Wasn’t it just the other day when that large furry brown member of the rodent family emerged from his home in Pennsylvania and saw his shadow, thus guaranteeing us another six weeks of winter? Well all I have to say about that is BAH!! Regardless of what a celebrated marmot says I say winter may last another six weeks, but I believe the temperature in the OKC metro housing market is about to warm up.
I share an office with realtors at Metro First Realty in Oklahoma City. There are about 140 realtors working out of that office and while none are bragging about having too much business, I do hear conversations that their phones are beginning to ring with people making inquiries about homes.
So call me an optimist or say I’m delusional, but I’m writing this article to share with you some secrets that just might come in handy should you find yourself in the market to buy or sell a home during the upcoming home buying season.
Buyers remain the boss. Few of us know someone who recently put their home on the market and watched it sell within a few weeks. Most of us know the family who has had their home on the market for months with little activity. My own parents listed their home for sale in northwest Oklahoma City and showed it only twice in twelve months. Home sellers need home buyers, and home buyers are playing hard to get.
Weather the perfect storm – low rates, dropping prices and tax credits. Yes now is a great time to buy a home…if you have three things. Steady employment, at least a 3.5% down payment and good credit. If you have these things, then you can take advantage of rates in the low 5% range, seller’s willing to negotiate on price and federal tax credits when you file your 2010 taxes.
Prepare for credit shock. I still receive calls about once or twice a month from someone who is self-employed wanting to know if they can still get a home loan based on their credit score without having to prove income. No, you can’t. A lot of lenders are even beginning to raise their minimum credit scores for the “easy to qualify for” FHA mortgages. Very few lenders (present company included) still offer FHA loans with a 620 FICO. Most have raised their minimum scores to 640 or higher.
Think long term. “What if I buy a home and the value continues to fall?” Fortunate for home owners here in the OKC metro, housing values have grown over the past twenty years at a modest 4% to 5% per year. Other markets around the country experienced exploding home values in the double digits. And now these markets are reaping the fallout from overinflating their home values. Our economy is cyclical and what goes down, will also go back up.
Timing the market. Investors try various strategies every day to buy stock at it’s absolute lowest point so they can take advantage of it’s rise. Home buyers try and apply the same strategy. The problem is most of the time there’s plenty of a particular stock to go around even if other investors want to buy the same stock. But when you find a home that meets your needs and fits your budget, the stock strategy of timing the market may not be so smart. There are a limited number of houses that truly meet your criteria, but there are other buyers out there who share your buying position and are probably looking for the house you just found.
Go to the concession window. Sellers want to sell their homes. In some cases, they need to sell their homes. Because of this need, many sellers are willing to “chip in” to pay for some or all of a buyer’s closing costs. FHA still allows for sellers to contribute at least 3% of the purchase price toward the borrower’s closing costs.
Foreclosure properties can be a good buying option. But they can also present unique problems inexperienced buyers should be aware of. If you’re interested in buying a foreclosed property, my best advise is to work with an agent experienced in these types of sales. Their advice and their experience will prove invaluable to helping you pick the right property and avoid buying a lemon.
Friday, February 12, 2010
Thursday, February 4, 2010
Sell Your Home in Half the Time
Freeze frame on our nation’s economy. If no new houses were built, there are enough unsold houses to satisfy the needs of the majority of buyers for about nine months. In other words, if no new homes were built it would still take nine months to sell all the houses that are available for sale today.
According to Ziprealty.com one of the nation’s websites that track such figures, the month of January marked the first month in the past 18 months when the number of homes listed on the nation’s MLS totaled more than the month before. In fact January saw a 2.9% increase in available homes in the 27 major U.S. housing markets used to measure these trends.
And to top it off, they’re still building houses in my neighborhood. In fact workers just studded in walls and rafters this week on a new home being built on the lot adjacent to mine. Nation wide, 2010 new housing starts are projected to be down about half of their recent high of 1100 per month in late 2007. This means that not only are there more available homes than there are buyers for several months to come, new home builders are starting over 500 more new homes to add to the already glutted inventory.
