HomeRun Homes Rent to Own Homes Blog

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HomeRun Homes is a centralized marketplace which helps people Find or Sell a Rent to Own Home, both Nationwide and Globally to the thriving Rent to Own Market. http://www.lease2buy.com

August 31, 2012

Pricing Your Home Off The Market

Hi Folks,
   I hope you've had a great week, thus far.

   If you've seen the Real Estate news from this week, we had some incredible news, with the National Association of Realtors (NAR) stating that "Pending home sales rose in July to the highest level in over two years and remain well above year-ago levels" (Up almost 2.5% from June 2012 to July 2012 and almost 2.5% from July 2011 to July 2012). With this fantastic news, we also heard from the Standard and Poors/Case-Shiller folks that Home prices are on the rise, showing, "positive annual growth rates for the first time since the summer of 2010", and also, this is the second consecutive month where "all 20 cities and both Composites recorded positive monthly gains."

   So if you're selling a home, where do you even begin to price it? Emotions usually dictate the offer price that a seller will choose, as opposed to solid, fact-based reasoning. HomeGain.com ran a survey earlier this year that uncovered the following: "76 percent of homeowners believe their home is worth more than the list price recommended by their real estate agent."

   "Homebuyers usually have a better grasp of current market value in the area where they're looking to buy than do sellers who own and live there", says Dian Hymer, a veteran real estate broker, author, and a nationally syndicated real estate columnist, in a recent story on the Inman News website. Hymer says that "Buyers look at a lot of new listings. They make offers, know what sells quickly and for how much, and what doesn't and why." HomeGain reported that "homebuyers still think sellers are overpricing their homes."

   Hymer says that if a home lacks features from recent sales comparables ("comps"), "it's time to subtract value". She reminds us that a home is worth "what a buyer will pay for it given current market conditions", which may conflict with your opinion on price or what you are hoping for. With a spot-on comment on this dance, Hymer says that "Relying on emotion rather than logic when selecting a list price can lead to disappointing results."

   As for timing, Hymer says that it's the "prime opportunity for selling a home" when it first hits the market, as there are buyers who wait for these new listings, and as she writes, these listings "receive the most showings and have the busiest open houses during the first couple of weeks they are on the market". With that rule in mind, that is the time to show off your home at an attractive list price, and she aptly says, "Listings that sell today are priced right for the market". Very simply, Buyers want to feel they are getting a good deal, and will not overpay in a market that is still dropping or struggling, and Hymer says that in areas of strong sales, "buyers may shy away from multiple-offer situations if they feel the recovery is fragile and that prices may slide further before stabilizing", thus, effectively, it seems they would step away from engaging in a bidding war.

   As most of you are aware, real estate agents and appraisers use "Comps", or sales of similar homes in your area, to help establish a price range for offering/selling your home. Hymer says that if your home does not have a feature of a specific Comp (i.e. a remodeled kitchen), value is subtracted from the value of your home, and if your home has a feature that a specific Comp does not have (i.e. an easily accessible, level backyard), value is added to your potential sales price.

   With that being said, we're all human, and emotions play a factor.

   As Hymer says, "It's difficult for sellers to step back and take an attitude of detached interest in their home", and adds that it's "essential to do so if you want to sell successfully in this market.". She suggests selecting a "list price that undercuts the competition to drive buyers" (and offers?), to your home. She also says that if Comps show prices moving up, you can take a "more aggressive stance on pricing". "But don't list too high", cautions Hymer, who says that it's better to "stay in the range shown by the comparables and expose the house to the market before accepting offers", since the market will drive up the price if it's warranted.

   As a final note, Hymer cautions us not to rely on rumors about home sale prices that circulate in the neighborhood, as they tend to get inflated when "passed from one person to another", and suggests that you, "Select your list price based on hard facts."

   What are your thoughts on this? Have you sold a home before? Have you overpriced it? Did you underprice it? We'd love to hear about your experience, good or bad.

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Happy Birthday to my son, who turned 6 today !

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com


TAGS: #HomeSales #HomePrices #RealEstate #homebuyer #homeowner #salescomparables #Comps #Appraiser #NationalAssociationofRealtors #NAR

August 23, 2012

5 Real Estate Investor-Endorsed Tips For Buying a Home

Hi Folks,
   The weekend is here. By a virtual show of hands, how many of you will be house hunting this weekend? For those of you that rose your virtual hand as a "yes" to house-hunting, do you feel anxiety about buying a home? Do you feel like you might not be able to keep up the payments, but you really love the home, and you turn a blind eye to any of it's flaws?

   "Most people only buy a couple homes in their lifetime. This lack of experience leads many home buyers to feel woefully unprepared...", says Justin Pierce, a real estate investor in Northern Virginia. It certainly is a big move for most of us, but as Pierce writes in his story on the Washington Post website, "you’re not getting married. You don’t have to make a lifelong commitment to a home", and adds that you can always move later "if you fall out of love with your home, as long as you buy right."

   Pierce writes that he buys a home "almost every month", and admits that even with his experience, "it’s hard to know whether to pounce on a deal or to walk away", but says that the process doesn’t have to be so complicated "if you keep things in perspective."

