Friday, December 6, 2013
Here is why. Not having this "Act" in place will mean that a property sold via a "Short Sale" (from which the bank approves a reduced amount to satisfy the loan amount due) will no longer relieve the individual home owner/seller of the tax responsibility for the remaining value of the house. Of course, no one wants to see property owners who have lost their home suffer any more of a financial hardship of thousands of dollars more.
For example, suppose a home with a mortgage of $150,000 is sold (after Jan. 1st) as a "Short Sale" for only $100,000, as approved by the bank holding the loan. Without the Mortgage Foreclosure Debt Forgiveness Act" in place, it will mean that the home owner would now be held responsible for taxes on the "remaining" $50,000. This could mean a tax bill of $10,000 to $15,000 for that "owner".
The positive in this, as I see it, is that this situation is likely to discourage the majority of short sale candidates from going this route. The fewer short sales there are, the better, since the biggest reason for the stall in the real estate market is the sales of distressed properties at unfair prices.
Not having short sales and foreclosures taking up a percentage of available listings in most cities will mean that "real" home sellers will be able to ask and receive realistic prices once again.
What kills me is that the National Association of Realtors President has actually spoken out against this Act ending. I suppose that is an "in the public eye" comment to appear not in support of higher tax bills for home sellers. But I don't get it.
The NAR is actually part of the housing problem, based on their members "accepting" short sale and foreclosure property sale prices as if they reflect on the value of area properties. These short sale and distressed property sales are really to satisfy a loan, and should not reflect upon home sale statistics. But they have for these past few years, and that has destroyed home sale prices.
With fewer and fewer short sales resulting, home prices will get back to reality sooner, and that is good for the majority of the people. Again, I don't like to see people get a hefty tax bill, but it should be them taking a financial hit ahead of millions of people losing money on their homes.
Under traditional IRS rules, the amount of that debt forgiveness would be taxable income.
That temporarily changed in 2007 when Congress passed the Mortgage Foreclosure Debt Forgiveness Act. That law is set to expire at year's end.
In a short sale, if a property with a $400,000 mortgage sells for $250,000, the forgiven debt of $150,000 will be taxed after Jan. 1. The hit could top $35,000.
Tuesday, December 3, 2013
It is another example of "what NOT to do", as advertised by an agent with a nationally known real estate company in the Seattle Times and on its web site.
The primary photo that shows is "1 of 10" photos, but is the only photo that shows up, and provides the all-important first impression. However, the only reason I looked at the other nine photos was because I knew this needs to be presented here.
The "first impression" photo is deadly. It shows a car parked in the driveway in front of one of three garage doors. First of all, it is NOT good practice to show a parked car on a property in a public forum, for security reasons among others. In this context, it makes a viewer wonder if there is room enough to park a car inside the garage.
Furthermore, the first two words of the primary description copy are "Modern townhome". Since the primary photo shows three garage doors (not to mention the car parked outside of one of them), a viewer is immediately confused as to whether the building shown is all ONE unit or if the townhome for sale is one unit within that building. Frankly, after reading the entire ad, I still don't know.
In addition, the description includes some confusing terminology. The first sentence is "Modern townhome with creative spaces and fantastic finishes". Huh?
The next sentence starts with "Enjoy radiant concrete flooring". So help me. Makes me wonder if the furniture is located behind the garage doors and that is why the car in the photo is parked outside. How many homes are you aware of with "concrete flooring" as a selling point?
A later sentence tells us that "The kitchen is a 'work horse' and features a gas range". Are you ready to offer the $295,000 asking price yet?
At the end of the description copy we are informed that this ad was "Updated: 10-02-13". The day I discovered this ad was 12-03-13, more than two months later. This means that nothing about this ad, or the asking price, has changed in more than two months.
Why is this so aggravating? Because I then clicked to see the remaining photos. And most of them are quite impressive.
That is why it is so important to have the primary photo enhance the description copy, and vice versa. A potential buyer is not given ANY solid reason to click to see more. Especially not with 29 other listings which came up within the same area and price range I had entered.
Had one of the good interior photos been used and the description copy been written more realistically, chances are pretty good this townhome would have been sold by now.
Friday, November 22, 2013
This afternoon I did a random search, via the web site of the Orange County Register, for a single family home priced in the $300,000 to $325,000 range.
The very first listing which appeared, at the top of my search (low price to high price) happened to be one at 3302 E. Radcliffe Ave. in Anaheim. My first impression was the exterior photo, which clearly showed TWO vehicles parked in the driveway.
Showing even one vehicle on the property is considered a huge "no no" within the real estate community, even before the heightened security concerns of the past fifteen years. Before looking any further, I had a reason to question the real estate agent and company representing this property.
But my concern did not stop there.
