Real Estate marketing is the cornerstone of our business.  If you read the featured post here on Active Rain yesterday INTERESTING INFO ON WHO IS BUYING AND HOW THE MARKET HEALS ITSELF FROM THE BOTTOM UP a recent survey shed some interesting light on how the market is changing and how those changes are affecting sales which are on the rise.

LESS THAN 1%

A Nationwide survey recently revealed that less than 1% of all home buyers who purchased their homes in the past year did NOT learn about the home they purchased from a Home Book or Magazine.  If you are spending your advertising dollars in this medium you may want rethink it. You are missing 99% of successful buyers. 

In fact 90% of them, used the Internet at some point prior to purchase. They generally started their search online and then contacted an agent.   What sites were they visiting? Local MLS sites were the most popular (60%) followed by Realtor.com and Real Estate Company site (46% each) Real Estate Agent Web site were a close 4th at (45%)

   MARRIED -VS- SINGLE,  WHO ARE BUYING MORE HOMES?

Overwhelmingly 60% of the buyers were married.   21% were single women, outnumbering single men by over 2:1 (single men accounted for 10%)

   BUYER RESOURCES: CHANGE FROM POINT OF ORIGIN TO CONCLUSION

Interestingly enough how they begin the process and how a buyer will ultimately end the process by completing the transaction change from the the beginning point to the conclusion.

 87% Relied on a Real Estate Agent  

 WHERE ARE BUYERS BUYING?

54% of all homes purchased were in a Suburb or Subdivision.  

Quality of Neighborhood was the number one influencing factor in the decision to purchase among 64% of the buyers surveyed.

26% felt schools were important

    COMMUTING COSTS

Only 36% of the buyers felt commuting costs were VERY Important

Compared to 42% who felt they were only somewhat important. 

What these numbers suggest is that the quality of the neighborhood still outweighs the convenience of the commute. 78% of the respondents had purchased a single family family home. In the suburbs, giving consideration to the quality of the neighborhood or subdivision, and and smaller more economical sizes of homes than were in demand 2-3 years ago.

Knowing how to market, to whom we are marketing and the best ways of reaching potential buyers will help us to streamline where to investment marketing dollars for successful sales. 

        EFFICIENCY DID HAVE WEIGHTED INFLUENCE?

On average 1600 square feet was the size of the home most first time home buyers selected, and 2100 square feet for second time or repeat buyers. This is sharp contrast compared to previous years where buyer demand was for large homes.

88% of buyers said heating and cooling costs were important.  This couold be one reason they are trimming the square footage of the homes they are buying on a National average. 

        HOW ARE YOU INVESTING YOUR MARKETING DOLLARS?  

The market always heals from the bottom up" according to Paul Bishop, National Association of Realtors Vice President of Research. According to the recently released sales numbers 47% of buyers this past year were first time home buyers.  Surpassing the previous high record of first time purchasers set back in 1991

 "These buyers are critical to housing and a general economic recovery ...they absorb inventory, free existing owners to make a trade and stimulate related goods and services " said Bishop.  He compared this rise to the last recession in 1991, where the same dynamic played out "first time home buyers started the chain reaction that led the nation out of recession" he said.   Bishop credits tax incentives,record high affordability, and pent up buyer demand to this spike in recent sales.   Economists would also credit the FED with suppressing any immediate rise in interest rates affecting home mortgages while the economy is still so fragile.  

BUYER PROFILES ARE ALSO DIFFERENT THAN ONE WOULD EXPECT  

The median age of a first time home buyer is 30 indicating that some are younger and some are older. They are planning to live in their homes for at least ten years. The typical cost Nationwide was $156,000 down 7% from last years figure of $165,000. 87% of First time Home Buyers surveyed consider their home to be a good investment."   Single Family homes sold a higher rate than other forms of housing.  In fact 78% of the home achieved were single family homes

HOW ARE BUYERS PAYING FOR HOMES?   96% Chose a fixed rate mortgage.  (55% used FHA compared to 8% Using VA Programs) 61% of First time buyers used their savings as a down payment. 22% received down payment assistance as a gift from family.      6% received loans for down payments from family 6% tapped into a 401 (k) program  

WHAT IS OLD IS NEW AGAIN- SAVING MONEY FOR A DOWN PAYMENT ON A HOME

39% of home buyers have cut back on luxury items, 38% cut back on entertainment and 30% cut back spending on clothing according to the study.

