Jim's Blog

A Christmas Present for Everyone at NAR

Jim Kouns (Coldwell Banker Lunsford) — Mon, 23 Nov 2009 14:45:08 -0600

Looking at my invoice for 2010 dues, I think we should reallocate the $35.00 public awareness charge. Let's keep $30.00 for the public awareness campaign and use the remaining $5.00 to buy everyone at NAR a Christmas gift. The gifts I have in mind are signs for every door and plaques for every desk that say, "All real estate markets are local." Perhaps if they all see this statement many times every day, they'll finally get the message that all the rest of us already know, "All real estate markets are local."

The statisticians and economists at NAR continue to release statements and figures showing national market activity. After a couple of years of declining results, now they're telling everyone that things are better and of course the media splashes these stories all over te country, once again misleading the public and making our jobs much more difficult. When sellers and buyers read this stuff in their local papers, hear it on the TV networks and on radio talk shows, they develop unrealistic expectations, good or bad, making it hard to get them to accept actual local market data. I totally agree with a recent Blog entitled "Tell the NAR to Shut Up." The national statistics they quote are kind of like the person who has one foot in a fire and one in a freezer. Based on median or average temps, that person should be comfortable but I'll bet they won't be.

The upcycle ended nationally in 2005 and it appears the down cycle ended in 2009, yet our market didn't fall until late 2007 and the trigger was more of a local tax issue than anything else. Our recovery began in the first quarter of 2009, at least 6 months before the national numbers stared turning upward, and likely, most of your markets didn't follow the national trends either. If they did, it was probably not to the same degree. If NAR wants to continue publishing statistics, they should have to do it by market, similar to the way they publish the annual reports of home improvement costs and values. It still won't be specific, but it will be a lot better than what they do now.

Thanksgiving

Jim Kouns (Coldwell Banker Lunsford) — Wed, 18 Nov 2009 11:09:18 -0600

At the risk of being trite, here are some of the things for which I'm especially thankful.

I'm thankful that I can sit at my computer and write pretty much anything I wish without fear of sensorship or reprisal. The majority of the people of the world do not have the education, the means, or the freedom to do this. I appreciate the vision, work and sacrifice of Americans from the founding fathers to present day who have provided this opportunity.

I'm thankful that I can lose weight by choice rather than being forced to do so by lack of food. Many of the people of the earth live with constant hunger and the threat of starvation.

I'm thankful that I live in a country where the bombs have never fallen and where I can walk or travel as I will in peace. I've been watching WWII on the History Channel and the graphic scenes of death and destruction really bring this home. One of the opening shots of each segment shows an Asian girl of about 2 or 3, sitting in rubble, covered with dirt and physically trembling as a GI gives her a drink of water. Neither I, my children nor my grandchildren have ever experienced anything like that and I pray daily for the men and women in our military, past and present, that have provided our security.

I'm thankful that I have a home and that I work in a business that helps people meet their housing needs. Many of the world's people have no homes or shelter of any kind and many others live in sub-standard conditions. I appreciate the Buyers and Sellers who give me the opportunity to serve them.

I'm thankful that it a pleasure to go work each day and to work in the real estate business with a company where nearly all of my co-workers are positive, motivated, caring and self-reliant people. Many are leaders in our market and and are a constant source of inspiration. Our management and support staff are competent, dedicated people who provide a framework for success. Many, have no work or are forced to work in jobs they don't enjoy.

Finally, I'm thankful for my wife and family, especially our 11 grandchildren and for a year of health, financial stability and happiness. There are so many that experience none of these.

More on Condition, Condition, Condition

Jim Kouns (Coldwell Banker Lunsford) — Tue, 10 Nov 2009 18:40:19 -0600

I was amazed by the number of comments on my Condition, Condition, Condition post. Most of you agreed that condition is very important in today's highly competitive market and I enjoyed reading some of the "war stories." There were a number of comments, however, that can be sumarized as follows. "The market is bad, many sellers are upside down and face short sales so there's no incentive to do anything."

Sorry, I don't buy that. I think Michael Ford says it best in his comment, "It's our job to show them how to get the best bang for their buck. Most homes can be whipped into shape for less than $500." Really, that's why they hire us and why the agents who use imagination, talent, training and hard work succeed. It's an old adage in poker that a good player will lose less with bad cards and win more with good cards. A good agent will get more regardless of the market. Sure the current market is challenging and many sellers are strapped, but as several of you said, it doesn't cost much to clean, declutter, stage and do minor repairs. Painting a room can still be done for less than $50. If it's a short sale, maybe the incentive for Sellers is to be "less short." For us, the incentive is to have a listing that will generate a pay check.

