Sally's Blog

Okay, you actually have a buyer---are foreclosures a true value?

2008-11-25T11:50:26Z

Our local area is not untouched by the rash of foreclosed homes, but are they really an opportunity for a great deal for your clients? Certainly there are homes out there that are bank owned properties that are a good investment. I recently closed a transaction on a very nice St. Simons Island home that my buyer client was able to obtain at a very good price that was a bank foreclosure. This transaction actually went through rather quickly and more easily than some foreclosures that I've been involved with in the past. However, with real estate prices at the most "real" we've seen in many years, there are so many opportunities out there I don't believe that exclusively "shopping" foreclosures is necessary to get a really great deal on some extremely desirable properties. It is a valid concern for a home that has been sitting vacant, and sometimes even without power, that equipment failures and deterioration has begun. So many homes on the market are being reduced to below market value that if a buyer has good credit and the resources to strike a check for the down payment they are in a good position to find some really good opportunities out there in the private sector as well.

According the NAR statistics, 3^rd quarter sales were up by 2.6% over 2^nd quarter figures, so hopefully some of the surplus inventory is being absorbed. I would be interested in knowing how much of those sales were bank REO's, but even so it is encouraging to see a positive direction!

It used to be Location. Now it’s Price, Price, Price!

2008-11-18T08:15:05Z

So often we continue to do what we always have, remaining in that well-known and familiar "comfort zone." We go by our old tried and true checklist and expect the same results we have gotten in the past. I'm not sure that those same formulas that worked before are as effective in today's market. When we listed a new property, we entered in the local MLS system, put up the yard sign if neighborhood covenants allowed, put it on our website, prepared an ad for trade publications and planned a realtor open house to introduce it to local realtors. I'm not saying those things are outmoded or even suggesting that we neglect those strategies; however, if the listing isn't priced right, and perhaps even below what comparables indicate, you are possibly wasting your time and advertising dollars.

I must confess, I've always preferred working with buyers even when the market was hopping and even more so today as listings in a sluggish market can be an expensive undertaking. I genuinely dread the communication to sellers when nothing is happening and their property isn't being shown and all you can suggest is to reduce the price as that is not at all what they want to hear. But in this current market, competitive pricing isn't usually good enough; it takes bargain basement pricing to make the sale.

In this market, it is even more important to offer a generous co-op to selling agents!

2008-11-17T10:37:44Z

With so many agents attempting to acquire the same listings, many have decided to take the path of selling the home for minimal commission. Not only are they listing the property for less commission, but they then offer less commission to the selling broker. I wonder, with generous inventory available, why would selling agents show properties that will pay them less money? Unless a buyer specifically asked to see a specific listing, any agent paying attention to the MLS sheet is going to choose to take their buyers to view properties that meet the buyers' needs while paying the agent's fee for selling it. Thinking that the reduced co-op doesn't matter is very naïve, indeed!

In addition, and on the reverse side, are we doing the Sellers a disservice by eliminating a pool of potential buyers from considering their homes from the start? In my humble opinion, beginning a listing presentation with the lure of selling for less is short-sighted and unwise. If anything, I would argue that now is a time we should suggest that the seller pay MORE commission to attract the buyers that other agents have. The more buyers we can attract to a property, the greater the chance of selling that property quickly and/or for more money, putting more money in the sellers' pockets. Sellers need us more than ever - we need to convey that message.

Agree?

All Dressed up and No Buyers to Show!

2008-11-12T08:16:21Z

One of the agents in our office listed her very lovely personal residence located in an extremely desirable neighborhood in the early summer with very few showings and little interest. Over the months, she made several small price reductions which really didn't seem to make the phone ring until she hit the "magic number" by dropping the price by approximately 22% off the initial pricing. When that price reduction hit our MLS system, all of a sudden she received 3 offers on the table for consideration and has accepted one of them due to close December 1^st.

We all know that in this market with lots of inventory to choose from, that pricing competitively is essential if the Seller is really serious about selling their property. This is not the time to experiment and "go fishing" by baiting up the hook unless the bait is tempting, priced fittingly and ready for sale.