And a staggering 80% of first time home buyers are using the Internet.  

HOW HAVE RECENT CHANGES IN REAL ESTATE AFFECTED SALES?  

13% Experienced a Purchase Agreement that was canceled, terminated or fell through "This raises the question of how many potential buyers were unsuccessful because of problems with appraisals or loan qualifications. The market would be stronger without these problems" Bishop added.

Only 8% of applicants were rejected for loans (a 92% success rate) 12% of applicants said that financing their first home was more difficult than they expected. 8% of all buyers paid cash.  

85% of Successful Home Sellers used a Real Estate Professional. Sellers surveyed want agents to price their homes competitively, find a buyer, market the property and sell within a specific time frame.     

THE TAX CREDIT  EXPANSION INTO 2010   

The expansion of the tax incentive program will extend to homes placed under purchase agreements by April 30, 2010  and will include home buyers who have owned a home in the past 5 years.

  Repeat Buyers  surveyed  had an average age of  48, earning $88,100 and plan to stay in the homes they purchased on average for 12 years.  These buyers typically bought more expensive housing. The median price on a National level was  $224,500  

RECORD DECLINE IN FOR SALE BY OWNER PROPERTIES.  

In the actual number of homes sold without representation was a record low according the most recent survey only 6%. Declining for the second year in row. 

The most difficult tasks reported by owners attempting to sell homes themselves were,; preparing and fixing the home, understanding and performing the paperwork and selling within the planned length of time.

The overwhelming majority of successful sellers used a Real Estate Professional full service brokerage.

 Want to know more about how to Marketing works?

WHAT MOST SELLERS, BUYERS AND "FOR SALE BY OWNERS"     DO NOT UNDERSTAND IS...THERE IS MORE TO WHAT WE DO THAN STICKING A SIGN IN THE GROUND.

3863 BLACKBERRY CIRCLE ST. CLOUD FLORIDA 34769- located in the beautiful well located sub division of Blackberry Creek in St. Cloud Florida, this fantastic 3 bedroom 2 bath contemporary block home has a spacious split floor plan, and overlooks the Lake Toho canal, no rear neighbors as you bask under the sun all winter long in your screen enclosed pool. 

 This location is superb! Just minutes from Walmart, Home depot, post office, restaurants  and banks, easy access to the Florida Turnpike and attractions, and 30 minutes to Orlando International Airport.  The community of Blackberry Creek has it own private boat ramp.

  ENJOY THE WARM TROPICAL WINDS-GET AWAY FROM WINTER IN THIS FANTASTIC POOL HOME

NO REAR NEIGHBORS!  THIS HOME OVERLOOKS THE PEACEFUL AND SERENE LAKE TOHO CANAL. ENJOY THE SAND HILL CRANES FROM YOUR FENCED YARD, OR GRAB YOUR FISHING POLE AND OVER TO THE CANAL LAKE TOHO HAS SOME OF THE BEST BASS FISHING IN CENTRAL FLORIDA- THE COMMUNITY HAS A PRIVATE BOAT RAMP TOO!

WARM, SPACIOUS AND WELCOMING!  3863 BLACKBERRY CIRCLE, ST. CLOUD FLORIDACOULD BE YOUR NEXT HOME!  THE LARGE SPACIOUS FLOOR PLAN FEATURES A LARGE LIVING ROOM/ DINING ROOM AREA PERFECT FOR ENTERTAINING.

The open airy floor plan is well suited for entertaining or quiet  togetherness. The home features a lovely  archway from the Living room/dining to the family room or media room located off the kitchen. The high ceilings, and contemporary design make this a wonderful year round or vacation home.

