Sellers think their homes are worth more than their real estate professional recommends, and buyers think these same homes are worth less.
It’s a difficult disconnect that makes selling properties a challenge. Successfully marketing a home requires that the price be set carefully -- or it will languish on the market. Among the considerations:
1. How many homes are for sale in the neighborhood? The more homes on the market, the more important it is to list at the lower end of the scale. "I want buyers to ask why is this house priced so competitively," said NAR President-elect Ron Phipps of Phipps Realty in Warwick, R.I. "I want the answer to be an offer."
2. Take short sales and foreclosures into consideration when pricing. If the competing properties are in lousy condition, they are less of an issue, but if they are well taken care of, yet priced 25 percent below market, they can be a serious factor.
3. Negotiate decisively. "Buyers are not interested in back-and-forth negotiations these days," Phipps said. "They are less emotional and more disciplined. They will walk away."
4. Cut the price when you have to. If no one shows up for an open house, if no one calls and if there are no offers, then the price is too high. That means it's time to make a meaningful price cut.
Source: The Washington Post, Associated Press (09/18/2010)
Monday, September 20, 2010
Monday, September 13, 2010
Wave of Foreclosure Sales Could Hurt Prices
Uh-oh...More foreclosures could move onto the market as borrowers fall out of the government's loan-modification program. That, coupled with weak demand, could lead to lower home prices across the board, suggests an article in the The Wall Street Journal.
Over the past two years, the pattern has become clear: the more homes that are being sold by lenders, the faster prices will fall. Ivy Zelman, CEO of research firm Zelman & Associates, says that distressed sales could account for 50 percent of properties sold by the end of the year – unless conventional sales recover.
Neither she nor Glenn Kelman, CEO of Redfin Corp., believe that there will be massive declines in prices because homes are already undervalued in many areas, but Kelman suggests that the decline could be 5 percent to 10 percent.
Should the government intervene again? Susan Wachter, professor of real estate at the University of Pennsylvania’s Wharton School, says that could be necessary if the bank sales trigger a downward spiral, "where price declines are feeding further price declines.”
Source: The Wall Street Journal, Nick Timiraos (09/13/2010)
Watch for more news in my blog later in the week regarding sales in Will County!
Over the past two years, the pattern has become clear: the more homes that are being sold by lenders, the faster prices will fall. Ivy Zelman, CEO of research firm Zelman & Associates, says that distressed sales could account for 50 percent of properties sold by the end of the year – unless conventional sales recover.
Neither she nor Glenn Kelman, CEO of Redfin Corp., believe that there will be massive declines in prices because homes are already undervalued in many areas, but Kelman suggests that the decline could be 5 percent to 10 percent.
Should the government intervene again? Susan Wachter, professor of real estate at the University of Pennsylvania’s Wharton School, says that could be necessary if the bank sales trigger a downward spiral, "where price declines are feeding further price declines.”
Source: The Wall Street Journal, Nick Timiraos (09/13/2010)
Watch for more news in my blog later in the week regarding sales in Will County!
54 Million Dollar Mortgage for Tiger Woods
And you thought your mortgage was big! In the week since his divorce was finalized, Tiger Woods has made a new commitment that will make your head spin (it did mine!). According to TMZ, Tiger just signed on to a $54 million home loan to fund the construction on his Jupiter Island mega-mansion.
By my (very) rough math, the payment on a $54 million loan is somewhere in the $300,000/month range. Makes your mortgage seem much more reasonable, now, doesn't it?
If you want to see the homes of some of his new neighbors : http://www.trulia.com/for_sale/Jupiter,FL/price;d_sort/
By my (very) rough math, the payment on a $54 million loan is somewhere in the $300,000/month range. Makes your mortgage seem much more reasonable, now, doesn't it?
If you want to see the homes of some of his new neighbors : http://www.trulia.com/for_sale/Jupiter,FL/price;d_sort/
Wednesday, September 1, 2010
Looking for a Home-Remodeling Contractor?
Anyone looking for contractor recommendations should check out FranklinReport.com, which compiles customer comments, or Angieslist.com, which charges $5 per month and uses credit card info to prevent multiple reviews from the same person.
If you find a contractor who looks reliable, before hiring him, do a background check. Credit bureau Experian runs Contractorcheck.com, charging $13 for a full report.
Seeking face-to-face personal recommendations is also a good idea.
Source: Money Magazine, Josh Garskof (08/27/2010)
If you find a contractor who looks reliable, before hiring him, do a background check. Credit bureau Experian runs Contractorcheck.com, charging $13 for a full report.
Seeking face-to-face personal recommendations is also a good idea.