Right there, on the thumbnail for the listing, next to the photo with the two vehicles showing, was the detail, "Posted 276 days ago". Granted, it is not the fault of the realty agent that the length of time on the market is posted so prominently. However, this means that the agent has had literally NINE MONTHS to change the photo to not show any vehicles, but did not.
My next step was to click on this property to see what I could find out. And then I saw the "description copy":
"3 Bedrooms 2 Bath in a Residential neighborhood. Central Air & Heat.Close the freeways 91 & 57Minor repairs needed. Sold AS-IS"
Believe it or not, this home is shown as being listed through an agent with a nationally known real estate company.
Let's get this straight. The agent's first "fact" to present to a potential buyer is that the home is "in a Residential neighborhood". Please don't rush to your phone to contact the agent upon learning this. Oh my.
Perhaps he meant to say "close TO freeways...." in the next sentence, and is not asking that those highways be closed. But 276 days later???
This is all he can tell us about a home listed at $300,000?
Face it, even in a good real estate market, this home doesn't have a prayer of selling if this is how it is being advertised.
Frankly, it is bad enough that the seller of this home hasn't demanded a change in this so-called advertisement. But I also can't believe that other local realty agents have not stepped in either. If I was an investor looking for a "good deal" and didn't care where it came from, keep in mind that this home comes up FIRST on a search by price. How much incentive is this to continue looking down the row?
For that matter, out of ten homes which showed on the first property search page, not one of them had been on the market for less than 30 days. With ZERO urgency, there is no telling how long some of these properties will sit on the market.
And if they ever do, you had better believe it won't be anywhere near the $300,000+ asking prices.
Worse yet, this is due to poor advertising and marketing. Not the current real estate market.
Tuesday, October 22, 2013
This hearing, scheduled for Monday (10/28) at press time, could determine the short-term status of CSN Houston. Which, of course, would also play a role in determining its long-term status. The Astros are looking to get out from under their original deal with CSN Houston which was structured to provide significant income for the team, but has resulted in barely 40% of the local cable and satellite market being able to receive the games. On the other hand, the Rockets, whose regular season with star acquisition Dwight Howard begins next week, are looking for CSN Houston to continue based on a different revenue guarantee than the Astros deal has.
You can be sure that other pro teams will be watching this one closely. Teams such as the Dodgers and Rangers are getting ready to embark on similar huge long-term TV deals, while other teams are eyeing those while counting the days until they can begin negotiations. If the Astros, who were reportedly not paid millions due from the 2013 regular season contract, are forced to continue with CSN Houston and do not receive the multi-millions they were expecting, look for a ripple effect in "new" negotiations around the country as local and regional networks will be less likely to pull the trigger.
Given how much money sports and non-sports fans now pay for their cable and/or satellite TV, without new and even more inflated contracts in place, it will be interesting to see the fallout from this upcoming ruling, if it happens. There is, of course, the possibility of a postponement or continuation.
Meanwhile, ESPN/ABC has finally addressed its long standing (2 seasons) need to have a true host for its NBA studio programming surrounding game telecasts. Sage Steele has been named as the host of NBA Countdown on Fridays and Sundays, even though not yet for those Wednesday night telecasts ESPN provides. With the recently added Doug Collins, along with Jalen Rose and Bill Simmons, the studio will still be crowded with analysts wanting their air time, but at least having a host will hopefully restore order. Why Wednesdays nights are not including Steele is a bit of a mystery, although those nights also will not include Collins and the others. Instead, Doris Burke will be joined by Avery Johnson and Jalen Rose for the studio segments.
The start of the NBA season next week brings its fans four consecutive nights of national doubleheaders, even though a couple of teams will be shown multiple times at the start.
TNT starts with a special opening night doubleheader on Tuesday 10/29 (potentially against Game 6 of the World Series) with Chicago at Miami (including the Heat's championship ring ceremony) followed by the Los Angeles Lakers vs. Clippers. On Wednesday 10/30, NBA-TV airs a live doubleheader with Brooklyn at Cleveland followed by the Lakers (again) at Golden State. On Thursday 10/31, TNT airs a pair with New York at Chicago (again) followed by Golden State (again) at the L. A. Clippers (again). Then, on Friday 11/1, ESPN debuts its studio show with Sage Steele and Doug Collins with the fourth doubleheader in four nights. The opener has Miami (again) at Brooklyn (again), while the late game has the Lakers (3rd straight game) hosting San Antonio. NBA-TV already has single telecast scheduled for each of the following three nights.
ATLANTA: Braves radio remains in WCNN 680 as part of a multi-year renewal, with Jim Powell and Don Sutton remaining as the broadcast team. The games will be moving down the FM dial, with News 106.7 taking over the broadcasts, which had aired on Rock 100.5 since the 2010 season.