        Picture yourself entertaining in this large spacious  eat in kitchen overlloking the family/media room and beautiful view of the pool and natural setting setting which makes this home so appealing. 

  Enjoy your favorite beverage in the light and airy dinette. Just imagine how nicely your special decorator touches will enhance this space,

The second bath is also a  pool bath.  No more wet floors through the house- after a refreshing swim a nice hot shower awaits you.

The Master Bathroom, features a garden tub, private commode, and dual sinks,

3863 Blackberry Circle, St. Cloud Florida 34769     MAKE THIS YOUR NEXT ADDRESS.  THIS HOME IS PRICED TO SELL FAST AT $189,000  FAST RESPONSES TO ALL OFFERS.  PERFECT FOR A VACATION HOME, RENTAL PROPERTY, OR PERMANENT HOME.  QUALIFIES FOR FHA/VA FINANCING, CLEAN AND READY TO MOVE INTO.  CONTACT ME FOR ADDITIONAL INFORMATION.  And find out how you can own this beautiful home for less than it costs to rent.

Do you qualify for the $8000 tax credit?  Ask me how.  Looking for a second home or rental property? How about taking advantage of the new expanded tax credit incentive and use the $6500 for a boat?

Presented by Allison Stewart Broker/Associate Florida Pines Realty, St. Cloud Florida

DO AMERICANS UNDERSTAND HOW THE GLOBAL ECONOMY REALLY AFFECTS WHAT THEIR HOUSE IS WORTH?  Sadly, for the vast majority, the answer would have to be no.    Do we understand the difference between inflation and deflation? Deflation is what is causing your homes to be worth less.  If asked the majority of Americans fear inflation, but without it, their homes will never recover lost value. 

INFLATION VS DEFLATION

I recently stumbled across an arguement for inflation entitled "Overcoming America's Debt Overhang" it is a long read, but worth the time and effort. It explains in great detail why inflation is necessary and how in  the long term it will actually help the US recover. 

 WHEN WILL THE MARKET RECOVER?             

 It depends on whom you ask.  Conditions, supply and restrictions now in place all suggest it will never return to the previous levels.

CONDITIONS- What created the bubble were liberal lending policies.  Stated Income, Interest only loans, and other risky lending practices which fed the need for consumer greed. 

They no longer exist.

SUPPLY-    In order for prices to go up, supply must come down.

Unbridaled consumer demand, was the leading cause of the housing price spike, As word spread of the fortunes to be made in the housing market this escalated demand as consumers rushed to buy anything and everything housing related they could. Regardless of what the actual value may have been.

Those buyers... no longer exist.

RESTRICTIONS- THE LACK OF RESTRICTIONS ON CONSUMERS BORROWING MONEY IN 2005-2007

Unlike the 1980's when inflation pushed mortgage interest rates to over 20%, incredibly people still bought homes. Today the interest rate is 4-6% on home loans yet consumers are not flocking to the banks. WHY?

HERE IS THE GOOD NEWS                      

While wages may not be going up, the majority of Americans are still working 90%

Purchasing a home when the market is down is the best long term hedge against rising inflation.

Purchasing a home now and taking advantage of the additional tax incentive good through 4/30/10 is an excellent hedge against deflation.  You can create upto an $8000 buffer. This will offset any drop in value inthe immediate furture.

THE BASIC THING TO KNOW ABOUT INFLATION IS THIS....  

The dollars spent today WILL be worth less in the coming years, therefore it will take more of them to purchase goods in the future. 

Need Proof? 

Ask your Grandparents or parents what they paid for their first home.

DOES THE GLOBAL ECONOMY  IMPACT WHAT GOODS YOU CAN BUY? 

Anything you purchase that says made in China would be an indicator that the Chinese Manufacturers rely heavily on exports to sustain their economy. 

ARE YOU A CONFIDENT CONSUMER?

