Here's a repost of my Real Estate Chat (Team366's take on an open house) this past Sunday. It was a liveblogged event and was a simple, but effective way, to generate more interest and exposure for this home and our Team.
2:00 pm, Sunday, November 16th - Will Anyone Show Up?
It’s Sunday, November 16th and all the open house signs have been hung with care!
Welcome to the liveblog of an Ann Arbor Michigan Home open house. Or, as we on Team366 like to call them, a Real Estate Chat.
The purpose of an open house has traditionally been to expose a listing to the area buyer community. Ads are taken out, signs planted, maybe even postcards sent out, and the day of the open house, a small prayer is recited to lure interested parties through the door. The era of the internet has changed the effectiveness of an open house. Now, prospective buyers come through the front door with more information than ever before. In many cases, the buyers know detailed facts about the neighborhood, community and in increasingly many cases, huge detail about the subject property specifically!
Team366 decided to shift how we approached open houses. Given the level of detail many folks already have on hand, we decided to simply host a two hour window when anyone interested in the home, or the area could drop on by and chat with us about real estate.
I mean it was a darn near white out driving to the real estate chat today! Middle of the day and the amount of snow flying around made it feel as though it was about 5:30 pm, or just before the sun goes down!
“Really Todd? Fascinating. Who cares about the weather? I’m here to learn about real estate, not your commute!”
Yeah, I hear that. The point of bringing up the weather is that it can, and does, affect folks’ desire to go see properties. Let’s face it, unless you NEED to purchase a home in winter time in Michigan, there are better things you would rather be doing. Watching football (bite your tongue! The Lions don’t “play” football!), sitting in front of the fireplace, taking in a movie.
We have often found that many folks, whether or not they need to move, will go open house touring when the weather is at least sunny, warm and the home meets a few of their criteria.
“Then that begs the question, why force homeowners out of their homes for 2 hours on a Sunday, if it’s simple chance that interested lookers will even show up?”
For the sellers, it is another item to check off the list of things done to expose the home for sale. For buyers, it’s an opportunity to see homes that just caught their attention. For agents, it is an opportunity to meet prospective buyers and sellers. It allows us an opportunity to show buyers and sellers how we do what we do.
2:35 - Guest Number 1 Arrives
First guest has arrived and found our real estate chat via the signs whilst dropping a son off at a friends home. They are looking to “upsize” and with 3100 sqaure feet, and an additional 1500 square feet in the finished, daylight basement, this home has plenty to offer.
2:48 - Guest Number 1 Departs
I will say this about the Real Estate Industry, it certainly gives one the ability to talk to many different folks! This guest is looking to up size their current home and enjoyed the amenities that 4951 St Andrews Ct, Ann Arbor, Michigan had to offer!
3:10 - More About The Home & A Phone Call
4951 St Andrews, Ann Arbor, Michigan has a lot to offer today’s buyer! 3,172 square feet, plus 1,500 sf in the finished, daylight basement, this home features four bedrooms, and four and a half baths. Gorgeous clear maple cabinets compliment Granite cinnamon blue countertops. Professionally landscaped yard opens up to the second tee/first green of Stonebridge Golf Course. The generous eat-in kitchen, dining room and brick paver patio, combined with the finished basement with wet bar, make this executive home a great space for entertaining.
This post was delayed because I couldn’t type and hold the phone between my ear and shoulder…… I can only do three things at a time!
3:30 - The Internet & Real Estate
So, if it’s not painfully obvious by now, Team366 and I see tangible reasons to embrace the internet when it comes to marketing and talking about Ann Arbor Homes for sale. As you have seen across an hour and a half of a modified open house (we call them Real Estate Chats) it can be hard to talk with folks about a home or real estate in general, if they don’t show up to see us in person.
Ahh, but there in lies the catch! What about the folks that wanted to be here, that wanted to come to the real estate chat, but were unable to due to prior commitments or work schedules? They may not be (most likely are not!) interested in my ramblings about real estate chat v open houses, and whether or not I got lunch today (did not). But they will be interested in learning more about the property! And that’s where the internet plays such a huge role in how Team366 markets properties for our clients.
