their mission and it’s been a priority for the director of FHFA.   The new director of the FHFA has been vocal in disapproval of the solutions provided by Franny and Freddie and she thinks more is required of them to increase access to affordable housing, and she thinks this will help increase access to affordable housing.

Is this a good idea and will it work?:   We don’t like it but the whole world has to deal with it, so it is what it is at this point.  We do not see these pricing changes moving the needle in making homeownership more attainable for more Americans because even after these changes a borrower with low 600’s credit score is still better off going with an FHA loan, and those who have done a great job managing credit are stuck a hair worse pricing.  A better idea would be a campaign to educate people on how to manager credit; it’s not complicated and the information could be shared on something as simple as this one page I put together and have been sharing with clients for over a decade (see attached).   WE (all of us on the real estate community) continue to be the front lines in educating the public on all things related to buying, investing, & enjoying real estate.

Credit Health Tips

If you want to dig into the details, here are some example of scenarios that will be most affected: Attached is a matrix showing which scenarios have pricing improvements (green) vs. hits (red), relative to the old standard LLPA’s.

  • LTV’s in the 80% – 85% range are most significantly affected, so more borrowers in the ~19.99% – ~15% down might consider just doing 10%.
  • Cash-out refinances hits are mostly greater, unless you have top tier (>780) credit, or extremely low LTV (<30%).   So, cash-out refi is actually a scenario where if credit is >780, pricing adjustments have improved.
  • Price improvements for 2 & 3 unit properties.
  • Price improvements for low LTV investment properties.
  • Vacation Homes & Investment Properties essentially priced the same now.

LLPA Changes 2023

THE MORNING: THE FED’S UNPLEASANT CHOICE

Posted on by Liza Muhl

Good morning. The Fed must choose between two unpleasant options today. It’s a reminder of the high cost of weak bank oversight.

The Federal Reserve building. Haiyun Jiang/The New York Times
BY DAVID LEONHARDT
The New York Times
March 22, 2023

Inflation — or turmoil?

The Federal Reserve faces a difficult decision at its meeting that ends this afternoon: Should Fed officials raise interest rates in response to worrisome recent inflation data — and accept the risk of causing further problems for banks? Or should officials pause their rate increases — and accept the risk that inflation will remain high?

This dilemma is another reminder of the broad economic damage that banking crises cause. In today’s newsletter, I’ll first explain the Fed’s tough call and then look at one of the lessons emerging from the current banking turmoil. Above all, that turmoil is a reminder of the high costs of ineffective bank regulation, which has been a recurring problem in the U.S.

The Fed’s dilemma

The trouble for the Fed is that there are excellent reasons for it to continue raising interest rates and excellent reasons for it to take a break. On the one hand, the economic data in recent weeks has suggested that inflation is not falling as rapidly as analysts expected. Average consumer prices are about 6 percent higher than a year ago, and forecasters expect the figure to remain above 3 percent for most of this year. That’s higher than Fed officials and many families find comfortable. For much of the 21st century, inflation has been closer to 2 percent.

An inflation rate that remains near 4 percent for an extended period is problematic for several reasons. It cuts into buying power and gives people reason to expect that inflation may stay high for years. They will then ask their employers for higher wages, potentially causing a spiral in which companies increase their prices to pay for the raises and inflation drifts even higher. Today’s tight job market, with unemployment near its lowest level since the 1960s, adds to these risks. The economy still seems to be running hotter than is sustainable.

This situation explains why Fed officials had originally planned to continue raising their benchmark interest rate at today’s meeting — thereby slowing the economy by increasing the cost of homes, cars and other items that people buy with debt. Some Fed officials favored a quarter-point increase, which would be identical to the increase at the Fed’s meeting last month. Others preferred a half-point increase, in response to the worrisome recent inflation data.