It is no secret that many people in St. Cloud, Florida are struggling in this tough economy.  Most are cutting back on spending, dining out, and are still struggling as the cost of living continues to rise while incomes remain flat or decline in the wake of job losses, and increasing lay offs.    The housing market in St. Cloud,Florida reflects these hard times. But.... homes ARE selling. 

Mortgages rates, Property tax increases, and the spike in cost of electricity, food, and fluctuating fuel costs have pushed many to their financial limit and beyond.  As consumers turning to credit cards to augment payments of basic expenses, credit card companies adjusted their interest rates in some cases as high as 32.79% forcing struggling consumers to seek  Bankruptcy as a final protection from a mountain of debt. 

IT IS ALL ABOUT MONEY... OR LACK THEREOF

Bankruptcy will offer a shelter from  Short Sales, and to is used to stall the foreclosure process.  To eliminate deficiency judgements, and other judgements that may be sitting collecting dust in court room files as well as eliminate mountains of high interest rate credit card debt. For some people, it is their only option to ever get out from under it all and make a fresh start.  Their numbers are rising...significantly.

As result, bankruptcy petitions have hit an all time high of 9% for consumers and 7% businesses in October, setting a new record of 135,914 nationwide.   Chapter 13 (reorganization)) accounted for two thirds of the October filings. Whereby filers were put on a repayment plan over a five year period.   If the petitions continue at their present rate, they are likely to be the highest in four years. according to the American Bankruptcy Research Institute. Director, Samuel Gerdano said "The filings demonstrate the sustained stress on the US economy"  

Bankruptcy filings are up 30% over last year's numbers.  Contributing to the high numbers of consumers seeking protection from creditors are credit cards, home equity loans, and rising unemployment.   As you may recall back in October of 2005, consumers in large numbers rushed to file for bankruptcy protection in the  weeks prior to Congress passing legislature making it more difficult for petitioners to file for bankruptcy under Chapter 7 which dissolved their debts. Forcing many to seek protection and restructure their debt obligations under Chapter 13 which requires structured repayment.  

Maureen Thompson, legislative director for the National Association of Consumer Bankruptcy Attorneys in Washington, DC said " an economy that puts people back to work will begin to lower the number of Americans filing for bankruptcy, but added that she is not expecting the numbers to turn around in the foreseeable future."  

Declining Home values appear to have slowed down, and sales of foreclosed and short sale properties have risen for the past eight consecutive months inching up the median price throughout the state.    Homeowners who are not upside down (owe more than the property is currently worth)seem to be waiting longer to try and sell their homes hoping the market will recover.  

Expectation of previous high priced sales  reported in 2006 are unlikely to be achieved again due to the change in the number of housing units now available in Osceola County.  Bank owned properties selling at below market prices are continuing to oppress the escalation of prices for homes and the speedy recovery in the housing market many consumers were hoping to see.  

 First time home buyers have been granted an extension of the 2009-2010 (Up to $8000) tax credit (stimulus plan) which has now been extended to April 30, 2010.  The expanded extension now makes consumers who have owned a home within the last five years and are purchasing a home within those time frames eligible for a tax credit of up to $6500.

Selling a home can be a very emotional experience. Suddenly the "enhanced value" becomes intertwined with emotion as the walk through becomes a trip down memory lane.  What is valuable to one person may not be relevant to another.    Over time, people do things to their homes which have great personal meaning.  The key word is personal.   It may not necessarily add value to your home, no matter how much you love it.

I recently met with a lovely couple who have a home they wish to sell in St. Cloud Florida.  They contacted me having heard good things, seeing my articles in the local St, Cloud Florida News (paper), and here on Activerain as well.

The home has been lovingly maintained.   Every corner had been dusted and the home was beyond immaculate we decided to sit in the Florida Room which was very uniquely designed. It had movable walls with vinyl windows which completely open in nice weather and shield you from the harsh elements during bad weather, today it was wide open and the ventilation was fabulous.  The pool sparkled brilliantly under the warm midday sun, as we sipped chilled ice tea with a twist of home grown fresh lemon, cut pulled from their citrus tree, and  we talked about Real Estate. 