Our listings feature the exclusive Listing Syndication System (LSS). We make effective use of many different avenues of online marketing. Narrated walkthrough videos and hi-res photos are simply the beginning!
When the average listing is able to generate 7 Google indexed backlinks and our LSS can generate, in some cases, nearly 5,000, is there a benefit to having that much exposure?
Yes.
Nearly 80% of our listings sell within their contract time frame. When the board average is nearly 1 in 5; that is, nearly 20%, that’s a tangible benefit. It’s one of the things that has set us apart and placed us in the top ten of real estate teams in the Ann Arbor Area Board of Realtors.
3:40 - Give Away Time
Ok, so it’s now time to point folks to a discount coupon to a great store in Ann Arbor. Morgan & York is a great location to stop by and pick up some breads, cheeses, wines and even confectioneries for your next get together. Not only do they have the items you want, but their staff are exceptional at helping you put together great selections. Say you wanted to have a wine and cheese themed holiday gathering, the staff at Morgan & York can help you pull it all together. To help, they have allowed me to give a coupon for $5 off you next order at their store.
4:00 - Heading Out
Well, this real estate chat wasn’t as productive as I thought it would be. I think the weather conspired against me… I did enjoy, however, writing about the real estate chat process, what this beautiful home has to offer and communicating with friends via twitter.
The snow has continued, albeit in the flurry format and not the ridiculous white out mentioned earlier! Be safe all and I will see you on the ‘net or, hopefully, in person!
This Sunday, I will be hosting an Open House at 4951 St Andrews, Ann Arbor, Michigan from 2 to 4 p.m. To make the event even more interesting, I will be live blogging throughout the event!
That’s right! Drop by the Open House for an opportunity to experience this beautiful home in person and learn about the Team366 proprietary Listing Syndication System (LSS). Or if you can’t make it to the open house, check this space between 2 and 4 pm on Sunday and take part in a chat about the Ann Arbor homes for sale. This space will be updated as events unfold during the open house.
You may have heard that this has been a horrible year for selling real estate in Ann Arbor. Well, check us out online or in person and learn why nearly 80% of the homes we list, sell quickly! It’s one of the reasons we are in the top ten amongst Ann Arbor Area Real Estate Agents.
The most recent issue of the Michigan Realtor (MAR) is out and has a great article outlining the Michigan housing market compared to the rest of the country. To sum up the article:
Michigan did not rise to the housing value heights that other states have;
Housing market recovery will likely follow an economic recovery in Michigan;
Michigan housing prices are back to 1999/2000 price points.
Team366 and this blog have talked about price being king when it comes to real estate sales. The Big House Data summary for the Fourth Quarter 2007 Inventory Report state:
Putting the area on notice, that to sell a home, you need to be at or lower than the 2000 and 2001 price points, many Pfizer’s relocation department showed us what it takes to sell homes in slow markets….Price.
And that summary from last year has continued to hold true in the Ann Arbor area real estate market for 2008. The article from MAR backs up the fact that Michigan housing values are back to 2000 price points….as a state.
Another interesting fact to glean from the MAR article is that while the national housing market continued to accelerate the number of homes sold, the 2005 housing market in Michigan was down, even though prices remained relatively the same.
Average Sales Price of Michigan v National Homes
Figure one, taken from the article, shows the average sales price of homes sold in Michigan versus the nation. What is curious is that the nation starts at a higher average sales price than Michigan. Also intriguing is that from 2004 to 2005, Michigan’s average sales price remained stagnant while the national average sales price continued to climb through 2006.
Figure two, also taken from the article, shows the number of sales per year. Again, this is Michigan sales against the national sales. This time, however, to ‘level’ the playing field, all sales are indexed against the year 2000. This means that the number of sales for the state of Michigan and the nation equal an index value of 100.
Michigan v Nation Units Sold (Indexed, Year 2000 =100)
By examining this graph, we see that the number of transactions in Michigan for the year 2007 was below the number of transactions in the year 2000. We can also see that the decline in the number of units selling in the state of Michigan began from the year 2004 to the year 2005.
