Dave Kohl Real Estate Marketing Blog

Why Can't We Trust The Big Banks?

2012-01-26T15:33:00.003-06:00

Not only did the government bailout some larger banks by simply handing over millions of dollars and then not even making the banks accountable for it (since a percentage of it went for executive bonuses), but now more and more keeps coming out about the mess these banks have caused. And continue to cause:

http://www.reuters.com/article/2012/01/26/us-usa-housing-mortgage-reincarnation-idUSTRE80P0SJ20120126

However, those in the real estate community can't afford to sit back and wait and wait and wait to see if these banks, such as Bank of America, ever decide to get their act together.

Agents, mortgage brokers, and others who have regular contact with clients, should be alerting their current and potential clients about what can be done to keep on top of a home owner and potential home buyer's current mortgage situation.

If it were me, I would want my clients to know that I would help them to be certain that nothing like what is happening to the people profiled in the above linked article could happen to them. Then, I would make potential clients aware that I would be on the lookout for them.

Consumers need to start seeing that those within the industry are making an effort to improve current conditions regarding financing. Yet, a percentage of realty agents seem to forget about keeping in touch with past clients on matters such as this.

Paint the picture, if you are a realty agent. Suppose you do some digging, and find out a home owner is in trouble over an expired mortgage (such as happened in the article), and you alert your client and help him/her/them straighten the mess out. Can you imagine the referrals you would gain from that? Rather than imagine, start checking around.

Everyone needs to evaluate what bank or banks they do business with, mortgage or not. If the likes of Bank of America and Wells Fargo are struggling with 6 figure transactions, how much attention are they paying to your $5,000 checking account?

Bank of America Plaza Goes To Foreclosure

2012-01-17T20:15:00.003-06:00

It certainly seems as though the reporters are overlooking the irony of this story. It seems that Atlanta's "Bank of America Plaza" is up for foreclosure, and it is the tallest building in the city.

This would be newsworthy even it not named after a large bank. However, the fact that it IS named after this Bank is what makes this story so interesting:

http://www.ajc.com/business/bank-of-america-plaza-1299819.html

There are several questions not being answered in this as well as other articles I have read about this, sense of humor aside. If B of A has naming rights and is a prime tenant there, how and why is this building in this position?

Shouldn't this be B of A's responsibility to bail it out? After all, the government chose to give B of A a lot of money when it tried to bail out the banks (instead of repaying certain loans, but that's another story) a couple years ago. So how do we justify B of A not taking the lead on this one?

There are numerous tenants in that building without financial difficulties that will likely be forced to relocate at their own expense because of still another bank having financial difficulty.

Here's hoping that an investment group with deep pockets gets this building at a bargain price, and becomes B of A's landlord. Time for a significant rent increase!

Finish This First - Then Move Forward

2012-01-10T14:29:00.003-06:00

Moments after posting my comments about how the HARP program is delayed while the banks and local government officials continue to burn up hope for reviving the real estate industry, along comes this story:

http://blogs.palmbeachpost.com/realtime/2012/01/10/unemployed-borrowers-may-get-more-time-with-no-mortgage-payments/

The above linked article says that a new program is scheduled to begin within the next month that grants relief to the unemployed regarding their mortgages.

Don't think that some people in poor financial straits won't find an excuse to lose their jobs so they can skip out on mortgage payments. And to think this program could go through before the HARP program, which is designed to reward those who have faithfully made all of their mortgage payments on time but can't refinance because their homes have lost value.

This all leads to even more people who can't make their mortgage payments, are not able to sell their home, and are not able to financially qualify to purchase a home.

Shuffled Off By Buffalo

2012-01-10T14:19:00.001-06:00

I started off this new year with some hope that just maybe the real estate market would show signs of life. Yet, by January 10th, I'm already discouraged by what I'm reading. Even worse, those who are doing the discouraging are those who have the power to change the situation - but still are not.

First, the government. The literally millions of current homeowners who owe more on their current mortgages than their home is considered to be worth at the moment COULD be helped by the HARP (Home Affordable Refinance Program) which was supposed to have started in December. It is designed to enable many faithful homeowners who have made their mortgage payments on time and in full despite the decreased value of the property to be able to refinance at a lower rate. However, the word is that this program may not be ready to go until March while the technicalities continue to be reviewed.