Condition, Condition, Condition

Jim Kouns (Coldwell Banker Lunsford) — Tue, 10 Nov 2009 10:06:59 -0600

If "Location, Location, Location" are the three most important words in real estate, the three second most important have to be "Condition, Condition, Condition." I was reminded of this again last week when I was working with a relocation buyer and over the course of two days, looked at 25 upscale homes in the Muncie area. My client had been out of the U.S. for several years and was new to the Muncie area so we visited homes with a broad range of styles and ages.

The differences in condition really stood out. Several were vintage homes with lots of space and charm, but one had a damp, musty odor and some obviously leaky windows that completely obscured the many updates and the terrific location. Another was filled with busy, out-dated wallpaper and had a cedar-shake roof that appeared to have more moss than wood. Both screamed,"maintenance nightmare."

Many of the homes that were 12-20 years old had outdated plumbing fixtures, paint and carpet colors. Others had ceiling stains from current or previous leaks. Poorly maintained decks were also frequent. Even in great condition, it's hard for these properties to compete with newer ones in newer subdivisions. In poor or even mediocre condition it's impossible.

We looked at newer homes that were built in the last 5 yrs and even there some of the conditions were apalling. One in particular had great curb appeal, but walking up to the fron door we noticed the shrubbery was infested with bag worms, even to the extent of having bags on the railing and around the front door. Inside, the property had been beaten up. There were several holes in the drywall and lots of tape-joint cracks and nail pops. Needless to say, we didn't spend much time there.

It amazes me that some listing agents, even veterans, don't sit down and have an honest "heart to heart" with their sellers. In addition to the deficiencies noted above, many of the homes, regardless of age, were cluttered, filled with personal items and collectables and often just too much "stuff." People need to know what it takes to make their home competitive. After all that's what they hire us for. If done tactfully and authoritatively, sellers will not be offended and will thank us when the showing feedbacks come in.

Muncie Market Is Stable With Signs Of Growth

Jim Kouns (Coldwell Banker Lunsford) — Wed, 28 Oct 2009 14:05:09 -0500

The Muncie-Delaware Co, IN market has been stable through the first 3 quarters with average sale price up slightly and unit sales up about 1%. Looking forward, Pendings are up 46% at the end of Sept. vs a year ago and the DOM of Pendings is falling. I expect to end 2009 with about a 13% increase in units sold and a modest increase in average sale price. Inventory has dropped significantly adding to groundwork for a more active market in 2010.

We still have problems at the high end and condo-duplex sales have been disappointing, but 2010 has great possibilities for an active market.

The "Fred Factor"

Jim Kouns (Coldwell Banker Lunsford) — Tue, 29 Sep 2009 13:08:22 -0500

At last weeks' sales mtg, our broker shared excerpts from a book he had recently read called "The Fred Factor." It chronicles the first encounter the author had with his mail delivery person upon moving to a new home. The mailman, Fred, introduced himself and volunteered a series of customer service activities the author had never before encountered. Without retelling the story, suffice it to say that the author was so impressed that he wrote about his experiences in a book about outstanding customer service.

We all know companies and individuals that provide outstanding service, including real estate professionals such as ourselves. However, there are those who seem to have never gotten the message. Recently, I've had three "Fred" encounters, two negative and one positive.

Last week, I had a referral appointment to a specialist physician to investigate a chronic cough. This was my first visit to this practice and as customary, their office called in advance to remind me of the appointment. What was not customary, however, was that the caller put special emphasis on my co-pay being due at the time of the visit. Many offices have notices to this effect, but I've never had it mentioned in the reminder call. I got to the office at the proper time and after filling out the paper work, was told the Dr. was running an hour late. I told the receptionist I wouldn't wait and when she asked about rescheduling, I inquired how often the problem occurred. She would not give me a straight answer after repeated attempts and then asked if I wanted to see the practice manager. I said "yes" and she got up and disappeared to another room. I waited several minutes and when no one returned, I decided that this was a practice that routinely over scheduled to maximize income and patient care was secondary. They need to read "The Fred Factor."

Today, the car charger for my cell phone went dead. I had just purchased it from a Verizon store 2 wks. ago while vacationing in Panama City, FL, and was certain that it was still under warranty. Receipt in hand, I went to our local Verizon store in Muncie, IN to get a replacement. I was greeted (a euphemism) by a non-smiling clerk who gave a cursory glance at my receipt and said it didn't come from there so they wouldn't replace it. I know the item is covered my the manufacturer, regardless of who sold it, so I pressed the issue. She consulted an equally ungracious manager and came back with the same answer. They need to read the "Fred Factor."

After leaving the Verizon store, I called the Verizon store in Panama City and explained the problem. The clerk said "no problem." He took my information and said they'd send me a new one today. No charge, no shipping, not necessary to return the old one. He read the "Fred Factor."