Compared to the national trends, we as a state were ahead of the nation in entering into a housing market slowdown. It can also be inferred that we will likely pull out of the housing market decline before the rest of the nation, but that inference has too many “but’s” in it for this analyst to be comfortable!
It could be posited that Michigan is kind of like the canary in the coal mine: if the canary isn’t doing well, soon the whole shaft is gonna be coughing! The automotive industry stumbled, hard, and Michigan took it is taking it on the chin. Combine the slow down in manufacturing with an economy that is now sputtering, and a credit crunch that makes bankers reach for the antacids and Michigan has been weathering this “storm” for quite some time.
The silver lining for the good folks of Michigan is three fold:
We didn’t have too far to fall compared to the rest of the nation, so our “readjustment” could be over soon;
Investors have noticed Michigan’s property values (just like Warren Buffet buys low and sells high, it’s a good sign of the bottom when investors swoop in);
All the folks that left the state gave up their claim to Michigan’s greatest commodity -FRESH WATER!
Frankly, if you’ve made it this far through the post on real estate housing trends, you deserve a cookie and a pat on the back! Don’t hesitate to drop a comment or give us a ring to talk further about the housing market and how it affects you.
This past weekend the Detroit Free Press had an article about virtual tours and how they enhance a property’s presence online. There is even a throw-away comment about YouTube and online video.
The money quote:
The advantage of using a virtual tour is that if buyers develop a good first impression from the tour, they may be more likely to make an offer once they see the house in person.
Virtual tours do go a very long way in showing a property’s best aspects. In combination with virtual tours, Team366 has found that narrated walk through videos, not just still photos put to music, allow prospective buyers to learn whether a property meets their desires. This goes a LONG way to having really interested buyers actually on the doorstep of the home.
In fact, as I pound the keyboard for this post, there is a showing on one of my properties taking place. The person seeing the property found our listing on YouTube, saw the walkthrough video, and called their agent to set a showing! This buyer has driven by the property, experienced the photos and walkthrough video, and has made the decision to see this home above nearly 20 other similar properties.
6.5 Reasons You Should Demand A Walk Through Video of Your Home
While some agents think a virtual tour is only necessary for homes over a certain price, we believe they are standard operating procedure. In fact, we also do narrated walk through videos of our clients’ properties as a matter of course.
Video Allows Sellers:
To create more opportunity for buyers to learn about your property without hitting the doorstep. This cuts down on the number of last minute showings;
Convenience/Peace of Mind. That means that when potential buyers are scheduling showings, they are looking to convince themselves that the home is what they’ve seen online;
Exposure not seen before in how properties are marketed.
Video Allows Buyers:
Access to the property 24 hours a day, 7 days a week;
To experience the home from their own couch or office chair;
To share the experience with their friends, and family. This allows buyers the ability to share the home and get responses from folks they trust.
Bonus:
How cool would it be to show your friends and family the home you are selling/purchasing on YouTube?
An Example:
Earlier this year, Team366 sold a listing to some buyers that worked third shift. During the winter, this meant that they could not get to the house while the sun was up! The purchasers did not see the home in the sunlight until the day of the inspection….after their offer had been made and accepted! At the closing table, they commented that the narrated walkthrough video was what made the difference. Because their in person walk through of the house met their impression of the video walk through, they were comfortable enough with the exterior of the the home to make the offer!
Needless to say our clients, the sellers, were ecstatic to sell their place when everyone told them it wouldn’t sell in the winter time! They were also impressed that the walk through essentially generated “warm” buyers scheduling showings. Prospective buyers were familiar with the property, knew what they were walking into and therefore simply looking to qualify the home for their needs by seeing it in person.
What’s been your experience with real estate video?
This may appear flippant given all the rough economic news we've been force fed recently, but it's a fact! 93.5% of Ann Arbor area residents are employed! Holy Smokes! Given the amount of doom and gloom we've seen economically, I expected there to only be five of us still working!
Oddly enough, 93.5% is the number of folks in the United States that are still gainfully employed!
Why is it important that 93.5% of nation, and the city of Ann Arbor, are employed?
