Social Networking Becomes More Entrenched In Our Lives
October 9, 2010 Leave a Comment
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Peering Through the Fog
September 10, 2009 Leave a Comment
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:
How To Explain the Accuracy of Zestimates® To Consumers
August 15, 2009 Leave a Comment
Image courtesy of Flickr
I remember a couple of years ago when Zillow first hit the real estate scene. Consumers embraced the web site almost immediately because of the web site’s cool, on-line tools. One tool in particular caught their fancy: the Zestimate. This single, funny-sounding word would grow to strike fear in the heart’s of REALTORS® everywhere.
But what is a Zestimate? A Zestimate is an estimated market value of a home based on Zillow’s proprietary, mathematical formula. The home data they compile to generate a Zestimate home valuation varies by location. Some geographic areas provide all the data Zillow could hope for, but others are lacking such key things as the number of bedrooms and bathrooms, or, in some cases, the square footage of the home. The theory says that the more data Zillow has, the more accurate the Zestimate. They even made it easy for users of the site to help them improve accuracy by incorporating edited home facts into their Zestimate calculations. In some areas, Zillow can’t produce a Zestimate at all, but they do have some basic information on the homes.
Why did REALTORS® dispise Zillow? Because they claimed that the tool that produced Zestimates oversimplified the valuation process and gave inaccurate results. Regardless, Zillow shot up the popularity charts and in no time at all it was firmly entrenched as one of the top ten real estate web sites in the world. REALTORS® looked at the new kid on the block as a threat to their own personal fiefdom as experts on property valuation. They exclaimed, “How dare they hand out FREE property estimates! They’re misleading consumers. Why can’t consumers see that the accuracy of Zestimates is atrocious?”
Real Estate Advertising in Newspapers is on Life Support
June 5, 2009 Leave a Comment
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I read two surveys within the last week that reconfirm my belief that newspaper advertising for real estate is now officially a thing of the past. No more will I listen to those pundits that extol the benefits of this flimsy periodical from a bygone era. If you’re a homeowner who needs to sell their property and is considering what forms of advertising to utilize – - – listen up. If you’re an agent who is looking for ammunition to try and convince a potential listing that newspaper advertising is not worth it – - – you’re about to hit the jackpot.
Should I Wait To Buy a Home? (Part 2)
February 11, 2009 Leave a Comment
Second in a series of three posts on the financial impact of buying and selling real estate in a softening market. You may want to read my first post before you read this one.
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(NOTE: Just like with the first post in this series, you will have to do some math, so if working with numbers makes your head explode, you may want to read one of my other blog posts.)
These scenarios are based upon a real estate market which begins to overheat (i.e. appreciation rate goes from 4% to 12% in four years), rapidly declines (i.e. appreciation rate goes from 12% to -6% in three years), then steadily climbs back to normal (i.e. appreciation rate goes from -6% to 4% in three years).
Now More Than Ever – Use a REALTOR!
February 3, 2009 Leave a Comment
A recent survey by the National Association of Home Builders (NAHB) finds that the reason most often cited by people who aren’t moving forward with the purchase of a home is that they can’t sell their existing house. In fact the percentage is shockingly high at 91%. Why do I say ‘shockingly’? Because usually you can’t get 9 out of 10 people to agree on anything. If you couple this with the other top reasons cited, you have a real crisis in confidence.
I’m not telling you these negative perceptions by home buyers so that you can run away and hide and come out next spring when the real estate fairy has had a chance to wave her magic wand and make everything better. No – far from it. Because of the challenging market that we find ourselves in today, it is essential that a professional Realtor be consulted when one is thinking about buying or selling real estate. The days of sticking your home in the MLS, placing a sign in the front yard and getting three offers before sundown are over. If you place your home on the market today, it must be priced right and in tip-top shape. The only way to do this is to consult a professional Realtor who does this for a living and has seen your competition up close and personal. Not only do you need to consult a Realtor, but you need to actually listen to their advice. If they say to trim the shrubs – trim the shrubs. If they advise you to paint the purple bedroom off white - paint it. If they tell you that your home should be priced at $199,000 – list it at $199,000. No more, “I think I’ll try it at $225,500 for a couple of weeks to see if I get any nibbles” stuff. If you overprice in this market you will pay the price by having your home languish on the market and ultimately get passed over because real buyers will think you aren’t serious.
In today’s real estate market, only a professional Realtor is equipped to guide you through this sea of uncertainty and help you dock in a safe harbor.
Should I Wait to Buy a Home? (Part 1)
January 30, 2009 Leave a Comment
First in a series of three posts on the financial impact of buying and selling real estate in a softening market.
Image courtesy of Flickr
It seems like everywhere we turn today there is someone else who’s telling us that buyers (and sellers) should wait till the real estate market improves. But is that really wise? Personally, I don’t think so. To illustrate my point, I will take you through a series of three different, common scenarios that people today find themselves in. (WARNING: You will need to be able to do a little math as you proceed with this post – - – Sorry!) My scenarios are based on a real estate market which begins to overheat (i.e. appreciation rate goes from 4% to 12% in four years), rapidly declines (i.e. appreciation rate goes from 12% to -6% in three years), then steadily climbs back to normal (i.e. appreciation rate goes from -6% to 4% in three years). Sound familiar!
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