Real Estate 411: October 2005 Archives

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October 31, 2005

Home Builder Association Down on Market

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Home Builder Association Down on Market

- by Jeff Hoffman

The National Association of Home Builders (NAHB) has issued a statement about their view of the future of our real estate market... and their outlook is not as bright as I've heard from the realtor organizations.

NAHB Chief Economist David Seiders feels that the rise in interest rates that has already started, and is expected to continue, will pretty much put a damper on the hot real estate market.

Concerning itself with new construction, the "NAHB is forecasting a decline in total housing starts from 2.032 million this year to 1.94 million in 2006 and a further drop to 1.883 million in 2007."

To read more: NAHB housing market prediction

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Jeff Hoffman is the President of Hoffman Realty Group, Inc. and has assisted in over 100 relocation transactions during his real estate career. He is the creator of a powerful home selling system designed for the home seller not the real estate agent. To learn more about his Smart Seller Home Selling System visit
www.SmartSellerListing.com

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"Finally! A Quick and Easy Way For YOU to sell your home ON TIME, for TOP DOLLAR, eliminating the frustration and stress many sellers routinely face...

Click Here=> NEW FREE Book "18 Notorious Homes Selling Problems & How I Solved Them"-

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Posted by Jeff at 9:37 AM | Comments (0) | TrackBack

October 27, 2005

Are HOA's good for property values?

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Are HOA's good for property values?

- by Jeff Hoffman

Some 54.6 million people live within a neighborhood governed by a Home Owners Association (HOA), but are they good for property values? That was the question asked by two George Mason University researchers in a study they recently released within the Fall issue of Regulation Magazine.

Here's what the authors found...

Homes within an HOA, are worth, on average, 5% more than similar homes not within an HOA. Most people consider this a significant increase in value, which helps to explain why HOAs have become so popular.

You can read the enitre article here.

(note: This is a PDF document. You need AdobeAcrobat to open this link.)

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"Finally! A Quick and Easy Way For YOU to sell your home ON TIME, for TOP DOLLAR, eliminating the frustration and stress many sellers routinely face...

Click Here=> NEW FREE Book "18 Notorious Homes Selling Problems & How I Solved Them"-

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Posted by Jeff at 6:32 AM | Comments (0) | TrackBack

October 24, 2005

Home Pricing Secrets Revealed

On this special edition the real estate 411 Podcast I'll talk about the complex aspects of pricing your home, I'll expose common pricing myths and reveal to you the 5 of the most commonly made seller pricing mistakes that cause a home not to sell, or sell for less than its true market value.

MP3 File

Posted by Jeff at 9:58 AM | Comments (0) | TrackBack

October 19, 2005

Playing Real Estate "Marco Polo"

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Playing Real Estate "Marco Polo"

- by Jeff Hoffman

In a quickly changing real estate market where only 5%-7% of homes are selling week to week and 12%-21% of area sellers are dropping their price, sellers who are frustrated with few showings and no offers are finding themselves in a game of real estate "Marco Polo" with prospective home buyers.

I got to thinking of this after reading yesterday's Sacramento Bee article by real estate columnist Andrew LePage titled "Housing Market Cools Off."

Back in 1992-1998 was the last time we had a real estate market where inventory levels zoomed upward and all but a few home buyers seemingly went underground. I vividly remember how sellers and real estate agents struggled to find buyers for their listed homes just as the kid stuck with being "Marco" had a hard time finding the kid named "Polo."

If you remember how the game is played you remember that after a short while of groping around without being able to grab "Polo" the game wasn't nearly as much fun.

The same is true when a seller is having a tough time grabbing a buyer. The longer the hunt goes on for your elusive "Polo", the less fun it is. Eventually, if the game goes on too long, you want to give up and not play anymore.

Unlike the silly kid's game, in the real estate version, for most sellers giving up isn't an option. Job relocation, the new home you want to or already have moved to, or economic or physical reasons that necessitate your move don't allow you the option to quit the game. As luck would have it I was always better than any other local real estate agent at knowing where to find plenty of "Polo's" for my listed homes, regardless of the worsening market conditions.

There were 3 things I always did to find "Polo" in a tough market, here's how you can do it too.

Know How to Call Out So "Polo's" Can Hear You

Three are three main criteria buyer's use to search for home, they are price, then location, then size, in that order. Just as location is the key determinate of market value for the seller, price is the key determinate a buyer uses to search for a home. Sellers who believe they can overcome this hierarchy of buyer needs because they believe their home offers more amenities that help justify their overpriced listing are on the fast track towards becoming an expired listing.

Even if your home is located within the preferred location that a buyer would truly like to live in, and it is within the particular size range of home they want to buy, and it's upgraded to the hilt, if the buyer can't afford it, they won't be looking at it. To receive an offer you must make the showing list. And to make the showing list, you must be priced correctly.

Expert listing agents like me know how to estimate the correct market value for a home. Watch what happens as our local market continues to weaken; all of those newly licensed inexperienced agents who got into the business to chase what they considered to be ease money will drop like flies. Read Rachel Osterman's article in the today's business section of the Sacramento Bee about real estate agents and the big shakeout that's coming. Seller's who list with an agent who hasn't experienced the kind of market we're in right now are in for a rude awakening. Pricing your home at market value is still the best way to call out to interested "Polo's."