Who's Paying Our Commission On HUD Repos?

Jim Kouns (Coldwell Banker Lunsford) — Fri, 17 Jul 2009 15:05:08 -0500

It's been several years since I've delt with HUD repos, but recently I have a customer who wants to purchase one. In preparing the bid for submission, I was surprised to see that the broker's commission,advertised as 5%, is a variable entry and is subtracted from the bid price. So are concessions such as closing costs, etc. I realize that when I run a net proceeds sheet for a seller, I list the commission and any other concessions, but the parties can then negotiate. There's no negotiation with the HUD properties, the buyer pays.

As representatives of the buyer, sounds like we need to disclose that whatever we choose to enter as a commission up to the 5% max. reduces their bid accordingly. Seems like it's counter productive to deal with these properties, which in our area are usually low-end, and to go through all the hassles of getting them closed while at the same time feeling we must take a minimum fee to help our buyer-client. I'm wondering if we need to utilize buyer contracts for proper disclosure in these cases.

Thoughts?

Half Over or Half Left?

Jim Kouns (Coldwell Banker Lunsford) — Fri, 26 Jun 2009 14:16:39 -0500

We've all heard the old question about a glass is half empty or half full depending on whether you're an optomist or a pessimist. Wonder how many of us think about that in terms of time? As we're nearing the end of June, is your year half over or is there still half left?

The market has been slow and I've heard a lot of comments wishing the year was over so we can move on to better times. We still see the endless stories in the media about poor sales and falling prices, usually referring to CA or NV or FL, yet many in our office, here in Muncie, IN are having a great year. Our average sale prices are holding steady, inventories are down in most areas and we're looking forward to a strong second half. Interest rates are good and expected to hold at or near current levels and the economy is beginning to turn around. The investments in time and effort that I made in Jan. on marketing and planning are paying off and I'm looking forward to the balance of 2009.

Basics, Basics, Basics

Jim Kouns (Coldwell Banker Lunsford) — Tue, 23 Jun 2009 15:03:00 -0500

It never ceases to amaze me how many people in our business never learn or choose to ignore basic communication skills. I recently took a lisiting that had expired with another agent after being on the market for over a year. I had shown the home twice during the that year and both times came away with a negative response from my Buyers as well as myself.

It is a charming home in a terrific neighborhood, but it had poor curb appeal due to overgrown and unkempt landscaping and then inside, it just looked shabby. There were minimal, poor quality photos in the MLS, and no marketing materials in the property and no staging what-so-ever. I don't understand why a veteran agent would not communicate these deficiencies to the Sellers. When I met with them and presented a list of suggestions, they were astounded not to have heard them before. I am not a super star agent. I'm a mid-range producer who usually ends up in the top 10%, but a long way from the top. Yet, simple application and communication of some of the basics (preparation and marketing) seemed like a no-brainer.

In discussions with the Sellers I also learned there had been an accepted offer that fell apart over inspections. After reading the inspection report and reconstructing the negotiating process that led to the blow up it looked like the parties weren't that far apart. It looked like the process degenerated into a contest of personalities and misunderstandings that totally obscured the objective of reaching an agreement. It also became a contest between the agents and once again it appears that communications were definitely lacking. Both the Buyers and Sellers had unreasonable expectations and seemed to receive little constructive counseling from their representatives.

So, here we are with a Seller feeling abused and angry and a Buyer who feels like they are being taken advantage of. Yet, they are only a few thousand dollars apart on a $150,000 property when you cook it all down. The Seller wants to sell, they're relocated. The Buyer wants to buy the house and get settled. Neither has happened because of the lack of basic communications. As I said, it never ceases to amaze me.

Are we getting our money's worth?

Jim Kouns (Coldwell Banker Lunsford) — Wed, 10 Jun 2009 14:24:15 -0500

Today and Fri. our office is undergoing training for Lead Router an automated lead generation and followup system being pitched by Coldwell Banker. There is no intial cost but the training is mandatory for participation in the program. Though free at the start, it looks like after a trial period, that a cost will be assessed in addition to referral fees. This got me thinking about all the fees we pay for the various "services" we receive and whether we're getting any value for our money.

As a Coldwell Banker affiliate, we pay 6% as agents and the Broker pays 2% above that. In addition, we can have an "enhanced" web page on Coldwell Banker.com for $99/yr. I'm sure that other franchises have the same or similar issues. We all get the "opportunity" to have an enhanced web page on REALTOR.com for well over a thousand dollars a year.

The cost of producing one of these enhanced web pages is in the initial programing. Once the format is established, there's virtually no incremental cost regardless of the number of participants. The sellers of these enhanced services try to convince us they are worth the price because of the potential benefits. I think they've taken a marketing lesson from the people who tell us that Bayer aspirin is different, even though it's chemical composition and strength is identical to drug store brands costing much less.