The banking troubles of the past two weeks scrambled these plans. Why? In addition to slowing the economy, higher interest rates depress the value of many financial assets (as these charts explain). Some bank executives did a poor job planning for these asset declines, and their balance sheets suffered. When customers became worried that the banks would no longer have enough money to return their deposits, a classic bank run ensued. It led to the collapse of Silicon Valley Bank and Signature Bank, and others remain in jeopardy.

If Fed officials continue raising their benchmark rate, they risk damaging the balance sheets of more banks and causing new bank runs. That’s why a half-point increase now seems less likely. Some economists (including The Times’s Paul Krugman) have urged the Fed to avoid any additional increases for now. Many analysts expect the Fed will compromise and raise the rate by a quarter point; Jason Furman, a former Obama administration official, leans toward that approach.

The decision is unavoidably fraught. The Fed must choose between potentially exacerbating problems in the financial markets and seeming to go soft on inflation.

Why bailouts happen

All of which underscores the high cost of banking crises. In most industries, a company’s collapse doesn’t cause cascading economic problems. In the financial markets, the collapse of one firm can lead to a panic that feeds on itself. Investors and clients start withdrawing their money. A recession, or even a depression, can follow.

These consequences are the reason that government officials bail out banks more frequently than other businesses. Bailouts, of course, have huge downsides: They typically use taxpayer money (or other banks’ money) to subsidize affluent bank executives who failed at their jobs. “Nobody is as privileged in the entire economy,” Anat Admati, a finance professor at Stanford University’s business school, told me.

During a crisis, bailouts can be unavoidable because of the economic risks from bank collapses. The key question, then, is how to regulate banks rigorously enough to minimize the number of necessary bailouts.

Over the past few decades, the U.S. has failed to do so. After the financial crisis of 2007-9, policymakers tightened the rules through the Dodd-Frank Act. But Congress and the Trump administration loosened oversight for midsize banks in 2018 — and Silicon Valley Bank and Signature Bank were two of the firms that stood to benefit.

As complicated as finance can be, the basic principles behind bank regulation are straightforward. Banks require special scrutiny from the government because they may receive special benefits from taxpayers during a crisis. This scrutiny includes limits on the risks that banks can take and requirements that they keep enough money in reserve to survive most foreseeable crises. “You make sure they have enough to pay,” as Admati put it.

Bank executives and investors often bristle at such rules because they reduce returns. Money held in reserve, after all, cannot be invested elsewhere and earn big profits. It also can’t go poof when hard times arrive.

SVB FAILURE AND RATES

Posted on by Liza Muhl
BY TERESA O’DETTE & EPHRAIM SCHWARTZ
Mortgage Consultants
O’Dette Mortgage Group
March 21, 2023

Quite an exciting week and a half and I have some additional commentary to share in addition to this week’s MMG update (below).   Silicon Valley Bank failed for several reasons, and while it is of course the bank’s responsibility to manage risk, it was the Fed being late to the game in hiking the Fed Funds rate and then hiking so much in such a short period of time that pushed SVB’s bond holdings so significantly underwater.   SVB held a large position in government bonds, which are generally considered the world’s safest parking for money, and those bond yields were as close to zero as they’ve ever been.   A bond’s value on the market can be determine primarily by; it’s yield the maturity.   So, when the Fed hikes rates rather drastically in a such a short period of time, new bonds become available with a dramatically higher yield, in comparison to those bonds SVB & others were buying just a handful of months earlier – with a relatively small difference in maturity.   This put the value of those bonds underwater, but that’s not what caused the problem.    If SVB had been able to simply hold those bonds to maturity, there would have been no loss.  However, after some prominent VC’s yelled fire in the theatre & sparked a run on the bank with depositors to pulling money out, SVB quickly tried to raise capital to cover those withdrawals, and when they couldn’t raise money, they were forced to sell those underwater bonds to cover the withdrawals.   Yes, there are some things SVB should have done differently, like fill that Risk Management Officer role that sat vacant tail end of last year, and hold less in such low yield bonds, but it was the Fed’s concentrated rate hikes that pushed those low yield young in maturity bonds underwater.   The bank failure was backstopped by the Federal government working with FDIC to use funds from the FDIC insurance pool to guarantee all depositors would be made whole.   No tax payers dollars were used for this bail out, bank executives are being held accountable for poor risk management, and many who are often most critical of government intervention in markets agree, the administration & FDIC did an excellent job solving this potential crisis.

