Karen's Atlantic County Real Estate Blog

The Press of Atlantic City: Ask The Experts...VA Loan & Credit Repair

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Sun, 03 Feb 2008 23:28:57 -0600

"Ask The Experts," appears in

The Press of Atlantic City's

Friday Real Estate section,

Real Estate Connection!

Hello,

I have been interested in buying a home in Galloway Township, my husband and I are first time home buyers. We have been renting for the past two years and are running out of room. My husband is a veteran and has the VA loan. Our credit report is fair but we are working to improve it. I have no idea who to talk to for advice on how to get a mortgage with our credit. Can you please help? Any advice? Thank you for your time, Elaina

Dear Elaina:

You are among the fortunate millions of veterans and service personnel eligible for VA financing when purchasing a home. For those who qualify, there are several benefits to getting a VA guaranteed mortgage. These loans are often made without any down payment at all, and frequently offer lower interests rates than ordinarily available with other kinds of loans. Additionally, no monthly private mortgage insurance is required. To maximize your VA eligibility to purchase a home, you need to contact a VA approved and certified lender to guide you through the process. We have a number of experienced VA lenders in the Atlantic County area. Your Realtor will be able to give you several suggestions.

According to VA guidelines, borrowers and/or their spouse must qualify according to set debt ratios used to determine whether the borrower can reasonably be expected to meet the expenses involved with home ownership.

Aside from the veteran's certificate of eligibility and the VA-assigned appraisal, the application process is not much different than any other type of mortgage loan. The VA approved lender will start by verifying your income and assets, and obtain a credit report. VA loans are often considered more "credit forgiving". However, after analyzing your income to debt ratio, should you need additional "credit repair", an experienced mortgage lender will be able to guide you through the process and get you on the road to home ownership.

Answer Submitted by:

Karen Komo

Realtor Associate

Keller Williams Atlantic Shore

Ask The Experts: Finding a Realtor in Charleston, NC

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Sun, 03 Feb 2008 23:00:02 -0600

Looking for a real estate agent in a location other than your home town, can be a challenge. The best place to start your search is with a local, Atlantic County Realtor, one you have personally worked with or one highly recommended by friends, family, or co-workers. Local Realtors have several methods for doing a preliminary search on your behalf in another market.

One reliable source for professional real estate agents is the Referral Roster of the Women's Council of Realtors, an affiliate of the National Association of Realtors®. Members of the newly formed South Jersey Chapter have access to over 19,000 motivated and professional REALTORS® (men & women) in more than 290 WCR chapters across the United States. There are several Charleston, SC agents listed in the WCR's Referral Roster, a great place to start your search for an experienced agent.

Once you have been referred to agents in Charleston, take time to interview several REALTORS® at various firms. Initially, interview referred agents on the telephone to get a sense of your comfort level with them. Then, personally meet with two or three agents before making a final decision. Have a list of questions ready: How long have they been a licensed real estate agent? (At least 2 years should be the answer.) Are you a full or part time agent? (Full time is preferred.) How many transactions have you been involved in during the past 12 months? (15 to 20 transactions is a good number.) How many buyers and sellers are you currently working with? (An agent working with too many clients may not be able to give you the time and attention you need.) Does the agent work with other associates who can assist you if they are not available? (Many agents work in teams in order to provide a higher level of service for their clients.)

One of the most important factors in the selection process is that the agent is productive. Being a productive agent is one of the best indications that the agent is well trained, aware of market conditions, and works well with people.

All too often, buyers and sellers decide to work with the very first REALTOR® they meet or speak with. Since buying or selling property is one of the most important financial decisions you will make during your lifetime, it is essential to make an informed decision when choosing a REALTOR®. Once you have made your choice, let the selected REALTOR® know that you are making a commitment to work exclusively with them. By expressing your full commitment to them, in return, you can expect the agent to be fully dedicated to your needs as they guide you through the buying and/or selling process.

Keller Williams Now Part of Stanford & Yale's core MBA curriculum

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Mon, 10 Dec 2007 14:17:47 -0600

News Release
FOR IMMEDIATE RELEASE
Keller Williams Realty Case Study
now part of Stanford and Yale's core MBA curriculum
Distinct cultural and economic models presented as inherently intertwined

AUSTIN, TEXAS (July 11, 2007) - Keller Williams Realty Inc., announced today that both the

Stanford Graduate School of Business and the Yale School of Management have added a

Keller Williams Realty Case Study to their core MBA curriculums.

Completed earlier this year by Brian Tayan, research associate with the case writing office of

the Stanford Graduate School of Business and James N. Baron, Ph.D., formerly with Stanford,

who since the publication of the study has taken a professor of management position at the Yale

School of Management, the case study describes the economic and cultural models that have

led to the success of Keller Williams Realty.

"Case studies are fundamentally teaching materials," Tayan explains. He adds that he

anticipates that the most predominant impact of this case study will be a realization among MBA

students of the "significant impact that culture can play in the strategy of an organization."

"This level of recognition from two such prestigious universities is among the greatest honors

that this company has ever received," emphasizes Mo Anderson, vice chairman, Keller Williams

Realty. "It's a reflection of the combined talents and unique contributions of all of our associates

throughout North America."

Anderson was on hand at Yale when the case study was first presented to students at the Yale

School of Management by Dr. Baron.

Baron noted, "One of the things I heard from several students was how refreshing it was for

them to hear the perspective of a highly effective executive with a leadership style so different

from the formulaic one they encounter over and over throughout business school."

Having spent a considerable amount of time talking to associates and interviewing top

executives at Keller Williams Realty, Tayan notes that the Keller Williams "business model and

culture operate very much in conjunction with each other. The company's culture has not been

developed for the sake of it."