   There is a set of rules that he relies on when buying a house, and he says that these same rules can be used by anyone buying a house.Pierce shares his wealth of knowledge here to give us some great tips:

Tip #1: Determine your needs for the next five years:
The number one priority is affordability, says Pierce, who suggests that you consider all the costs (including maintenance and utilities). A great example is any unplanned expenses, such as your cesspool overflowing all over your basement the first week you move it (yes, that's what happened in our home!). The cost for removing the carpet that was just put down 2 days earlier, pumping the cesspool, and putting new carpet down was a $2,000 very unwelcomed surprise!). Pierce muses about the folks who buy "half million dollar McMansions and then fail to maintain them", urging you to "buy the right size home; bigger is not always better".

Tip #2. Get the facts:
Pierce says the the number one rule is "do not overpay for a home", and says that he never buys on future value (and refers to that as an illusion that got many of us in trouble). He suggests being realistic if estimating the cost of repairs the home will need. Conversely, he cautions us not to let a home inspection "scare you away from a good deal", and he provides an example of a friend who had the opportunity to purchase a $650,000 home at a short sale for just $520,000, but walked away after the inspector "found a laundry list of items that needed repairs". Albeit a "scary" looking list, as he called it, it was about $20,000 of work, leaving the remainder as over $100,000 in equity. Remember: "Get the Facts !".

Tip #3. Don’t fall completely in love:
"When I’m remodeling a home for resale and I’m faced with a decision to either improve the home’s insulation or make the home more beautiful, I’m almost always forced to beautify.", says Pierce, who says that people who lack experience will rely on their emotions. He adds that Real Estate agents are well aware of this, and this is why they try to "decorate and stage a home so that people fall in love and forget the facts". He cautions that if you fall prey to your emotions, you can get into "bidding wars and overlook discrepancies that need more attention". The final point he makes on this tip is that "It’s much easier to replace kitchen cabinets some time down the road than it is to reinsulate a home. But people aren’t concerned or willing to pay for what’s behind the walls. They should be."

Tip #4. Get professional help:
Pierce says that "Real estate agents, home inspectors, appraisers, lawyers, surveyors and contractors are all valuable resources but they’re no good if you disregard their advice.", and he says the key here is "to trust but verify. In terms of a Real Estate agent, speak with many different agents and ask for references, until you find one that you are comfortable with. Once you are working with an agent, ask your agent to go over comparable sales with you, and "not just spit out a value", as Pierce says, since this will "help you feel confident about your offer and reduce the risk of complications from a low appraisal."

Tip #5. Don’t be afraid to pull the trigger or walk away:
OK, so you have all of the facts about a house that you are incredibly fond of, and if "the price is fair and affordable then don’t be afraid to seal the deal", says Pierce. On the flip side, if the price is above the market value or the price does not take into account the amount of work it needs, Pierce recommends that you, "remind yourself that there are plenty of other houses to choose from".

   Certainly some great tips here, but sometimes, when in the heat of battle and bidding for a home, it's easy to lose perspective. Pierce aptly sums up what your mindset should be during the process; "Remember a house is just sticks and stones and there are plenty of them out there. You make it a home."

   If you were going to add a "Tip #6", what would it be? Please share it with us here.

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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com


TAGS: #RealEstateInvestor #Homebuying #ShortSale #HomeEquity #BiddingWar #Agents #HomeInspectors #Appraisers #Lawyers #Surveyors #Contractors

August 15, 2012

The Unwritten Rules Of Internet Real Estate Websites

Hi Folks,
   Once in a while, there is information that I like to share with you, however, I like to try not to cross over the line of impartial (not by too much, at least) to "Sales Pitch". Today is one of those such days!

   As anyone in the Real Estate industry will tell you, with a few clicks of the mouse, you can have a seemingly infinite amount of resources to help you decide to buy or sell a property. Data on past sales, photos, floor plans, etc, can all be located on the Internet, and can speed up the entire process.

   However, "not all websites are created equal, and not every participant knows how to properly harness the opportunities offered by the Web", says David Bediz, principal of the Dwight and David Group, LLC of Coldwell Banker Dupont, in a story titled, "Real Estate in the Internet age", on the website, WashingtonBlade.com. Bediz points to some agents that are still relying on "blurry cell-phone-camera photographs to help them sell their listings". Bediz says that sellers need to monitor their listings for mistakes and to be more vigilant. As for the other side of the closing table, Bediz say that Buyers have a "responsibility to themselves to learn the differences in online information sources"

   When we talk about Real Estate data websites, quite often, Trulia and Zillow are quoted by major media outlets, but as Bediz says, "the truth is that most of their listings contain inaccuracies.", and he says that most notably, "Trulia and Zillow are notorious for posting listings as “Active” that have long since sold.", and says that they "rarely post listings at the moment they are listed. This prevents a serious homebuyer from learning about a new home listing quickly enough to act on it, especially in a situation where there could be multiple offers."

   Why do these "big fish" websites have these deficiencies?

