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

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?

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
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

An Updated Kitchen Equals An Easier Home Sale

Good Morning/Afternoon/Evening (depending on where you are!),

   "Kitchens Sell Houses". I'm sure you have heard this many times. It is a timeless factor when talking about selling a home.

   The kitchen is "the heart of a home", and "the stomach is the way to the heart", and the kitchen is where we "spend much of our time and most of that is with our families", writes Carla Hill for the RealtyTimes in her aptly named article, "Kitchens Sell a House". Hill says that kitchens are "integral to entertaining and in today's age of open floor plans, they're a focal piece of many family rooms".

   Due to the fact that a kitchen is the showpiece of the house and is seen every day by you and your guests, Hill says that kitchens play such an "important role in the buying and selling process", and that "buyers want homes with up-to-date kitchens".

   So if you need updates to your kitchen, where do you start?

   Kitchens are expensive and need a lot of time, as well as skills, to do the job right. With the "complicated array of flooring, tiling, cabinets, and counters", Hill says, "most buyers want a kitchen that is ready to use the day they move in".

   What to buyers want in a kitchen?

   Hill suggests that you do your homework, and to "Scope out the competition" via local open houses or MLS listings. Look at the wood on the cabinets. Is it dark? How about the counters? Are the appliances stainless steel? Are there any "add-ons like dishwashers, wine-coolers, and trash compactors"?

   There are an endless amount of changes you could potentially make, but Hill cautions not to "become overwhelmed". She adds that you might be able to make minor changes, such as a warm, neutral tome of paint, removing clutter, updating appliances. adding a lower-end or a faux granite counter. Hill also suggests that you might even "save a bundle by doing much of the work yourself."

   "The bottom line is a kitchen can sell a home", says Hill, and suggests that you do some research on what your kitchen needs to "make it competitive with area listings."

   Have you updated your kitchen? Did you research it first? What did your updates entail? Did it help you sell your home?

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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: #HomeSale #kitchen #kitchenremodel #updatedkitchen #sellinghome #homebuyer #cabinet #granitecounter #openhouse #MLSlisting

A Funny Thing Happened on The Way to a Real Estate Deal...

Good Morning,

   Friday is upon us once again, and I hope that you've exceeded all of the goals you set this past week.

   They say that "Laughter is the Best Medicine", and I definitely agree with that. If you look at things with the proper perspective, you can always find some funny things, and Real Estate deals are no exception to this rule. In the spirit of the joy of an upcoming weekend, we're going to look at some funny stories from the Professional perspective (Realtors, Commercial Real Estate, Loans), and also from the home buyer's perspective.

   Jennifer De Vivo, a Realtor with Charles Rutenburg Realty, provides us with what she refers to as, "funny and awkward situations when showing homes.". One example was about a homeowner that was a single male, and in the home he was selling, he had a special room..."a room completely done with Wonder woman paraphernalia...(Figurines, curtains, bed sheets you name it)". De Vivo says that he was very proud and, "made sure to point out his vintage Wonder Woman boots and asked us if he wanted to twirl for us. All we could do was smile and kindly decline. In the end our clients were able to see past the superhero customization, put in an offer on the home and closed 45 days later."

   De Vivo points to another time when she was showing homes in a community with several elderly residents, and in one of the homes that appeared to be empty, they found a man sleeping so still that he appeared to be deceased, at which point, De Vivo and her buyer raced out of the house !

   "Four years ago I was taking a loan application for an unmarried couple that was purchasing their first home.", says Matt Perillie of TheRenovationLoanGuy.com. Perillie says that when he got to the point of the application where he asked if the husband pays child support, "the man says yes and she (the wife) gives him a long look and then proceeds to yell at him for about ten minutes asking how could he have a child and not tell her. It was a bit uncomfortable and the application ended right there."

   Changing gears, there are also funny stories that come from people looking for homes. Sarah Anderson of Millersville, MD describes one specific day where her and her husband visited, "half a dozen houses one Sunday morning, and returned" to an open house in the afternoon. As Anderson describes it, there were, "toddlers running around in bathing suits", which indicated that perhaps there was no open house. However, as she says, they went in. "Fortunately, the homeowner happened to be the agent, so he wasn't too terribly jangled by our random appearance", says Anderson, but it was still "pretty awkward" since he had an open house months ago...but certainly not that day.

   Another home buyer received the, "Bomb Shelter Option". Sherri Gomez said that when they were doing their final walk-through of the home, the owner was very evasive in terms of where he would let them walk in the backyard. Afterwards, Gomez asked the man what the metal sticking up out of the ground was, and he said, "That's your bomb shelter", and, "too bad - you signed the papers !". Gomez said that she sued him for the cost of filling it in and she won. She also found out that the development, "was built in the late 50's and that was an option when you bought the property. You could choose an above ground or underground bomb shelter.", and says that, "this has become a joke in our family whenever we look at houses!"

   Well, as the saying goes...all in a days work !

   Do you have any great stories to share. Please add them here, since we all could us a good laugh !

Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Facebook, Twitter, Podcast...

Hi All,

Hope you had a great week!

We just finished up with an interview for a new website focusing on home buyers in the 20-35 year old range, and that article should be out late month (or early June), so we will keep you posted.

It's been a really quiet week in terms of Economic News for the Real Estate/Rent to Own Market. We are just watching the market and that horrendous spill in the Gulf.
We pray that they cap it before it damages the wildlife and the local Gulf businesses. As a side/personal note - Gulf Shrimp and Gulf Oysters have always been my weakness.

We have just had our Facebook profile shortened to a much prettier address:
http://www.facebook.com/homerunhomes, and as some of you already know, our Twitter Address is: http://www.twitter.com/homerunhomes

Do you see a pattern emerging in the naming?


OK, so a News Flash: We are boldly looking to endeavor into the world of Podcasting, which for those of you who are not aware of them, they are basically Blog Posts, but in a voice recording that you can download and play on your Ipod or MP3 player.

Now, I am not crazy about my recorded voice, however, a lot of you have spoken and asked me to do this. So the answer is, "Yes", I will give it a try.

If our team is able to successfully organize the techie side of it, I will post the Podcast here on the Blog. Apparently, this saves a lot of time when you can listen to the Blog as opposed to reading it. Please be patient as we try to figure this one out - I'm off to do some voice exercises now (kidding).

Please check back Monday for more news!
Have a great weekend, and Happy Rent-to-Owning !




My Podcast Alley feed! {pca-820fd66e75f39e338c13a2a4fd033585}