Posts Tagged ‘Sellers’
Posted by tblefko on June 3, 2010
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.
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Posted in Agents, Buyers, Sellers | Tagged: Buyers, Sellers, National Association of REALTORS, Web Sites, Agents, Negotiating, Real estate, FSBO, For Sale By Owner, Fiduciary, Commission | Leave a Comment »
Posted by tblefko on May 6, 2010
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.
Forget the Big Apple, Boston and Seattle.
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.
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Posted in Buyers, Consumers, Harrisburg, Market Conditions, Sellers | Tagged: Bureau of Labor and Statistics, Buyers, Harrisburg, Harrisburg Regional Chamber, Kiplinger's Personal Finance, Media, Moody's Economy.com, Newspapers, PennLive.com, Sellers, Sperling's Best Places, Statistics, Street & Smith's Sports Business Journal | Leave a Comment »
Posted by tblefko on April 25, 2010
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.
Posted in Buyers, Construction, Consumers, Harrisburg, Market Conditions, Sellers | Tagged: Amy Hoak, Builder's Show, Buyers, MarketWatch, National Association of Home Builders, Real estate, Sellers, Statistics, U.S. Housing Market, Video | Leave a Comment »
Posted by tblefko on November 6, 2009
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.
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Posted in Agents, Buyers, Consumers, Financing, Legislation, Sellers | Tagged: Agents, Barack Obama, Buyers, FAQ, Financing, Lancaster County Association of REALTORS, National Association of REALTORS, Obama, Sellers, Tax credit, U.S. Housing Market, United States Senate | 2 Comments »
Posted by tblefko on September 29, 2009
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.”
Stay tuned – - -
Posted in Agents, Buyers, Consumers, Market Conditions, Sellers | Tagged: Business, Buyers, Case-Shiller index, David M. Blitzer, Media, Property Values, Real estate, Reports, S&P/Case-Shiller Home Price Indices, Sellers, Standard & Poor, Statistics, Tax credit, U.S. Housing Market, Unemployment, Video | Leave a Comment »
Posted by tblefko on September 10, 2009
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:
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Posted in Agents, Buyers, Consumers, Market Conditions, Sellers | Tagged: Buyers, Sellers, Statistics, Reports, Web Sites, Charts, Agents, U.S. Housing Market, Real estate, Saul Klein, Point2 Technologies, Real Estate Confidence Index (RECI) | Leave a Comment »
Posted by tblefko on August 21, 2009
When was the last time you sat down with a customer or client and really listened to them? No – I mean really listened? Did you interact with them and delve deep into their inner thoughts and feelings or was it superficial? Worse yet, was it all ‘talk’ and no ‘listen’? Take a second and watch this video. Remind you of anyone?
A recent study conducted by Michigan State University researchers has identified what the sophisticated consumer is looking for in today’s competitive, challenging global economy. Essentially, they are looking for a “total experience.” Whether they are thinking about listing their property, talking with a financial consultant, shopping for a new dress or buying a cup of coffee, all consumers are looking for four major factors. They are, in order of importance:
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Posted in Agents, Buyers, Sellers | Tagged: Agents, Buyers, Competitive Advantage, Consumer, Listening, Michigan State University, Reports, Sellers, Video | Leave a Comment »
Posted by tblefko on August 15, 2009
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?”
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Posted in Agents, Lancaster, Market Conditions, Sellers | Tagged: Agents, Charts, Lancaster County, National Association of REALTORS, Property Values, Sellers, Statistics, Video, Zestimates, Zillow.com | Leave a Comment »
Posted by tblefko on July 12, 2009
Image courtesy of Flickr
The real estate industry has been operating under the new HVCC guidelines for a couple of weeks now and we are beginning to see the ugly results of this misguided set of government regulations. In a preliminary report issued this past week by the National Association of REALTORS® (NAR), it finds that the HVCC is having an adverse impact on housing markets.
Before I get into the actual results, let me spend a minute and tell you about what this new set of guidelines was supposed to do.
The HVCC was intended to promote independence in the appraisal process and, thus, help ensure that appraisers and the appraisal process may be relied upon as part of sound underwriting for financial institutions. What that actually means is that the loan officer who is working on your loan no longer orders the appraisal on your home. It is done through the lender who either has an in-house process for appraisal management issues or, more often, it is done through something called an Appraisal Management Company (AMC).
While this may not seem like a big change to you if you are buying a home, it can possibly be a much bigger change than you might think. Prior to May 1, loan officers, REALTORS® and appraisers all communicated as needed regarding your home and home financing and it wasn’t uncommon for everyone to be on the same conference call if needed. But now that the HVCC rules are in place, the only way the loan officer or REALTOR® will know who the appraiser is is if by chance the appraiser calls them. In other words, no one talks to anyone to clarify anything!
