So you’re thinking about putting your home on the market and moving to that condo/farm/new build/quiet neighborhood/high-rise/bigger home/smaller home (select one). Even though prices on homes seem to be stagnant and you won’t be able to get as much for your home as you could just three years ago, the deals you can get as a buyer after you sell your home seem too good to pass up.
Your natural inclination is to save the commission and try to sell your home yourself which will leave extra cash to put toward your next home. Simple math says that if you don’t pay a REALTOR® a commission to sell your home, you’ll have more left over to buy your new home. You may want to reconsider your strategy.
In a recent article posted on FORBES.com, they make the case that going it alone has drawbacks that most potential ‘For Sale By Owners’ don’t even consider.
Here is the article posted in its entirety:
Five Reasons Why You Still Need a Real Estate Agent ¹
The proliferation of services that help homebuyers and sellers complete their own real estate transactions is relatively recent, and it may have you wondering whether using a real estate agent is becoming a relic of a bygone era. While doing the work yourself can save you the significant commission rates many real estate agents command, for many, flying solo may not be the way to go–and could end up being more costly than a realtor’s commission in the long run. Buying or selling a home is a major financial (and emotional) undertaking. Find out why you shouldn’t discard the notion of hiring an agent just yet.
1. Better Access/More Convenience
A real estate agent’s full-time job is to act as a liaison between buyers and sellers. This means that he or she will have easy access to all other properties listed by other agents. Both the buyer’s and seller’s agent work full time as real estate agents and they know what needs to be done to get a deal together. For example, if you are looking to buy a home, a real estate agent will track down homes that meet your criteria, get in touch with sellers’ agents and make appointments for you to view the homes. If you are buying on your own, you will have to play this telephone tag yourself. This may be especially difficult if you’re shopping for homes that are for sale by owner.
Similarly, if you are looking to sell your home yourself, you will have to solicit calls from interested parties, answer questions and make appointments. Keep in mind that potential buyers are likely to move on if you tend to be busy or don’t respond quickly enough. Alternatively, you may find yourself making an appointment and rushing home, only to find that no one shows up.
A national business website, Forbes.com, just named the Harrisburg/Carlisle metropolitan area as one of its ten most livable cities in America. The following is the entire news article that appeared on the front page of The Patriot News on May 4, 2010:
Guess Who Lives in America’s Fifth Most Livable City? You Do.
Harrisburg ranks fith in a Forbes.com list of America’s most livable cities. Pittsburgh is first.
“By and large, the cities on the list aren’t big tourist destinations, but they are places where costs are relatively low and quality of life is high,” said Francesca Levy at Forbes.com.
Levy said the list doesn’t intend to suggest one metro area is better than another.
“Rather, we developed a measure to judge one aspect of cities: livability.” And she siad Forbes.com defines that as “one where you can get through the day-to-day business of life witht he fewest obstacles.”
“That means, on average, having a good balance of job security and opportunity, safety, and a decent amount of stuff to do, and everyday costs aren’t out of control,” Levy said.
The ranking comes as good news for those who serve as the region’s cheerleaders.
“I think it speaks very well about our region, particularly when we’re in competition with metro areas of all sizes,” said David Black, president of the Harrisburg Regional Chamber.
As many of my friends and colleagues know, I like to run. It’s a passion I picked up when I turned 40 a couple of years ago (OK – maybe many years ago). It’s a relatively simple, inexpensive pastime. Just lace up a pair a running shoes and no matter where you are in the world, you can run. You don’t need special gear, perfect weather or a well-manicured playing field. All it takes is a bit of desire and the will to just get out there and do it.
Anyone who has ever run semi-seriously knows that the four-minute mile barrier was broken by Sir Roger Bannister. This historic event took place on May 6, 1954 during a meet between British AAA and Oxford University in England. The race was watched by about 3,000 spectators and broadcast live by BBC Radio. The following announcement was made immediately after the race to those in attendance by the stadium announcer:
“Ladies and gentlemen, here is the result of event 9, the one mile; 1st, No. 41, R. G. Bannister, Amateur Athletic Association and formerly of Exeter and Merton Colleges, Oxford, with a time which is a new meeting and track record, and which – subject to ratification – will be a new English Native, British National, All-Commers, European, British Empire ad World Record. The time was 3 . .”
