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Posts tagged ‘real estate market’

5 Tips for Real Estate Agents

I always love reading The KCM Crew’s blog and their “quick tips” always make great points. I wanted to share with you their July Quick Tips.

1. Prepare diligently for EVERY appointment.

Most agents prepare well for a listing appointment. They go in with a complete consultation manual ready to show the seller why they should sell now and at
the suggested price. They make sure they have all the tools necessary to have a successful meeting.

What about the buyer consultation appointment?

Or the price-break appointment?

Or the negotiation of offer appointment?

There are four critical appointments in today’s market. We prepare for one of them. We ‘wing’ the other three. We must prepare as thoroughly for the last three as we do for the listing presentation. We must make the most of every opportunity presented from now until the end of the year.

2. Don’t forget the fundamentals; contact listings that expired in June.

History has shown us that the single day of the year that most listings expire is December 31st. The date that comes in second is June 30th. There will be more
opportunity in the first week of July 2011 than perhaps in any other July in history. The number of expiring listings will be staggering. That means opportunity for someone. Hone your listing and pricing skills and approach every expired you can. The inventory of listings you accumulate in the first two weeks of July
could catapult you to success for the rest of the year.

3. Gain knowledge and then get to work.

We have to become better at our craft every day. We must continuously improve our skills. We must become an expert at showing our customers what is taking place in the current housing market. They can then make the right choices for themselves and their families.

It is not good enough to be a student of real estate. We must act on our knowledge. We must plan where we wish to be and then get busy making our way
there. If I could have only one of all the attributes successful people are known to have, I would chose the ability to work hard. It is the most important
and will get you closer to success than any other attribute.

4. Remember that a picture is worth a thousand words.

Whether we are taking a listing, consulting a buyer, doing a price adjustment or presenting an offer-to-purchase, we must be able to effectively communicate our customers’ options in the current real estate environment. The use of strong visuals dramatically enhances the chances that the consumer will truly
understand the points we are making. Too many agents are satisfied complaining about the fact that their client just ‘doesn’t get it’ even after they ‘told’
them what is happening.

We must take the time to visually ‘tell a story’ on each point we are making. We must hone that story until it makes our point simple to understand. That is
what differentiates talking at a person from truly educating them. We need to be great educators in this market.

5. Stop hoping the market gets better…Make sure YOU get better.

The best market a true professional can hope for is a market that truly needs the skills of a well-trained expert in the field. Anyone can do the job in a market
that doesn’t require competency, skill and insight. To the great real estate professional, a market’s strength has always been determined by how many people
needed our help. In my 25 years in the business, I have never experienced a market that had more people who need our help in making the right decisions for
themselves and their families.

Are we consistently doing the necessary research to keep abreast of what is happening in today’s rapidly evolving market? Are we taking classes to help us
understand why certain things are taking place? Are we taking the time to sit with our clients and simply and effectively inform them of their options?

“Are we prepared to help?” becomes the question that needs to be answered; not “When will the market no longer require a true professional?”

Aren’t these great tips?! I hope they help you as much as they always help me. Have a great rest of the week and good luck battling the market!

Cheryl

 

Buying and Selling When It’s Hot

It’s heating up outside so how do we maximize our buying/selling results in the heat? Here are 5 Summer Real Estate Tips from Jamey Wolbert that will help us attack the summer season. There are typically more active buyers and sellers during the summer months. Here are some tips and trends to make your summer season the most effective.

1. Sellers: Don’t Forget the Outside

During summer, landscaping and outdoor space are especially important aspects of your home sale. Maximize the space by keeping the exterior clean, organized, and inviting. Pressure washing, lawn care, and other regular maintenance tasks can do wonders for your bottom line.

2. Buyers: Don’t Forget the Inside

It can be easy to get swept away by a great fenced lawn, pool, deck, and other exterior features, especially when you are house hunting at the peak of summer. But don’t let visions of outdoor relaxation and entertaining distract you from other essential home features or sway you into overlooking interior concerns.