With respect to how all this this impacts mortgage rates, US bonds & treasuries are still the world’s safest parking for money, so SVB inspired concern surrounding regional banks has created a flight to safety with investment capital going into bonds, that demand pushes bonds prices up & yields/rates down.  As a result, the past week has seen the most significant improvement to mortgage rates since the November & December CPI (inflation) reports came in lower than expected.   Last week’s (3/14) CPI report came in exactly at market expectations of 6.0%, which allowed mortgage rates to hold on to gains.  This week’s Fed meeting is another potentially high impact event.  Wild week, but with respect to mortgage rates, they improved a bit last week and we expect inflation to continue gradually decrease and we still expect mortgage rates to be a little lower by end of this year – best guess would be mid/low 5%’.s

This past week, home loan rates improved to their lowest levels in a month in response to the closures of Silicon Valley Bank (SVB) and Signature Bank. Let’s walk through what happened as we approach the Fed Meeting next week.

“Bringin’ on the heartache, Can’t you see?, Can’t you see?” Bringin’ on the Heartbreak? Def Leppard.

SVB Failure and Rates

It’s important to remember that bonds enjoy bad news, so when word broke earlier this week that SVB was shuttered by the FDIC, home loan rates improved to their best level in six weeks. At the same time, the 2-year Note yield, which tracks Fed rate hike activity, plummeted from over 5.00% to under 4.00% in just a couple of days. This was an epic decline in rates not seen even after 9/11 or the Great Recession.

The good news (in the case of SVB and even Signature) is that bad management, failure to manage interest rate risk and a widespread desire for depositors to gain access to their funds (bank run) is what caused these banks to shutter.

In response, the Federal Reserve immediately created a line of credit and an implicit backstop to protect any depositors from any losses. This was good news and will hopefully limit any further fallout in the banking sector.

So, what does the Fed do with rates now that we have high uncertainty and contagion risk in the banking sector?

Stability > Inflation

Seeing that one reason SVB failed was in response to a rapid rise in interest rates, there is increased pressure for the Fed to limit rate hikes going forward and regain stability in the financial sector.

Just last week there was a high probability the Fed would raise rates by .50. Now just days later, there is a 75% chance of a .25% and a 25% chance the Fed doesn’t hike rates at all.

Next week’s Fed Meeting and press conference will hopefully have the markets feeling that the Fed is going to take every measure possible to ensure stability while they closely watch the pace of inflation decline.

Housing Numbers OK

It wasn’t all bad news this week. Housing numbers for February highlighted the little rate relief we saw in January and brought some optimism into February. Both Housing Starts (which is putting the shovel in the ground), and Permits (a leading indicator of future building), came in better than expectations.

This bodes well for housing in the months ahead, especially combined with the rate relief we are experiencing.

Bottom line: This week’s news in banking has changed everything as it relates to the Fed and rate hikes. The markets are suggesting the Fed will be cutting rates in the second half of the year which is a big change from the rate outlook just days ago.

Looking Ahead

Next week brings the Fed Meeting and monetary policy decision. As we shared, it appears the Fed is only going to raise rates by .25%, rather than .50% to foster stability in the financial markets and avoid contagion in the banking sector. What the Fed says will be important in bringing calm to the markets during this uncertain moment.

Not Alot of Clients Right Now? Here’s What You Should Be Doing

Posted on by Liza Muhl

The ebb and flow of the real estate business can be affected by the seasons, the economy and more. Here’s how to weather the slow times while building your business.

Article Originally Published by Inman Connect
BY AMIE QUIRARTE
February 17, 2023

I sell real estate in Lake Tahoe, a seasonal and second-homeowner destination. Due to our unique market, I’ve become accustomed to the inevitable slowdowns every fall and spring.