Reflections of a Southeast GA REALTOR®

2008-11-06T10:41:04Z

We've all been hearing from many individuals over the last months "Maybe things will get back to normal after the election." We all are hopeful that consumer confidence will bolster, that the ability to obtain credit will loosen, the stock market will stabilize and people can get back to some form of normalcy. REALTORS® are definitely hoping that their buyers can get the funds needed to take advantage of some of the great buys out there. To go through the home search process, identify a property and then not be able to obtain a loan is frustrating for all---buyer, seller, mortgage broker and definitely us!

No matter which candidate we supported, we all recognize that a historical event happened 11/4/08 which our children and grandchildren will study in American History in times to come. I was a little surprised by some of the interviews of citizens in other countries and their extreme curiosity in our Presidential election's outcome. I wish in the near future, somehow, some way, America can regain some favor and respect and if this election helps achieve that end that is a definite positive.

I am an avid admirer of the intellect and wit of the great Sir Winston Churchill. He was quoted to say:

"A politician needs the ability to foretell what is going to happen tomorrow, next week, next month, and next year. And also to have the ability to afterwards explain why it didn't happen."

Sometimes a positive word is so needed . . .

2008-10-24T09:12:38Z

Do you every feel like you have reached a capacity for bad news and negativity from your peers, the news media and other REALTORS®? Believe me, I'm there. I think it is possible to thrive in tough times if we can only think of creative marketing, stay optimistic and look for new ways to do business. If we are spending less time working with clients or showing properties, we should be freed up to have extra time to touch base with past clients and make those follow up calls and emails. I bet our websites could use tweaking and now is not the time to forget our newsletters whether by mail or electronic. We all should know what to do, and cannot get caught up in the "gloom and doom" mindset which can defeat us before we begin.

I personally love working with buyers, and this market is a great time for buyers to have the luxury of liberal inventory to choose from, sellers in a mood to be generous and some great deals out there. The fact that some of those good buys are due to individuals losing their homes is indeed unfortunate; however REO by banks is an excellent opportunity for that client with the wherewithal to purchase them. We are closing today on a great home that was owned by an out of town bank and my buyer was able to purchase this property at an extremely favorable price that I really didn't think would fly when I presented it!

I believe this quote of Abraham Lincoln is particularly timely:

"Always bear in mind that your own resolution to succeed is more important than any one thing."

The Real Estate Downturn Cuts Both Ways!

2008-10-10T09:52:54Z

Buyers, now hear this! If you've been contemplating moving up in the housing department, now is the time. I realize home prices have dropped and the price you receive for selling your home will be less, but so will the price you will pay for upgrading. For example, you own a home that was worth $300,000, but the value has dropped to $240K. But you want to move up to a house that was previously worth $600,000 when your home was valued at $300,000, and now that more expensive home is now priced at $480,000 and you're saving the $60K! In addition, the taxes should reflect the lesser value and you are still in your $600,000 dream home.

Talk to your mortgage professional or banker to see what type of loans are available and get pre-qualified. There is ample inventory to choose from and you definitely sit in the "catbird" seat today.

Statistics are a valuable Tool

2008-10-07T12:14:53Z

We have been tracking weekly sales statistics in our office for over a year now and I believe it is vital for us to have this information to compare seasonal trends, make an informed market analysis and to simply know and not speculate on what is going on in our local market. Our clients are really not as interested in the real estate market in other areas, but want a true picture of what is happening right here, right now. These numbers are put in an excel sheet format and incorporated into a graph which shows the peaks and valleys in our local market. Perhaps of late, the numbers are not particularly cheering but they are what they are and help us to provide the most knowledgeable counsel as we possibly can to our sellers and to negotiate more efficiently for buyers.

In this tough market, we have to stretch beyond our comfort zones and seek to learn more, expand ourselves and get to the other side of these economically challenging times.

Bail Out or Not, We've all had a Wake-Up Call!

2008-10-03T08:16:33Z

Our government rescue of $Billions of bad mortgage debt and the ramifications of how that affects buyers, sellers and the REALTORS® hoping for a renewal remains to be seen. Hopefully on the short term, new money being injected into the mortgage market, will free up the availability of mortgages and other major purchases. But, certainly the days of qualifying for a mortgage with little or no money down and marginal credit-worthiness are over, and rightfully so.