LOS ANGELES: With the Dodgers' new TV package set to start with the 2014 season, the play-by-play team has yet to be determined for the road games which Vin Scully does not call. Word is that Eric Collins and Steve Lyons have been dropped. Speculation includes Orel Hersheiser, whose contract with ESPN is up after the World Series ends.
CHARLOTTE: WFNZ 610 The Fan has let go of Brett Jensen about about three years with the station. The Fan has extended "Bustin' Loose with Frank Garcia" from 10 AM to 2 PM, and the afternoon show with Taylor Zarzour and Mark James from 2 to 6 PM weekdays.
MONTEREY CAL: Having those "contests" for a shift on a sports radio station are bad enough when they are for the Sunday overnight slot or some other "Who cares?" time slot, but this one takes the cake. KIDD 630 went as far as to hold on-air auditions with six finalists for a "possible" on-air slot with the station. When? From 3 PM to 5 PM on weekdays. I had to look at the calendar to be see how close this is to April 1st, but it's not. Maybe by the time it is, there will be a contest to audition for station manager.
Wednesday, October 16, 2013
However, where I do have a problem is how this became a "news" story and was actually reported by other networks and stations around the country. Say what?
I will grant you that at this moment in time I am not a News Director or Sports Director who is in charge of making decisions about what gets reported. But I will tell you that if I were at this moment, there is ZERO chance that I would tolerate any of the writers or reporters in my command to put a story on the air about Bob Costas' opinion. Whether I agree with it or not.
Of course, I understand that the recent outcry over the Redskins team name has been in the news of late. But a national sportscaster expressing his (or her) feelings about it is NOT news. If a station, network, web site, or publication wishes to "report" on this story, then do so by presenting facts about it and/or an opinion of someone directly involved.
This is far from the only time a TV or radio broadcaster has expressed what is merely an opinion and had it be treated as if it is newsworthy. Sports fans have had to put up with stories about things that Charles Barkley has said, among others. Although Barkley was a Hall of Fame caliber player, he, like Costas, is paid by at least one TV network to provide analysis, opinions, and related broadcasting duties.
Yet, other media, often networks competing for those same sports viewers, seem to treat such opinions and commentaries as if they are big news items. If the story being commented on is that big of a deal, then pick up the phone or grab the camera and get reaction from a team official or someone directly impacted by the subject.
Personally, I was not watching at halftime, and did not see the Costas commentary, since I had switched to the baseball playoff game. Yet, I heard about what Costas said from several different media sources, including local TV stations, within the 24 hours after. I should either have not known that Costas said anything, or at the most have seen something about it on an NBC or Comcast sports related web site.
While Sunday Night Football continues to deliver ratings for NBC, and NBC Sports Network is getting a boost from the start of the NHL regular season, it is otherwise quiet. The fact that both NBC Sports Network and CBS Sports Network were making a big deal about adding college hockey telecasts for this season reflects that. Although it is live programming instead of some of the hours of filler programming both networks have, I'm not seeing a demand for more college hockey at the national level.
Over at Fox Sports, it has been a mixed bag of late. Fox is doing very well with the exciting (as of press time) Red Sox vs. Tigers ALCS, including a ratings gain on Sunday (10/13) night, even going against Sunday Night Football on NBC. That telecast set a LCS ratings record for Fox in Detroit, which had a higher local rating than Boston. The early series ratings for Fox were up more than 20% across the board compared with their NLCS games last October.
However, Fox Sports 1 actually showed a game on Saturday (10/12) that was actually worthy of attracting a big audience, but failed to do so. The Oregon vs. Washington telecast, with the #2 team in the country against another ranked team, finished with a 1.3 overnight rating. In comparison, CBS (Florida vs. LSU), ESPN (Michigan - Penn State), and ABC (regional games including Clemson vs. BC and Northwestern vs. Wisconsin) all showed much higher ratings.
It was interesting that Fox Sports 1 did beat one other national telecast with this game. That was the Baylor vs. Kansas State game on Fox Sports, also seen over-the-air.
On the other hand, CBS reports that its SEC telecasts are, thus far into the season, averaging the highest ratings in 12 seasons.
CHICAGO: CSN Chicago has added another full-time anchor and reporter with the addition of Kelly Crull, formerly with Fox Sports San Diego.
WVMP ESPN 1000 will be airing at least 17 games of the University of Illinois Chicago's basketball games this season, with Dave Juday and former UIC player Ken Williams on the call. The station will air every game which does not conflict with its schedule of Chicago Bulls broadcasts and ESPN national games it carries.
CLEVELAND: WEWS-TV Channel 5 has added Kenny Roda to its football coverage effective immediately. Roda will participate on "Tailgate Saturday" Ohio State coverage, among other duties. He had recently lost his gig at WKNR after roughly 20 years there.
WKRK 92.3 has added T.J. Zuppe to its staff on what is reportedly a part-time basis. Zuppe had also previously worked for WKNR as well. Zuppe replaces Matt Loede, who had covered the Indians and Cavaliers beats this past season before being let go by the station last week.