At the beginning of my career, it wasn’t easy to normalize the downtime and find productivity in my business, even without clients. I would become anxious, stressed and paranoid until I found ways to utilize my free time efficiently.

Below are a few steps that you can implement in your business when you’re low on clients:

1. Remind yourself that every single agent, even the most successful agents making millions of dollars every year, experience lulls in their business

We’ll have highs, lows and everything in between. So while you’re having your best year, I could be having my worst year. That doesn’t mean you won’t ever sell a house again; it just means that the timing of your clients, or future clients, hasn’t reached the inflection point of a sale yet.

As hard as it is to not compare yourself to others or desperately watch the sales tick away in the MLS without your name, work on staying grounded and believing that your time will come. A positive mindset will work wonders for you, while a negative mindset can negatively impact your work.

2. Work on your business instead of in it

The downtime is a great time to master your systems, become clear on what is working and what isn’t, home in on your farms, get to know the behavior of your farms and more. The downtime allows you the gift of time, which is when most of us can be the most creative.

I like to start each day by sitting in silence for 20 minutes. I put a timer on my phone and don’t pick up any electronics during those 20 minutes. I simply sit with my thoughts and let the creative juices flow. I have a journal dedicated to my “thinking time,” I journal down all of my ideas once the timer goes off. I have my best (and most fun) marketing ideas during this time.

3. Plan events or create a value proposition for past, present or future clients

Planning events can be time-consuming, so downtime is the perfect opportunity to work on one. Contrary to popular belief, you do not need to shell out a large chunk of cash to host a successful event. In fact, you can do it for free.

Recently, we hosted a free, first-time homebuyer seminar with a local mortgage broker at a brewery in town. We used social media to market our event, had the space donated to us and put together the slides ourselves. We had over 30 attendees, many of whom converted into leads.

The best part? We’ve been able to help our first-time, local homebuyers buy a home in Tahoe.

By creating and hosting events such as this, you’re helping others, first and foremost, but you’re also adding more familiarity to your name and what you do, which is what marketing is all about.

4. Spend time with people you love and your past clients

My favorite type of lead is a referral from someone I know, like and trust. There is no greater honor than being introduced to a friend’s friend based on their confidence in me as their Realtor. The best way to gain that trust is simply by spending time with people.

Ask friends out to coffee, mention your business and what you’re doing, and ask them about their business. Be genuine.
If you don’t have the funds to take someone out to coffee, ask them to go on a walk, start a book club or tailor it to their and your personal interests.

These meaningful moments with people go a long way. The more time you spend working on the relationships in your life, the more people will think of you anytime the word real estate is mentioned.

5. Ensure all of your online profiles and social media channels are up to date

This one is self-explanatory, but make sure your bio is correct on every real estate site, add all of your past sales, ask past clients for reviews, and do your best to stay as relevant as you can online. Your online presence makes a difference, and finding time to dedicate to this is essential.

While it may be hard to mentally adjust to having very few clients, I hope you can look at it as a positive with unlimited potential to unlock the next phase of your business. If you are running at all cylinders all of the time, you won’t be able to ensure the mechanics of your business are still operating at full capacity.

I like to think of real estate like a conveyor belt: If you become too focused on the end of the line (closings, current transactions, etc.) you won’t have anything to work on once you reach the end because you haven’t been reloading the belt with new items (i.e. new clients and escrows). Therefore, to reach your full potential in this business, you must master the conveyor belt from start to finish.

Amie Quirarte is a luxury real estate agent with Tahoe Luxury Properties in California and Nevada. Connect with her on Facebook or LinkedIn.

There’s Freedom in Saying No, Setting Boundaries, Saying Goodbye

Posted on by Liza Muhl

If you don’t set boundaries, you can’t expect clients to respect them. Set firm boundaries, and communicate them upfront.

Article Originally Published by Inman Connect
BY AMIE QUIRARTE
February 15, 2023

As real estate agents and brokers, it seems as though many of us are programmed to always say the magic word “yes.”