It's important because we've been focused on negative news for a LOOONG time. 93.5% employment rates mean that there are a lot of folks working, earning a paycheck, living day to day and helping move a sluggish economy along. Recognizing that 100% employment is a pipe dream, at what point, at what level of unemployment should we as a nation actually be scared?
It is important for all of us to keep our eyes and thoughts on the positive in every day life. Lemons into lemonade. There IS a silver lining to all of these times. What exactly the good news is, remains to be seen for many. For us, Team366, we've seen this time as an excellent opportunity to assist folks in their housing decisions. It may be a rough housing market, but homes are still being bought and sold. And we've been talking with our clients on how to navigate the rapidly changing real estate market.
The Ann Arbor area real estate market has been dealing with a buyer's market for nearly 4 years now. While it is comforting, I suppose, that we are not alone in dealing with this market, it can be amusing to hear other parts of the country are just NOW adjusting to the changing marketplace.Take this AP article recently published in the Detroit Free Press. Pretty innocuous article on it's face, but it's that last line that sent me into laughing fits!
"You have to be nicer than you used to be," he said. "Your goal is keep people in the deal."
"Nicer than you used to be!"
This begs the question, "To whom do you need to be nicer?" Your client? The other agents? The dog?Look, I understand the article is to highlight what new, creative things agents are doing to assist their clients in selling homes.Be nicer? How is this new and creative? How is this even relevant to selling homes? Shouldn't we be operating by the golden rule anyway: Treat others as you want to be treated?
Oh, It's About Creativity!
Perhaps creativity is what the agent meant. You have to be more creative now, than ever before. I could buy that for a dollar! Not too long ago, it was fairly straight forward that when an agent entered the property in the MLS, it sold. Without too much effort, in fact. Buyers were springing up out of the ground and sellers couldn't count their proceeds fast enough! These days, things are a bit different.I know Team366 has striven to be very creative in how we market and sell homes in the Ann Arbor area real estate market. Heck, we use narrated walk through videos, hi-res photographs, 1,000+ Google indexed backlinks, reverse offers....That's pretty creative! Even for this marketplace.I'm glad to hear that other agents around the country are catching on to being more creative in their marketing efforts. Now, if we can just coach them on things NOT to say to a journalist.....
Following up on a recent post about creatively aggressive means to sell a client’s home, I recently bumped into a post about real estate advertising moving it’s dollars from offline to online locations.
The numbers from the article:
Now with the downturn in the overall real estate market, the total real estate-related ad spending including not only ads placed on the web but in newspapers, television, radio and direct mail, is projected to decline by 2.2 percent in 2008 to $31.6 billion. But Borrell is predicting an 11.3 and 5.1 percent growth in online advertising for 2008 and 2009 respectively.
By 2013, they expect the internet will capture 33.1 percent of a projected $35.3 billion real estate-related ad spend. Compare that to the 2005 numbers of a 19.6 percent share of the $29.9 billion spend and you can see the impact online advertising is having on the real estate industry.
Holy smokes! That’s a lot of jingle moving out of print ads and into online ads! Of course, the 500 pound gorilla in the room that many brokers are struggling with is whether or not online marketing works.
Here at Team366 we’ve been focused on online marketing for over 2 years. We push our clients’ homes to the “corners” of the internet with content property offerings. This means that our clients’ properties can be virtually “tire kicked” before a purchaser even darkens the doorstep! The use of hi-res photos, narrated walk-through videos means that purchasers for our listings are simply confirming their initial impressions before they schedule an appointment!
Ann Arbor area home sellers have felt that there was something missing in the “usual” approach to marketing their home for sale. We call it the MLS lottery: put property in the multiple listing system, hang a lockbox on the door, plant a sign and wait! There is just too much left up to chance in this approach!
Team366’s sellers have found our proprietary Listing Syndication System (LSS) to be a cornerstone in the marketing and sale of their Ann Arbor area home. Our LSS features over 1,000 google indexed backlinks to information on each clients’ property.
Marketing homes takes a LOT of work! Our LSS ensures that 100% of the potential purchasers for your property know about it and can find it.