Keller Williams Realty has become the fourth largest and fastest growing real estate agency in

North America by building a culture that rewards its agents as partners through its profit sharing

program and by empowering its agents to fulfill the company mission of ‘building careers worth

having, business worth owning and lives worth living.'

"The Keller Williams Realty case study should serve as a source of pride for associates

throughout the organization and a validation of the way the company is proceeding," Tayan says.

Noting the distinct business model and rapid growth of Keller Williams Realty, he adds, "I'm

surprised that more has not been written about it."

###
About Keller Williams Realty Inc.:
Founded in 1983, Keller Williams Realty Inc. is the fourth-largest real estate franchise operation in North
America, with more than 650 offices and 76,000 associates in the United States and Canada. The
company, which began franchising in 1990, has an agent-centric culture that emphasizes access to
leading-edge education and promotes an economic model that rewards associates as stakeholders and
partners. For more information, visit Keller Williams Realty online at (www.kw.com).

Join Realtor Training Sessions in Absecon: December 2007 Schedule

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Mon, 10 Dec 2007 14:11:48 -0600

Training Schedule Absecon Office Conference Room December 2007

Call or email for direction to the Absecon Office Conference Room for training

Karen: 609/705-5505 or KarenKomo@kw.com

Everyone is welcome to join the Keller Williams Training Sessions.

We have many non-KW agents attending these sessions.

DATE TIME Training Session Trainer

Friday, Nov. 30	12:00pm - 2:00pm	Camp 4:4:3 Session 1 & 2	Gary Panter
Monday, Dec. 3	12:00pm - 2:00pm	Camp 4:4:3 Session 3 & 4	Mary Ann Wagner
Tuesday, Dec. 4	1:00pm - 3:00pm	Agreements of Sale	Bill Wagner
Thursday, Dec. 6	11:00am - 1:00pm	Camp 4:4:3 Session 5 & 6	Dick Haviland
Thursday, Dec. 6	1:00pm - 3:00pm	Lead Generation 15, 16 & 17	Bill Wagner
Friday, Dec. 7	10:00am - 1:00pm	Top Producer (Board Office)	Steve Pacinelli
Monday, Dec. 10	12:00pm - 2:00pm	Camp 4:4:3 Session 7 & 8	Gary Panter
Tuesday, Dec. 11	1:00pm - 3:00pm	Short Sales	Bill Wagner
Wednesday, Dec. 12	12:00pm - 2:00pm	Camp 4:4:3 Session 9 & 10	Shawn O'Brien
Thursday, Dec. 13	1:00pm - 3:00pm	Listing Clinic	Bill Wagner
Friday, Dec. 14	12:00pm - 2:00pm	Camp 4:4:3 Session 11 & 12	Gary Panter
Monday, Dec. 17	9:00am - 5:00pm	Thriving in Shifting Market (PA)	Tony DiCello
Tuesday, Dec. 18	12:00pm - 2:00pm	Camp 4:4:3 Session 13 & 14	Debi Bair
Wednesday, Dec. 19	12:00pm - 2:00pm	Camp 4:4:3 Session 15 & 16	Stephanie Kugal
Thursday, Dec. 20	12:00pm - 3:00pm	Camp 4:4:3 Session 17 & 18	Karen Komo
Friday, Dec. 21	12:00pm - 2:00pm	Office Meeting / Holiday Party

Indicates Changes

GO TO www.MaximumAgent.com/KW FOR COURSE DESCIPTION

New 55+ Condos in Atlantic County, NJ...Model Opening Soon!!

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Thu, 06 Dec 2007 22:04:05 -0600

Fabulous Homes for Sale at the Atlantic Shore...Atlantic County

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Tue, 04 Dec 2007 23:26:34 -0600

Lakeside Estates Townhome...EHT...Unbelievable Price!!

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Tue, 04 Dec 2007 23:17:26 -0600

Another REALTOR.COM Featured Home Sold in Mays Landing

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Tue, 04 Dec 2007 23:09:47 -0600

Absecon: Home for Sale...Just Listed

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Tue, 04 Dec 2007 23:06:41 -0600

Just Listed in Galloway...Two Bedroom/Two Bath Townhome

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Tue, 04 Dec 2007 23:05:10 -0600

Beautifully Renovated Home for Sale in Somers Point, NJ

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Tue, 04 Dec 2007 22:30:45 -0600

Membership Drive for Women's Council of Realtors...Atlantic County & Cape May County

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Tue, 16 Oct 2007 21:34:21 -0500

Jersey Shore Chapter

Atlantic County and Cape May County Realtors:

You are invited to become a Charter Member of the Jersey Shore Chapter of the Women's Council of Realtors®.

Today, with more than 290 chapters and 18,000 members, the WCR is the 12th largest U.S. Women's professional organization. As an affiliate of the National Association of Realtors®, the WCR has one of the most successful communications networks in the National Association of Realtors® family.

Chapters include women and men who support the objectives of the WCR and are interested in serving the industry, the community, and fellow REALTORS®. At this time, a local chapter of the Women's Council of Realtors® is being formed and members are being recruited for the Jersey Shore Chapter.

Mission: We are a community of real estate professionals creating business opportunities, developing skills for the future and achieving our individual potential for success.

First meeting and educational seminar will be on January 9, 2008 at the Italian Gourmet Restaurant in Galloway, NJ.

Additional information about the Women's Council of Realtors can be found at: http://www.wcr.org/

If you would like to join the Jersey Shore Chapter, please contact the VP of Membership:

KarenKomo@kw.com

Are You Ready??

Click here to watch the WCR Video inWindows Media Format

CAN'T MAKE THE MEETING? WANT TO BECOME A MEMBER!!

Call Karen Komo at 609-705-5505 or email DreamHome609@comcast.net for a membership information.