The roar of the crowd drowned out the rest of the announcement. Bannister’s time was 3 min 59.4 sec.
Up to that point, the four-minute mile was thought to have been an impossible feat. Scientists, physiologists, coaches and runners had literally placed a self-imposed, mental barrier on anyone thinking they could challenge the mark. But with Bannister’s historic feat, he opened up the flood gates. Within one year of the record-breaking time, an unprecedented thirty-seven runners shattered the four-minute mark. Did these runners suddenly all get better at the same time? My guess is ‘No.’ The only thing that changed was a little voice in the back of their head that was silenced that day. The voice that said the four-minute mile was impossible.
How often do we listen to that little voice in the back of our heads that tells us something can’t be done? Sometimes the difference between failure and success is just that little bit of extra ‘Umph!’ that lies within each of us. Here’s a short video that will make you think:
Here’s something to make you think (at least I hope it will):
The first lemonade stand is run by two kids. They use Countrytime lemonade, paper cups and a bridge table. It’s a decent lemonade stand, one in the long tradition of standard lemonade stands. It costs a dollar to buy a cup, which is a pretty good price, considering you get both the lemonade and the satisfaction of knowing you supported two kids.
The other stand is different. The lemonade is free, but there’s a big tip jar. When you pull up, the owner of the stand beams as only a proud eleven year old girl can beam. She takes her time and reaches into a pail filled with ice and lemons. She pulls out a lemon. Slices it. Then she squeezes it with a clever little hand juicer.
The whole time that’s she’s squeezing, she’s also talking to you, sharing her insights (and yes, her joy) about the power of lemonade to change your day. It’s a beautiful day and she’s in no real hurry. Lemonade doesn’t hurry, she says. It gets made the right way or not at all. Then she urges you to take a bit less sugar, because it tastes better that way.
While you’re talking, a dozen people who might have become customers drive on by because it appears to take too long. You don’t mind, though, because you’re engaged, almost entranced. A few people pull over and wait in line behind you.
Finally, once she’s done, you put $5 in the jar, because your free lemonade was worth at least twice that. Well, maybe the lemonade itself was worth $3, but you’d happily pay again for the transaction. It touched you. In fact, it changed you.
Sometimes it takes an eleven year old girl selling lemonade to get real estate agents to think about a better way to sell their product. Which lemonade vendor are you? Have a great day!
The average sized home in America is starting to shrink. No longer are homeowners demanding square footage and soaring open vaults in their living spaces. McMansions are OUT – - – efficiency and versatility are IN. MarketWatch’s Amy Hoak recently reported on this fast-evolving building trend.
Within the last two weeks, the National Association of REALTORS® (NAR) unveiled its vision of a national property database called the REALTORS® Property Resource (RPR) that would be available to its membership starting in the second quarter of next year. After I watched NAR’s online presentation of the RPR the first thing I concluded (read my post here) was that they were going to build a national Multiple Listing Service (MLS) even though they stated numerous times during the presentation, “This is not a national MLS.” I didn’t buy their statement two weeks ago and I’m not buying it today. I wish they would just call a spade a spade and get on with it.
While the NAR and the oodles of MLS’s serving their membership haggle over how they’re going to tweak or preserve the status quo, Google is busy blowing up the old model and rewriting the rules of the game.
Since the National Association of REALTORS® (NAR) first unveiled the REALTORS® Property Resource (RPR) at NAR’s Convention in San Diego this past week, I have been intently following and participating in the online conversation so that I can fully understand the breadth of this behemoth. My conclusion thus far – - – This WILL change everything! From how individual REALTORS® in the field do business to how local Association’s and MLS‘s operate to how the consumer perceives us. Trust me; this is the biggest thing to happen to our industry in last twenty-five years. Nothing even comes close. What is amazing to me is that most REALTOR® (my guess is 90%) haven’t even heard of the RPR yet. Mention the RPR and it’s like watchin’ deer in the headlights. Most have no clue.