Whether it's our franchise fees or our NAR dues, we're not getting our money's worth. Our money funded the development of the basic web sites and the incremental costs are negligible. We shouldn't have to pay for them again.

Numbers, Numbers, Numbers

Jim Kouns (Coldwell Banker Lunsford) — Fri, 29 May 2009 14:15:38 -0500

This morning I read an excellent post from Richard Rector of Realty Associates in Phoenix. His premise was that the lower median home prices the media keeps harping about are the result of lack of sales at the high end rather than the fact that specific homes are selling for less. Credit issues on Jumbo loans have indeed choked off high end sales all over the country. In addition, every market has its high end, be it $250,000 homes or multi-million dollar homes and I venture all have seen reductions in sales volume.

Here in Del. Co., IN, our high end is priced above $300,000 and in a good year they account for about 3% of our unit sales. Over 85% of our sales are $150,000 and below so I look at average sale price as a more indicative reflection of activity. In the first qtr. of 2009, our average sale price was up nearly 6% over 2008, yet median sale price was down by 14%, reflecting a change in product mix rather than an overall decline in prices.

The media loves generalities and simple answers so they grab onto median price statistics and portray them as if they were universal. Unfortunately they are aided in this by the NAR and various state associations that publish statistics. Though it makes them seem authoritative, they are using our dues money to complicate our business lives. NAR and recently the IN AR should stop publishing general statistics and insist that media derive their data from local sources that accurately reflect the local nature of our business.

"It's Deja Vu' all over again"

Jim Kouns (Coldwell Banker Lunsford) — Fri, 15 May 2009 08:34:44 -0500

The quote attribted to Yogi Berra seems to apply to the recent announcement of plans to monetize the $8,000 tax credit for first time buyers. While details are non-existant at present, it looks like it would take the form of some sort of bridge loan. NAR and many of my fellow REALTORS are trumpeting this plan as a boon to our industry, but I have to wonder, "Isn't the opportunity to buy a home with no equity one of the things that caused the current housing problem?" Buyers with no stake and no equity are the first ones to walk away when the going gets tough, adding to the inventory of foreclosures that the plan was designed to reduce.

Home ownership is an investment and there's no other area where a person can make a substantial investment without equity. Commercial loans require 20%, even insured conventionals require 5%. Stock or bond purchases require 100% unless it's margin account, but even then a substantial equity is required and the security, unlike real estate is liquid.

In the panic of trying to cure the housing mess, it looks to me like we're heading back down the same road. "Deja Vu' all over again."

Total Disgust With The IN Legislature

Jim Kouns (Coldwell Banker Lunsford) — Fri, 01 May 2009 11:13:08 -0500

Once again, the members of the IN Legislature have put their own self interest ahead of the people they were elected to represnt. They've spent the entire session arguing, posturing, fingerpointing and protecting their special interests. As a result, we have no budget, and no direction on important economic issues like unemployment compensation and governmental reorganization. In order to try and complete ther mission, they will have to return for a Special Session, which, by the way, costs taxpayers an additional $12,000 per day, with no guarantee of success.

How does this affect real estate? Very directly. With no budget, no one knows the State's contribution to local budgets and their impact on property taxes. Local governments and schools will be forced to borrow against future levys, significantly increasing the cost to entities that are hand to mouth already. The governmental reform bill and the property tax cap bills weren't even given an opportunity for a vote. I guess this is one way to avoid making a contraversial stand, but it's pretty cowardly.

Both Republicans and Democrats are equally guilty. Speaker Bauer is intent on his own agenda and the Republican leadership is a joke. I think the only answer is to get rid of all of them. It's time to vote out incumbent candidates and start fresh. New lawmakers may not have experience, but based on past performance, that has to be a good thing.

The Excitement Continues!

Jim Kouns (Coldwell Banker Lunsford) — Fri, 24 Apr 2009 11:42:14 -0500

The increase in market activity that I have been watching and reporting for the last few months shows no sign of ending. Pendings increased at a steady rate through Jan. and Feb. and the rate of growth has increased significantly in March and April to date. At the end of Dec. 2008, Del. Co. had 88 properties "Pending" as of yesterday, we had 168 "Pendings." In addition, our average sale price for the first quarter of 09 was up 6% from the first qtr. of 08. There are a number of higher priced homes now under contract and I expect the average sale price to increase further as these homes close in the next 30-45 days.