The Importance of Intelligent Pricing When Determining a Home's Asking Price

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Fri, 25 May 2007 08:01:21 -0500

The Importance of Intelligent Pricing

When Determining a Home's Asking Price

By Karen Komo

Fairleigh Dickinson University-Atlantic City

School of Hotel, Restaurant and Tourism Management

Masters Degree Program

May 10, 2007

Intelligent pricing in the hospitality industry is as crucial to profitability at the bottom line as it is in the real estate industry to generating sufficient net proceeds for a seller when ownership of a property is transferred from one person to another. For both hospitality managers and realtors, pricing is one of the most difficult decisions to be made because of the various factors to consider when making a pricing decision and their impact on respective bottom lines.

If prices are set too high, hospitality managers may experience a lower demand resulting in reduced sales. A realtor may experience a "no home sale" situation and the inevitable loss of the listing. When price is set too low, demand may be high, but lowered sales revenue for the hospitality manager will very likely result in operating costs not being covered.

If the asking price of a home is set too low, a high demand for that home may be created as evidenced by multiple offers, generally thought to be a positive outcome in the world of real estate. However, the seller may find it necessary to bring money to the settlement table in order to close on the property if net proceeds for that transaction are not estimated in advance and acceptable to the seller.

The ultimate goal in every real estate transaction is to maximize the seller's net proceeds. Realtors receive their report card at the end of each settlement when the seller walks away from the closing with a net proceeds check. Hospitality managers receive their report card for bottom line profitability at the end of each month when the profit/loss financial statement is delivered to their desk.

In order to create a win-win situation, both hospitality managers and realtors must make crucial decisions on pricing and calculate the impact to the bottom line prior to establishing and implementing a pricing strategy. These decisions are based on similar modifying factors.

Hospitality managers generally approach pricing from a cost perspective. Four modifying factors considered are historical prices, perceived/price value relationships, competition, and price rounding (Schmidgall, 1997, pg. 337). Realtors also find themselves in the position of pricing real estate from these same modifying factors. They take into consideration, from a historical perspective, what homes with similar features have sold for in the past six months. With personal industry experience as their ally, Realtors analyze the perceived/price value of a home from the both the seller and the buyer's perspective. They consider the competition and the asking prices of similar properties currently active on the market and competing for the same buyer. Finally, in most cases, price rounding, called "charm pricing" in the real estate industry, is implemented.

While a myriad of departments contribute to a hotel's bottom line, the pricing strategies set by operating managers in the two major revenue generators, rooms and food & beverage, have the greatest impact on profitability. Pricing strategies are important because management's goal is to set prices that result in profit maximization (Schmidgall, 1997, pg. 334).

The same principle applies in real estate. The goal of each realtor, as the listing agent, is to intelligently price a home to ensure maximum net proceeds to the seller within a time period that meets or exceeds the seller's needs.

On Tuesday, May 8, 2007, the realtor's association pared back its forecasts for the housing market this year, saying stricter lending standards and sub prime mortgage woes are producing headwinds for the sector. In its latest forecast for the real estate market, the National Association of Realtors projected that existing home sales will fall 2.9% this year, compared with its previous forecast of a 2.2% decline.

Mr. Lawrence Yun, NAR senior economist, stated "It's good that we're getting beyond the tendency of some buyers to view housing as a temporary asset to accumulate short-term wealth, which is not to be expected in a normal real estate market (Ives-Halperin & Bater, 2007). Yun also stated that "speculative buyers, who pushed home prices up to record highs in the past five years, have disappeared from the market, which is a boon to traditional home buyers looking for lower prices" (2007, May 7). The Detroit News.

After booming in the first half of this decade, the housing market began cooling in much of the country in 2005. Since then, prices have been flat to declining in many areas. In recent months, an abrupt tightening of lending standards has further sapped the market by preventing some potential buyers from getting loans (Hagerty, 2007).

One of the greatest challenges facing a realtor in today's market is the "perceived price/value relationship" of a home as it relates to the perception of the seller and buyer. Generally speaking, their perceptions are diametrically opposite. In late 2005, the market began to shift from a "Sellers' Market", where properties sold as fast as they went on the market, buyers frequently paid over asking price, and property prices escalated to a higher level with each closed transaction, to the current "Buyers' Market". In this scenario, the substantial increase in available properties and the softening of demand collided.

As a result, the tables have turned. Buyers are now in control of the real estate market. Many of today's sellers do not want to acknowledge this significant shift in negotiating power.

One of the hardest decisions facing realtors and sellers is how to price a property in light of current market conditions. While sellers would like to continue perceiving the value of their home to be at 2005 levels, other modifying factors must be taken into consideration. One factor is the increase in "competition" with more homes on the market and fewer potential buyers. The other factor is the "historical prices", detailed in a CMA (Comparative Market Analysis) that, to be effective in this market, must analyze only the past six months of real estate transactions.

If a home is listed at a price that is above market value, prime candidates to purchase the home may not be exposed to it. On the other hand, if a home is listed at a price below market value, it will ultimately sell for a price that is not the optimum value. More buyers purchase properties at market value than at above market value. Pricing a property at market value ensures it will be exposed to the greatest percentage of prospective buyers. With more prospective buyers touring a property, there is an increased opportunity for a final sale price that properly reflects the true market value of the home.

"We have an affordability crisis in New Jersey" according to The Otteau Appraisal Group, Inc. "As a result, buyers are being forced to sit on the sidelines because they can't afford prices at the current level. Properly pricing a home more important than ever" (Willis, 2006).

Otteau said his company's studies of home pricing and sales found that the lower the initial asking price, the faster the sale and the more it sells for. Otteau offers the following explanation. "When you price below your competition, you recapture a lost sense of urgency in the market. Buyers recognize the price and submit offers to take advantage of the price. At that point, you are likely to see multiple offers which puts the sellers in the position of entertaining multiple bids and, thereby, selling for a higher price." (Willis, 2006).