3. Sellers: Know Your Competition

With more houses on the market, knowing what you are up against is key. Being aware of other homes for sale in your neighborhood can help you define your home’s own weaknesses and strengths. Reviewing information on area listings can also help ensure that you price your home right.

4. Buyers: Remember Your Goals

When a surge of homes come on the market at the start of summer, it can be easy to get overwhelmed by all of the options. Don’t lose sight of the features that are most important to you, and try to set reasonable expectations that suit your budget, lifestyle, and overall needs.

5. Everybody: Don’t Get Squeezed by the Season

Even though summer is a prime time for buyers and sellers, don’t let the seasonal time frame become an added stress during your house hunt or home sale. Both buyers and sellers can find success throughout the year!

If you have questions or are looking for more tips, feel free to contact me directly!

Happy Summer!!

Cheryl

A Window of Opportunity for House Sellers

Great blog from the KCM Group that I wanted to share with you! Check it out and let me know your thoughts.

There has been much confusion as to where housing prices are headed. We have actually blogged on the issue recently. Today, we want to give our opinion on this subject for the short term. We believe sellers have a window of opportunity for the next 90-120 days in which to sell their homes for maximum price. We believe there will be increased downward pressure on home prices later this year and the first half of 2012.

Why renewed downward pressure?

Any item’s price is determined by ‘supply and demand’. In many parts of the country existing housing inventory is already high and actually increasing. In addition, an inventory of distressed properties (foreclosures and short sales) will be coming to market later this year. This inventory has been delayed for the last several months because of faulty paperwork by the banks when they originally attempted foreclosure proceedings on these homes.

Celia Chen, of Moody’s Analytics explains:

“Foreclosures are weighing on the outlook for U.S. house prices, and the slow resolution of issues surrounding the so-called robo-signing scandal is keeping distressed homes off the market”.

The New York Times also recently reported on this issue. They looked at the delays in certain states. As an example, this is what they found in New York:

“Last September, before the documentation crisis, nearly 1,500 New Yorkers lost their houses as a result of foreclosure, according to LPS. The average over the last six months: 286. That is far lower than at any point since the recession began.”

Banks are now correcting these errors.

There is evidence that the banks are getting their documentation in order and about to again increase their foreclosure repossessions. Housing Wire reported:

“Since major lenders delayed foreclosures to fix a broken process late last year, the amount of filings declined, but in May signs emerged the effect might be wearing off.”

They went on to quote RealtyTrac CEO James Saccacio:

“…lenders are somewhat unevenly pushing batches of bad loans through foreclosure as they overhaul their paperwork and documentation procedures and as they determine that some local markets are able to absorb more foreclosure inventory… Foreclosure processing delays continue to mask the true face of the foreclosure situation, although there were some clues in the May numbers of what lies behind that mask.”

What will this mean to home prices?

As this inventory comes to market, it will impact prices in two ways:

  1. It will provide discounted competition for buyers
  2. It will impact the appraisal values of all homes in the area

Again, we quote Celia Chen:

“It is quite possible that house prices will pick up slightly in the second or third quarter of this year, as foreclosure sales remain depressed while nondistress sales pick up…By the fourth quarter of this year, however, the distress share will rise, sending the house price index back down…

House prices will founder until early next year and start rising in earnest at the end of 2012.”

Bottom Line

There is a window of opportunity currently which sellers should take advantage of. Waiting until later this year or until next year will not guarantee a higher sales price. If anything, it probably guarantees the exact opposite.

 

-Cheryl

What do homeowners say about owning a home?

There is no shortage of experts that want to let us know how Americans feel about owning a home after the collapse of the residential market in the last five years. They MUST be devastated. They MUST feel trapped like prisoners in their own homes. They MUST be sorry they ever bought the house. These assumptions seem logical at times and can occasionally be supported by anecdotal evidence.

However, we want to go to the only people who truly understand how homeowners feel – the homeowners themselves. There have been three major surveys done this year that can shed light on the issue:

The National Housing Survey

This survey conducted by Fannie Mae showed:

  • 96% of all homeowners said homeownership has been a positive experience.
  • 64% consider buying a home as a safe investment. Buying a home was considered safer than buying stocks by over three times the number of people (64% vs 17%).