LOS ANGELES: As Time Warner Cable gets set to begin its first season of Lakers telecasts under its expensive new package, the network is adding an all-star team of analysts. I'm not sure how having a total of FOUR analysts on the telecasts is not major overload, but James Worthy and Robert Horry will have even more company. Byron Scott and Luke Walton have been added to the on-air staff, with both added to the pre-game and post-game shows.
NEW ORLEANS: WWWL 1350 has dropped ESPN Radio and cut back on its sports programming. Although a local sports talk show is in the works for at least one weekday shift, the station has reduced to merely airing NBC Sports Radio for nights and overnight.
Tuesday, October 8, 2013
If ever there was a prime example, it is this ad for a home in the Montgomery AL area, listed at $199,000.
This advertisement, for a 4 bedroom 3 bath home, was one of SEVERAL shown at the same price as found via the Montgomery daily newspaper's statewide online network search.
I chose to look at this particular home, at 38 Travertine Dr in Pike Road, AL because of the primary photo being difficult to comprehend as a thumbnail.
When I opened up the full web page devoted to the property, I quickly understood why. The photo is taken from an angle looking DIRECTLY into the sun, making the upper portion of the photo too bright to see detail. Incredibly, the rest of the photo shows the home under construction, compete with the siding visible and what looks to be debris and supplies instead of a front lawn. There are NO other photos available.
Even more incredibly, the one paragraph description has NO mention that the home is not finished. Therefore, either the photo is way outdated, OR the advertiser left out an important piece of information if there is NO house at this point in time.
The description copy includes the phrase "This is a must see at only $199,900". A "must see" that anyone looking at the photo cannot see?
This advertisement goes on to invite viewers to come visit the model home for the builder, and gives an address on a different street without a city. And no directions or any indication of the community it is located in.
I'll say this again. This is not the only property shown on my search at this same price. The other advertisements I could have opened up all had photos of "real" homes with the promise of several photos.
Incredibly, the web site claimed that this page (for the home on Travertine) had been UPDATED on the very day I found this. Which means that someone, somehow, somewhere, actually approved to continue running it this way.
Sure. If this home doesn't sell, blame it on the housing market. Right?
Friday, September 27, 2013
This becomes an even bigger challenge when a listing is in or near a small town or community which often depends on luring in a buyer from out of area.
With this in mind, I decided to look for a current advertisement for a million dollar "plus" home in Bend, Oregon, which is a smaller community that I personally have never been to. Therefore, I would need to know something about the area as well as its "best" listings.
I went to the Bend Bulletin (local newspaper) web site and searched. Instead of my usual random pick of a listing, I decided to go for my "least" first impression and comment on that.
Out of ten listings that came up from my initial search, the home at 17062 Cooper Drive caught my attention above all of the others. Here is why.
The search page, even for homes at over $1,000,000, came up, like most, with one thumbnail photo and the first part of the description copy. In other words, it is intended to be (and NEEDS to be) the most flattering photo and most enticing description. With, in this instance, nine other homes to choose from, the first impression is of the utmost importance.
Keeping in mind that I did this search during September, I was amazed to find the photo of this listing showing snow on the ground and covering the home. I literally moved up closer to my computer screen and noticed that I could not see any shoveled or cleared path (not even a sidewalk) leading to the front steps of this home or to the snow covered porch. Incredibly, I could not see a garage or driveway! And this is for a home listed (at press time) for $,1395,000.
Thus, my first visual impression was a large home surrounded by snow, and this is September!
Next, I started reading the less than two sentences of the description next to this photo. And it begins by saying "This amazing 1.25 acre property has seven bedrooms......".
Let me add that one of the homes in the same area, listed at $1,499,000, which showed ABOVE this Cooper Drive estate, shows "A gated estate on 25.72 acres....." at the beginning of its thumbnail description.
Notice the significance of this first impression. I looked at this Cooper Drive thumbnail to see a photo of a snowbound home with seemingly no easy access, after having seen another property in the same general area with NO snow and with literally 24 MORE acres available for about $100,000 more.
If you were looking in the community of Bend for a property valued at near one and one-half million dollars (and it was September), which of those two properties would you gravitate toward?
Chances are you said the larger property.
This is my point. There is the importance of a first impression. One agent placed a flattering photo and started right off with the huge size of the lot and location within a gated community, while another uses a photo outdated by months and a poor comparison fact up at the beginning.
It didn't matter what else came after, because potential buyers are far less likely to click on the Cooper Drive home for more information. Again, chances are most of the potential buyers are from out of area, meaning that a couple of miles of location makes no difference. The street address means nothing, in this instance.