   Bediz says that it, in a way, "it’s because of their sheer size", and adds that since they are nationwide sources of data, and "to collect data from every corner of the country, they cannot possibly rely on a direct connection to each online database (Multiple Listing Service, or MLS) for each area. This is especially true when some areas are served by several MLS’s, and also when many of these services charge upwards of tens of thousands of dollars for direct access to their services." The way they go about it, as Bediz describes, is that they rely on "relationships with the major brokerages that exist nationwide to feed information to them directly, and they also have built-in programs to scour the web for additional listing and sale data." For any properties listed by a smaller brokerage, those listings may never show up on these two major sites (since they wouldn't have a "direct method for feeding listing data to those websites").

   So how can a buyer ensure that they are seeing current (as well as accurate) listings, and how can a seller ensure their listings are seen everywhere (including Trulia and Zillow)?

   Bediz suggests that buyers should visit "REALTOR.com or, locally, HomesDatabase.com, which is the public side of the only MLS that serves Washington, D.C. and surrounding areas.". He also suggests checking out "Other individual and broker websites" (including his website, www.DwightandDavid.com), which he says has, "direct connections to the MLS". For Rent to Own Homes websites, such as our site (Lease2Buy.com and HomeRunHomes.com), there is no direct connection to Trulia and Zillow, however, we do Feed our listings to them, and they get picked up as for Sale, with the keywords of your descriptions absorbed within the listing on other major Nationwide Real Estate Data and Listing websites. This certainly boosts traffic to your Ad.

   Bediz suggests that you ask an agent that might list your home if "their brokerage has a direct feed to Trulia and Zillow.", and if the agent pays to "advertise on those sites, or pays to increase the visibility of their listings there.".

   What has your experience been with Trulia, Zillow, and other major Real Estate data websites?


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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
Rent to Own Homes and Real Estate Blog for HomeRun Homes: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com


TAGS: #RealEstateWebsite #Trulia #Zillow #MultipleListingService #MLS #brokerage #realtor #renttoown #listings #offers #pastsales #floorplans #homebuyer #feeds

August 7, 2012

Licenses Revoked At Record-Levels Industry-Wide

Hi Folks,
   With the Real Estate market starting to bloom again in many parts of the country, this is a much-anticipated time for many folks in our industry to shake off the pain of the past few years, put our chins up, and keep the market chugging.

   For those of us who have worked within the guidelines that are mandated by all-levels of the Government, as well as the State Real Estate departments, we will start to reap the joys of an up market. However, the actions of some folks who walked outside those lines, are now showing up in license revocations in multiple sectors of the Real Estate industry.

   "The California Department of Real Estate said it revoked a record number of real estate licenses in the recently completed fiscal year", states a recent article from Mark Glover on the SacBee.com website. The figures from fiscal 2011-12 showed a jump of 14% in revocations, along with a record number of "license surrenders from licensees facing disciplinary action", and these figures jumped to 1109 suspensions from 553 suspensions about 5 years back (Just about the time things took a bleak turn in the market). Indeed, as Glover writes, the California Department of Real Estate attributed the "collapse of the real estate market" as a contributor to the jump in revocations and suspensions.

   These actions are not confined solely to Real Estate Agents.

   A Real Estate Appraiser in Maine just recently had his appraisal license revoked, per an article on the website, BangorDailyNews.com. As a matter of fact, the Maine Department of Professional and Financial Regulation issued a press release regarding this particular case, in which they stated that the Board "has received indications" that this individual may be "continuing to conduct appraisal work, and may also be committing the same violations of Maine law that led to the revocation.” These violations came to light after complaints that the appraiser had a pattern of "taking money from property owners but failing to provide a promised appraisal or submitting an incomplete appraisal months late", per the article.

   Another such revocation involved an Auctioneer in Evansville, who was accused of, "colluding with two people to bid up the price of a house, even though neither of the two had any intention of buying the property", per a recent article by Jim Leute on the website, GazettExtra.com. The violation stems from a real estate auction in 2008 when the auctioneer allegedly asked relatives of the sellers to bid on the house. One relative opened the bidding, and the other bid several times, according to the state order against the auctioneer. In this case, the State agency said that he (The Auctioneer), "knowingly escalated or attempted to escalate bidding through collusion with another".

   So, the market is turning around, but as always, keep your head in the game.

   As the California Department of Real Estate stated in the article by Glover, "the large number of financially stressed homeowners set the table for scammers involved in foreclosure rescue and short-sale scams". Bill Moran, DRE enforcement chief and acting chief deputy real estate commissioner, said that "Consumer education is the key piece to really protecting consumers". Similarly, in the Maine case, the Board Administrator "encouraged property owners to report any appraisal dealings they have had" with the Appraiser in question.

   Be Vigilant!

   What can you suggest to make sure folks don't become victims to scams, theft, collusion, and other crimes?

Would You Like Our Blog Posts Sent Directly to your E-mail? Here's How:
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Have a Great Week, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com


TAGS: #RealEstatemarket #California #departmentofrealestate #license #revocations #suspensions #agents #appraiser #Maine #propertyowner #auctioneer #collusion #bid #foreclosurerescue #shortsale #scam