The top four reasons to buy:

  1. It means having a good place to raise children and provide a good education
  2. You have a physical structure where you and your family feel safe
  3. It allows you to have more space for your family
  4. It gives you control over what you do with your living space (renovations & updates)

American Attitudes About Home Ownership

According to this survey conducted by Harris Interactive for the National Association of Realtors, home owners believe that home ownership benefits individuals and families and strengthens our communities.

The vast majority of home owners say that owning a home is a smart decision over the long term. Even in today’s challenging economy, 95% of owners believe that over a period of several years, it makes more sense to own a home.

Home owners are much more likely to be satisfied with the quality of their family and community life than renters. While more than half of owners (56%) are “very” or “extremely” satisfied with the overall quality of their family life, only about one-third (36%) of renters report the same levels of satisfaction. Also, 43% of home owners are “very” or “extremely” satisfied with their community life, compared with 30% of renters.

An overwhelming majority of home owners are happy with their decision to own a home. A full 93% of owners surveyed would buy again.

Pew Research Center Survey

This recent survey titled “Home Sweet Home. Still” delves into homeowners’ current belief in homeownership as a long term investment:

Homeowners whose home value has fallen only a little are equally enthusiastic about housing as a long-term investment: 85% say buying a home is the best long-term investment a person can make. Among those who say their home has maintained it value or increased in value, 88% agree…

Even those who have seen their home values plummet are still committed to the idea that buying a home is a solid, long-term investment. Among those who say their home has lost a lot of its value, 80% agree that buying a home is the best long-term investment (36% strongly agree, 44% agree somewhat).

Bottom Line 

There have been families that have been devastated by the current economy. However, through it all, homeowners have not wavered  in their belief in homeownership as the best long-term investment.

 –Cheryl

Will You Get More Money if You Wait?

The KCM Group posted a great article about home values and whether or not you wil lmake more if you wait. Have a great read!

Sellers in any real estate market are looking to get the best possible price. If you are looking to sell in the next year, today’s price may well be the best price. Home values stabilized somewhat in 2010. Many hoped that was a sign that values had bottomed out and we would see price appreciation in 2011. Studies released have painted a different picture.

If we look at CoreLogics January Home Price Index (HPI), we see that prices are again beginning to decline:

National home prices, including distressed sales, declined by 5.7 percent in January 2011 compared to January 2010

Mark Fleming, chief economist with CoreLogic, said, “A number of factors continue to dampen any recovery in the housing market. Negative equity, which limits the mobility of homeowners, weak demand and the overhang of shadow inventory all continue to exert downward pressure on housing prices. We are looking out for renewed demand in the coming months as the spring buying season gets underway to hopefully reduce the downward pressure.”

They are not talking about the spring market increasing or even stabilizing prices. They hope it will “reduce” the pressure to drive prices lower.

Radar Logic’s RPX Composite Price comes to virtually the same conclusion:

Radar Logic believes the RPX Composite price will continue to exhibit year-on-year declines throughout 2011 due to a growing supply of homes for sale and in the inventories of financial institutions, and weakening demand due to the reduction of government incentives for home buyers. Moreover, banks are facing uncertainty over whether they will be forced by regulators to expand mortgage modifications, and may reduce lending and tighten standards as a result.

“No matter what you call it, a ‘double dip’ or the continuation of a long process of deterioration, the current trend in home prices is evidence that housing markets are continuing to languish,” said Quinn Eddins, Director of Research at Radar Logic. “We expect the negative trend to continue under a severe supply overhang that includes a large and growing ‘shadow inventory’ of homes in default or foreclosure.”

Bottom Line

It seems that prices have again begun to fall nationally. With the overhang of existing and shadow inventory, prices will probably continue to decline throughout most of 2011. If you’re thinking of selling, now might be the best time. Check with a local real estate professional to see how this might impact your area.