But integral to recovery in consumer buying is for the public to feel confident and secure in their futures again. I sincerely hope that the government can give some distressed homeowners relief from the many foreclosures occurring all over the country and that are rippling down and negatively impacting property values for everyone.

Curb Appeal has Evolved to Another Level!

2008-08-15T10:06:14Z

Only a short while ago, the descriptive words "curb appeal" only meant an enticing appearance as people drove by the property. However, in this day your first shot at luring buyers to look at your property is via the internet with great photos of the outside and interior of the home and with the virtual tour. I am always flabbergasted when REALTORS® use inferior photos and often only one photo of the front view of the home. When I cruise the websites and come on a property that has none or poor photos, I move on to another with a better representation. I imagine most buyers do the same.

With so much competition and an abundance of inventory of very fine choices in every price range, we must go that extra mile to present our listings in the best possible light and draw the needed attention to single a property out from others. We even go a step further and add virtual tours if the owner would like. In the age of "internet shopping" our goal is to get our listings seen. Check out our site at http://www.realestatessi.com/

Added Incentives are bringing new activity!

2008-07-24T09:13:20Z

Everyone is feeling the pinch at the gas pump these days and we're all trying to coordinate our trips and excursions with more care. Our little corner of the world on St. Simons is a place that vacationers have enjoyed renting scooters and electric cars to get around and enjoy the beauty of the locale. My husband, James, has a business called Beachcomber Buggies that rents out scooters and electric cars predominantly to visitors to the area. With gas prices at such a premium, locals are taking another look at a more economical way to get around. His sales for both the scooters and the cars that can be plugged in at night to charge have been very successful in the past couple of months. The only rub seems to be to get the scooters ordered and received in promptly as those vendors are really backlogged with orders.

One of my sellers of a lovely King and Prince Villa condo on the ocean has added a 4-seater electric car with his condo sale and that addition has actually spurred a lot of new showings and interest since doing so.

Times they are a-changing, and we have to go with it!

Is the average “dream home” going to be smaller in coming years?

2008-06-24T08:27:03Z

I read a recent article in MONEY MAGAZINE that I found very interesting to consider. I have found that the majority of my past buyers were interested in as much as square footage as they could possibly afford. The article expressed that with energy costs rising, environmental issues becoming so very significant and the average smaller family, today's consumer will not need or want as much house to maintain. If the trend switches to "smaller is better", our numerous McMansions may be an even more deteriorating market. If only we all had a crystal ball or soothsayer to predict trends and market swings!

If you would care to read the article, I have included a link below:

http://money.cnn.com/2008/05/02/real_estate/gandel_your_next_house.moneymag/index.htm

Something is Brewing in Real Estate

2008-06-20T09:36:30Z

In the midst of the reports of foreclosures, tragic storms ripping through America and an abundance of other bad news, you may have missed a bit of encouragement! The Mortgage Bankers Assn. reported that in a national survey last week, new conventional loan applications jumped by 11% and FHA mortgages went up a whopping 17%. Perhaps some of that activity is due to individuals buying foreclosures and picking up some real bargains. But I believe some of that activity is due to people sensing that with home prices getting very competitive and with mortgage rates creeping up a bit, it's time to get locked in now before the upswing begins in earnest.

If potential buyers have been sitting on the fence, this may be an opportune time to jump off and get their dreams on paper!

Buying Down versus Price Reductions

2008-06-13T10:55:36Z

I recently attended a seminar on how to "Sell" homes and not just "Market" homes. One particularly interesting item I walked away with was to suggest that Sellers offer buying down a Buyers interest rate rather than simply reducing the price. This is such a win-win for both parties. The Buyers enjoy their savings up front, usually in the first 4 years, rather than having a small reduction in their monthly payment which would take many years to save the same amount of money. Sellers are happy as their bottom line isn't really affected and the mortgage lender should be agreeable as well. If your client's mortgage lender is not up to speed on "getting creative" in providing financing, perhaps they need to look for another lending institution.