Here in Del. Co, IN we didn't experience the price "bubble" and therefore have not suffered the drastic declines in values and sales seen in the formerly hot areas like CA, NV, AZ and FL. The declines we've had have been the result of job losses and our unusually high reliance on property taxes. The job losses have fairly well stabilized and the new state mandated property tax caps have gone a long way to eliminate that issue. Granted there's still a lot of economic turmoil both locally and area-wide. However, interest rates are super, our inventory of homes for sale is holding steady at around 700 and I think it's a great time to either buy or sell a home.

Wow! Could this be a return to normal?

Jim Kouns (Coldwell Banker Lunsford) — Fri, 13 Mar 2009 16:00:43 -0500

This week has been a busy one, especially for this time of year. I've had two sets of serious, qualfied buyers, lots of showings on my listings and one received multiple offers at or near full price. I've heard other agents in our office who are similarly busy or even more so. Our Board pendings are up 12% in the past week and up 41% over the monthly avg. of the 4th qtr. of 2008.

We're all wondering what's going on. There have been no positive economic events here in Muncie, Ball State Univ. is on Spring Break and the weather has been nice but not unusually nice. I did see Crocus in bloom today and signs of spring are at hand. Maybe that's it or maybe this is just a little flurry of pent up demand. What ever it is, I'm thankful for it and plan to enjoy it for as long as it lasts. Who knows, maybe we've turned the corner.

New Growth-New Activity

Jim Kouns (Coldwell Banker Lunsford) — Fri, 06 Mar 2009 14:33:01 -0600

Once again IN weather has lived up to it's reputation. On Tues. morning it was 9 degrees and today(Fri) it's nearly 70. We've had several days of warmer weather and it has given me the urge to get out in the yard and look at my trees, bushes and perrineals. It's been the coldest winter we've had in years and there were several that I worried might not survive. To my delight, I see new life in all of them.

As a regular watcher of our residential market data, I also see new life. In Muncie-Del. Co., IN, pendings are up for the second straight month and up 26% since the 4th quarter of 2008. Our inventory is holding steady and a number of high-priced properties have gone under contract in the last several weeks.

I think the analogy is pretty clear. Though we have cold snaps and a few weeks of winter still ahead of us, spring is beginning now. Also, though we are by no means out of the real estate crunch, our market is "greening". If we can get the media to stop painting everything as it is in CA, NV, AZ, FL and D.C. people will regain their confidence. That probably isn't going to happen, so the weeks will go by and the pendings will become closed sales and new pendings will continue to materialize and increase. Then someday, someone from the media might look around and realize that for most of the nation, the down cycle has run its course and a renewal is underway. Maybe they'll consider that newsworthy, but I doubt it.

Professionalism

Jim Kouns (Coldwell Banker Lunsford) — Fri, 27 Feb 2009 13:45:57 -0600

I just read a Blog from Julie Ferenzi in Naperville about a lazy, unprofessional agent she dealt with recently. I tried to do a response, but for some reason it didn't take, so I thought I'd do it this way. Julie listed five examples of this agent's conduct as a "tongue in cheek" guide to unprofessionalism and I certainly agree with her assessment. Unfortunately, most of these agents don't need instructions. They've mastered all the techniques of poor service and non-professionalism and continue to exercise them. This is especially true of the "part-timers" or those supposedly full time that derive their income from some other source.

If anything good comes out of the recession, it's the number of these people who have and will get out of the business. Our board membership is down nearly 30% and it wouldn't hurt it to go down another 30%.The barriers are way too low in our business and I wish we could push for raising standards, requiring minimum amounts of business to retain a license and more training requirements. Alas, local and state boards, NAR, CRS and the like appear more enamored with dues money than with professionalism. In the last CRS couse I took, the instructor was lobbying for a change in requirements to allow sales price to rule over number of transactions. The net result was that if an agent sold one or two high priced properties, they qualified as CRS. What if those sales were to family members? Even if they weren't, how much could that agent have learned about the business? Perhaps the most prestigious designation in our business has been "dumbed down" to allow more to qualify and therefore pay dues.

I once worked for a manager that often said, "There's no substitute for experience in this business." I've been licensed since 1988, do 25-35 transactions a year and I still run into things for the first time. While we're trying to survive the current market, it would be nice if the full-time productive, professionals could prod our boards along with state commissions and NAR to tighten standards. Perhaps there should be an apprentice license or something to differentiate the performers from the non-performers. When the recession passes it would be more difficult for these people to reenter and masquerade as professionals. Then again, who makes up the majority of our membership?

Looking UP

Jim Kouns (Coldwell Banker Lunsford) — Tue, 03 Feb 2009 14:49:15 -0600

I sat in sales meeting this morning listening to an agent whine about unmotivated buyers and low-ball offers and I wondered what agents like this do with their time. A relatively simple examination of our MLS shows pending sales units up about 10% from the 4th quarter of 2008 and our 2008 average sales price up 2% from 2007. In addition, our Board's listing inventory is the lowest it's been in many years.

