Real Estate 411: January 2006 Archives

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January 30, 2006

How America's Buyers Buy Their Homes

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How America's Buyers Buy Their Homes- by Jeff Hoffman

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Technology is transforming how Americans buy and sell homes in unexpected ways, including how they work with real estate agents and brokers, according to one of the largest surveys of real estate consumers ever conducted. The study was released today by the National Association of Realtors®.

Nine out of 10 home buyers use a real estate agent in the search process, but use of the Internet to search for a home has risen dramatically over time, increasing from only 2 percent of buyers in 1995 to 77 percent in 2005; it was 74 percent in 2004. The next largest source of information for buyers is a yard sign, mentioned by 71 percent of buyers.

When asked where they first learned about the home purchased, 24 percent of buyers identified the Internet, up strongly from 15 percent in 2004 and only 2 percent in 1997. Although most buyers use an agent to complete the transaction, 36 first learn about the home they buy from a real estate agent and 15 percent from yard signs; five other categories were 7 percent or less.

The 2005 National Association of Realtors® Profile of Home Buyers and Sellers, based on more than 7,800 responses to a questionnaire mailed to a large national sample of consumers located through county deed records, is the latest in a series of surveys evaluating demographics, marketing and other characteristics of home buyers and sellers.

Read the entire article here.

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Jeff Hoffman is the President of Hoffman Realty Group, Inc. and has assisted thousands of sellers and buyers 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 this amazing program visit Smart Seller Listing Home Marketing System

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The Ultimate Guide to Worry-Free Home Selling

Want the inside secrets of selling your house or condo quickly? And for top dollar? Jeff Hoffman knows how to make that happen. For over 17 years Sacramento Valley home sellers have relied upon his tips for solid advice on all aspects of selling a home. Now '18 Notorious Home Selling Problems & How I Solved Them' gives you practical, step-by-step information, how to avoid the traps and pitfalls that so many home sellers routinely face when selling their homes. Check it out here.

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January 22, 2006

2006 California Housing Forecast

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2006 California Housing Forecast

- by Jeff Hoffman

© Jeff Hoffman- All Rights reserved
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The market and economic conditions that gave rise to an outstanding 2005 performance will largely hold steady and contribute to another very good year in 2006, so says Robert A. Kleinhenz, cheif economist for the California Association of Realtors in this month's Special Housing Forcast Report within CAR magazine.

These conditions include:

• Steady but moderate economic growth accompanied by moderate growth in the labor market and low inflation.
• Rising but still very favorable interest rates along with innovations in real estate finance.
• Current and long-run demand forces continuing to encounter supply constraints.

Market Forces at Work

Current market conditions may be best explained by the unsold inventory index (the ratio of listings to sales. According to Kleinhenz "since the start of this decade, the unsold inventory index has never exceeded four months, and actually averaged less than three months from 2002 through 2004. This contributed to the torrid 20 percent average annual price appreciation that prevailed during that time. With the index improving to just over three months in 2005, increases in the statewide median price were more tempered at a mere 16 percent annually.

For 2006, inventories should remain in the same range as in 2005, but could easily head up if potential sellers decide they want to cash out and try to test the market. Still, inventory levels should remain low enough to contribute to further price appreciation in 2006."

In summary CAR is predicting a "cautiously optimistic" outlook for 2006. This outlook is based upon the prediction that the market will continue to be buoyed by repeat homebuyers using equity gains to trade up to or buy a second home. The market has yet to show signs of this as we approach the end of January, perhaps by mid to late March the writing will be on the wall for what kind of year we can expect.

Follow this link to read the entire article

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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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January 13, 2006

The Five Simple Elements to Selling Any Home in Any Market

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The Five Simple Elements to Selling Any Home in Any Market- by Jeff Hoffman

You want to sell your house. You want to sell it on time for top dollar. So how do you do it?

There are five simple elements to selling any home in any market. Pay attention to all five and you’ll quickly have a sale for a fair price.

Five Elements to Selling a Home

1. Price
2. Location
3. Exposure
4. Appearance
5. Time

Price It Right, and Buyers Will Appear
Since most home buyers still comparison shop today, it’s important that your home be priced competitively to other recently sold homes that are similar in the size, amenities and location of your home. To receive the most money in the shortest time, you must price at within the market value range of comparable properties.

The sold properties represent the most accurate determination of market value. These are the homes that have actually come into the market, found a buyer, and have sold. You must rely upon market facts, and not the personal opinion you or your agent has.

There is a saying among real estate experts that goes like this: The market may be up or down, but it never is wrong.

Of course, the strength or weakness of your local real estate market will influence your pricing strategy. If you happen to be in a strong seller’s market, and you have a long enough time horizon, you can sometimes get away with overpricing your home, and within a relatively short period of time the market will catch up to you, and perhaps even surpass you.