Gloom, despair and agony on everyone… Right? Nope! I met someone this week with a track record to back up her claims to sell your home in half the time other Realtors take. How does she do it? Well I asked her to share some of her secrets and she didn’t even flinch. Like she didn’t care if other realtors (and even those folks who want to sell their homes without a realtor) knew how she did it.
“I sell my customer’s homes faster than other Realtors because of a few tricks of the trade, but really it boils down to the fact that I work harder than most other Realtors” Melodee said. By the way, her name is Melodee Dailey with Coldwell Banker Twin Rivers Real Estate, Inc. (melodee.dailey@coldwellbanker.com) So here is how she does it.
Trust. The seller has to know that they can trust that their Realtor will do what they say they will and actually do more than they say the will in order to sell their house. Melodee told me that in a typical week she attends at least 4 events that allow her to network with other business people and potential buyers. This week she’s crammed 7 such meetings into her schedule because next week she’s going on vacation. “My customers know how busy I am doing everything possible to sell their home in the quickest possible time. That’s why when I make recommendations of a few things they need to do to make their house stand out in the crowd, they’re receptive and in most cases do what I suggest” Dailey said.
Staging. Most sellers live in their home and have become accustomed to the way it “feels”. But a good realtor sees the potential in every home they list and know how to make that home look and “feel” the best it possibly can. “That’s why I have a full-time home stager working for me” said Dailey. “I can see the potential and I can sell that potential to prospective buyers; that’s my specialty. But my stager knows how to stage a home better than I do. We each use our strengths to do what the seller expects us to do…sell their house.”
Pictures. It’s the difference between the snapshots I would take at a family picnic and the portrait the professional took of my daughter at her wedding. The pictures used to present a home to potential buyers make a huge difference in whether or not the buyers actually decide to put that home on their list to see. “Again, I know how to spot a home’s potential and I know how to get that home in front of potential buyer’s eyes, but I’m not a professional photographer, that’s why I also have a full-time professional photographer who knows how to capture a buyer’s attention so they will put that home on their ‘must see’ list of homes” Dailey emphasized.
Internet. National statistics reveal that 86% of home buyers decide which homes to consider after first previewing them on the Internet. Dailey continued, “Home buyers use a variety of websites to preview potential homes, so it is imperative that a listing Realtor build a large base of websites on which to market each of their listings. And then they have to use these sights to aggressively sell their clients house”
According to Ziprealty.com one of the nation’s websites that track such figures, the month of January marked the first month in the past 18 months when the number of homes listed on the nation’s MLS totaled more than the month before. In fact January saw a 2.9% increase in available homes in the 27 major U.S. housing markets used to measure these trends.
And to top it off, they’re still building houses in my neighborhood. In fact workers just studded in walls and rafters this week on a new home being built on the lot adjacent to mine. Nation wide, 2010 new housing starts are projected to be down about half of their recent high of 1100 per month in late 2007. This means that not only are there more available homes than there are buyers for several months to come, new home builders are starting over 500 more new homes to add to the already glutted inventory.
Gloom, despair and agony on everyone… Right? Nope! I met someone this week with a track record to back up her claims to sell your home in half the time other Realtors take. How does she do it? Well I asked her to share some of her secrets and she didn’t even flinch. Like she didn’t care if other realtors (and even those folks who want to sell their homes without a realtor) knew how she did it.
“I sell my customer’s homes faster than other Realtors because of a few tricks of the trade, but really it boils down to the fact that I work harder than most other Realtors” Melodee said. By the way, her name is Melodee Dailey with Coldwell Banker Twin Rivers Real Estate, Inc. (melodee.dailey@coldwellbanker.com) So here is how she does it.