Now, on to the findings of NAR’s analysis:
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Posted in Agents, Buyers, Financing, Legislation, Sellers | Tagged: Agents, Appraisal, Appraiser, Buyers, Financing, HVCC, National Association of REALTORS, Property Values, Reports, Sellers, Statistics | Leave a Comment »
Posted by tblefko on July 7, 2009
Image via CrunchBase
Google just upped the ante in the competitive field of real estate listing search engines. In a move that certainly had a few established players (i.e. REALTOR.com, Zillow, Tulia, et.al.) do a double take, Google Maps incorporated a new tool into its site that links buyers and renters to available properties. The feature was only launched in Australia and New Zealand yesterday, but I understand that selected metropolitan areas in the United States are already able to utilize the service.
The following is an instructional video on how to utilize the service:
So what’s the big deal?
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Posted in Agents, Buyers, Sellers | Tagged: Advertising, Agents, Buyers, Google, Google Maps, Media, Realtor.com, Sellers, Video, Web Sites, Zillow | Leave a Comment »
Posted by tblefko on June 9, 2009
Image courtesy of Flickr
I consider myself a ‘casual’ baseball fan. I watch a couple of games a year on TV and maybe take in a minor league game every once in awhile. While most guys attend games to watch balls fly out of the ballpark (“Chicks dig the long ball!”), I’m more cerebral and love a good pitcher’s duel. There is nothing like watching a pitcher that has total control over his pitches as he nibbles at the corners of the strike zone trying to get a batter to swing at a bad pitch, or if they make contact, will weakly dribble it into an infielder’s glove for an easy out at first base. However, there is a fine line between nibbling at the corners and just throwing a pitch away. It’s hard to define, but you know it when you see it. The same applies to submitting an offer on a listing. There are some offers that cause the seller to take a good hard look at (and occasionally take a swing at) while there are others that are real head-scratchers. As in baseball, the low-ball offer that is a waste of everyone’s time is hard to define, but I know it when I see it.
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Posted in Agents, Buyers, Market Conditions, Sellers | Tagged: Agents, Buyers, Negotiating, Offer, Property Values, Sellers | 1 Comment »
Posted by tblefko on June 5, 2009
Image courtesy of Flickr
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.
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Posted in Agents, Buyers, Sellers | Tagged: Advertising, Agents, Buyers, Charts, National Association of REALTORS, Newspapers, Sellers, Statistics | Leave a Comment »
Posted by tblefko on June 2, 2009
Image courtesy of Flickr
When I first got into the real estate business year’s ago, occasionally I would run into a seller that told me to sell their home quickly at the highest price but with some of the following caveats:
My response was always the same; “Are you out of your mind?” Actually, I conveyed my message a little differently but the point was always the same; “Mr. & Mrs. Seller, in order for me to get your home sold in the shortest period of time at the highest price, I need all the tools available to me. That includes . . . . “ At the end of the day, I would get the listing, use all the tools and eventually sell the home.
I can understand this line of reasoning from a seller (hmmm – not really) but from the National Association of REALTORS® (NAR), I’m floored!
Posted in Agents, Legislation, Sellers | Tagged: Advertising, Agents, Google, IDX Feed, National Association of REALTORS, Sellers, Web Sites | 2 Comments »
Posted by tblefko on May 11, 2009
Image courtesy of Flickr
The typical homeowner wants to get the most money for their home when it comes time to sell. That’s just human nature. So the natural inclination is for them to price their home for sale above their home’s true market value so as not to leave any money on the table. Seems like a wise move on the seller’s part; however, this strategy is loaded with pitfalls that will actually lead to less greenbacks in their back pocket.
Keep in mind that the seller of real estate does not determine what it actually sells for – - – buyers do (see my previous post). So with that in mind, let me review the dangers associated with overpricing a home when it is put on the market for sale.
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Posted in Agents, Financing, Sellers | Tagged: Agents, Financing, Property Values, Sellers | Leave a Comment »
Posted by tblefko on May 4, 2009
Image courtesy of Flickr
Let’s start with a basic premise when it comes to the value of your home; “A home is only worth what someone is willing to pay for it.” Sounds simple, doesn’t it? Let me restate this premise a different way; “Your home’s value is not determined by a website, the assessment office, an appraiser, your Uncle Charlie (you know – the one that knows a little bit about everything), a neighbor, the gal that sits in the next cubicle at work, your REALTOR® or (now sit down and take a deep breath) YOU!”. If you don’t truly believe this basic premise than stop reading because the rest of this post will annoy you. Good – - – I’m glad you’re still with me.
