Tom Goebel – Thomas E. Goebel

Editorial REALTORS

Post author:Tom Goebel
Post published:March 19, 2024
Post category:Tips
Post comments:0 Comments

Shocked by the news that the National Association of Realtors (NAR) has agreed to pay any amount of money on the recent ridiculous judgment incites me to write this opinion. Yes there are individual Realtors, and individual Brokerages that have defied the rules and ethics of our good Realtor organizations and might be guilty of “price fixing” a criminal offence. I have not seen this in Michigan in the last 25 years. We Realtors have all been educated by NAR, the Michigan Association of Realtors (MAR) and my…

On Real Estate Capitalization rates

Post author:Tom Goebel
Post published:April 21, 2023
Post category:Finances
Post comments:0 Comments

Income property value is based upon a net operating income (NOI) rate of return. That is, if owned free and clear what would be the annual rate of return based upon that net cash bottom line without interest, depreciation or capital expenditures. This rate of return is called a capitalization (cap) rate. A NOI of $90,000 at an 8% cap = $1,125,000. Or a property listed at $3million with a NOI of $270,000 is an offering at 9% capitalization or rate of return. We have recently come off…

Bubble bursting August 4, 2022

Post author:Tom Goebel
Post published:August 4, 2022
Post category:Finances
Post comments:1 Comment

As a Realtor I hate to see the roller coaster markets. Wouldn't it be nice if realestate grew at an even pace between 3% and 6%? But what we seem to see isinflated markets until a "bubble burst". The last couple years has seen“hyperinflation” in most residential markets that we all knew was not sustainable.All real estate markets are local so this may apply to most but not all NorthAmerican markets. Latest statistics in Windsor Ontario are that the marketpeaked in February 2022. Average sales price has dropped…