To me, those are positive signs. Here in Muncie we didn't experience a real estate price bubble. Therefore, we haven't seen the drastic effects felt in other areas. I know the public perceptions fueled by the media, have everyone living in CA or NV or wherever there's the greatest market turmoil, but isn't it our job as agents to educate our buyers and sellers as to the reality of our local conditions?

It's easy to look at current activity or lack thereof and say this is gloom and doom, but just as sure as it's Feb. and the snow is coming down, spring is only 6 wks away. Before we get there, there will be warm spells followed by cold snaps and the warm spells will become more frequent and of longer duration. NAR reports their pending sale index up in Dec. Muncie's pendings are up in Jan. I think these are the beginnings of an increasingly active real estate market and I'm looking forward to spring in both my business and my calendar.

Reopen the Gates

Jim Kouns (Coldwell Banker Lunsford) — Fri, 23 Jan 2009 15:16:26 -0600

It seems every news story we see has something about a bail out or stimulus package. Lots of ideas are floating around about how to re-start the housing market, yet I think there's one big factor missing, down payment assistance.

Anytime goverment gets involved in anything, it's like killing mosquitos with a Louisville Slugger. Yes, there were a lot of things that needed to be cleaned up in lending, but down payment assistance for credit-worhy buyers was not one of them. Most 100% or down payment assistance programs have gone away and FHA has just increased their requirements to 3.5%

Here's the result in our area. The low end buyers have been the most severely impacted. Home sales in the under $75,000 range decreased by 124 units, the largest drop of any segment of our market. Without these lower priced sales, the chain of buyers moving up is broken and the whole process comes to a halt.

I'm not saying we should return to the old days where anyone qualified and loans of 125% of value were common. However, the over-tightening of down payment assistance has had the effect of choking a market that's already battered as it is. I urge you to contact your legislators and urge them to consider responsible down payment assistance as a part of any stimulus or homeowner relief program.

Weather Report

Jim Kouns (Coldwell Banker Lunsford) — Fri, 16 Jan 2009 14:20:19 -0600

I'm fortunate to have an office with a window looking out to a wooded area along a creek that runs by our building. We are in the city, but we get an amazing array of wildlife stopping by. Deer are regular visitors as are racoons, possums, coyotes, an ocassional fox. The birds run the gamut from Chickadees to very large hawks. I'm looking out my now at a beautiful snowscape, bright sunshine and blue skies.

When I went to the "Y" at noon (I try to go 3 x a week) it felt brisk and not too uncomfortable, that is until I looked at the thermometer in the car and saw the outside temperature was -2. Immediately I felt colder and that led me to think how much we are influenced by information and how often that information can lead to negative feelings.

I know information is important and it's silly to go around totally oblivious to what's going on. That being said, however, If I had looked at the thermometer before going out, I probably would have decided it was too cold and stayed in the office. I'd have missed the brisk air. the sunshine, the opportunity to network with others at the "Y" and ommitted a workout that burned around 400 calories.

We are constantly bombarded with negaive information about our industry, much of it from analysts who have never been in the real estate brokerage business. We hear that housing sales have hit new lows, median prices are tanking, buyers can't get financing and "blah, blah, blah." It's easy to listen to all that and think I need to stop doing anything until things turn around. "Maybe I'm wasting my time." Yet, the productive agents in our office are showing houses, taking listings and continuing to do all the things they woud be doing if business was great. The gal in the next office to mine has been a top agent for over 20 years and she had her second best year ever in 2008.

I'm going to keep watching the weather so I can prepare accordingly, but I'm going to quit listening to the analysts that tell me how bad things are going to be. In the same vein, I watch market statistics closely, but I'm not going to be influenced by some "expert." Buyers and sellers are out there and they need help, perhaps more than ever. I'm not going to let the "gloom & doom" folks keep me from reaching out to them and enjoying the sunshine and exhilaration that our business provides for a successful transaction.

Sharpening The Saw

Jim Kouns (Coldwell Banker Lunsford) — Mon, 12 Jan 2009 14:37:47 -0600

One of the "Seven Habits of Highly Successful People" is to "sharpen the saw." In other words to work with the tools of your business and keep them sharp through maintenance and practice. Real estate is a mature business and there's not much that's dramatically new. In my 20+ years of practice, I've stayed abreast with technology, embraced Top Producer, stayed current with laptops, printers, phones and other hardware. Looking ahead to the challenges of our economic climate, I wonder what can I do to maintain and improve my business. I don't see any new blockbuster ideas or equipment.

I think the answer is to try to better utilize what I already have. The keystone of my business is my database of contacts and past customers, so I spent time during the slow period of Dec. reviewing and revising. It's amazing how many coincidental, deceased and non-productive contacts were in there. In weeding those out, I also discovered some valuable names that had gotten into incorrect categories and were being overlooked in mailings and other contact efforts.