Swim To the Area of the Pool Where the Most "Polo's" Are Hiding

Knowing where to find a hiding buyer is second in importance only to knowing how to call to them. According to the National Association of Realtors 2004 Profile of Home Buyers, 69% of buyers found their home by utilizing a Realtor, yard sign, and the internet. What is really interesting is that a whopping 93% of buyers who used the internet did so with the assistance of an agent. Most of today's buyers are receiving e-mail notifications of newly listed homes from internet MLS searches their real estate agent is conducting for them. Ironically, only 5% of buyer's found their home using the old staple of advertising, a newspaper ad. To find a buyer you need to list your home with a real estate agent like me who advertises aggressively to top area agents, who consistently sells a lot of homes, who uses great Internet marketing, and who has a strong for sale sign program like my special Guaranteed Sale Program sign panel, 24-Hour #800 Home Information Hotline billboard, and my Talking House Radio sign that sits in every one of my seller's front yards. Currently I'm creating close to 100 buyer and agent views of my listed homes each and every week using this approach, if your agent isn't getting this kind of exposure for your home you're not looking in the right part of the pool to find your "Polo."

Know How to Catch "Polo" When You Have the Chance

Once you've found a buyer, don't let him slip past you. Find out as much as you can about the buyer's needs, wants, and motivations, and know your numbers. What list-to-sales price ratio are homes similar to yours selling for? What is the median price point at which other pending sales are coming in at? In a market like we have now, where prices are declining, buyers often back out of negotiations if they don't feel they're getting a pre-built-in value when buying a home. Consider offering incentives if the buyer can close by a certain date or allow you to remain in possession until a certain date. If you list with an agent like me, I can offer to give a buyer a $10,000 Realty Cash Reward Certificate if they make an offer at 99% or more of the current listed price at no additional cost to my seller. It's like making a ten thousand dollar price reduction without having to pay for it.

Too often a seller will let a buyer slip past them because they let their pride get in the way a making a good decision. In a declining real estate market your belief about what you think your home is worth will sabotage your sale. The market dictates value, not what you want or need. Today's low offer is next month's above market offer. Remember, it does you no good to find your "Polo" if you can't tag him.

Tough markets require tough sellers and tough real estate agents. Following this proven to work advice will guarantee you don't drown in the process.

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"Finally! A Quick and Easy Way For YOU to sell your home ON TIME, for TOP DOLLAR, eliminating the frustration and stress many sellers routinely face...

Click Here=> NEW FREE Book "18 Notorious Homes Selling Problems & How I Solved Them"-

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Posted by Jeff at 7:16 AM | Comments (0) | TrackBack

October 12, 2005

A Heavenly View of Real Estate

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A Heavenly View of Real Estate

- by Jeff Hoffman

Until recently only a NASA astronaut or an angel could offer a bird's eye view of local real estate listings. Now, a new online service called "HomePages" is offering both buyers and sellers cool aerial views of both actively listed and sold homes.

I came across a great article by Seattle Post-Intelligencer columnist John Cook that describes this new technology.
John Cook's Venture Blog Zooming in on Real Estate Listings

Online aerial maps are changing the way people look for new homes. Kirkland-based HouseValues Inc. entered the game today with a free service called HomePages.

As my story points out today, HouseValues is one of a number of entrants in this emerging category. Others include Seattle-based Redfin -- backed by Madrona Venture Group -- and San Francisco-based Trulia -- a Stanford University project with undisclosed investors.

And then there is Seattle-based Zillow -- the mysterious online real estate project founded by former Expedia Chief Executive Rich Barton. Could they incorporate maps into their consumer real estate offering?

Here's a good perspective from Seattle's Rain City Real Estate Guide on how new online search tools -- like those from Trulia -- are changing the real estate game.

"It won't take long for the industry to see some major changes. It may be through Trulia and their opt-in database. It may be from some type of Craigslist on steroids (think Google Classifieds). It may be the product of a dream from Rich Barton or Barry Dillar (sic). Whatever the solution is, it is being created right now and it will provide huge benefits to home buyers and sellers," the author writes.

Kirkland-based HouseValues Inc. entered the game today with a free service called HomePages.

And then there is Seattle-based Zillow -- the mysterious online real estate project founded by former Expedia Chief Executive Rich Barton.

Consumers are getting more comfortable searching the web for home information, now with dynamic mapping tools becoming more readily available, the ease with which both buyers and sellers can become more knowledgeable about property values is, in my opinion, a very good thing.

Gone are the days of real estate agents being the exclusive providers of such detailed information. As the client becomes more educated, the relationship between the client and the real estate agent will move more towards the real estate agent taking on a larger role of an advisor instead of a disseminator of housing information.

This will provide more protectionism for the client as they will no longer have to solely rely upon the real estate agent when it comes to gathering "intelligence" about the housing market. Make no mistake; having data is different than being able to properly interpret that data. It's foolish to think that a consumer could analyze housing information as well as a professional real estate agent. But having access to the information will offer a greater assurance that the client will have ample opportunity to protect their interests.

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"Finally! A Quick and Easy Way For YOU to sell your home ON TIME, for TOP DOLLAR, eliminating the frustration and stress many sellers routinely face...

Click Here=> NEW FREE Book "18 Notorious Homes Selling Problems & How I Solved Them"-

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Posted by Jeff at 7:58 PM | Comments (0) | TrackBack

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October 31, 2005

Home Builder Association Down on Market

October 27, 2005

Are HOA's good for property values?

October 24, 2005

Home Pricing Secrets Revealed

October 19, 2005

Playing Real Estate "Marco Polo"

October 12, 2005

A Heavenly View of Real Estate

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