I did go ahead and click on the listing detail page. And I found that it gets worse for the seller. A big part of the description copy which followed touches upon the large deck and the hot tub. Below that, the first of the features of the property detail was "central air".
Normally, those factors are not a problem. Might even be important to a potential buyer. However, the only photo I have seen, to this point, shows the home as if it is snowbound. Hardly a fit for sitting on the deck or in the hot tub, let alone being concerned about the air conditioning.
What makes this more frustrating is that there are several additional photos available on the full page advertisement, and most of them are very flattering for the listing. Simply put, all this agent had to do (and should have done) was to pull the snow photo completely, and re-arrange the copy to highlight the features of the interior.
But since the listing agent did not do this, I'm afraid that the sellers on Cooper Drive will face the upcoming winter being snowed in at their unsold estate.
Tuesday, September 10, 2013
Among the many problems with how agents advertise properties is that the vast majority of property advertisements do little to nothing to combat the "competition". As a home seller, you should be making sure your agent knows how and why to distinguish your home from others nearby.
I found the ad for a home at 3803 Landlubber St. in Orlando by looking for the home with the most bedrooms in its price range, and then looking to see if or how the listing agent presents it. Usually all this type of search does is provide me with more ammunition for my book and for my clients. But not this time.
This advertised home has five bedrooms, more than any other Orlando home within the $10,000 price range I chose. While I will grant you that a city wide search brings a lot of different quality neighborhoods and communities into play, I also couldn't help but notice that this nice looking five bedroom home is priced at less than a 3-bedroom home which is a foreclosure.
Although the specific ad, which I found on HomeFinder via a search on the Orlando Sentinel web site, could use some improving (as do about 99% of them!), I'm considering this one to be a positive because of the first impression it provides.
Having just one photo of any property, especially when most other ads in the same city and price range have multiple photos easily available, is not a good thing. At least in this instance the photo used is a very flattering exterior shot showing a well maintained lawn and garden, driveway and attached garage, and a well painted and trimmed home. It did make me want to see more, even though it is frustrating not to be able to.
The description copy highlights facts which are "outside" of the home, such as the fenced pool, new a/c unit, corner lot, "A" list schools, and being near restaurants and shops. Those are all important and, in this case, positive facts, which, again, makes me want to find out more.
This description copy also includes mention that "This is not a short sale or foreclosure so there is a quick response to all offers".
Sticking with this copy for a moment, it is all positive. Chances are the potential buyer for a five-bedroom home has a big family. Having an attached garage, pool, a large lot, and being near "A" schools are likely important factors for initial consideration.
Pointing out the home is "not" a short sale or foreclosure is not always a necessary thing. But in this case, when it is priced among other homes, with FEWER bedrooms, in the same price range which are, this mention is a direct attack on "competition" properties in the same city.
That includes area homes whether short sale, foreclosure, or not. This ad is basically saying "You get at least one more bedroom and these benefits for the same price!". And I like this approach.
We can also tell that his home had been listed for exactly two weeks (as of the day this is written), unlike other area homes which have been listed for months.
It's good to see the listing agent presenting this listing with benefits against the other homes in the same price range, instead of on its own merit. You see, my search was for "2+" bedrooms, and this was the only five-bedroom home that came up within the $10,000 I selected. Obviously, anyone looking for a five-bedroom home in this area would also pull up this property. The fact that I wasn't but it came up and appears favorable against two, three, and four bedroom homes in the same city is a strong one.
Of course, this ad could use some improving upon. The fact that there are no interior photos and no mention of anything specific to a five-bedroom home does make me skeptical. I could not find anything about a basement and/or rec room, about the capabilities of the kitchen (where meals for a lot of people would be created), paint, carpet, closets, or storage.
Even though the lack of information about the interior is a glaring omission, I can just about let it go for this example for one important reason. There just might be enough here that if I really was looking to buy it might get me to contact the agent for more details. Of course, that agent had better be ready to promote the amenities inside, or I'd be on to the next property and another agent quite quickly.
A good start on how to sell against other homes in the area!
Tuesday, August 27, 2013
It's not hard to understand why. Let's review the advertisement. I found this property and this ad via random search through the Allentown Morning Call web site, which links to an outside web site for this ad for 2725 Saxon Street, now at $132,000 (as of press time).
The primary photo, always a key part of the first impression, shows a big tree in the front yard which blocks our view of part of the home. Although there is nothing wrong with a big tree in the yard for a lot of people, having it impede our initial view does not make much sense. Especially when you look further and realize that the home clearly sits on a hill.
Looking at the larger version of this photo, it is easy to see that the lawn is NOT well maintained, and that there is a path in the lawn from people walking across the grass to get to the front door. Already, it shows carelessness on the part of the seller, and that is not good either.
Before even reading the description copy, I went through the remainder of the photos. One of the additional exterior photos shows the back yard, and reveals an equally uncared for lawn. These exterior photos show a potential buyer that it will take a lot of work before walking inside. Not good.