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Posted in Agents, Buyers, Sellers | Tagged: Agents, Buyers, Property Values, Sellers | Leave a Comment »
Posted by tblefko on May 3, 2009
Image courtesy of Flickr
If you take a moment and peer up into the sky you will actually see that we are at the crossroads of a real estate buying opportunity like we haven’t seen in my lifetime. All the factors that go into making a real estate buying decision are perfectly configured. But like most perfect planetary alignments, clouds and precipitation sometime make it difficult to see this truly amazing sight and before you know it, the moment has passed. The four planets that I see aligning are as follows:
1. Mortgage Financing - If you’re like most people, you will need a mortgage to assist you in purchasing a home. Interest rates right now are the lowest that they have been in decades (see ‘Mortgage Info’ tab). When I first got into the real estate business over twenty-five years ago, the 30 year fixed rate was about 17% (this is not a misprint). To put that in easier terms to understand, a principal and interest payment on a $150,000 mortgage then was $2,138 – - – now $805. Hopefully, President Obama’s programs and endeavors will start to have some positive effects on the economic growth in this country. When that happens and consumer spending starts to pick up, what do you think will happen to interest rates? I was not an Economics major in college, but even I can figure out that rates will tick up because of inflationary fears. So if you have good credit, money to work with and an income that can be verified, there has never been a better time to get a mortgage.
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Posted in Buyers, Financing, Lancaster, Market Conditions, Sellers | Tagged: Buyers, FICO Score, Financing, Lancaster County, National Association of REALTORS, Obama, Property Values, Sellers, Statistics | Leave a Comment »
Posted by tblefko on April 6, 2009
Inman News, a leading source of independent real estate news, information and commentary, just published findings from an online survey* they conducted recently. The results indicate that three out of four respondents believe that the housing market in their area is improving or stabilizing and most say they have noticed the change within the last two months.
Of those that felt the market was improving, 70.6% cited ‘low interest rates’ as the number one reason for the improvement. Interest rates on conforming, conventional mortgages are at, or near, fifty year lows as shown on my Mortgage Info page. Following close behind this reason was ‘affordable prices’ at 67.8% and ‘good deals’ at 57.1%. (NOTE: Respondents were asked to cite all reasons that apply so totals add up to more than 100%.)
The survey also tried to gauge the attitudes of buyers and sellers. On the homebuyer side of the equation, agents are finding that 74.7% are still very ‘cautious’ when it comes to moving forward with purchasing a home. This percentage is extremely high and shows that purchasers are still in a wait and see mode when it comes to the market. More than likely, they are going to want to see some more positive news out of the financial markets and continued stabilization of interest rates for them to get off the fence.
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Posted in Agents, Buyers, Market Conditions, Sellers | Tagged: Agents, Buyers, Lancaster County, Property Values, Reports, Sellers, Statistics | 1 Comment »
Posted by tblefko on March 24, 2009
I’m starting to hear the distant drumbeat. Do you hear it? Not yet? Stay quiet for just a second longer. There!!! You had to have heard it that time. It’s the sound of the real estate market coming back to life. Over the last thirty days there have been tiny rays of sunshine peeking through the storm clouds. Here’s one of those rays – - -
Posted in Agents, Buyers, Market Conditions, Sellers | Tagged: Buyers, Interest Rates, National Association of REALTORS, Predictions, Property Values, Sellers, Video | Leave a Comment »
Posted by tblefko on March 14, 2009
Image courtesy of Flickr
Before I even begin to talk about short sales, a word of warning; these transactions are extremely complicated and time-consuming. No homeowner should try to do one without the help of a good real estate attorney and an experienced REALTOR®. To do otherwise, would be like walking a tightrope without a net – - – you may get to your destination but one small misstep and you’ll end up flattened like a pancake.
Let’s start with a definition: A short sale occurs when the price that can be obtained for a home when it is sold is less than what is remaining on the mortgage which will cause the lender to be “shorted” what they are due. Usually the events that lead up to the need to consider a short sale are:
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Posted in Agents, Buyers, Financing, Market Conditions, Sellers | Tagged: Buyers, Financing, Foreclosures, Property Values, Sellers, Short Sale | 2 Comments »
Posted by tblefko on March 10, 2009
Image courtesy of Flickr
What’s a “Walk Score”? A Walk Score is a new, web-based rating based upon characteristics of a neighborhood that are conducive to walking to nearby (or farby) amenities. Walk Score calculates the walkability of an address by locating nearby stores, restaurants, schools, parks, etc. Walk Score measures how easy it is to live a car-lite lifestyle—not how pretty the area is for walking. With the increase in gas prices, more people are cognizant of how much gas they’re pumping into their automobiles. Many people want to be able to walk out their front door and get a cup of coffee, pick up a newspaper, buy a quart of milk or grab a sandwich without hopping in their car.
Want to know how your address rates? Go to www.walkscore.com and type in your address. My home rates 37 out of a 100. I rate really high on schools, restaurants and drug stores but low on grocery stores. The site tells me that the closest grocery store is 2,434 miles away in San Francisco (well – - – maybe there’s a small bug in the program).
Posted in Buyers, Sellers | Tagged: Buyers, High-Density Housing, Sellers, Web Sites | Leave a Comment »
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