The new 8i version of Top Producer is a powerful tool with many features. Though a TP user and certified trainer I was using only a portion of what was available. I did my contacts and follow-ups using a combination of automated and manual procedures. This year I've gone through the TP Action Plans and revised and customized them so I can employ them on a regular basis. It was a time-consuming chore, but I expect it to pay dividends from better follow-up. For example, I now have an automated quarterly market report with color graphics that will go out to my "A" list. Every contact on that "A" list will hear from me every month via letter, post card, email or phone. These folks will have a hard time not thinking of me when real estate is mentioned.

With 20 yrs. experience, most of my business comes from referrals and past customers. I haven't aggressively prospected in years, but this year I'm going to resume doing so. I get older every year and, unfortunately, so does my contact list. Many past friends and past customers have raised their families and their housing needs probably won't change until they're well into retirement. To connect with young people, I've begun using social networking sites such as Active Rain and Facebook. Apartment prospecting is relatively easy and inexpensive with post cards and the new custom postcards in Top Producer can be sent to one or hundreds at the same cost per unit, no more than it costs to have the cards printed and mail them myself. They also use my contacts so they're completely current.

None of this is new or exciting, it's just basic "stuff." I'm a TP user but if you like something else, the same principles apply and the important thing is to increase your utilization. There may be fewer units involved, but there are going to homes sold, regardless of economic conditions. I believe that "sharpening my saw" will help me get my share of those sales and maybe somebody else's share as well.

Analysis of 2008 Market Statistics

Jim Kouns (Coldwell Banker Lunsford) — Fri, 02 Jan 2009 10:01:37 -0600

After several years of bucking national trends, the slow down in real estate activity hit home in 2008 with unit sales off by 26.6%. Our market began contracting in the late 3rd quarter of 2007 when the effects of increased property taxes were felt. There was a temporary return to normal activity in the 2nd quarter of 2008, but it was short lived and by year end, the general state of the economy, the lack of consumer confidence and the arrival of long-delayed property tax bills severely depressed sales.

The largest reductions were felt in the heart of our market, especially below $75,000, as a result of curtailed or eliminated programs for low down payments and down payment assistance. Lack of activity at this end, served as a bottleneck to restrict new buyers and move-up families. Since we don't have an influx of newcomers, many of the folks who would like to sell and move up futher are unable to do so.

In the midst of all this gloom, there are some bright spots. For buyers, interest rates have fallen to near historic lows and it appears they will remain below 6% for the forseeable future. For sellers, the inventory of homes for sale has dropped below 700 for the first time in many years, meaning less competition and less downward pressure on pricing. Average sale prices actually increased by 2.8% in 2008 as compared to an 18% decrease nationally.

What's in store for 2009? The 4 legs of the residential real estate table are sales price, interest rate, property tax and consumer confidence. Sales prices have remained stable, interest rates are very attractive, the State's property tax reduction measures began to be felt in the 4th quarter of 2008 and will have an even more positive effect in 2009. All that remains is consumer confidence. The various stimulus packages are currently at work and Pres.-Elect Obama will have his own programs for economic recovery. Hopefully the combination of these factors will result in a restoration of confidence and a return to an active real estate market.

2008 Market Data Is Now Complete

Jim Kouns (Coldwell Banker Lunsford) — Wed, 31 Dec 2008 12:20:34 -0600

The real estate market for 2008 in Muncie and Del. Co. is now pretty well complete and most of us are glad of it. There may be a few last minute entries from late closings, but they won't be enough to change the picture.