Yes, we can squeeze 21 showings in one day despite them being on completely opposite sides of town. Yes, I can talk at 11 p.m. Yes, I will “make” the sellers fix every item on the home inspection list.

Scarcity is typically the main driving force behind the obsessive “yes” in our business, but I think for many of us, it can contribute to a downfall in our personal life and burnout in our professional life.

We’re scared that if we don’t answer every call as it is coming in, the lead on the other end may hang up and call someone else. And while that may be true, what do we, in turn, sacrifice to catch every potential lead that comes our way?

If every lead turned into a sale, then perhaps most, or at least some, of the yeses are warranted. But if they don’t always convert, and let’s be honest, we know they don’t, then we owe it to ourselves to be more mindful of what type of interruptions we are allowing into our lives.

I learned the power of “no” pretty early on in my real estate career, though it took me many years to truly master it.

I wasn’t even old enough to drink a beer when I got my real estate license, and I felt like I had to work five times harder to be taken seriously than everyone else. I was a young female with no experience, and I noticed that I would tolerate much more than I normally would from clients because I was scared of losing the lead or the sale.

I would allow clients to speak to me disrespectfully, call or text me during non-business hours and quite honestly, at times, let them walk all over me. Until I decided I had enough.

If I didn’t set boundaries, I couldn’t expect my clients to respect them. So, I decided to set firm boundaries and communicate them upfront.

Here is what my boundaries sound like:

Set business hours, and stick to them 

I will be available from 8 a.m. to 6 p.m., Monday through Saturday, unless it’s an emergency. An emergency in real estate is a multiple-offer scenario, tight expiration dates or anything that requires urgent attention. A real estate emergency is not transferring utilities.

I found that by communicating these boundaries upfront, the interruptions are much less frequent (if at all), and on the rare occasions they do happen, I’ve found clients to be much more appreciative of my time.

Communicate upfront about realistic expectations of the other party

I might say something like:

“I do not work for the other party in the transaction (buyer or seller, depending on which side you’re on), and therefore, I can’t force anyone to do anything they aren’t willing to do. My job is to represent my client and do everything in my power to collaborate with the agent to achieve our mutual goal of closing.

“However, I can’t force the other side to perform, agree to repairs or come to your price any more than I am able to force you. I can take all the necessary and available steps, and I will, but my hands become tied at a certain point. This is a collaborative business, and I refuse to be attacked if the other party isn’t behaving like you want them to.” 

This is an important part of my boundaries because, in the past, I have been blamed for the other side’s X, Y or Z. I remind my clients that the buyer or seller on the other side is a human, just like we are, and they have a right to make their own decisions. It’s then our job to decide if those decisions are something that we feel comfortable with.

Read the contract

Read the contract, read the contract, read the contract. I cannot tell you how many times I have had clients upset over something that was in the contract that they signed. If you are signing anything, read it carefully.

I always make myself available to review the contract together or to answer any questions or concerns, however, it’s the client’s responsibility to read the contract and ensure they understand it before signing it.

Included in every DocuSign envelope is a note from me that says, “Did you have a chance to read this, and do you feel comfortable moving forward with the terms outlined in this?” Trust me, this will save you many headaches and frustrating conversations down the road.

Do not be afraid to fire clients or say no to something that doesn’t feel right to you

Sometimes, the best decision you can make is to let a client go. At a certain point, regardless of how much time or energy you have spent with the client, you may need to let someone go. I’ve done this many times, and it has gotten much easier as I’ve seen the rewards.

Think of it like this: If you’re spending all of your time with one client, you are not making room for new clients who could be a much better fit for you. Remind yourself of this: You are not the perfect Realtor for everyone, and not every client is a perfect client for you. Just as you do in other aspects of your life, choosing your relationships carefully will have a profound impact on your success and happiness.