 They felt confident their old appraisal was still valid.  I had pulled fresh comparables and prepared a Comparable Market analysis which I showed them as we discussed what they hoped to achieve in selling their home.  They were not very happy with what the numbers revealed.  "That is considerably lower than our appraisal".  Their appraisal was dated 2006.

 So to settle their discouragement,  I suggested they have the same appraiser do a new appraisal.  Confident I was wrong and they were right, they proceeded with that plan.

A week later I called them back. They were happy to hear from me.  It turns out the appraisal which had just been done was back, and even lower than we thought.  This was very valuable insight for them, and in the end money well spent in paying for an independant appraisal- that is what a would be buyer will do. 

Armed with this new information, they realize a lot has changed in the past three years. The bubble had burst.

 They felt I knew my market, and what I talking about and they were very gracious in telling me that.

 Not to burst ones bubble, is important. 

Homes are selling here in St. Cloud Florida but the price has to be appropriate for the market conditions.

MAKING "QUICK CASH" IN THE CURRENT HOUSING MARKET IS STILL POSSIBLE.  If you have been sitting on the sidelines wondering if you should stay in stocks or diversify your portfolio, you may want to take a closer look at the housing market once again.

DOES A 20-50% PROFIT MARGIN EXCITE YOU?

There are not too many stocks or bond options that are paying 20% out there today. However, with some careful research finding a distressed home and repairing and remarketing it could easily yield 20-50% if done properly.

WHERE THERE IS A  SHORTAGE OF FORECLOSURE AND SHORT SALE HOMES

THERE IS ROOM FOR PROFIT TO GROW.   

The key is careful selection.  REALTORS® making use of the new innovations to the MLS system can pinpoint short sale and foreclosure homes accurately.  They can also select specific sub divisions.  

The ones which have greatest possibility of future profits are the ones which have the least amount of homes whch are bank owned or short sale properties.

Ultimately, large numbers of homes in either of those categories will apply downward price pressure to the market they are in.  So do your homework and find an area expert to work with.

 OVERLOOKING RAW LAND

The prices of raw undeveloped lots have also dropped as the housing market and building came to stand still in 2007.  As a result there are some very well priced lots now available- but most buyers are so focused on the HOMES they are overlooking the ground upon which they must rest.

Typically when the demand for housing is high, people turn to to buiying lots which can be built upon as an alternative hedge against rising costs of buying a home under construction or already exisiting. 

 The increase in demand for raw land will cause those prices to rise just as it does for existing homes.  It is a supply and demand effect. 

 Conversely, these parcels will drop when demand slacks off.  While raw land carries far oless cost in carrying the undeveloped property, over time owners looking to cash out and turn that land into cash equity may price some lots attractively to entice a sale.  Now is the time to be looking at them.

This lot for example is located in an area of estate homes in St. Cloud Florida.  In Bay Lake Ranch.  This community is one of the remaining few still zoned for esquestrian use as well as residential.  Lots here range from 1-5 acres. Homes on either side  of it range from $375,000- $414,000  

PROFIT MARGINS                   

Estimating profit margins needs to be done prudently.  The market is still in the early stages of recovery. Unlike the boom of 2005-2006 the rate of return is not going to be 100-300%.  It is more likely to yield 20-50% but the cost of acquiring the property has also dropped drastically.  Today it is possible to buy a home for as much as the cost of a luxury car.   The main difference being, the car will lose 50% of its value faster.

PENDING SALES UP Nationally 6.1% IN September trumpet the 8th consecutive month pending sales have risen. Compared to pending sales 1 year ago that is an overall increase of 21%.  In St. Cloud Florida the numbers are stronger

MORE REASONS TO ACT NOW

The Extension of the Tax Credit will be carried through April 30, 2010 allowing more first time home buyers who can earn as much as $8000, as well as home owners during the past five years, whi can derive a $6500 benefit,  to take advantage of tax credit incentives. 

You must have a valid sales contract in force by April 30th, 2010 and close on the porperty by June 30m 2010 to qualify.