Another worthwhile consideration for this process is that the property values are not lessened and certainly the neighborhood residents would like that!

In this time of frustrated Sellers and motivated REALTORS®, we all need to investigate new and innovative avenues to get properties sold.

As Nike has made famous the phrase "Just Do It!"

2008-06-09T10:26:51Z

In this period of a somewhat flat real estate market, people are deliberating on what should I do to set myself apart and get new business? What advertising medium is most effective? What area should I choose to farm? Should I blog? Should I re-vamp my website? On and on we go incessantly in the quest for staying in the game! I firmly believe in doing your homework and research, but there does come a time to "JUST DO IT!"

Send out postcards and flyers
Work on your website
Dive into blogging
Touch base with former clients and ask for referrals, and finally
Knock on doors if you must!

Whatever medium you deem the way to proceed, get out there and act on it!

In honor and in memory of author, Eugenia Price

2008-05-26T11:28:40Z

If any one writer brought attention and interest in St. Simons Island, it was Eugenia Price. Ms. Price was born in West Virginia, as was I, and after graduating from Northwestern University she began writing and producing for radio and television. With the publication of her first book, Discoveries in 1952, her career as an author began. On a promotional book tour, she discovered St. Simons Island and the story of Anson Dodge, the young man who built Christ Church in honor of his late wife in the 1880's. His story captivated her and she then moved to St. Simons and within the next decade had written three novels which spanned three generations of the Dodge family. This Trilogy brought readers from all over the world to visit our wonderful area.

Ms. Price built her island home, appropriately named "The Dodge" and lived the remainder of her life here. She died in May, 1996 and was buried at Christ Church. Kudos to the great Eugenia Price for her body of work and her love of St. Simons Island.

I am interested in how many of you are familiar with the work of Eugenia Price.

Have you heard of “gazundering” and “gazumping?”

2008-05-22T11:26:43Z

I recently read an article of a common and lawful practice in England that allows the seller to cancel a contract at the last minute right before closing. Should the seller receive a higher price from another buyer he can cancel the deal in a practice known as gazumping. Likewise, if a buyer decides he offered too much or finds another less expensive property he can demand a lesser price or also back out and they refer to this as gazundering!

I enjoy a good game of poker and the use of a bluff, but really this takes the cake! I would not substantiate this practice by calling it strategy but rather exploitation. Even though we have the right of inspection and due diligence period to contend with, I'm certainly happy we don't have that type of manipulation to deal with in the States.

One Man's Loss is another Man's Gain?

2008-05-13T11:22:52Z

A local realtor is advertising the opportunity for investors to pick up foreclosures on local properties. I spoke with her Saturday after seeing her signage on her Honda sedan advertising "Buy Foreclosures". She indicated she had taken out 7 individuals that day to view 9 different properties that day in a rented van. She said only 1 couple were known to her before that day, the others were new potential buyers that responded to her advertisement.

I'm sure many of you have realtors in your area doing much the same thing. Again, it is a prime time for buyers with down payment monies and good credit to avail themselves of some really excellent opportunities.

In this time of a softer real estate market, we all have to be more creative and keep exploring different avenues of marketing techniques. I firmly believe this phase will make us all better REALTORS® and business owners.

Foreclosure Crisis

2008-04-23T08:17:36Z

I am interested in how you folks feel about the possibility of the Foreclosure Relief Bill and the FHA getting involved in the business of high risk refinance. I'm a bit unconvinced that the FHA can really handle that increased market share and also that the government needs to jump in at all. I sincerely feel for anyone dealing with the loss of their home, but on the other hand believe that the price tag of a bail out or refinance will be a costly one. The old adage "Buyer Beware" is something I've always adhered to.

What are your thoughts?

Isn’t it rewarding when some of the Seeds you planted come up?

2008-03-31T08:54:20Z

Two of the agents in my office are feeling energized today! Clients they have been working with for an extended time and have put in numerous offers in on properties that did not work out are hopefully both getting something worked out and accepted. One is definitely accepted and the other is looking quite favorable. We have been experiencing, as I'm sure many of you have, very low offers to present to our sellers and also buyers wanting to "steal" a deal. Our MLS system sold transactions statistics show with a certainty that it is the well priced properties that have closed. This is definitely a time to sharpen the pencil and get the pricing right

Do you ever feel like you need to be a mind reader?