Some of these may sound harsh, but after 10-plus years in this business, I have found that being honest with everyone, including myself, is the best way to succeed. If I am working with someone who is disrespectful and draining, I will not be the best version of myself nor reach my full potential as their agent. But, another agent will, and both the client and you deserve that opportunity.

Allowing some clients to seek out new representation (if the circumstances require it) will allow you to find the client who is a better fit for you — and that’s a win-win for everyone.

Amie Quirarte is a luxury real estate agent with Tahoe Luxury Properties in California and Nevada. Connect with her on Facebook or LinkedIn.

Fed Chair is Back After Strong Jobs Report

Posted on by Liza Muhl

After last week’s surprisingly strong Jobs Report, Fed Chair Jerome Powell spoke about the economy and direction of rates. Let’s walk through what happened and what to watch in the week ahead.

“Cause I’m Back, Yes, I’m Back” – Back in Black by AC/DC.

“The strong Jobs Report shows you why we think this will be a process that takes a significant period of time.” Fed Chair Powell 2/7/23.

BY EPHRAIM SCHWARTZ
Partner, Mortgage Consultant CMPS
O’Dette Mortgage Group
February 14, 2023

 

The Federal Reserve has a dual mandate, which is to maintain price stability (inflation) and promote maximum employment. On the inflation front, it appears inflation has indeed peaked and is on the decline. The Fed Chair reiterated the “disinflationary process” has begun. This is a positive development for the economy, housing, and long-term rates.

On the labor market front of the Fed’s mandate, the Fed in its desire to slow demand and thus inflation, wants to see some unemployment. The good news/bad news? Last week, the Bureau of Labor Statistics (BLS) reported the unemployment rate at 3.4%, the lowest in 53 years…that is good news. The bad news is it means the Fed will look to raise rates by .25% in March and another .25% in May, thereby lifting the Fed Funds Rate above 5.00%.

This renewed outlook for a higher Fed Funds Rate has elevated uncertainty and volatility in long-term rates, which move up and down based on economic conditions and inflation, both of which are easing and a reason why long-term rates are lower than short-term rates.

“Likely to see some softening in labor market conditions” – Powell

This is a reasonable assumption considering the number of planned layoffs announced this year, while we sit at multi-decade low unemployment, it seems like up is the only direction for unemployment.

Soft Landing Back in Play

Due to the current strength of the labor market, there is a growing chance the Fed can raise rates and lower inflation towards its 2.00% target without triggering a deep recession.

History has shown that recessions do not take place with unemployment at 4% or below without some sort of surprise shock to the economy.

Let’s hope the Fed is not too successful in “creating” unemployment because if it quickly rises, the idea of a soft economic landing could go away quickly too.

3.70%

As we mentioned, long-term rates have responded negatively to last week’s strong jobs report, because good news is bad news for bonds and rates. The 10-yr Note touched 3.33% last Thursday and touched 3.70% just a few days later. However, rates remain beneath where the 10-yr yield opened 2023 at 3.85%.

“We are going to react to the data” – Powell

Here the Fed Chair reminds the markets that last Friday’s Jobs report was strong, but backward looking and lagging while other economic indicators show signs of s slowdown. The Fed does not want to over hike rates into a slowing economy and be the reason for the recession. So, while the market is currently pricing in two more rate hikes and a rate cut in December, this story could quickly change once again.

Bottom line: Rates and inflation have peaked. Housing activity has jumped in the past weeks as a result. The incoming data will determine how much better rates can get in the next few weeks leading to the next Fed Meeting.

Looking Ahead

Next week’s CPI is a very important number. If it meets or comes in lower than expectations, we could see home loan rates revisit the levels seen last week right before the Jobs Report last Friday. We will also see the latest readings on housing and the strength of the consumer, by way of Retail Sales. As fast as the story changed when the strong jobs data hit, things can change quickly upon these reports.

Have you experienced property damage due to the 2022/2023 Winter Storms?

Posted on by Liza Muhl

A federal emergency declaration has been proclaimed by President Biden and financial assistance may be forthcoming. While the federal government has not yet declared a disaster (a different designation that provides different resources) for California that could authorize direct financial assistance to affected residents.

