"Del"Mesha Swain's (dswain) Blog

"WALKING AWAY" IS A MAJOR TREND---LET'S NOT PUT OUR HEADS IN THE SAND!

"Del"Mesha Swain, SFR (Century 21 Choice Realtors & Auctioneers) — Mon, 10 May 2010 16:46:42 -0700

I saw the 60 minute special regarding foreclosure and felt that this post was a must and contains so many things to discuss. I decided to comment on the "Original" condition home. Coming from a hometown where people live in their homes for 2-3 generations I am the product of an "original" home family and we are looking to sell soon. I just discussed the pros and cons with my mother today who currently resides there. We discussed the "upgrades" that we will be competing against in todays market and how it can affect market pricing. But we cannot ignore the unique features of the "original" homes. These unique features, great potential homes are going to require a unique, creative, vision directed buyer. Many older homeowners who are in these "original" homes are ready to shed the maintenance expenses.IF YOU WATCHED 60 MINUTES LAST NIGHT ON CBS, YOU TOO CAN SEE THE WRITING ON THE WALL! Homeowners are considering walking away from "underwater" homes---and they are doing it in great numbers. These are not your "subprime" mortgage foreclosure---they are average homeowners who have been making payments and CAN AFFORD to keep paying! They choose to move on because they do not see a future in their homes!!! FALLING HOME VALUES. This is still A REAL ISSUE TO CONSIDER......prices are still falling , and may fall further! Let's not put our heads in the sand---we need to act now! With attention on the seriously underwater middle class homeowners, walking away from their obligations, we now have another possible situation that will cut into the already lower home prices. Falling home values have not stopped--they may have slowed somewhat in certain markets, but prices are still coming down! With foreclosures still a factor and short sales increasing each month, we need to take a long hard look at what we need to do in order to prevent further erosion in the housing market....What we DO have in our favor are BUYERS!...People are looking to buy in this market because of percieved value, Perhaps for the first time in a decade! There is no way to say how far home values will fall; we can look at prices as closings happen or we can look back on a 3 month time period to try to catch the trend for the next 3 months. None of this information is usable, however, because the actual price where a property trades appears to be based on the homeowners situation, not on any market trend. No longer can we use 1 year or even 6 months as a criteria for pricing homes So, given the fact that we are not able to price properties based on a trend, it is now essential to know the motivation of the seller in more detail than in the past---How do we measure home values NOW? How do we determine the real price of a property in a market where the homeowner, desperate perhaps, needs to sell fast? Measuring home values in this market is like measuring a moving target....we can be very wrong very easily and the homeowner who is more vulnerable then ever before, can easily become the victim of a distorted sense of home values if we use our former ways of pricing. LET'S NOT PUT OUR HEADS IN THE SAND ABOUT VALUES AND LOSE PRECIOUS TIME IN THE PROCESS! One thing that I have noticed here in the Hamptons is that the "new builds" are selling quite quickly and they are selling at prices that were "set" before the downturn--in other words, at the highs of the market in '07-'08! Builders are more optimistic than I have seen them in a very long time; they are able to buy up properties in ideal locations for 1/2 the price they would have paid in '07-'08 and they are tearing down and building new homes that appeal to a "new" buyer. This new buyer has money and has been waiting to buy a new home in a great location....and the builders are making hay while the sun shines! MEASURING VALUES IN A VERY DIFFERENT HOUSING MARKET: The challenges that we face going forward in measuring the true value of a home is going to cripple the housing market unless we fully understand the motivation of both the buyer and the seller. I have the sense that if we go about doing the same things we did in the past with prices, we will find ourselves in a very bad, longer term crisis than is now projected. PROPER PRICING MAY BE THE ONE THING THAT IS PROPPING UP THE HOUSING MARKET!! IN my opinion, there are 4 definitive categories that we need to focus on when pricing properly in this very precarious time. I have broken them down with pricing strategies by category so you can see the importance of giving each property the best chance to sell quickly: 1."Original" condition homes: those homes that may be coming on the market for the first time in it's history. These homes are usually 25 years old or older and need major work to bring them up to date. Because the pluming and electric is old, the appliances and fixtures are out of date, this property needs to be priced to allow for replacement of these things---save time and money by pricing this house to motivate buyers to want to buy it...maybe even list the approximate costs of replacement. These homes need to be priced at the lowest level possible, based upon mostc recent sales and in-contracts of similar homes in a given area. Emotion is a major factor in additon to price when a buyer is looking at this category. 2."Good" condition homes: those homes that have been well maintained and may have been recently renovated but are 10 years or older. Here, the home has much to offer in terms of less work to do but again, offering the approximate costs of anything that needs to be re-placed will help to motivate the buyer who wants the charm of an "older home". Proper Pricing is critical in this situation because a buyer knows that he/she will have to do work to make it like their own and is looking to have a good reason to buy it. The price will make the difference here; emotion willl be less of a factor. 3."Prime" condition homes: these are the houses that we may have considered "like new" or "mint" condition and are no more than 10 years old, have been very well maintained and are up brought up to date on appliances and baths. This category of home is surprisingly easy to sell to the buyer who wants to move in and not have to do any work what-so-ever. Emotion will be a major factor and a good price will be the cherry on the top of a great "buy" 4."New build": is new and has never been lived in....generally no more than a year old. This is a category that took a big "hit" during the downturn; prices could not go low enough for the buyers of those houses! Motivation to sell became a sheer need to sell; builders were making deals that were hard to say "no" to. Because the "new builds" of yesterday ('07-'09) were going up in less than prime locations, they sat! What is that old saying: "LOCATION, LOCATION, LOCATION"....well it is still the key to selling a brand new home! Top dollar can be the result when a new home is in a desirable location. With the additional factor of "walk aways" on top of the lost value through forelosure, we have an obligation to be at the top of our game when it comes to pricing homes in this market. LET'S NOT MAKE THE SAME OLD MISTAKES WITH PRICES THAT WE HAVE IN THE PAST!!! LET'S NOT PUT OUR HEADS IN THE SAND WHEN IT COMES TO THIS ISSUE--OUR LIVELY-HOODS DEPEND ON IT!Paula I. Hathaway, LBA, Prudential Douglas Elliman Top Producer, Diamond , Gold and Chairman's Circle Awards