In this author's opinion, this can be a risky strategy. This strategy only works if the property receives multiple offers and the realtor is able to move smoothly and effectively through the ensuing "bidding war" to generate maximum profitability. If multiple offers do not materialize, the home may end up being sold for under market value as a result of this pricing strategy.

In a comparison of 2005 vs. 2006, there were more homes for sale in 2006 in Atlantic County, New Jersey. Statistical data available from the South Jersey Shore Regional MLS system indicates the number of homes listed in 2005, a total of 17,419, increased by 14% in 2006 to a total of 19,855.

At the same time, the number of homes sold in 2006 decreased by 26.5% in comparison to the previous year. From a seller's perspective, what is important to note is the decrease in the percent of homes sold vs. listed. In 2005, 55.4% of the listed homes sold compared to only 35.7% of listed homes selling in 2006.

The worst mistake a seller can make in a softening market is to overprice a home. Many sellers are clinging to bloated price tags that are based on what homes where fetching at the peak rather than what is realistic today.

In today's real estate market, another modifying factor is the number of houses for sale and the average length of time a house has been sitting on the market in comparison to a year ago (Kratz, 2006).

For sellers truly motivated to sell, it is easy to make a strong argument for not overpricing a property in today's market. A small percentage of homes listed are actually selling in this down market. In January 2007, only 4.8 homes out of 10 were sold in Atlantic County. That statistic improved slightly in February with 3.6 homes selling out of every 10 homes on the market (South Jersey Regional MLS, 2007).

What is a house worth?

Owners have a natural tendency to think they've got the best house on the block. In the current buyer's market, price is the name of the game (Weir, 2007). It makes sense to arrive at the magic number that will sell the property in a timely manner for the highest price possible. Listening to the goals of the sellers and the urgency with which they need to sell, considering the supply and demand for similar properties, and weighing the home's condition are additional modifying factors in the real estate industry when determining a pricing strategy/asking price for a property. Only by setting the right price, will the listing turn into a timely sale (Realtor Magazine Online, 2007).

Like their counterparts in the hospitality industry, Realtors consider modifying factors as they recommend an asking price for each new listing. First, "historical prices" are considered. For Realtors, this entails doing a CMA (Comparative Market Analysis), taking into consideration what price properties, with similar features, have sold for in the past six months. At the same time, the "competition" is also taken into consideration. An analysis of the asking prices of properties currently Active on the market is essential. "Price rounding", known as "charm pricing" in real estate lingo, is also addressed when an asking price is set for a particular home.

As an example, detailed below is a Comparative Market Analysis for a single family home with three bedrooms, 2 ½ baths, and finished basement in Egg Harbor Township, New Jersey. In light of a shifting Atlantic County real estate market and in order to make the research viable, a statistical analysis was created for the past six month period of November 1, 2006 through April 30, 2007.

In analyzing "historical data" and "competition", research indicates that seven (7) Egg Harbor Township homes have been on the market during the past six months. Prices range from $273,900 to $369,900. The market slow down is exemplified by the fact that only one (1) home, priced at $349,900, went Under Contract during this time period. After 101 days on the market, one (1) listing/home, priced at $319,900, was withdrawn. Six homes remain Active on the market unsold and not under contract. These homes have been on the market for an average of 90 days.

Currently, on a positive note, the competition for this type of EHT home is minimal with only six listing on the market. There is a substantial range in pricing, a $96,000 variance, between the lowest and highest priced home. Of concern is the average DOM (Days On Market) for these properties. Potential sellers must be made aware of a potential 90 to 120 days on the market before their property goes under contract and/or is sold.

CMA Summary Report

Egg Harbor Township, NJ

Single Family Home: 3 bedrooms/2.5 bath/finished basement

RESIDENTIAL - Active

*DOM=Days on Market

ADDRESS	Status	Area	*DOM	List Price
800 St. Thomas	Active	Egg Harbor Twp	46	$273,900
207 Gravel Bend Rd.	Active	Egg Harbor Twp	147	$275,000
1100 Carlisle Rd.	Active	Egg Harbor Twp	70	$275,900
401 St. Thomas	Active	Egg Harbor Twp	107	$296,900
803 St. Thomas Drive	Under Contract-Continue to Show	Egg Harbor Twp	108	$299,900
31 Weeping Willow	Active	Egg Harbor Twp	64	$369,900
Total Listings			Avg	Avg
6			90	$298,583

RESIDENTIAL - Under Contract

ADDRESS	Status	Area	DOM	List Price
209 Windswept Dr	Under Contract	Egg Harbor Twp	52	$349,900
Total Listings			Avg	Avg
1			52	$349,900

RESIDENTIAL - Withdrawn

ADDRESS	Status	Area	DOM	List Price
504 St. Thomas Dr	Withdrawn	Egg Harbor Twp	101	$319,900
Total Listings			Avg	Avg
1			101	$319,900

RESIDENTIAL Summary Statistics
	High	Low	Average	Median
LP:	$369,900	$273,900	$307,662	$298,400
SP:	$0	$0	$0	$0

To make a final decision on the asking price for a new listing with similar features, it is necessary for a realtor and seller to consider the ‘perceived value" by a prospective buyer. This is where a realtor's experience in the marketplace is of most value. When it comes to perceived value, setting a price is more of an art than a science.

As previously mentioned, the practice of priced rounding in the hospitality industry, referred to as "charm listing pricing" in the real estate industry, is evidenced in the above CMA example. All properties, with the exception of the property located at 207 Gravel Bend, have an asking price just below a rounded number. In an empirical investigation of the effects of charm pricing on house transaction prices, the results provided some evidence that houses listed at certain charm prices, prices just below some round number price (e.g. $99,000 instead of $100,000) sell for significantly greater transaction prices than those listed at round number prices.