Of course, I can understand that a thorough review is needed given the potential billions of dollars riding on this Program. However, I cannot understand why this review wasn't done prior to the HARP program being approved. If there are literally more than two months of worth of technicalities to be reviewed, why weren't they clarified by the government and banking officials prior to this? Design it first and THEN review it?

Perhaps government officials should read news stories such as this one:

http://www.delmarvanow.com/apps/pbcs.dll/article?AID=/20120108/NEWS01/201080303

(The above story is about how the reduction in property values is resulting in lower property
taxes in many areas and how it translates to lower tax revenues for local governments.)

Since the various levels of government supposedly need money almost as much as we as consumers do these days, you would think that government officials would be on top of something that figures to bring in millions of dollars and also stimulate this economy.

Second, there is the "news" that the realty agents keep talking about.

Once again, consumers are being bombarded with negative statistics about the real estate market. Home sales are down compared with prior months and years. This story with more of the same from Buffalo brings my point home:

http://www.buffalonews.com/business/article699629.ece

Frankly, this story is infuriating. "It's the bad economy" is one message. Home sales in 2011 were even worse than from 2010. If this news story was the result of an investigation of the marketplace by a reporter, at least we would know that it is a story with a local angle. Yet, this dose of negativity comes from the Realty Association, which is wholly supported by the area's real estate agents and offices. The same people who are supposed to be paid to SELL those houses.

Even worse, the Realty Association story further reflects the National Association of Realtors' comment that the housing market could be this "bad" for another two years. How does this help to sell homes?

Putting these stories all together, it means that government officials can't get their act together to enact a program that could stimulate the economy. If millions of homeowners can refinance at a lower rate, it significantly lowers the chances of foreclosure down the road. More importantly, many of those "saved" dollars each month would be put back into the economy in the form of retail sales, financial products, and possibly other investments. That could keep some retailers and businesses alive.

Instead, the government needs extra weeks to put their already approved mortgage plan into action? How does this happen?

On top of that, the realty agents who are supposed to be creating home sales are spending their finding negative statistics. Did someone apply force for these Associations to keep putting out the negative and discouraging statistics?

If the people in our government and within the real estate industry who could be making the difference aren't making a 100% effort, those of us who are stalled in our efforts and hampered financially by the current state of real estate need to put the pressure on.

More Negative Publicity For The Home Sales Market

2011-12-12T13:44:00.003-06:00

The National Association of Realtors needs to "revise" its home sales figures going back to 2007. Before you get any hope up, remember this is the same organization that seems to constantly flood the media with negative stats about home sales.

Yet, according to today's news, they have revisions. Now the NAR is showing everybody that home sales statistics are actually WORSE going back over 4 years:

http://www.dailyherald.com/article/20111212/business/111219962/

This story indicates that some sales "were counted twice" and adds that it has something to do with the reporting of the Census Bureau.

Sorry, but this story raises more questions than it answers. What on earth does the Census Bureau "reporting" have to do with actual home sales? How did it take four years for this to come out?

Those questions, of course, are in addition to the ones I have been raising for more than two years. I'd still like to know why the NAR continues to release negative home sales statistics at all. My understanding is that this organization represents thousands of realty agents who are in turn representing millions of people who have been looking to sell their home(s) during this market downturn.

Putting out information such as "worse than a year ago" has no bearing on someone's decision whether or not to purchase a home today. That has been bad enough. Now, we're supposed to look the other way when it is revealed that these statistics were not correct, and in fact should have been even worse.

Ouch.

How A Hospital Can Help Chicago Home Sales

2011-12-01T13:52:00.003-06:00

This "business" story about a hospital expansion and the jobs it will create is the type of news story which should attract the attention of savvy residential real estate agents as well as potential home sellers.

http://www.chicagotribune.com/business/breaking/chi-northwestern-memorial-hospital-to-create-jobs-20111201,0,3102625.story

Agents in the Chicago area should have their database to the point of being able to identify current and potential clients who could be interested in knowing about these potentially available jobs, and letting them know. For that matter, their entire database could be notified. People certainly remember where a solid employment lead comes from.