Appreciating The Crossroads

"Del"Mesha Swain, SFR (Century 21 Choice Realtors & Auctioneers) — Thu, 06 May 2010 07:16:22 -0700

As life goes on the more and more I appreciate the crossroads. Did I ever think that I would get to a point where I welcomed the tough times or better yet knew what the tough times were. No....I didn't have a clue when my parents were saying "you are going to appreciate this later". Well Mom, Dad I do! In my business and personal journey I have had the pleasure of meeting many people and it hasn't stopped yet. When I entered the real estate business I knew that I would be able to pull together all of my businesses, experiences and passions in to one big ball. As I was opening various business (and all successful I might add) no one really knew how I could make so much out of so little each and every time. To be honest I didn't even know how I was doing it and I still don't but the difference is that I have learned not to try to explain it. Well here I am again, putting my all into my passion and drawing from my gift. Before I could explain short sales I knew that was what I wanted to do but didn't know how in the world to get to "the crosssroad". Well I am here and it is great. Now I turn off of the straight path and onto the journey of short sales where I am already feeling the fire inside of me. This past weekend I met more realtors from different states and people going through the short sales precess who didn't mind talking about it. Unlike how they feel when they are going throuth the foreclosure process. More and more confirmation that I found my niche. Ah....short sales....real estate....helping people! A dream career move for a speech language therapist who had a successful family and children's services business and short sales/real estate knowledge. Appreciating The Crossroads is a decision. Those of you who think there is no answer well there is and letting me help with keeping your pride and dignity is what I do. Call me for short sales!

Prepare Your Home For The Market or Take A Hit On Your Asking Price

"Del"Mesha Swain, SFR (Century 21 Choice Realtors & Auctioneers) — Tue, 04 May 2010 12:58:37 -0700