The marketing research literature suggested that sellers may consider the design dimension of prices in an effort to take advantage of buyers' cognitive processes. That is, the rightmost digits of the listing price may cause a buyer to underestimate his/her perception of the price or to perceive something favorable about the item, the seller, or market conditions. The results of the study provides some evidence that transaction prices may indeed be significantly related to the use of charm listing prices (Allen & Dare, 2004, pg. 695-696).

For the buyer, the listing price is a key factor for selecting houses to be considered for purchase and it strongly influences buyers' initial bids for the selected houses. For sellers, the listing price is generally perceived as a signal of sellers' reservation price (final negotiated price) and degree of motivation to transact (Allen & Dare, 2004, pg. 711).

There are several factors that do not determine the price of a house. One of those factors is the sentimental value of the home. Many sellers have put their heart and soul into their homes. Yet, when it comes time to price a home, there is no value added for sentimentality.

As well, one of the most difficult concepts for a seller to accept is the fact that the amount of money they need to buy a new home is not a determining factor when it comes to establishing the asking price for their current home. Buyers who have recently purchased similar homes have established the market value. Neither realtors nor sellers truly set the value of a home.

Another consideration when setting an asking price is the eventual appraisal. A high price may not be supported by a lender's appraisal making it impossible for a buyer to obtain financing.

Once the value of a home is determined, an asking price is set to reflect the goals of the seller. As a general rule, the price should not exceed the value by more than 5% or potential buyers may not make offers. The additional 5% on top of the value allows room for negotiation on both sides (Avis, 2007, pg. 52). Through the process of negotiation, a perceived win-win scenario is created.

When buyers are looking for a home to purchase, they look at several homes in the area that are similar in size and amenities. Typically, buyers weigh the features of each home under consideration against the price and decide which home offers the best value in realtionship to their perceived needs.

Most buyers are not out to find a steel or a great bargain on a home; they are looking for a home that is fairly priced based on the amenities and features included that appeal to them (Arlington, 2007).

In the final analysis, the pricing of a home is best left to a professional realtor with extensive experience in the marketplace. The value of a home will always be subjective to some degree and determined by what buyers are willing to pay for it. As shown, there are modifying factors that work together to determine the appropriate asking price for a property. As well, there are factors that should not be taken into consideration when determining an asking price for a property.

While hospitality and real estate are both service driven industries, their success is predicated on creating profit for the hotel owner and net proceeds for a property seller. In both scenarios, a strategic and intelligent pricing plan, based on a careful review of all modifying factors, is essential to the ultimate success at the bottom line.

References

Allen, M. T. & Dare, W.H. (2004). The effects of charm listing prices on house transaction

prices. Real Estate Economics, V32, pgs. 695-713.

Arlington, N. (2007, May 2). Real estate pricing guide. Ezine Articles. Retrieved May 1, 2007

from http://EzineArticles.com/?expert=Nancy_Arlington.

Avis, E. (2007, March 5). How sellers arrive at magic number. Crains Chicago Business, vol. 30,

Issue #10, pg. 52.

Blanton, K. (2006, July 17). To fight the glut, home sellers push prices down. The Boston Globe.

Carr, M.A. (2007, January 5). Comparisons in area yield realistic pricing. The Washington

Times.

Hagerty, J.R. (2007, May 10). Supply of homes continues to grow, reflecting weak sales.

The Wall Street Journal Online.

Hogsett, D. (2007, April 9). Housing market cools down. Home Textiles Today, pg. 18.

Ives-Halperin, B. & Bater, J. (2007, May 9). Home sales, prices will continue to slide, trade

group predicts. The Wall Street Journal Online.

Kratz, Ellen Florian. (2006, May 15). 10 tips for today's market. Fortune, vol. 153, issue 9.

Real estate group downgrades 2007 home sales, pricing forecast. (2007, May 8). The Detroit

News.

Realtor Magazine Online. (2007). Perfecting pricing. Pricing do's and don'ts. pgs 1-2.

Schmidgall, R. (1997). Hospitality Industry Managerial Accounting. Lansing, Michigan:

Educational Institute of the American Hotel & Motel Association.

Weir, C. (2007, January 28). Realtors use statistics, not guesswork, when determining a home's

list price. The Island Packet/Hilton Head Island, SC.

Willis, D. P. (2006, August 13). Sales strategies. The Asbury Park Press.

SEARCH FOR HOMES IN ATLANTIC COUNTY, NEW JERSEY...MLS SEARCH

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Mon, 21 May 2007 07:25:02 -0500

ACCESS TO ALL MLS LISTINGS IN ATLANTIC COUNTY, NJ

http://www.karenkomo.com

PLEASE LET ME KNOW HOW I CAN BE OF ASSISTANCE TO YOU IN REACHING YOUR REAL ESTATE GOALS

SPECIALIZING IN ATLANTIC COUNTY REAL ESTATE

KAREN KOMO

Realtor Associate

KELLER WILLIAMS JERSEY SHORE

office: 732-505-1101 cell: 609-705-5505

REAL ESTATE: The Seven Most Common Mistakes Sellers Make & How To Avoid Them

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Mon, 21 May 2007 07:04:40 -0500

http://www.karenkomo.com

As a real estate professional I work with many buyers and sellers every year.

And I often hear horror stories from people who made a seemingly small

mistake in their past real estate transactions that ended up costing them a

lot of aggravation and a lot of money. I don't want anyone to make these

mistakes, so as a Realtor I work hard for my clients to ensure that their real

estate transactions go smoothly. For those who are not my clients yet, I

prepared this special report that outlines the seven most common and most

expensive mistakes. I hope you will enjoy it and find it useful.