But that's not all. The interior photos reveal that the home is empty. As a result, a potential buyer has no means to imagine what their furniture might look like inside, since they cannot grasp the size (or lack thereof) of an empty room. And it gets worse.
The photos of the basement make it difficult to determine whether the surface is a real floor or carpet. This shows a potential buyer that there could be plenty of upgrading to make the basement worthwhile, again, before learning more about the home.
Then, the photo of a bathroom reveals a two-tone room, with a light green paint job on half with white paint on the other half. By this time, I couldn't help but wonder if it was half a paint job to cover something else or what happened. However, the worst part of this photo (which, again, is supposed to help to sell this place) is that we can clearly see either a large dent or mark in the wall near the door handle that is not explained.
Next, it was on to the description. This is where the "sizzle" is supposed to be, and this home is listed through a reputable national realty firm.
So how does the copy begin? "Price reduction! Sellers are motivated! Welcome to your Home Sweet Home located at.....".
OK, I'll bite. If the sellers are "motivated", why didn't they leave at least some furniture in the photos to give a potential buyer an idea of what the house COULD look like? Why are they long gone?
Upon further reading, we learn that that the "newer" roof and water heater were both "installed in 2009". Newer?
We learn that the "refrigerator, washer, and dryer are all included". How about that? Appliances included within a home purchase!
And we learn about the "finished recreation room in the lower level", which I suppose is the basement photo I saw and couldn't even determine if it was ugly carpeting or bare floor in an empty room.
In addition, we are told that the price was recently reduced by $3,000, and the ad shows that it has been in place since April 2013, over four months ago.
Meanwhile, there were more than 20 more properties in the same general area priced within $10,000 of this one.
I simply do not see how a typical "buyer" would have any reason to pursue this property. Chances are that after four months, any local rehabber would have already looked into this home to see if it could be easily and affordably upgraded. But no takers.
How is a $3,000 price reduction going to attract anyone?
My point is that it doesn't matter how few or how many other area homes have sold in the past six months on and near Saxon Street. There is no reason for anyone to want this property (at least at this asking price) based on the way it is presented now. Again, the advertising and marketing is the problem.
Tuesday, August 13, 2013
Although neither report included comparisons to prices for these homes to prices prior to 2006, there are some positives with this information. It shows that there is reason to believe the Denver market is on the comeback trail.
However, as I continue to point out, more inventory means that each home for sale has more immediate and local competition. Thus, the need is still strong to properly advertise and promote each home for sale.
Trying this like a potential home buyer, I searched the site linked via the Denver Post (the largest local newspaper) in the $150,000 to $200,000 range for 2-bedroom single family homes in order starting with "lowest price".
I wasn't surprised with my finding, but am certainly disappointed. The very first house on the search (And how many agents would LOVE that placement?) merely served as another example of my point.
It was for a 3-bedroom home in Denver on Lowell Blvd. The primary photo not only showed a lawn in horrible condition (as much dirt as dead looking grass) but it turned out to be of the back yard. The "front view" photo also showed the terrible looking lawn and that there is (or did not appear to be) no garage, driveway, or on-property parking. The next photo showed the rear area with a mass of dirty concrete and a storage shed. Not one of these photos was flattering, to put it mildly.
Upon finally getting to the interior photos, we then see that the home is empty. In several photos, all we see is a dining room set, one chair, and the appliances. One of the photos shows what is either a basement or empty room with what is either concrete or horrible carpeting on there.
Simply put, not one of the photos (with the possible exception of a bathroom shot) adds any appeal to this property.
It took reading the description below to find out that two of the photos are to show the "new furnace", even though none of the photos reflect the "new carpeting" stated. We also then find out that there is a "rear driveway" for parking, even though this is not shown in any of the photos. We are also told that the sewer line "has been replaced".
Some of the next homes in my search had decent ads for them, but certainly not enough. If I was truly searching from out of area, I would probably have moved on after seeing that first ad, thinking if that was all $150,000 gets me I'd rather go elsewhere.
Just because the market conditions are better, it does not mean that an agent can be that careless about how a listing is advertised.
Tuesday, August 6, 2013
This ad is for a home up for Short Sale in a Chicago IL suburb. In this case, the "problem" is not with the incredibly short copy that tells little to nothing about the interior.
The problem is in one of the photos, and not from the angle of the picture. There is an interior photo (as of this writing) that clearly shows a date of May 2, 2010 on it. Granted, this could actually be a recent photo and the camera was not set to the proper date. Nonetheless, it gives the appearance of being an old and outdated photo. Someone could think that no one could sell this place for more than three years and be scared into looking elsewhere.
I simply can't believe that an agent would allow this to be published. For that matter, the seller is under a Short Sale and obviously wants to move on with his or her life as well. Why don't those involved double check every advertisement?