As a Realtor you want to get a listing but so many seller's homes are not ready for the market. Sellers don't realize that in order to get a home ready to sell it takes some preparation If they don't have the money to do all that is needed in a short period of time they have to start the preparation time early sometimes up to a year before they plan to sell. The things needed can be expensive and if left unrepaired the seller better be prepared for the buyer to use it as a bargaining tool. Here are just a few things that a seller should think about: 1. Get a home inspection by a professional. This can give you insight into what might be a serious potential problem and can keep you from the closing table. In the event that something is found you can make the repair and avoid the issue later. Roofs and other high priced items can be planned for so that you can replace them or know that someone will use it to bring your asking price down. 2. De-Clutter and Clean: We all love our children and loved ones but those pictures are for our benefit not for the buyers so put away the 100's of pictures that line the walls, table tops, and bedroom dressers. Large kitchen appliances that clutter kitchen countertops, children's shoes that line the wall or shelves in their room, potatoe chips on top of the frig. Clean shower stalls and corners so that they are free and clear of mold and mildew and the hair in the corners of the rooms. If there is smoke or pet odors those scents hit the buyer sometimes before they walk through the door so you might want to smoke outside after you give your carpet, draperies, linen, etc a good cleaning. Deodorize, Deodorize to clear your home of odors. 3. Curb appeal does wonders! First impressions are lasting impressions they say. When buyers approach a home the first thing that they see is the outside of the house and how it compares to the other homes in the area. Make your home stand out and have a well groomed yard with trimmed shrubbery and trees, blooming flowers if it is spring and an clean and edged walkway area. If you have a pond or any type of water make sure that it is clean and blue coloring for ponds does wonders. If you are planning on selling your home even if not immediately but the next 2-3 years don't wait consult with a Realtor so that you can be ready. If you need help and guidance contact me and I will work closely with you so that you can sit high above the rest when the time comes for you to sell your home.

Anyone Have ActiveRain Tips?

"Del"Mesha Swain, SFR (Century 21 Choice Realtors & Auctioneers) — Tue, 04 May 2010 10:30:38 -0700

I have been a member of ActiveRain since last year and have just upgraded my ActiveRain account. I plan to utilize this site to its fullest potential and would like for someone to let me know how ActiveRain has helped them and their business. Can anyone give me some good tips on using ActiveRain for my business and networking? Any information would be greatly appreciated.

Short Sales. It's all worth it! Or Is It?

"Del"Mesha Swain, SFR (Century 21 Choice Realtors & Auctioneers) — Tue, 04 May 2010 06:39:27 -0700

There is a lot of conversation going around about foreclosures that will soon hit the market. When you ask other realtors, brokers, bank administraters no one really has an answer. I have studied and been very attentive to the real estate market and what is and is not working. When I noticed that short sales just made sense I began to really concentrate my efforts on learning all that I could about short sales. In talking to homeowners who were going to lose their homes they really wanted some options. Many have been to the banks and negotiated refinancing but the bank has come up with terms that they could not meet so these homeowners really wanted help. Short sales is the way to assist homeowners when they really feel that they have no option and no where to go. I became short sales certified and WOW now I can make my desire to help people and my passion for real estate a total package. Homeowners don't have to feel helpless an option to foreclosure is to do a short sale. Does anyone have short sales stories to share?

Who's Moving To Ft Knox, Kentucky? Come On To Elizabethtown!

"Del"Mesha Swain, SFR (Century 21 Choice Realtors & Auctioneers) — Tue, 20 Apr 2010 12:28:24 -0700

This is an exciting time here at Fort Knox, Kentucky and just selling homes is not all that I do!! I am having the pleasure of meeting many families moving from St Louis to Ft. Knox Kentucky with HRC. The families being served and I have built some very meaningful and long lasting relationships and I look forward to serving them and the other families that they know through this relocation process. There are families who are very young (in relation to me), some slightly older families, newlyweds and some with babies and "babies on the way", teenagers, and grandparents moving with them. Friends who are communicating with them and providing them with much needed support while going through a life change such as relocation. I have heard families say everything from " someone told us not to move ...." or "it is better to live ... than ... and should I be afraid of crime over there." I must say my responses have been honest and open. as with any city and when trying to decide where you should live it is a big question of "Where do you feel comfortable?" Of course, there is crime everywhere but when driving to show homes in Elizabethtown, Radcliff, Vine Grove and surrounding areas a lot of the families are changing their initial perception because of what they might have been told before they began their search. Their comments are changing and a few have told me that "We will have to go back and tell them that they are wrong about that place." I can say that I am happy to be a part of changing these misconceptions because I believe in showing the entire picture of a place and letting the family make the choice. That makes everyone happy and brings smiles to their faces. There are homes with large yards, fences, fireplaces, basements, hardwood flooring, ponds, swimming pools, "men caves", family "kick about" rooms, workshops, newly constructed homes and some with that old fashioned flavor. If you are looking for it I am here to tell you that it can be found. Fort Knox is tucked in the beautiful mountains of Kentucky where you can find a smorgasbord of things going on. This week marks the beginning of the world famous Kentucky Derby and this past weekend was "Thunder Over Louisville" fireworks display. For the next two weeks the area will be buzzing with festivities that will appeal to all family members. So if you are planning to come to the Fort Knox area to do some house hunting this is a fun time to come!! Taste, feel, hear the Kentucky flavor!