The Wrong Price

A surefire way to get less than the fair market value for your home is to

overprice it in the beginning. It sounds contradictory, but it is true. There are

several reasons for this. First, if your home is more expensive than the similar

homes in the neighborhood, fewer buyers will choose to even look at it. Why

would they waste their time? And the buyers that do decide to look at your

home will likely use it for comparison, to justify their decision to purchase a

different home. "See? A similar home but a lot more expensive. We should

get the one we saw yesterday - it's a bargain compared to this one." Second,

the longer your home remains unsold, the less interest it will generate among

the buyers. Eventually, when it's been on the market longer than the other

similar homes, buyers will start to think that there is something wrong with it.

And then you are faced with the real possibility of being forced to sell it for less

than its real value. So make sure that your home is priced correctly from the

beginning. This will save you time, aggravation, and money.

Overpricing is not the only pitfall that sellers fall into, some even under-price
their homes. How do you know your home's real value? By getting a professional
Comparative Market Analysis (CMA). A CMA will show you what similar
homes in your area are selling for, and how long it takes to sell them. You will be
able to see the range of values that your home falls into, and then determine an
accurate asking price. I offer CMAs for the homeowners in our area free of
charge. Just give me a call or send me an e-mail, and I will prepare one for you
at no cost and no obligation.

Mistaking Lookers For Buyers

Mistaking lookers for buyers is an error commonly made by those homeowners

who try to sell their home themselves without a Realtor's help. For-Sale-by-

Owners (FSBO's) actually do get more activity than homes listed by Realtors.

This is mostly because a FSBO is often ready to show his home to anyone

who expresses interest in it. And many times the unsuspecting seller will

entertain offers from "buyers" who are not even qualified to purchase the

home. But a good Realtor will only show your home to qualified buyers.

And those are the people that are willing, able and ready to make the

purchase. A qualified buyer is actively looking to purchase a home, has the

down payment money ready, and most importantly has already been preapproved

for the loan by their lender. When considering an offer from someone it is imperative

that you verify that your buyer is indeed willing, able and ready to make the purchase.

This will involve confirming with the lender your buyer's approval status, making sure

that the buyer's employment, credit history and down payment money have all been

confirmed by the lender. A good Realtor can certainly help you with this.

Failing to Prepare The Home For Sale

Who will be your toughest competition when you put your home on the

market? Very likely - the new construction. The new homes are clean,

bright, uncluttered and, well, new. Your potential buyers have probably

visited at least one new homes site, and their expectations are now higher.

Make sure your home is also clean, neat, uncluttered, and bright. If there

are any cosmetic blemishes, repair them. A new coat of paint does wonders

for many homes. A clean, well-groomed yard is a must. Same goes for a

clean, uncluttered garage. Anything that you can reasonably do to make

your home look as new as possible is worth doing. A new-looking home will

attract more buyers and will sell faster for top dollar.

Knowing how to properly stage your home for sale is of utmost importance if you
want to get the highest price. But noticing all the important details about your
own home can sometimes be difficult. It helps to have a neutral third party take
a look and suggest any needed aesthetic changes. That is why, as a free service to
the homeowners in our area, I offer a free consultation on how to prepare your
home for buyers. Simply give me a call or send me an e-mail and I will be glad
to take a look at your home and make the necessary recommendations. There is
no cost or obligation for this service, and there is never any sales pressure.

Not Taking The First Offer Seriously

Sometimes it takes a little time to get that first offer, and sometimes it

happens quickly. And when it happens quickly, some sellers don't take it

seriously. They think that it is just the first one of many offers to come.

Perhaps another buyer will come soon after and offer more? Perhaps there

will be many offers to choose from? While that may occasionally be the case,

more often than not that first offer turns out to be the best one. Any

experienced real estate agent will tell you that the best chance of getting a

high price for a home is when the home is new on the market. As time goes

by, the initial interest of buyers wears off, and the home attracts less and

less activity. Inevitably, the longer a home remains unsold, the less buyers

are willing to pay for it. Many sellers who declined an early offer, hoping that

a better one would follow soon, ended up selling their home for less than that

first offer. And needless to say, they regretted it.

Not Knowing Your Rights And Obligations

It should go without saying that selling a home is a complex process. The

sales contract itself contains many clauses that you have to watch for, and

many areas that can create a problem if everything is not done right. When

will the property inspection occur, what happens after it, when will the appraisal

and survey be completed, when is the final loan approval due, etc. Then

there are the required disclosures. If your home was built prior to 1978 you

have to inform the buyer in writing that it may contain lead-based paint,

and you also have to provide the buyer with the EPA safety booklet about

lead. And what about radon gas? Any prior damage to home? Any defects

that you might or might not be aware of? A good Realtor, other than finding

a buyer for your home, also acts as your guide through the maze of laws and

regulations, and becomes indispensable in this part of the sales process.

Your agent will be able to help you with all the paperwork, and explain all the

steps involved in the process. Making sure that everything is done right and

that you have fulfilled your obligations under the law is a must if you want to

avoid headaches, unexpected costs, and legal trouble.

Limiting The Home's Exposure

This mistake is often made by for-sale-by-owners and inexperienced real

estate agents. Quick: what are the two best ways to market your home? If

you answered newspaper ads and the open houses, you guessed wrong. But

don't despair, most people think that. The truth is that the newspaper ads

are pretty ineffective at attracting qualified buyers, and the open houses

invite more lookers than buyers. Any seasoned Realtor will tell you that

there is actually no one best way to attract qualified buyers. Instead, an

experienced agent will cast a wide net utilizing several marketing strategies.

One of those strategies is listing the home in the Multiple Listing Service

(MLS). This is the database of all homes offered for sale by all Realtors in the

area, and is accessible only to Realtors. The agents with qualified buyers

look through the MLS first to find a home for their clients. Advertising on the

Internet is another effective way to give your home a wide exposure, since

more and more buyers these days start their search there. And a good

Realtor will also utilize brochures, flyers, newsletters, and network with other

agents to find the buyer for your home. The important thing is to not rely on

only one or two ways to market your home, but instead to give it a wide

exposure through many different advertising channels.