Trust. The seller has to know that they can trust that their Realtor will do what they say they will and actually do more than they say the will in order to sell their house. Melodee told me that in a typical week she attends at least 4 events that allow her to network with other business people and potential buyers. This week she’s crammed 7 such meetings into her schedule because next week she’s going on vacation. “My customers know how busy I am doing everything possible to sell their home in the quickest possible time. That’s why when I make recommendations of a few things they need to do to make their house stand out in the crowd, they’re receptive and in most cases do what I suggest” Dailey said.
Staging. Most sellers live in their home and have become accustomed to the way it “feels”. But a good realtor sees the potential in every home they list and know how to make that home look and “feel” the best it possibly can. “That’s why I have a full-time home stager working for me” said Dailey. “I can see the potential and I can sell that potential to prospective buyers; that’s my specialty. But my stager knows how to stage a home better than I do. We each use our strengths to do what the seller expects us to do…sell their house.”
Pictures. It’s the difference between the snapshots I would take at a family picnic and the portrait the professional took of my daughter at her wedding. The pictures used to present a home to potential buyers make a huge difference in whether or not the buyers actually decide to put that home on their list to see. “Again, I know how to spot a home’s potential and I know how to get that home in front of potential buyer’s eyes, but I’m not a professional photographer, that’s why I also have a full-time professional photographer who knows how to capture a buyer’s attention so they will put that home on their ‘must see’ list of homes” Dailey emphasized.
Internet. National statistics reveal that 86% of home buyers decide which homes to consider after first previewing them on the Internet. Dailey continued, “Home buyers use a variety of websites to preview potential homes, so it is imperative that a listing Realtor build a large base of websites on which to market each of their listings. And then they have to use these sights to aggressively sell their clients house”
Wednesday, January 27, 2010
7 Ways to Lose a Buyer
Way back in the olden days…way back in 2007, homes all across the metro area were selling in a matter of days. And sometimes a home had multiple buyers driving the purchase price higher than what the sellers were asking.
Today this seldom happens because there are so many homes available for purchase buyers can find just about anything they want at a price they are willing to pay. The market changed when the housing bubble burst. Almost immediately, foreclosures diluted home values in neighborhoods throughout the city. And buyers waited; like vultures waiting for the wounded animal to die, they waited to purchase watching to see just how low home prices would go. And some are still waiting.
Many of the realtors I talk with tell horror stories of buyers looking at thirty and forty properties and still not making a serious offer. When they ask what their customers are looking for, they get the response, “we’re waiting for the price to drop”. And for the sellers whose homes remain unsold on the market month after month, keeping the house in “showroom condition” becomes impossible.
So what’s a seller to do? My network of realtors offers the following 8 ways sellers can lose a buyer. I offer these to you in hopes that you will not repeat the same mistakes that have cost many a seller a closed contract.
Unappealing Curbside View. Think of this as your home’s handshake. The way your home looks when potential buyers drive up makes an impression that sticks with the buyers. Trimming all trees and bushes as well as edging the yard and putting fresh mulch in the beds is a must. Power washing the exterior to remove wasp and mud dauber nests is an absolute must.
Clutter with chaos. Most people looking to buy a home have outgrown the one they are in. This usually means their home is cluttered and chaotic. That’s why closets should be only half filled and nothing should be on the floor. The rest of the house should be dressed according to the rule of three. Kitchen – no more than three appliances on the counter top. Bookshelves – one third books, another third pictures and vases, and the final third empty.
Dated fixtures. Most sellers take their refrigerators and washer and dryers but leave the oven and range. These fixtures aren’t cheap, but if they are too outdated, they can be a definite cause your buyer’s eyes to roll. Those old ceiling fans may still work, but are they older than your average buyer? If so, it would be a good idea to replace them.
Wallpaper. Grandma may have had it, and you may have grown up with it in your room. Okay, you may even like it yourself. But it’s a definite fashion faux pas for today’s buyers.
Acoustic ceiling. It really doesn’t matter if the ceiling is that old acoustic ceiling tile or the blown on glitter globs of popcorn, it puts off buyers. There are other homes as nice as yours and priced like yours but look better than yours because they took the time to remove the old acoustic ceiling.