To make matters worse, this is how it appears on Realtor.com. It's not some out-of-the-way publication that only the advertisers actually read.
I have no idea how copy such as "Looks like a model" to accompany the potentially outdated photo is acceptable as a sales pitch either, but that's for another column.
Yet, many agents and those in the industry continue to go with prior home sales statistics and other factors as being the primary reason that certain homes don't sell. Look again:
Thursday, August 1, 2013
The Northeast Tennessee Association of Realtors went ahead and published statistics which show a decline in local home sales over an 11 county region for June 2013 compared with June 2012, with a sale price decline of more than $9,800. When comparing June 2013 with May 2013 the report showed a 5% decrease in sales.
A few hundred miles northeast, the Philadelphia Office of the Controller issued a report showing an 18.5% increase in area home sales for June 2013 when compared with June 2012. This report went on to list the most "popular" neighborhoods, which were South Philadelphia, Fishtown, and Fairmount.
Same time period, but with results at the opposite end of the spectrum. That tells me these are not "different" stories.
What this means is that it is only a select few neighborhoods and communities that are turning around in terms of sales and pricing.
The latest from Fairfax County (VA) over the same June-to-June period can also be interpreted any one of a number of ways. An agency report claims the number of homes "on the market" throughout the County dropped by more than 15% from June 2012 to June 2013. Yet, the same report shows that the median home price actually increased about 7.5% during that same time.
In this instance, fewer homes on the market is the most likely reason for the price increase. Thus, a possible buyer in that area now has less bargaining power by not being able to show as many lower priced "comps" available in the area. A long-term real estate investor is also less likely to find a bargain to keep until the market returns to past levels.
From a selling standpoint, if hundreds or home owners in Fairfax County now decide to list, it would mean a short-term decrease in the percentage of listings sold, and likely expand the average time that homes are on the market.
Potential buyers and potential sellers have different reasons and motiviations to enter the market. An investor likely sees a sales decrease over the course of a full year as a reason to look elsewhere. A potential "move-in" buyer sees that decline as a reason to come in with lower offers because he/she now knows that it is a tougher sale.
Put all of this together, and what these stories all combine to tell us is that the market is still very much uncertain. That's not how it is supposed to be done.
Thursday, July 25, 2013
One example of this is attracting a "commuter" to a home located within close proximity to a commuter train station. Before you attempt to sell, you should know how close your home is to a commuter train station, whether you personally use it or not.
With gas prices continuing to gouge consumers, a few dollars more in the mortgage could actually SAVE money to a commuter who drives a long distance each day. But that potential buyer won't know that if YOU don't point it out to them.
My long-time readers may recall my column a couple years back about Chicago area research showing a higher home price value of homes specifically located near the main commuter train line. On that same point, a similar column was recently published about proximity to the BART (Bay Area Rapid Transit) trains in the San Francisco Bay area, and its impact, especially right now due to the most recent transit strike.
Maxime Rieman of NerdWallet.com has provided us with an overview, which is reprinted with her permission:
Since we have readers from around the country, chances are the majority of you are not impacted by transit strikes such as the Bay Area is going through. The point here is the significance of selling a home with a "location location location" convenient to commuter transportation.
For those that do not live convenient to commuter trains or buses, information such as this means you should be ready to show potential buyers how other advantages and amenities your home provides would outweigh "commuting advantages".
Thursday, July 18, 2013
CoreLogic's "Renter Applicant Risk Index" shows a rise in rental applicant scores in terms of credit and "ability to meet lease obligations" among what it terms "prospective apartment renters" over the past year. In addition, the other significant finding from this report is that applicant incomes were up during the first quarter of 2013 compared with last year. (This report includes single family rentals as well as multi-family housing.)
As positive as this sounds, it seems odd that while the economy struggles and job uncertainty and availability has shown little to no change in most areas that more people are better qualified to rent. We need to explore why that is.
My theory is that too many people are afraid of buying a home in this market and plan to wait it out. Part of this is the fear of losing a job and factors not directly tied in to the real estate market. In addition, the days of merely sitting on a home and having the value increase are long gone. Until or unless they return, a percentage of people will be content to rent.
Many of those who fit into one or both of those categories currently have the funds to make a decent monthly payment, but do not wish to commit long term. Hence, the ability to rent for six months to one year and have the flexibility to buy if conditions improve.
Meanwhile, too many home owners who are not able to get what they need for their homes and thus cannot sell, are not interested in renting their homes as a means to get into another property.
This is why the research report COULD be good news. With so many more and qualified rental candidates out there, why can't more sellers offer a "rent to buy" situation for their home?
It will take the realty agents to come around to this way of thinking, and to this point I'm not seeing it. While it does delay a full commission to the agent, an agent having several "rent to buy" situations is setting up for a nice payday down the road even though much of the "work" will have already been done.
