Economy

NAR's economist, Lawrence Yun, states in a recent Realtor Magazine article that,
"It's safe to say we've reached the point where prices are justified by the fundamentals of the economy and may even represent an undervaluation."

I have seen an increase in real estate sales activity in the suburban Bridgeport market as entry level homes appear to be in demand. Buyers are taking advantage of the $8,000 First-Time Home Buyer Tax Credit which Congress approved. The repayment requirement has been eliminated.

New Year's Resolutions

Time to plan ahead for the New Year. My first tip is to consider refinancing
your mortgages. Interest rates are at an all time low and monies
are available if you have good credit and some equity in your property. Shop the interest
rate with several lenders and consider lowering the term of the note if you want
to work towards paying off the loan sooner than later.

Key Commercial Lease Items

If you're a tenant renting an entire floor be sure that the common areas within your space are
up to code and comply with ADA. Have your attorney get a copy of the Certificate of Occupancy for your space and be sure to have the local Fire Marshall review the space and facility. Note: the State can override the local fire marshall.

Leasing Tip

Always attempt to have Exclusive Use for your business when you lease space in a
multi-tenant building. This helps avoid competition and increases your public image
via signage. It can also help with employee retention.

Cost Savings and Leasing Strategies

One cost saving opportunity for every type of business involves negotiating lease terms.
If your lease is expiring consider renegotiating with your existing landlord or seeking new space.
By downsizing your space requirements you may be able to achieve substantial rent expense savings, especially in this real estate market. Also, if you locate in an area more proximate to management, owners, and/or employees you can also realize a savings on transportation expenses. Be conscious of two expenses in any lease that could be volatile: energy costs and taxes.

Thanksgiving

What a great holiday. The commercial machines cannot
find a way to spoil the pure family aspect of this day.
There is only so much they can do with a turkey and pilgrim.
Here's to high school football, family, road races, and good food
and lots to be thankful for.

Mortgage Modifications

Lenders are considering modifying some of their mortgages in light
of the rise in foreclosures and delinquencies. It may be an opportune
time to have a discussion about your mortgage with your lender. It is
incumbant for lenders to keep assets performing and they may be willing
to accomodate customers in light of the present state of the economy.
Especially, loyal customers who can show legimate financial or medical hardship.