Michigan has been in the throws of a buyer’s market for at least 3, if not nearly 4 years. Here in the Ann Arbor real estate market, the market is a little more fluid than the rest of Michigan, but as agents, we have had learn to adapt quickly.
Creatively Aggressive is my term for how some agents are representing their clients’ interests in this tough market. In the examples given, the focus is on protecting the client’s interests and maintaining the fiduciary responsibility between client and agent.
Here’s an example of an agent being creatively aggressive :
The Reverse Offer
The seller has a property on the market, competitively priced, aggressively marketed, and the number of showings has been steady, but no one has put pen to paper to purchase the property. When a buyer shows interest in the property and returns at least one more time to see the property, it’s time to make a reverse offer.
The reverse offer is simply an offer from the seller to the buyer to begin the purchase conversation. Obviously the buyer is interested enough to see the property multiple times. That indicates that the price, location and value combination are making the property “sticky” in the purchaser’s mind.
What the reverse offer looks like is different from property to property, so consult with your Realtor(R) before an offer is put together. You may want to submit a reverse offer with a price lower than your list price, or you may want to submit an offer with a higher price and seller concessions.
What About the Buyer?
This option can also be utilized by a purchaser in a buyer’s market. The effectiveness varies, but I have found that it is totally dependent upon the seller’s willingness to try something unconventional. When my purchasers have indicated that they would be happy to purchase either home A, B, or C, I have asked the listing agents of those homes to submit an offer to my clients. I simply state that there are multiple homes they are interested in, it’s a buyer’s market and we are acknowledging and embracing this fact.
For my buyers, it’s an opportunity to not be tied to one contract to purchase and gauge a seller’s willingness. For my sellers, it’s an opportunity to end some of the suspense, and show purchasers that we are serious about moving the ball forward.
What have you seen used as a creatively aggressive way to sell homes? I’ve heard rumors of using eBay, selling the handmade, scale doll house, with the actual house thrown in for free (Great Marketing idea!), free cars…. What have you seen and what works, I suppose, are two different questions!
10/16/08 Follow-Up: Bottom-lined a reverse offer within 1.5% of list price using this technique on behalf of my sellers. Client’s are very happy!
October is here, University of Michigan football is….underway, and the family has crushed and pressed the grapes for the 2008 family vino. What’s not to love about Autumn in Michigan?!
Ann Arbor Michigan homes for sale continue to move! In spite of the recent financial hiccups (ed. that’s an understatement!) buyer’s still have access to financing and can still purchase homes. The credit crunch simply tightened underwriting guidelines on mortgages…about 9 months ago. The only thing that has changed as a result of recent market manuevers is consumer fear and perception.
From the BigHouseData.com Executive Summary:
Wow! What a month September was! The national credit crunch get’s its groove on, a federal bail-out rescue bill is proposed and folks still purchased homes!
The good news right now is that the buyer with good credit and a decent down payment can still get financed. That hasn’t changed in the last 4 weeks. If you don’t have the down payment, but have the credit score, FHA is still a viable option.
Buyers, if you need to purchase soon, now is the time to start the process. There’s a lot of inventory and mortgage rates are still very reasonable.
Sellers, the mantra continues: great pricing and value and your home is sold! Anecdotally, Big House Data has heard of a few properties selling at or over list price in a couple days after listing. The common theme was price and value.
Charts after the Jump.
Average List Price - September 2008
Average List Price:The overall average list price in September was $226,943, down nearly 4.5% compared to September 2007.For the nine months of 2008, the average list price is down over 7%.
Average Sales Price - September 2008
Average Sales Price:September saw an average sales price of $175,778, down nearly 10% from September 2007.Compared to the nine months of 2007, the average sales price is down over 10.5%.
Number of Listings v Closings - September 2008
# of New Listings:With 715 new listings in September 2008, that represents an over 24%drop over September 2007.For the year, listings are down nearly 30%
# of Closings:225 closings in September 2008, down nearly 15.5% compared to September 2007.Year to date, compared to the same timeframe in 2007, the number of closings is up nearly 5.2%
Todd Waller | Ann Arbor Real Estate | Team366
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