If I were considering or already trying to sell a home near that hospital that could fit the price range of construction workers and the other positions about to be created, I would get my agent working on making it known to the H.R. Department of that hospital within 24 hours.

Here's hoping that these ideas will be used for better marketing of real estate, instead of merely pumping out negative home price and sale statistics every couple of weeks.

Nashville Spins

2011-11-10T16:40:00.002-06:00

Here are still more examples of how much advertising and marketing contributes more to the decline of the real estate market than people realize.

Sorry to sound like a broken record, but the realty associations continue to put out statistics which do not have a positive impact. As sports fans can tell you, people can use certain statistics to make arguments for either side.

Nashville TN provides us with still another example. The Greater Nashville Assn. of Realtors released their latest monthly market statistics earlier this week. Keep in mind that the realty agents in the area are the ones who combine to financially support the Association. Yet, these statistics show a drop in home sales in the area for the 2nd month in a row.

The question should be asked. Why did the Association issue this information? The member agents don't benefit by current and potential sellers seeing that they have even less of a chance. I don't buy the argument that it encourages potential buyers to take advantage of all of the bargains out there. Instead, potential buyers from out of the area could think that the region has become less desireable.

The Nashville Tennesseean, the major newspaper there, added to the negative spin of this information:

http://www.tennessean.com/article/20111109/BUSINESS02/311090133/2047/BUSINESS

Yet, the local business publication took the SAME information, and put a slightly more positive spin on it:

http://nashvillepost.com/news/2011/11/9/october_marks_four_months_of_home_sales_growth

I'm sure that the Association intended their statistics to always have a positive spin such as the Post gave it. Come to think of it, the Post's article isn't totally positive either. It does show how two separate entities approached the same statistical information. Whether it should have been available to them or not.

Yet, these two articles are not advertising or marketing pieces. That's my other discovery this week.

It so happens that I use a mailbox store to receive a lot of my mail and also to receive packages during the day since I prefer not to have mail or packages left outside of my home. Of course, the junk mail also goes there, which is a good thing.

Earlier this week, I received a mailer from a local mortgage broker. Since I'm in contact with 200 to 300 mortgage offices and banks most every week, I was curious to see their angle. To my amazement, this lender's "letter" told me that they could get me a better deal for my home located at (address), even quoting an estimated amount of my mortgage.

What this mortgage broker didn't know is that the address in that mailer was for the mailbox place. There is no house at that address!

Of course, my industry colleagues are getting a good laugh about this as I spread the word about this lender's carelessness. However, if I were not an advertising and marketing professional in the business, I might well have considered that mailer as one more shady operator and a reason not to deal with mortgage brokers. Especially if I had recently read about how my local realty association promotes that fewer and fewer homes are selling in my area.

These realty agents and lenders seem to have nothing to talk about except for how awful the market is. Yet, next month is supposed to see the start of the Home Affordable Refinance Program. It could be huge break for the millions of home owners who are thousands of dollars underwater on their current mortgage, yet have made the payments and stayed faithful.

I know because it could impact me personally. I'm already on 2 "waiting lists" to be contacted the minute the plan becomes available to me. I might add that neither of those lenders are my previous mortgage broker, since he didn't contact me about this yet. From my conversations with banks and brokers each week, I know that some are planning to administer this program, while some aren't certain and some say they will not.

This HARP plan could save me and thousands of home owners thousands of dollars, and could very well keep numerous home owners from heading toward foreclosure over the years. This could be the most positive development in real estate in three years.

Yet, I'm one of the few writing about it, while realty associations continue to pump out the "nobody is buying" statistics and lenders continue to think that every address is a home with a mortgage.

Here's hoping that advertising, marketing, and news releases will appeal to 100% of the people next time around.

It Doesn't Snow In October

2011-10-13T15:54:00.004-05:00

Even in the Chicago area, it doesn't snow in October. Looks like I need to point that out to some realty offices in the area.

It so happened that I was doing some market research on some residential properties in a specific northern suburb of Chicago this afternoon. As part of that, I went onto Realtor.com to check on the status of a couple of listings. This is October 13th, and to the best of my memory, there hasn't been any measureable snow in the Chicago area since late March.