Source: Money Magazine, Josh Garskof (08/27/2010)
Monday, August 9, 2010
Hawks Player Buys Chicago Condo
Last week Chicago Blackhawks right winger Marian Hossa paid $2.35 million for a three-bedroom, 3,940-square-foot condo unit in a Streeterville high-rise. Just in case you weren’t aware of some of the juicy details…last summer, the NHL veteran Hossa, 31, joined the Blackhawks when he signed a 12-year $62.8 million contract. Some fabulous features in Hossa's new condo include 3 1/2 baths, home theater and views of the skyline, Lake Michigan and a nearby park. Cherry hardwood floors, Swarovski light fixtures, a gourmet kitchen with Miele appliances. The master has a steam shower, custom vanities and heated onyx floors. Nice! Listed briefly in 2008 for $3.19 million and then for $2.95 million, the condo returned to the market last August for $2.95 million and was reduced to $2.85 million in January. The seller, who had purchased the unit from the building's developer, gave it $240,000 in upgrades. (Reported last week by Bob Goldsborough, Special to the Tribune).
We Blackhawk fans are happy to see Marion Hossa purchasing some Chicagoland Real Estate and making his home in Chicago! Can’t wait for the season to begin … Thursday night October 7, 2010 versus the Colorado Avalanche 9pm! http://blackhawks.nhl.com/club/schedule.htm
We Blackhawk fans are happy to see Marion Hossa purchasing some Chicagoland Real Estate and making his home in Chicago! Can’t wait for the season to begin … Thursday night October 7, 2010 versus the Colorado Avalanche 9pm! http://blackhawks.nhl.com/club/schedule.htm
Friday, August 6, 2010
JD Power Survey Ranks PRUDENTIAL #1 with Sellers!
“Among both home buyers and home sellers, the importance of agents and salespersons has increased
substantially in 2010, compared with 2009,” said Jim Howland, senior director of the real estate and construction
practice at J.D. Power and Associates. “Buyers are increasingly relying upon negotiating skills of agents and seem
to be satisfied with the purchase prices they are obtaining. Despite the fact that selling agents appear to be doing a
good job of negotiating and marketing on behalf of home sellers, the tough economic conditions are negatively
impacting their overall satisfaction with real estate companies.”
In the home-buyer segment, Keller Williams ranks highest for a third consecutive year, with a score of 817 on a
1,000-point scale. Keller Williams performs particularly well in the agent and office factors. Following in the
rankings are Prudential (811) and Coldwell Banker (805). Prudential performs well in the additional services
category.
Among home sellers, Prudential ranks highest with a score of 760 and performs particularly well in the marketing
and agent factors. Prudential is the only company to improve in home-seller satisfaction in 2010, compared with
2009. Following Prudential in the rankings are Keller Williams (751) and RE/MAX (744). Keller Williams
performs particularly well in the office factor.
The study finds that fewer than one-half of home buyers and sellers indicate their agent asked them to provide a
referral or recommendation to a friend or family member.
“Positive recommendations are a critically important driver of new business for agents, and there is ample
opportunity for improvement in this area,” said Howland. “Particularly during tough times in the real estate
market, asking for referrals and recommendations should be considered an essential part of doing business.”
substantially in 2010, compared with 2009,” said Jim Howland, senior director of the real estate and construction
practice at J.D. Power and Associates. “Buyers are increasingly relying upon negotiating skills of agents and seem
to be satisfied with the purchase prices they are obtaining. Despite the fact that selling agents appear to be doing a
good job of negotiating and marketing on behalf of home sellers, the tough economic conditions are negatively
impacting their overall satisfaction with real estate companies.”
In the home-buyer segment, Keller Williams ranks highest for a third consecutive year, with a score of 817 on a
1,000-point scale. Keller Williams performs particularly well in the agent and office factors. Following in the
rankings are Prudential (811) and Coldwell Banker (805). Prudential performs well in the additional services
category.
Among home sellers, Prudential ranks highest with a score of 760 and performs particularly well in the marketing
and agent factors. Prudential is the only company to improve in home-seller satisfaction in 2010, compared with
2009. Following Prudential in the rankings are Keller Williams (751) and RE/MAX (744). Keller Williams
performs particularly well in the office factor.
The study finds that fewer than one-half of home buyers and sellers indicate their agent asked them to provide a
referral or recommendation to a friend or family member.
“Positive recommendations are a critically important driver of new business for agents, and there is ample
opportunity for improvement in this area,” said Howland. “Particularly during tough times in the real estate
market, asking for referrals and recommendations should be considered an essential part of doing business.”
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