I am starting this blog, to hopefully bring trends that may interest agents, buyers and sellers in this 2nd quarter real estate market of 2008. The perception presently in this local market place is that it may not be a great time to buy real estate. The reality is, it is always a great time to buy good real estate.
I plan to post trends and facts that do not hid the challenges in this market place, but show clearly that priced right Real Estate that is "not on the market but priced in the market are getting multiple offers and selling above asking price. In each community my office work's in, there are gaps and very little inventory in well located neighborhoods. Buyers are so reluctant and most of the starter buyers that "free up the Trade up clients, are simply "shopped out". Credit tight, confidence down and paying monthly bills have strapped lots of them.
However there are sales happing each and every day, and buyers who qualify and are motivated towards home ownership and willing to pay premium price for a well located home. And they will get financing. Many buyers understand clearly that a home is a place to live not a stock market investment;
Lenders are not as willing to lend as they want buyers to spend no more than 28 percent of their gross monthly income on mortgage payments, real estate taxes, and home insurance. Buyers shouldn't count on stretching further because lenders won't approve their loans.
For all involved in the Real Estate business this next quarter will require focus, careful consultation of clients and an extra cup of strength as the housing bubble tightens its grip and agents face to little buyers, unreasonable pricing expectations of sellers, and the sub-prime fallout, being driven down even further by loss mitigation officers who do not listen to common sense.
April 6th 2008---springtime in Real Estate. Rainy and grey days do not help with sales. This week many offers have been taken. And lots of activity noticed in new home sites, (but there is just not enough product up to see and touch by these buyers in New Homes.) Activity is good on homes in well located neighborhoods, and subdivisions. And Properly priced homes are selling. Homes that have modern floor plans and have been kept in perfect shape inside and outside. The buyers are bidding on those homes. The cozy Bungalow, the high priced custom built Colonial.
The reluctant buyer is Shying away from the homes that just do not have curb appeal or have the perception they will need to meet a lot of contractors, to make the home the way they want it. Sorry, but lots of buyers are both working jobs to make ends meet and are to busy to pick up the hammer or paint brush anymore.
Seems to me, that In the minds of the buyers with low rates and prices dropping, urgency has to be created by the price of the listing offered and the move in condition of the home.
Price sets the pace of attraction of value with buyers in this market. And condition and location is what gives them the resolve to make the plunge.
But as always The Agent who is Marketing and his or her skill set has a lot to do with having the home picked by the buyer as "one to view."
MLS LISTING REMARKS are the best ad an agent can have, since 80% of the buyers are already working the intranet and working with a Broker. Make your sellers home stand out.
Here are a few "Tips"
Never forget that Posted MLS remarks are your best ad! And like all classified ads it should have a catchy headline,
EASE THE SQUEEZE, Embassy size colonial offers 3000 square feet of modern, bright magnificent living space.
Stop Foreclosure and walk with ease into Equity.
Let your tenants build your wealth, call today and see what it takes to qualify with this west side unique well maintained Three Family.
Retire in style in this special 3 bedroom affordable and sparkling maintained Ranch. A hint of elegance, muted elegance, Builder Fresh, Young and Beautiful, A sparkling rendition of country classic.
Attention Skeptics, Nature is your decorator, Privacy prevails, Wild Neighbors (birds, chipmunks and Deer) Run WITH YOUR NEIGHBORS WIFE, in this over 55 active community, jogging, swim and tennis to just name a few activities offered.
The body of the ad should say what the home will do for the buyer! "You'll enjoy the spaciousness and classic comfort of";" You'll never look back" list its best special features, sunlit, maple kitchen with breakfast Island. Drift away in your 3 season sun porch. Entertain friends with pride at cookouts on oversized polished mahogany wrap around deck, finished lower level may be your office or favorite relaxing spot.. And always give location," Chestnut Knoll Setting < Easton: number of bedrooms, number of rooms.
Next task in attracting buyers, are the photos used in a property listing. Take lots of them and like the show Top Model only pick the best of the best shots. Use light, a wide angle lens, and seek any photos the owner may have that reflect the seasonal best features of the home, green lawns, swimming pool shots etc. Shrubs in bloom. Its marketing folks and marketing at glossy best in today's environment. Finally; I myself can not wait to have the perfect selling setting to do more home sales and I think of that wonderful Beatle song, "Here comes the sun."
April 10 2008 End of another good week, good inventory selling, lots of sellers on the fence with selling now or waiting, and buyers feeling that the better homes priced right do sell and it is sort of competitive out there in the market to find the "good located homes". OH but most frustrating is working with Banks who are soon to be sellers on many Short Sales issues, this week I have to say, Bankers you have to pull your head out of the sand. Half of the short sales have good buyers who are paying a fair price for the property in near foreclose situations.
And more than half of these Banks ignore the facts and let the foreclosure happen. Now it may be an easy decision to foreclose, easier than taking a property and saving it from going to auction, by having a higher ear towards empathy for your sellers and the buyers and agents. But what you do to the whole community is a crime.
By ignoring the short sale deal on the table, and foreclosing on the seller. What happens then, now we set the property on the very crowded market? Evict the former owner, and winterize the home, and lower the sale price which effect's downward the values on the whole of the neighborhood, in addition to making the home a distressed property in most cases.
Bankers Why not change your mind about all short sales, work them all out, keep the former owner in the house so at the closing one family trades the key and the deed to the home and the former owner lets the new family move in the home. Most times what the Bank officers tell me is, "they are just doing their job" Or "they have a Board of Directors to answer to." This is code for banks being short sighted and foolish and mean minded, thinking the whole world is that "REO" folder they are glancing at.
Sure they have many reasons for not doing the right thing. And lately Real Estate agents have heard them all. As time goes by, more and more Bankers are getting it done better, but there are still too many arrogant and short sighted loss mitigation bank workers with the wrong attitude and a negative mindset adding to the housing mess their former 101% goofy loans created in the first place. We in Brockton have now 700 vacant homes that have been foreclosed and most had a potential homeowner who would have bought the home before foreclosure. Best Banker Line of the week, "We are only protecting our position." "You're Position"? Have some empathy will you guys, have a vision of the community your bank was working in will you please? Get this fact that changing one's mindset is a great sign of character, start listening and stop boarding up the windows of homes. That is my rant this week; while the Government spends more time on Federal bailouts of these blinded by the righteous make your own rule book lenders. The loss mangers of these banks should work as fast as the buyers who want to buy, want to own that home. Put a little more get up in your get up and get up to speed with our market place reality.
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