Choosing The Wrong Realtor

It's a funny thing that in the real estate business a successful and experienced

agent costs about the same as a part-timer with only a few transactions

under his belt. And when it comes to selling your home, probably the most

expensive thing you own, what kind of an agent do you want? Someone who

knows how to attract qualified buyers. Someone who knows how to negotiate

to get you the best price. Someone knowledgeable, who can guide you

through the complexities of contracts and paperwork. Someone who will

care about your transaction as his or her own. To find such an agent you

may decide to interview several Realtors and quiz them a little bit. Is the

agent a part-timer or committed to the real estate business full time? What

kind of a track record does he or she have? Has the agent been committed

his or her professional development by earning any professional

designations, such as GRI (Graduate, Realtor Institute)? Can the agent provide

you with references from happy past clients? Does the agent have a specific

marketing plan on how to sell your home quickly and for top dollar? And

there are a couple of questions you have to answer yourself: Do I feel

comfortable working with this agent? Is this someone that will care about

my transaction as if it were his or her own? Take the time to learn more

about the agent you are considering. Since you are the one paying the

commission, make sure that the Realtor you choose is the right one for you.

NEED HELP?

If you have questions concerning the sale of your home,
I am ready to help. As a Realtor specializing in your
area I have helped many buyers and sellers with their
real estate transactions. I offer knowledgeable advice,
friendly and professional service, and a caring attitude.
There is no cost or obligation for answering your
questions, and there is never any sales pressure. Feel
free to contact me by phone or e-mail!
Karen Komo
Realtor Associate
Keller Williams Jersey Shore
(609) 705-5505 (mobile)
(732) 505-1101 (office)
www.KarenKomo.com
This publication is for informational purposes only and does not constitute legal or financial advice. All information was obtained from sources deemed reliable, and while I do not doubt its accuracy, I cannot guarantee it. If your property is listed with another broker, this is not intended as a solicitation.

Real Estate: The Seven Most Common Mistakes Buyers Make & How To Avoid Them

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Mon, 21 May 2007 06:52:53 -0500

http://www.karenkomo.com

For most people purchasing a home is a very exciting experience.

Unfortunately, for many it also ends up being frustrating and unnecessarily

expensive. I have heard too many stories from people who had a bad

experience buying their first home, something they could have easily avoided

by being better prepared for their first real estate transaction. I don't want

anyone to make these mistakes, so as a Realtor I work hard for my clients to

ensure that their real estate transactions go smoothly. For those who are

not my clients yet, I prepared this special report that outlines the seven most

common and most expensive mistakes buyers make. I hope you will enjoy it

and find it useful.

Not Getting Pre-Approved First

The very first step towards buying a home should be getting pre-approved

for the loan. This is an absolute must if you want to avoid major

disappointments later. Getting pre-approved is often easier than people think.

First you shop around and find a lender that you feel comfortable working

with. Your Realtor should be able to recommend a few. Once you decide on

one, you should meet with your lender and discuss your purchase needs.

You will fill-out a loan application, and your lender will check your credit,

verify your income and employment, and determine what kind of loan you

can qualify for. You will then know (1.) how much you will be able to borrow,

(2.) how much you will need for the down payment, and (3.) how much your

monthly payments are likely to be. Looking for your next home then becomes

easier since you will know that (a.) you can get financing, and (b.) what

price range to consider. The lender will also give you an important negotiating

tool - a pre-approval letter. This document will confirm to sellers that you

can obtain financing, and will give you a negotiating advantage over buyers

who do not have it.

Rushing To Buy Without Doing The Research First

Many buyers are so excited and anxious to get started with their home search

that they forget to do some planning first. Which area do you want to live in?

Are the homes in that area in your price range? How long of a commute can

you tolerate? How many bedrooms and bathrooms do you need? It is a good

idea to make two lists - one of the must-have amenities and one of the wouldlike-

to-have-but-not-that-necessary. For example, three bedrooms may be

on the first list, but that hot tub may better be suited for the second list. Also,

don't forget to check on the neighborhood's crime statistics, schools, and any

other information that may be important to you. A trusted Realtor can be a

great resource, and should be able to get you the information you need quickly.

The Analysis Paralysis

Once they start looking at homes some buyers get overwhelmed and start

analyzing and over-analyzing even the most mundane aspects of every home.

The over-analysis soon leads to paralysis - they cannot decide which one to

buy. As a result, they miss out on many nice homes that someone else grabs

in the mean time. Remember, there is no such thing as a perfect home.

Even brand new homes have imperfections. Look at the overall picture.

Does the home fit your needs? Do you feel comfortable in it? Do you like the

neighborhood? Can you see yourself living there for a long time? Your musthave

list comes in handy now; does the home have everything on that list?

If not, move on. But if the home suits your needs and you feel comfortable

in it, don't be afraid to make an offer. If you hesitate too much, someone

else might snag the home that should have been yours.

Making Lowball Offers

Everyone loves a great deal, including yours truly. But for getting a good

deal on a home, there are good strategies and there are bad ones. One of

the bad ones is making very low offers. Some buyers even go as far as

making derogatory comments about the home in front of the seller thinking

that this will somehow cause the seller to accept the low offer. The truth is,

this only annoys the sellers, and an annoyed seller is less likely to work with

you. It is OK to offer less than the asking price, and in fact many sellers

leave some negotiating room in their price. If you are working with a Realtor,

your Realtor can help you determine how much to offer, and even negotiate

with the seller on your behalf. Be realistic and avoid antagonizing the seller.

The seller that likes you will be far more open to working with you than the

one who dislikes you.