Why is that? Why the indifference? My guess is that our industry is so focused on pulling itself out of the economic malaise of the past sixteen months that this game-changer has gone unnoticed. In addition, even though it has been introduced, you can’t get your hands on it yet. (NOTE: The official release date of RPR is sometime in April of 2010.) It’s all talk and talk is cheap. Most REALTORS’® attitudes mirror a line from one of my favorite movies, Jerry Maguire: ”Show me the money!” Not literally; but figuratively. They want NAR to, “Show me the product!”.
In case you don’t want to watch the 90 minute NAR webinar or read the press release or read the hundreds of real estate blogs that are covering this important endeavor, here is a condensed synopsis for you. I’ve added my own thoughts and musings after each bullet point to give you my take and to make you think. If you think that I’m too far “out there”, feel free to ignore the commentary sections. I won’t be offended. WARNING – even though this is condensed, it’s still a bit lengthy: Read the rest of this entry »
Every once in awhile I see, hear or read something from outside of the real estate industry that just strikes a chord with me. This video was one of them. Here’s a guy who took a product as simple as soda and turned it into a success for himself. The twelve minutes that you spend watching this will be worth it’s weight in gold down the line. Enjoy!
So what are the lessons to be learned here. If you want to be a Success, follow these rules:
Be passionate about your job or chosen field of endeavor. Whether you’re negotiating for your client, chopping wood or parenting, do it with vim and vigor.
Become educated about your product or service. You should be a sponge that sucks up knowledge so that you become known as the “go to” guy or gal in your field.
Be honest in everything you do. Continually ask yourself the question when faced with tough decisions, “What’s the right thing to do?”
Provide exceptional customer service. Anyone can sell you a widget. But not everyone sells you the widget, delivers it to your home, shows you how it works and follows up to make sure that you’re happy. Go the extra mile. It pays off.
Find your niche. Stop trying to be the best at everything. In the end, you’ll be good at nothing.
Now that you’ve read this post, go have a cold, banana nut soda. You deserve it!
Late yesterday afternoon, the National Association of REALTORS® (NAR) announced that on November 12, they will unveil a new web site called HouseLogic designed to provide home owners with a smart, simple resource to help them manage their homes wisely and to help REALTORS® extend their relationship with consumers through the entire lifecycle of homeownership. While the specifics are still sketchy at this point, it is clear that NAR’s latest foray into the world of online real estate is not just a simple blip on the radar screen but rather a major trembler within our industry.
For the past couple of years, NAR has been working on a project called the ‘Realtors Property Resource’ (RPR) that has been shrouded in secrecy. In fact, even the name was a mystery. It had been called ’Gateway,’ ‘The Real Estate Channel’ and the ‘Library/Archive.’ Those of us in the industry weren’t even allowed to know all the details about the project. Was it for consumers? REALTORS®? Would it provide data on every property in the US? Was it designed to be a property valuation tool? Would it take the place of REALTOR.com? Or, dare I ask – - – Was it intended to be a national multiple listing service? It was like throwing darts from 50 yards to try and hit an ant – who knew?
The Lancaster County Association of REALTORS® Government Affairs Department, headed up by Frank Christoffel, IV, passed this Q&A along regarding the latest information on the potential extension of the homebuyer tax credit which includes an existing homebuyer credit that was not part of the first bill.
The House of Representatives passed the extension yesterday by a vote of 403-12 after passing the Senate the previous night 98-0. The new provisions will take effect as soon as President Obama signs the bill.
Here are some of the specifics regarding eligibility requirements:
1. Existing homeowner credit: Must the new house cost more than the old house?
No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
2. I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
Google unveiled its latest innovation for real estate this past week and they crushed a 3-2 pitch in the bottom of the ninth into the upper deck! Every time Google tinkers around with its website, real estate people get a shiver of anxiety and this latest innovation is likely to give many within the industry a full-blown case of hives.