2008-03-20T13:02:26Z

Isn't it a paradox when working with buyers and you are going forth with the criteria they said they wanted and then they go in completely different directions? They indicate that they want a large lot, and then fall in love with a postage stamp sized property. They say a given area is where they wish to be, then want to view homes on the other side of town. All in all, we must really tune in to our buyers responses and body language as well to get a true bead on what it is that pleases them. At the end of the day, all we want to do is identify the right property for our clients!

For Coastal Property Insurance, is it really a Buyer’s Market?

2008-03-11T10:47:18Z

Since the dreadful 2004 hurricane season of Florida and then Katrina of 2005, the insurance industry has drawn in the reins for coverage in coastal areas. Sadly, the insurance companies draw a line down the coast from Maine to Mexico. Unfortunately, that puts people in coastal Georgia in the same boat as the homeowners of South Florida and the Gulf Coast. Those areas have an established history of many hurricanes; however, coastal Georgia has not had a serious category 3 hurricane in over 108 years!

St. Simons Island resident and GA State House Majority Leader Jerry Keen is calling for a study on coastal insurance to hopefully make new home buyers have an easier time with more choices in obtaining coverage for their homes. I definitely agree with Representative Keen and hope he succeeds in this endeavor!

Lots of inventory and very audacious offers!

2008-03-04T08:43:23Z

We track the local sales and new listings in our local MLS system on a weekly basis. I would speculate that we are not alone with the plethora of inventory available for buyers to consider. Last week in the residential category alone (not lots or commercial properties) we had 1776 properties on the market. Since the 1^st of the year or 9 weeks, 166 property transactions had closed out in our MLS system. At that rate of closings, we have about 2 years of inventory currently to absorb without more new listings coming up for sale.

We have had a rash of buyers submitting absurdly low offers which had no chance of acceptance. Certainly buyers are sitting in the proverbial catbird seat and I am glad I customarily work with more buyers than sellers!

NO MORE WHINING FROM ME!

2008-02-25T11:13:14Z

Our local newspaper, The Brunswick News, had an article announcing a concert at a local church in the area. The piano concert featured an artist named Brian Arnold. You may be thinking "Well that's nice, but what has a concert in Brunswick, GA., got to do with me?" My answer is simply to be inspired and motivated to get on with whatever you endeavor to do. This gentleman's music career is absolutely amazing in that at age 6 he lost his leg in a freak accident and his mother bought him a piano to entertain him. He took to the piano like a duck to water and later began traveling across the Missouri region for concerts and gatherings. But in his early 20's a 2^nd terrible tragedy hit him, literally in the form of an 18-wheeler head-on. Arnold broke his neck and his left arm was left paralyzed. After recovering from the accident, he taught himself to play the piano with just one hand. The article said he has opened for nationally known acts like Tanya Tucker, Loretta Lynn, Tammy Wynette, Ray Stevens and Roy Clark.

After reading about Brian Arnold, I thought what in the world is anyone doing accepting self-pitying thoughts on a soft market, or too much competition or any other negative reasons why we can't be successful? I hope this young man's story gives you a shot in the arm like it gave me!

If you'd care to see him play, I've attached a link to You Tube below:

http://brianarnold.net/concert-video.html

What Incentives work best to get agents to attend Open Houses?

2008-02-18T09:16:14Z

In our trade area, realtor open houses are customarily held on Wednesdays on the Mainland and on Thursdays on the Island. People try all sorts of schemes to "lure" other realtors to come by and view the properties, such as lunch, door prizes, cash drawings and other enticements. I've always thought it was quite ironic that we go to such a lot of trouble for realtor open houses, but not so for open houses for the public.

Just last Thursday, we had a hot luncheon at one of my listings at an oceanfront condo and did actually get around 14 people to come by. Thankfully, mortgage bankers are willing to sponsor the expense and we just hope for a successful turnout to warrant the effort.

I'm simply curious if you have the same situation in your area and if anyone has any new and innovative ways to achieve traffic?