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Conference room today we come to -- from the living room of -- house for sale in the town of Rockford Illinois -- No Rockford as it one time to -- capital of the world a huge manufacturing senator we brought together three.
Local real estate professionals today -- your sense.
Hi underwater mortgage rate one of the highest in the nation.
And we want to give you a sense.
Ball we seen housing recovery -- a lot of places a sense for this town.
Who I got.
I'm John -- Managing broker -- -- realty.
Last year realty and I've I've as a reflection of the market have been the number one real estate broker in the United States for two years in a row in the Wall Street Journal.
Well there you know can you top that.
I wish I fed I'm Jan Mansfield iMac also -- -- owner united realty with ten were partners.
And I just scientists and company when he's Clinton -- All the work and he gets all the press.
And lastly -- -- -- bird with American dwellings realtors.
I give me a sense -- star review.
Of this market right now you're doing a lot of foreclosures.
Give me a sense of the Rockford mark.
I can say business is booming -- for looking -- foreclosures.
Processing more than a thousand transactions a year that's been like that for -- several years so more than a thousand pounds each year selling.
-- -- -- -- -- -- -- -- -- what the impact of that is you know we hear a lot about housing recovery -- a lot of places.
Prices are booming -- him even -- talk of another real estate bubble out there.
-- -- got a bubble in this market a lot of other ones too.
And now we I wish we had a bubble here but but we it is gradually improving and and appraisals are starting to come -- more to our liking because they have been.
Very skewed for a long time very low so that even and we had a buyer repaint it couldn't get the deal done because we couldn't get proper Q property -- praise.
Say -- explain how that works.
Say you and I agree on -- you're the seller and I wanna pay -- 100000 dollars for your house you're willing to take it.
But then the appraisal comes back in at 85000 what does that do that's.
That in effect probably kills the sale because.
-- mortgage company won't make through the mortgage hired in the appraisal.
So that either -- -- would have to come down 151000 dollars from their agreed price or the sale would fall through -- but we've hit a few of them you know not.
Not a whole lot I don't do very much in the foreclosure market.
I sold primarily.
Operating properties and those properties though a lot of those operating properties these days are under water and -- it effectively precludes people from being able to move somewhere or -- Yeah that's correct.
And many times when it comes to me being the listing agent.
I have to walk away from those houses because the people can't sell for what -- -- they can't afford to put the money in to make themselves.
If they don't have the money available.
I guess I would ask what -- need John what what would make this.
So certainly employment.
Right now we have homeowners that are paying more in their tax bill.
And they -- mortgage -- that's a problem.
-- with the fact that half the -- now working.
That's a problem so we we need jobs here jobs whoa whoa -- Everything bring the market out.
And investors right now have a real opportunity and homeowners mean where else in America can you -- average home for sixty dollars a square foot.
Very few places in foreclosures.
Many times can be purchased well -- that.
So this is an opportunity then potentially for outside investors to come in and purchase these properties either -- -- Right there are a lot of investors -- the other thing that could happen is if we can get more people to start the process.
When it would become a short sale instead of going into foreclosure.
That the bank ends up better at that customer and -- better and finally the banks are figuring out how to do it without taking a year.
It's still it's a long process but that would be one step that would help us to.
Have fewer foreclosures and I think help more people.
And last -- do you -- what do what do you need what would make it better John's exactly right jobs -- the key.
Having the disposable income that they can.
Buy a house and also him.
Have some income to go out for dinner when they want to.
The American pie of real estate of Rockford Illinois as we said at one time huge manufacturing center now.
Well got some challenges.
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