Since Google announced the ability to see lots of real estate listings directly on Google Maps back in July of this year, they’ve been working hard to make it even easier to use. They’ve added things like brand new high-resolution Street View imagery and detailed map data. Now they’re making Google Maps an even more useful tool for online real estate searching. Here are a couple of things you can look out for next time you visit their website:
When it comes to selling your house, “oops” won’t cut it. Recently, I read an article on HGTV’s FrontDoor.com about the most common mistakes when trying to sell a home. I’m not sure what kind of research they did, if any, but I thought the list was worth sharing.
1. Waiting Until Spring to Sell – For some reason, people have it in their heads that Spring is the best time to put their home on the market. Here are the numbers for pending homes sales in Lancaster County as compiled from the Keystone MLS over the last six months: April – 481, May – 469, June – 485, July – 461, August – 483, September – 464. Not a lot of difference here - is there? Here is a short, un-scientific list of reasons why people move: getting married, getting divorced, job transfer, new addition to the family, death. You will notice that none of these happen exclusively in the Spring.
2. Not Reading the Paperwork - When it comes to the largest amount of money that most people will spend on any one thing in their lives, don’t let anybody tell you that “you don’t have to read it because it’s a standard real estate form.” Sure there’s a lot of paperwork to read and comprehend but don’t you think the time invested is worth it? Go over the fine print of the agreement with your real estate agent or attorney before signing anything to make sure you understand your responsibilities
The world of real estate finance has undergone drastic changes over the last couple of months. Just over a year ago, underwriting standards to qualify for a mortgage were easier than they have been since I got into the real estate business back in 1983 (Yes – I’ve been around that long!). I just read this web page¹ from The Stamford Review that lists ten things to keep in mind if you are applying for a mortgage in today’s, financing environment. While the intent of the ten edicts is to be a little humorous, there is a grain of truth to each one. Enjoy.
I. Write upon thy heart the law that ‘reward’ and ‘risk’ shalt always appear in the same sentence.
Translation: Mortgages are not FREE money. There is risk with any financing vehicle. Know what that risk is before signing on the dotted line.
II. Make neither markets nor regulators into idols, and follow not false prophets of simplistic bias.
Translation: The age-old adage applies here – - if it looks to good to be true, it probably is. Use common sense.
I found a recent online editorial in the Lancaster New Era/Intelligencer Journal by Jeff Hawkes on “Smart Growth” very interesting. Hawkes was writing about a workshop that he had attended recently that expounded on the virtues of “Smart Growth” and that Lancaster County needs to embrace this concept as it moves into the 21st century. Overall I thought the piece was well-written and made a number of good points. What caused me to sit down in front of my laptop and fire off a blog post was actually what was written after his editorial in the “Comments” section.
. . . and I quote:
“Smart Growth is dense development in townships that are not compensated by other townships for the havoc caused by traffic snarls, added services, and infrastructure needs, not to mention higher school taxes.”
. . . and then there was this little gem:
“ . . . don’t call it “Smart Growth”. There is nothing “smart” about it, except for the folks to stand to profit off of the development. Its delusional to think that this type of development is in anyway “smart” in the long run, or saving farmland. Continued development of this nature will bring the infrastructure of the county to its knees, and the taxpayers will be left to pick up the tab.”
The American Planning Association (APA) recently named Lancaster’s Central Market as one of American’s ten great public spaces. If you have never been to ‘Market’, you’re missing out on an experience that is uniquely a Lancaster landmark and tradition.
The APA’s Great Places’ program celebrates places of exemplary character, quality, and planning. Locations are selected annually and represent the gold standard in terms of having a true sense of place, cultural and historical interest, community involvement, and a vision for tomorrow. In short, they are considered enjoyable, safe, and desirable and places where people not only want to visit; but to live and work every day. They are defined by many criteria, including architectural features, accessibility, functionality, and community involvement.