However, if you’re in a weakening seller’s market where home buying demand has peaked, pricing above the market value is a dangerous position to be in because you might be at that price for a long, long time.

Your goal is to determine what the Fair Market Value of your home is. Simply, it’s the value that would appeal to many people and result in a sale in a reasonable amount of time. Sellers don’t lose buyers as much in the negotiation phase as they do in the showing phase, because when you overprice your home, the buyers may not even see it. Be objective in your decision and you’ll have a fair offer in no time.

Location, Location, Location!
Most everyone has heard this said regarding the value of real estate. Most people think you can’t do anything about the location of your home, but you can within certain limits change the appearance of the neighborhood to benefit your sale efforts.

If you have neighbors who have neglected the appearance of their homes approach them and let them know you’ll be selling soon. Tell them your goal is to get top dollar, and by doing so you’ll be working to raise the value of their home as well. In exchange for the time and money you’ll spend making your home the best it can be, ask the neighbors to return the favor by attending to the exterior of their home and yards. Offer to have the neighborhood kid cut and edge the lawns, weed the grounds, you can even provide a neighborhood dumpster for all debris removal from homes on your street. Make a contest out of it ala the “biggest loser” TV show by offering a prize to the home that shapes up the most within a set time period. Human beings like reciprocating. By offering to do something for the neighbors they’re more likely to want to pitch in and make the street look its best.

Exposure – Is the Word Getting Out About Your Home?

Tracking the amount of interest you’re getting is more than counting how many buyers have visited your home. Today, most real estate agents can provide you with detailed information on:
• The number of agents that have hit your listing page
• The number of private party hits to your listing page
• The number of flyers removed from your listing box
• The number of showings or previews you home has received
• The places and frequency that your home has been advertised
• The number of phone calls to the office or hotline on your home

As with anything you attempt to sell, have “eyes” on your product is key. It your agent can demonstrate people know about your home, but it’s still not getting traffic or an offer(s), it probably is a pricing, not an exposure issue.

Appearance – Is Your Home in Shape for Selling?

Perhaps the easiest yet the most difficult aspect of selling a home is getting it in ship shape. How can it be both easy and hard you ask? Because a good agent or professional home stager can in less than 60 minutes diagnose and set in motion what needs to be done to maximize your home’s appeal. The hard part is getting the seller to put their pride or personal opinion aside long enough to follow that advice. If you resist the professional advice upfront, be open to it once showings begin and your agent funnels the comments back to you. Listen for dropped hints or even better direct non-filtered feedback that speaks directly to the buyer’s opinion of your home’s condition. Take these comments to heart and put aside your pride and you’ll be well on your way to a sale.

Time – Have You Given Yourself Enough?

Time is always the biggest lever a seller has. Run out of it and you can kiss maximizing profits goodbye. The second benefit of time is that it allows you the emotional peace of mind to operate within an environment of stability not stress and worry. If the average time to sell a home like yours is 57 days and escrow takes 45 days, don’t list your home 90 days prior to when you need to be moved. Instead give yourself 120-140 days so that you have some padding if you need it. If you run out of time you run out of options, except for the option of dramatically cutting your price to make a sale. Before you list your home carefully weigh the time horizon you need to be moved against the realities of the market and plan accordingly, it’ll save you grey hairs and lost profits.

No matter the market conditions there is a buyer for every home. Following these five simple steps will ensure that you get every penny the market will bear and you meet your time horizon without undue delay and false starts and stops.

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The Ultimate Guide to Worry-Free Home Selling

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January 5, 2006

Mr. Toad’s Wild Real Estate Ride in 2005

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Mr. Toad’s Wild Real Estate Ride in 2005...and What You Can Expect in 2006
- by Jeff Hoffman

© Jeff Hoffman- All Rights reserved
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Having returned from a 3-day vacation to the “happiest place on earth” in November, I found myself thinking about the similarities between one of my daughter’s favorite rides, “Mr. Toad’s Wild Ride”, and this year’s real estate market.

The beginning of the year marked a continuation of our robust seller’s market. We had a constricted housing supply with only 210 homes listed for sale. The pending sale index was humming along at 37% (the pending sale index is a measure of the % of homes under contract versus the currently listed inventory). Time to sell a home was 14 days. It was a great time to be a seller.

Fast forward to December 2005 and we see what a difference a year makes. There were 473 homes listed for sale during the month, with a pending sale index of only 10%. There is a 300% increase in the time required to sell a home from 14 to 43 days. Week to week 8%-12% of area seller’s were dropping their list price in an attempt to find a buyer.

2006 is shaping up to be a market in transition. I believe we will see inventory levels that continue to mirror those of 1994-1997. The time it takes to sell a home will continue to move upward approaching 60-90 days. Standing inventory levels will approach a 4-6 month supply of homes.

For more perspective read what the California Association of Realtors Housing Market Forecast is predicting for the coming year.

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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 2:04 PM | Comments (0) | TrackBack