Honest dishonesty. How many times have you read something like this? “Nestled in a quiet corner of the neighborhood, the rustic romance of this home makes it a stand out from other area homes for sale. Seller offers liberal allowance for buyer’s choice updates.” What all this means is that this home sits in a cul-de-sac sandwiched between two other homes leaving a very small pie shaped front yard. It’s in a quiet part of the neighborhood because the houses on either side of it have been foreclosed and vacant for nine months. It’s described as rustic, which really should have been rusting. Honest dishonesty only puts off serious buyers. Just be truthful.
Busy body seller. Walk in to just about any large furniture store in the city and within seconds you’ll be met by a sales person who won’t leave you alone. Tell them you’re just looking and they’ll ask thirty questions about size, shape and color. When people come to look at your home, don’t be one of those sales people. In fact, it’s best to leave the house.
Today this seldom happens because there are so many homes available for purchase buyers can find just about anything they want at a price they are willing to pay. The market changed when the housing bubble burst. Almost immediately, foreclosures diluted home values in neighborhoods throughout the city. And buyers waited; like vultures waiting for the wounded animal to die, they waited to purchase watching to see just how low home prices would go. And some are still waiting.
Many of the realtors I talk with tell horror stories of buyers looking at thirty and forty properties and still not making a serious offer. When they ask what their customers are looking for, they get the response, “we’re waiting for the price to drop”. And for the sellers whose homes remain unsold on the market month after month, keeping the house in “showroom condition” becomes impossible.
So what’s a seller to do? My network of realtors offers the following 8 ways sellers can lose a buyer. I offer these to you in hopes that you will not repeat the same mistakes that have cost many a seller a closed contract.
Unappealing Curbside View. Think of this as your home’s handshake. The way your home looks when potential buyers drive up makes an impression that sticks with the buyers. Trimming all trees and bushes as well as edging the yard and putting fresh mulch in the beds is a must. Power washing the exterior to remove wasp and mud dauber nests is an absolute must.
Clutter with chaos. Most people looking to buy a home have outgrown the one they are in. This usually means their home is cluttered and chaotic. That’s why closets should be only half filled and nothing should be on the floor. The rest of the house should be dressed according to the rule of three. Kitchen – no more than three appliances on the counter top. Bookshelves – one third books, another third pictures and vases, and the final third empty.
Dated fixtures. Most sellers take their refrigerators and washer and dryers but leave the oven and range. These fixtures aren’t cheap, but if they are too outdated, they can be a definite cause your buyer’s eyes to roll. Those old ceiling fans may still work, but are they older than your average buyer? If so, it would be a good idea to replace them.
Wallpaper. Grandma may have had it, and you may have grown up with it in your room. Okay, you may even like it yourself. But it’s a definite fashion faux pas for today’s buyers.
Acoustic ceiling. It really doesn’t matter if the ceiling is that old acoustic ceiling tile or the blown on glitter globs of popcorn, it puts off buyers. There are other homes as nice as yours and priced like yours but look better than yours because they took the time to remove the old acoustic ceiling.
Honest dishonesty. How many times have you read something like this? “Nestled in a quiet corner of the neighborhood, the rustic romance of this home makes it a stand out from other area homes for sale. Seller offers liberal allowance for buyer’s choice updates.” What all this means is that this home sits in a cul-de-sac sandwiched between two other homes leaving a very small pie shaped front yard. It’s in a quiet part of the neighborhood because the houses on either side of it have been foreclosed and vacant for nine months. It’s described as rustic, which really should have been rusting. Honest dishonesty only puts off serious buyers. Just be truthful.
Busy body seller. Walk in to just about any large furniture store in the city and within seconds you’ll be met by a sales person who won’t leave you alone. Tell them you’re just looking and they’ll ask thirty questions about size, shape and color. When people come to look at your home, don’t be one of those sales people. In fact, it’s best to leave the house.
Subscribe to:
Posts (Atom)