Another month – another positive sign! The Standard & Poor‘s/Case-Shiller home price index rose 1.2 percent from June to August which reflects a positive trend for the third month in a row.
Before we all go off the deep end and declare “happy days are here again”, we should probably temper our enthusiasm just a bit. David M. Blitzer, the committee chairman for the Case-Shiller index said, “We do need to be cautious in coming months to assess whether the housing market will weather the expiration of the federal first-time buyer’s tax credit in November, anticipated higher unemployment rates and a possible increase in foreclosures.”
The term ‘Baby Boomer‘ gets thrown around a lot in the world of advertising. It seems like everyone is trying to sell to this segment of the population; including the real estate industry. Economic statistics show that baby boomers account for 28% of the population, but over 77% of all financial assets in the United States. This generation also accounts for more than 50% of all discretionary authority in private organizations as well as in government. But do REALTORS® and builders really know what baby boomers want in a home? Do they know what features they want? What locations are preferential? How much money they’re willing to spend? A new survey conducted by the MetLife Mature Market Institute and the National Association of Home Builders entitled 55+ Housing: Builders, Buyers and Beyond was just released that sheds some light on these very questions.
As the popularity of granite countertops has grown in the last decade, demand for them has increased tenfold according to the Marble Institute of America (MIA), a trade group representing granite fabricators. With increased sales volume and variety, there have also been more reports of “hot” or potentially hazardous countertops, particularly among the more exotic and striated varieties from Brazil and Namibia. But is this health threat an urban legend or a real danger to a homeowner’s health?
Allegations that granite countertops may emit dangerous levels of radon and radiation have been raised periodically over the past decade, mostly by makers and distributors of competing countertop materials such as the Zodiaq® Quartz product from Dupont™. The MIA has said such claims are baseless because although granite is known to contain uranium and other radioactive materials like thorium and potassium, the amounts in countertops are not enough to pose a health threat. Health physicists and radiation experts agree that most granite countertops emit radiation and radon at extremely low levels and pose no health risk. They say these emissions are insignificant compared with so-called background radiation that is constantly raining down from outer space or seeping up from the earth’s crust, not to mention emanating from manmade sources like X-rays, luminous watches and smoke detectors (yes – even that little “tweeting” device on your ceiling that can save your life can apparently be a peril).
So what’s a homeowner to do? Like most situations in life, don’t panic. Get all the facts and then make a decision that is right for you and your family.
There are more and more positive signs that the fog is starting to clear in the residential real estate market. Gone are the dense, pea-soup like conditions from a couple of months ago that caused buyers and sellers to try and drive through it at 5 mph. It appears that they’ve put their collective feet on the accelerator and are now driving more confidently, albeit still with the headlights on.
Point2 Technologies, Inc., the largest independent provider of website and listing syndication solutions for the real estate industry, with users in over 100 countries on its platform, released its Real Estate Confidence Index (RECI) for August 2009 this past week. Over 3,000 real estate professionals covering every U.S. State, Puerto Rico and Guam contributed to this month’s report. Charts of their findings are shown below:
A national business website, Forbes.com, just named the Harrisburg/Carlisle metropolitan area as one of its ten most livable cities in America. The following is the entire news article that appeared on the front page of The Patriot News on May 4, 2010:
As many of my friends and colleagues know, I like to run. It’s a passion I picked up when I turned 40 a couple of years ago (OK – maybe many years ago). It’s a relatively simple, inexpensive pastime. Just lace up a pair a running shoes and no matter where you are in the world, you can run. You don’t need special gear, perfect weather or a well-manicured playing field. All it takes is a bit of desire and the will to just get out there and do it.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_c.png?x-id=1e25a38c-8ee4-44aa-8fea-308731465f88)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_c.png?x-id=77cba57a-707a-4ce9-8fa0-92f5e7908616)
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_c.png?x-id=c7126a2b-61c6-4b75-bd2e-f4ff98029bdf)