So if you have been sitting on the fence wondering how to make a financial gain in these turbulent times the answers may well be right under your feet. The ground you are standing on is still solid from an investment standpoint.  At least in my market of St. Cloud Florida the possibilities are there.

WANT MORE INFORMATION?  Click here

LOOKING FOR A HOME AND DON'T FEEL YOU HAVE MUCH MONEY?  TRY ST. CLOUD FLORIDA.  Your dollar seems to have greater value in St. Cloud, Florida. The entension of the Tax credit for first time home buyers will now extend to April 30, 2010. This means your dollar will go further if you are a first time home buyer.  Why rent when it is possible to purchase for less than you are paying now and still reap the tax advantages renters forego?  Former rental homes make great starter homes.

St. Cloud, Florida is celebrating it centennial, way back in 1909 it was established as a City celebrating Small Town Living. 

The homes in the downtown district are perfect starter homes, or vacation or rental properties. Close to shops, stores, banks, and restaurants.

The tree lined streets which lead to east Lake Toho are quintessential small town quaint.

Located south east of Orlando, St. Cloud Florida was considered a bedroom community. It is nestled between Disney to the west and the beaches to the East. Only 30 minuites to Orlando International Airport.

WHY RENT WHEN YOU CAN OWN?

With prices this reasonable why rent when you can own your own home?

Prices are way down, and sales are rising. Now is the perfect time to consider making the move                to St. Cloud Florida

Homes in St. Cloud, Florida  Under $100,000 CLICK HERE (No Sign up required)

The allure of endless summer, amusement parks, and other attractions, seems to escalate sales as the weather cools down in other parts of the US, Canada, and Eastern Europe.  As a result buyers from abroad begin to consider possible buying homes in Florida as primary, secondary or vacation/investment properties.

The popularity or the Orlando Area is increasing.  Over 50 Million  people visited Orlando in 2008.  Knowing how to get around and access to interactive maps is very important particularly for foreign tourists.  Here is an excellent site that will assist you Orlando Maps

 ORLANDO IS  Bigger than you think.  In fact, it is  110.2 miles from end to end and side to side.  It is borders several other counties (of which there are 64 total in Florida) Osceola to the south, Polk to the Southwest, Orange which is located in and Volusia to the North. 

Important Facts about Orlando

SEARCHING FOR YOUR FLORIDA HOME

BUYING A HOME IN FLORIDA IS EASY EVEN IF YOU ARE FROM ABROAD.

You do not need to be a US citizen to own property in America.

You DO need to be at least 18 years of age.

DECIDING WHERE YOU WANT TO LIVE

Kissimmee  Offers many recreational activities as well as points of interest.  Homes in various price ranges as well as short term rental opportunities. 

St. CLOUD, Florida

Is a bedroom room community to Orlando and Disney. Nestled between I-95 to the east, I-4 to the west and The Florida Turnpike.  About 30 minutes from Orlando International Airport, historic St. Cloud is celebrating 100 years as a City celebrating Small Town Living. 

As a local area expert, I often get calls from people looking to relocate to Florida who may not fully understand how large the Orlando area is.

In order to best service them, I have provided some helpful links in this post to better familiarize out of area buyers. 

IMPORTANT THINGS TO CONSIDER     

1) USE OF THE INTERNET  -Begin your search with exploring as many sites as you can to get familiar with an area.

2) SELECTING A REALTOR

    Google will be very helpful in narrowing down your choices

3) CALL REALTORS

    Communication is the cornerstone of our business.

4) HAVE A WORKING BUDGET

    Know how much you can and are willing to spend

5) Verification of Funds

  Due to recent changes int he mortgage lending practices verification letters are often required.

6) CASH BUYERS

Proof of availability of funds will be asked for in most cases.

Once you have narrowed the possible places you may want to live, you REALTORS will be very helpful by providing you with information.  Showings should be scheduled in advance, however narrowing down the possible homes you are most interested in will streamline the process and be less confusing.

ANY QUESTIONS?  FEEL FREE TO CONTACT ME