2008	Qtr. 1	Qtr. 2	1st Half	Qtr. 3	Qtr. 4	2nd Half	YTD
Units	181	278	459	284	180	464	923
Average List	$80,134	$ 109,641	$94,888	$104,922	$89,049	$96,985	$98,387
Average Sale	$74,587	$ 103,448	$89,018	$99,445	$82,688	$91,067	$92,508
Median	$59,900	$92,813	$76,356	$77,224	$70,000	$73,612	$77,113
Average DOM	148	147	148	140	144	142	145
Average Sq. Ft.	1,630	1,777	1,703	1,745	1,642	1,694	1,712
Average $/Sq. Ft.	$45.77	$58.22	$52.27	$57.00	$50.34	$53.77	$53.67
Average Tax	$1,458	$1,615	$1,536	$1,602	$1,431	$1,516	$1,544
Tax/Sold Price Ratio	1.95%	1.56%	1.73%	1.61%	1.73%	1.67%	1.67%
Average Sold/List Ratio							94.03%
Listings Taken							1,981
Average Price of Listings Taken						$108,416
Vs Prior Yr	Qtr. 1	Qtr. 2	1st Half	Qtr. 3	Qtr. 4	2nd Half	YTD
Units	-33.7%	-27.60%	-30.14%	-13.15%	-20.35%	-16.09%	-23.72%
Average List	-2.66%	7.38%	1.07%	-2.93%	9.49%	0.17%	3.15%
Average Sale	-3.91%	6.42%	-0.06%	-3.5%	9.21%	0.88%	2.39%
Median Sale	8.03%	9.32%	5.08%	-11.74%	9.72%	5.40%	2.79%
Average DOM	8.10%	12.99%	10.85%	16.87%	17.90%	17.59%	13.82%
Average Sq. Ft.	5.93%	7.66%	6.19%	4.09%	6.02%	4.27%	6.12%
Average $/Sq. Ft.	-9.29%	-1.15%	-5.89%	-7.29%	3.01%	-4.94%	-4.19%
Average Tax	47.15%	33.62%	37.42%	15.16%	13.49%	13.35%	26.73%
Tax/Sold Price Ratio	53.14%	25.56%	37.49%	19.34%	3.92%	14.37%	23.78%
Average Sold/List Ratio							-0.74%
Listings Taken							-12.23%
Average Price of Listings Taken						-.17%

The good news is that our median and average sale prices actually increased from 2007, defying national trends where those numbers decreased by double digits. Our problem was basically a lack of buyers, especially at the lower price ranges. Muncie is not seeing a lot of newcomers, so we depend on new households and move-up buyers. These folks have felt the brunt of the tightening mortgage market as reflected in the curtailing of low and assisted down payment programs. It's like damming the streams that feed a lake. With no new water coming in, the lake stagnates and dries.

I'll have more analysis on my next posting. Hope everyone has a safe and happy holiday and a more prosperous 2009.

Merry Christmas

Jim Kouns (Coldwell Banker Lunsford) — Tue, 23 Dec 2008 10:36:02 -0600

One of the nicest Christmas presents I received this year was yesterday when my grandaughter Sarah called to say she was coming to visit and spend the night. She's 20 and a sophomore at IN Univ. and I don't get to spend much time with her. In addition, she's had some life-threatening health issues in the past two years that remind me how fragile and how precious life is.

I'm going to make her favorite soup for supper (corn chowder) and her favorite breakfast (waffles) tomorrow. I plan to spoil her as much as I can in our brief time together.

Besides Sarah's health problems, I've heard from a former college roommate who has had cancer, a close friend whose daughter is battling cancer, my office mate whose father had a leg amputated and another close friend who is in the final stages of cancer. Plus, my wife has been called back for a more in-depth look at her latest mamagram. With all this bad news plus the economy it's hard to remain positive, but that being said we must remind ourselves that for the most part our glass is more full than empty. More people have jobs and homes and health and opportunity than those who don't. Most of us can go to bed and wake up in safety and as for the bad times, "this too shall pass."

I wish you and yours the best of Holidays.

Home Selling Tips For Today's Market

Jim Kouns (Coldwell Banker Lunsford) — Fri, 19 Dec 2008 13:43:00 -0600

Seems like every publication lately, features some kind of advice for home sellers in today's challenging market. The interesting thing is that nearly all the advice is pretty consistent, but it seems like those who want to sell their homes aren't listening.

Let's reconsider the most common suggestions.

1. Price the home properly. Buyers have educated themselves by looking at current inventory. If your home is priced based on last summer or last year, you're out of touch. If you can't afford to sell at today's prices, change your palns and hold on until prices improve. You could consider renting, but then you lose capital gains protection when you do sell.

2. Stage both the inside and outside. Buyers' decisions begin with a drive-by or a drive-up. If the landscaping is non existant or looks ragged, the lawn is full of unraked leaves and the walk and drive hasn't been cleared, the negative feelings have already begun. Inside, excess furniture should be removed and remaining items rearranged to make it look as spacious as possible. Lights should be on and blinds open, especially in the dark days of winter. Dated carpet should be replaced and as much wallpaper as possible should be removed. Dated counter tops should also be replaced.

3. Cleanliness is a must. The house needs to be "squeeky clean", walls should be touched up or repainted, carpets cleaned and absolutely no pet, cooking or smoking odor. The bathrooms should have fresh towels and unused soap. Closets (buyers will look) and kitchen cabinets should be organized and very neat. It goes without saying that beds should be made and clutter removed.

These three points seem fairly simple, yet it's amazing how many homes I show where the sellers seem totally oblivious. A former manager once told me that you succeed by doing what the competition won't do. When there is roughly a years', worth of homes on the market and stiff competition for a limited number of buyers, a seller who prepares properly will stand out way above the competition.