Hopefully instead of waiting for the realty association to publish statistics comparing home sales to past years (which is not a motivation for a potential buyer), they will begin to promote a "rent to buy" scenario as an option to get sellers out of their current property.
The fewer homes for sale there are at a given time, the better the chance that home prices will return to previous levels and again show promise of profit potential over the years.
By not doing so, and with the increase in "quality" rental candidates, chances are many current home owners looking to sell are losing out because qualified "buyers" are renting where they know there are availabilities instead.
That is why these renters statistics COULD be good news. But first, the potential renters need the additional choices that current home owners could give them!
Wednesday, July 10, 2013
The Philadelphia Housing Authority is ready to, for only the third time, allow for as many as 196 vacant homes (or residential lots) to be auctioned off. Winning bidders receive special benefits for handling the rehab work and are being given up to five years to resell.
The PHA has even allowed the auction company handling this to publish a map of each available property and encourage potential bidders to check out the property BEFORE bidding.
For a contractor which specializes in specific forms of rehab, this could literally be a gold mine, with as many as five days to scope out those properties which they could "fix" with the least amount of challenges for them.
Better yet, the Housing Authority has a link to all of the information, as well as providing links to the map of where these properties are:
If I were a home owner in Philly, I'd be checking back to see what nearby plots sold for after this auction, to see if my home could have more to offer, and faster, to a potential buyer for the area. Even if the sale price of a nearby "fixer" is much lower than years, if you can be in the ballpark with what currently exists, this could create a near future sale opportunity for you.
And if I were a realty agent in the area, I'd be on top of property values surrounding these homes to see where the best deals could be. It wouldn't hurt to alert investors who are clients. After all, they would be buying to sell off, and somebody needs to handle that transaction when the time comes.
Hopefully more cities will do this, instead of ignoring eyesore properties and not helping the real estate market at all.
Tuesday, July 9, 2013
Instead of waiting on home sales statistics to make some people believe the real estate market has rebounded, your time should be spent on checking local business news.
Here is another example, this time from Austin Texas. It seems a local investor partnership has just purchased the Vista Lago Apartments, located in the Lady Bird Lake area. This partnership immediately announced plans to renovate and then re-open the property, which currently contains 102 units.
I'm sure you are wanting to ask me what this information has to do with the local home sale market in Austin, or anywhere else for that matter. And I'm here to tell you it COULD have a lot to do with it.
Since most of you do not live or work in this area, here is why this answer could relate to your situation, whether you are a property owner or a real estate professional.
For the near future, the renovation of a 100+ unit apartment building will mean a lot of construction and contractor projects and jobs. In some cases, people prefer to move close to where jobs are or will be in order to save on commuting and be available as needed.
Upon completion of the renovation, this partnership will either sell the "new" building and get out or they will look to rent or sell the "new" units themselves. Either way, the owner of Vista Lago will be advertising for new residents for this area, and most likely at market value or higher for rentals in this "new" building.
If I was a home owner in that area, I would immediately spring into action. I would do my homework and research what apartment rents currently are for that area, especially the more upscale apartments or units. Once I come up with a number, I would compare it with my current mortgage and monthly costs. Next, compare that number with what your home has to offer, and see if or how it compares to what a new rental unit would fetch.
Keep in mind it might not be a direct comparison. (I'm making up these numbers for the sake of example, so please don't quote me.) Suppose you would expect a 2-bedroom unit to rent for $950 per month, but your 3-bedroom home with a garage and a private pool costs you $1,100 per month on your mortgage and other costs. I would contend you have something to offer.
Using that comparison, you could offer a "rent to buy" of your home, and be able to promote how "for only $150 per month additional, you get an additional full bedroom, additional enclosed parking, and your own pool to use when you want". Add in the "And you won't hear neighbors through the walls, be awakened by upstairs neighbors' footsteps......." and other selling points.
If I was a realty agent in that same area, I'd be doing this comparison with homes currently on the market (in an effort to attract buyers for buyer commissions) as well as for past clients who live in the area and might want to jump on such an opportunity.
There has to have been enough potential for that immediate area to attract an investment partnership into renovating a 102 unit building in order to profit from it. The sooner you can pounce on that potential, especially before the Vista Lago opportunity becomes available, the more chances you have to generate sales because of it.
You could have "rent to buy" options, which Vista Lago may not even be offering. You could have outright sale opportunities, perhaps being able to offer a potential renter the opportunity to buy for the same general amount.
Even if you don't live in Austin or in this area, the idea is there for you. The Vista Lago complex is certainly not the only large apartment complex to be purchased for renovation. The concept is to track down upcoming residential construction and renovation and see what you can provide to potential buyers or renters in comparison.
That would be far more productive than waiting for home sales statistics to inch your way.