Not Getting a Professional Inspection

This should go without saying - a home is the most valuable thing most of us

will ever buy in our lives, so inspecting it for possible problems should be a

top priority. Yet time and again I have witnessed buyers who are content to

have a relative "who knows all about that home stuff" take a quick look

before giving it his seal of approval. There is no substitute for a thorough,

professional inspection. It is not that expensive, and will reveal any defects

that may not be apparent, such as gas leaks, foundation problems, etc.

Spending a little bit of money on the inspection is well worth it in order to

have the peace of mind that your new home is in good and safe condition.

Not Paying Attention To Contingencies

Real estate transactions are complex matters and there are many things that

can go wrong. The purchase contract is your main tool for protecting yourself,

and should at the very least contain two important contingencies (conditions)

- the inspection contingency and the mortgage contingency. The inspection

contingency allows you to have the property professionally inspected (as

discussed above), and request that the seller make any necessary repairs. If

the seller is unwilling to make the repairs, or if the problems discovered are

serious, you should have the right to pull out of the contract with no penalty.

The mortgage contingency is there to protect you in case something goes

wrong with your loan approval process. If you have gotten the pre-approval,

the risk of something going wrong with the loan should be minimal. But

there is still the appraisal that your lender will require, and the appraiser will

have to determine if the home is worth the price you are paying for it. If the

appraisal comes in lower than the purchase price, you should have the right

to re-negotiate the contract. If the seller is unwilling to lower the price, you

should have the right to cancel the contract and incur no penalty.

Doing It Alone

When buying a home many pieces need to fall into place in order to have a

smooth transaction. Wouldn't it be nice to have someone at your side to help

you along the way? Someone to help you with the loan process, help you

find the right house, negotiate on your behalf, and assist with all the

paperwork? Well, such person does exist - a Buyer's Agent. The job of a

Buyer's agent is to work for you in the real estate transaction, not the seller.

Your agent can not only help find you a home, but prepare your offer, negotiate

with the seller on your behalf, and insure that you are protected along the

way from any pitfalls of the complex process. And the best part is that the

Buyer's Agent is free for the buyer! That's right, you don't pay a penny to

have a professional help on your side. The Buyer's Agent typically gets a portion

of the Seller's Agent's commission, so you don't incur any additional expense.

How do you select a good Buyer's agent? There are a few conditions he or

she must fulfill. It must be someone who knows the area where you want to

live. Someone who knows how to negotiate to get you the best price.

Someone knowledgeable who can guide you through the complexities of

contracts and paperwork. Someone who will care about your transaction as

his or her own. To find such an agent you may decide to interview several

Realtors and quiz them a little bit. Is the agent a part-timer or committed to

the real estate profession full time? What kind of a track record does he or

she have? Can the agent provide you with references from happy past clients?

And there are a couple of questions you have to answer yourself: Do I feel

comfortable working with this agent? Is this someone that will care about

my transaction as if it were his or her own? Take the time to learn more

about the agent you are considering. Buying a home is a big step, so make

sure that the Realtor you choose is the right one for you.

NEED HELP?

If you have questions about the home buying process, I
am here to help. As a Realtor specializing in your area
I have helped many buyers with their real estate
transactions. I offer knowledgeable advice, friendly and
professional service, and a caring attitude. There is
no cost or obligation for answering your questions, and
there is never any sales pressure. Feel free to contact
me by phone or e-mail!

Karen Komo
Realtor Associate
KELLER WILLIAMS REALTY ®
JERSEY SHORE
(609) 705-5505 (mobile)
(732) 505-1101 (office)
http://www.karenkomo.com/

This publication is for informational purposes only and does not constitute legal or financial advice. All information was obtained from sources deemed reliable, and while I do not doubt its accuracy, I cannot guarantee it. If your property is listed with another broker, this is not intended as a solicitation.

Karen's Homeowner's Newletter

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Mon, 21 May 2007 06:45:42 -0500

Information for Buyers & Sellers

http://www.resulti.com/current/2459-Komo.pdf

Atlantic County's Newest 55+ Active Adult Community Now Under Construction

Karen Komo (KELLER WILLIAMS REALTY Atlantic Shore) — Sun, 20 May 2007 22:26:51 -0500

http://thepinnacleclubatabsecon.com

The Pinnacle Club At Absecon

1 Mechanic Street, Absecon, NJ 08201

mls #: 300755, 300759, 300760

• The Pinnacle Club at Absecon-Atlantic County's newest luxury Active Adult 55+ Condo

• Now taking Non Binding Reservations

• Broker Cooperation. Please call for additional information.

• Elevator building. Condos located on 1^st, 2^nd, 3^rd, and 4^th floors.

• Three different 1-bedroom/1 bath models available: Cancun, Martinique, Trinidad

• Three different 2-bedroom/2 bath models available: Lanai, Palau, Tahiti

• Located in charming Absecon neighborhood within walking distance to local stores & public transportation.

• A wide variety of designer upgrades to choose from for flooring, kitchen cabinets & counter tops.

• Individual storage space for each unit (75 sf)

• 2,500 square foot Club House

• "Tank Less" water heater...Continuous Flow Water Heater by Rinnai

• 9ft ceilings

• Intercom system for secure visitor access

• Structured wiring package for home networking

• Secure keyless entry system to all public spaces

• Mail Box Center at entrance to building

• Innovative ‘Green' building concepts

• Classique interior doors with lever locks

• Abundant closet space

• Gourmet Kitchen

• 42" cabinets

• Range with vented exhaust hood

• Energy star dishwasher

• Ice Maker Line

• Bathrooms:

• Showers with seat and hand held sprayer

• ADA adaptable vanities with cultured marble tops

• Comfortable height toilets

• Exhaust vents in all baths to exterior

• Decorative recessed ceiling light in tub & shower enclosure

• High efficiency Magic Pack for heat & air conditioning

• Air tight construction & sealed ductwork

• Programmable digital clock thermostats

Office: 732-505-1101

Cell: 609-705-5505 Karen Komo