Placer County requests those who have suffered damage to report it HERE.

If the issue is life threatening please dial 911. The intention of the survey is to allow the reporting of non-emergency issues during periods when the Emergency Operation Center is active. Your answers to the brief survey will help better document the extent of damage these storms have caused, so Placer County can continue to advocate for all available support for impacted residents.

With more weather still in the forecast, please use the Ready Placer Dashboard for the latest on road and weather hazards and to access resources to help protect your family and property.

Placer County Non-Emergency Reporting

Breaking News: CPI Report at 6.5%

Posted on by Liza Muhl

The Consumer Price Index (CPI) measures the monthly change in prices paid by U.S. consumers. The U.S. Bureau of Labor Statistics (BLS) calculates the CPIas a weighted average of prices for a basket of goods and services representative of aggregate U.S. consumer spending.

BY EPHRAIM SCHWARTZ
O’Dette Mortgage Group of Synergy 1 Lending
January 12, 2023

January’s CPI (consumer price index) inflation data was released this morning and came in right at expectations of 6.5%.   This is good news as it’s notably lower than December’s reading of 7.1%, and CPI inflation has now moved lower for 6 consecutive months, with the last 3 CPI reports being the real catalyst in mortgage rates lower.   While this 6.5% CPI figure remains notably higher than the Fed’s target of 2% inflation, today’s report was still good news in the context of how inflation/mortgage rate are recovering from the distortion created by the Fed’s red line full throttle bond purchase program during Covid, and all supply chain related Covid issues which are mostly in the rear view mirror.  Here’s some context to share with clients and what it all means for mortgage rates.

We’re currently in this interesting window of time where it’s valuable for real estate investors to understand that increases to the Fed Funds rate does NOT mean mortgage rates increase.   Sometimes reiterating the mechanics of what determines mortgage rates (bond prices, which have move significant been determine by 2 things in the past few years:  the Fed’s bond purchase program and inflation) can instigate the question of; “why does it matter if the Fed hiking the Fed Funds rate isn’t what drives mortgage rates higher, it seem they’re usually moving in the same direction?”, in other words – does it really matter if it’s correlation or causation?

Answer:  yes – very much so, and the current market is precisely why it’s so important to clearly communicate the differences & mechanics for clients.  As of November, we are now in a phase where the Fed will continue to hike the Fed Funds rate, while mortgage rates are moving lower.    This is key for those looking to capitalize on a real estate opportunity before mass market sentiment pendulums back.

Here’s what’s going on with inflation mortgage rates:   CPI, a primary measure of inflation, had peaked at 9.1% this past summer.   The Fed hikes the Fed Funds rates (short term consumer debts) to fight this inflation.   The November & December CPI reports both came in notably lower/better than the market expectation, this benefited bond prices, and therefore mortgage rates.    Since mid-November we’ve been talking about how; unless we got surprisingly bad news on inflation in the months ahead, it looks like mortgage rates peaked that first week in November.   Today’s CPI data coming in right at expectations further reinforces this trend.   To put into perspective, the 10 yr Treasury, which is what Jumbo mortgage rates follow, hit ~4.35% that last week of October, then had it’s best day of the year the same day the November CPI report came in lower than expectations, then again moved another leg lower after the December CPI data, and is settled in today at ~3.4%.    This is significant good news as we all know higher mortgage rates are part of the downward pressure on real estate prices, and vice versa.

We’re still seeing Jumbo rates today a bit lower than conforming, and the larger loan amounts actually pricing the best.   For example today, a ~$2.0M purchase with 20% down, can get a 30 yr fix in the 5%’s with no points, and as low as ~5.25% with a little over a point.   This is a historically healthy place for mortgage rates to be.

In sum, the headlines will soon again talk about rates moving higher when the Fed increases the Fed Funds rate again, which is coming, and meanwhile mortgage rates have already come down to a healthy level.