Yet, there I was checking listings within one zip code and within $150,000 on a price range. I'm sure many of you are familiar with Realtor.com and its listings, which include a thumbnail primary photo to attract attention.

To my amazement, I saw four, that is FOUR, primary photos which had snow on the ground on the photo which is supposed to make me want to click on the listing. What makes this even worse, if that is possible, is that these four listings were from three separate realty offices.

Yes, it wasn't as though there was one careless and incompetent agent or office making the other agents in the area look bad.

Instead of an outdated photo, they might as well have posted "Been on the market so long there is no urgency - Wait for still another price reduction!" instead. Sorry, but that's how it looks.

Suppose I was looking to purchase in that area. My first impression before clicking on ANY of the listings would have been that these listings are stale, there has been no interest, and even the local agents have given up on updating the information. Since it is not one agent or office being careless, it makes the "good" advertisements look like part of a lackluster effort to make the area's homes look like hot items.

Over the past couple of years while the real estate market has been in dire straits, I have preached over and over about the need for more effective marketing by agents and sellers. Yes, the sellers too.

You see, I'm not only putting the blame on careless and thoughtless realty agents for not so much as taking a few minutes to swap out photos and keep the information fresh. I can't believe a truly motivated seller isn't checking his/her/their ads online (especially on the busy Realtor.com site!) every couple of weeks if not more often.

A motivated seller should be watching other similar local listings to see if and when there are price reductions, new listings, and what advertising strategies are being presented. And since the agent is supposed to working for them to sell, the sellers should be alerting their agent to anything and everything that could be improved.

This is why I would be completely discouraged from buying in this zip code. Seeing FOUR photos with snow on them the next October tells me that the sellers AND the agents have given up hope. And chances are those are nice and attractive properties.

Those agents keeping the snow photos up there should be glad they aren't my agent. (Although that's not going to happen after seeing this.) I would be asking him/her how they expect me to pay them thousands of dollars to represent me when they don't have time to update an important photo.

Frankly, some of these realty agents are pulling a "snow" job on their clients, and on the neighborhoods they work.

Why Are Our Houses Worth More Than Last Year?

2011-10-07T13:40:00.002-05:00

Within the past couple of days I have had several acquaintances tell me that they have received their property tax bills and are obviously both shocked and dismayed at the amounts. It seems that their property tax bills have risen.

I thought that the property tax is based on a percentage of the value of the property. It seems that the majority of properties around the country are being appraised at less than their original value, and in some cases for many thousands of dollars less.

This means it is time to ask the government how they have come up with an increase in property values. Actually, it is time to demand that government officials tell us. Here is why.

Once we receive a Government written notification that it considers our property to have increased in value over the past year, we should immediately going to the bank or mortgage banker which owns our mortgage and provide them with this U.S. Government information. After all, state government officials are a part of the same U.S. Government which bailed out several large banks after the earlier mortgage fraud and abuse. So the banks had better listen.

Since our Government claims each property is worth more than last year, this should reflect on housing prices and for the ability for almost everyone to be able to refinance their current mortgage and take advantage of these low rates. How dare these appraisers continue to act as though thousands of homes have lost value, when the U.S. Government is documenting that they have actually increased?

This is the time to take action to enable those who have faithfully paid their mortgage but have been stuck to have more options instead of punishing these people because of those who did not and cannot make their payments.

On the other hand, there could be some licensed and professional appraisers who disagree with the Government’s assessment of current property values, especially since their jobs may be on the line and their abilities questioned. If they can prove otherwise, these appraisers should be working with home owners to challenge the U.S. and state Government determinations about local property values increasing. In that event, thousands of current homeowners would see a significant reduction in their property taxes and finally have a benefit from the status of the current real estate market.

I’m waiting, but I should not be alone in doing so. Who is right about property values?

Location vs. Price

2011-09-26T14:35:00.000-05:00

A suburban Chicago seller has only one other property competing against it. Is this a good thing or a bad thing? From an advertising and marketing standpoint, I would say some of both. The idea is to find the “good” and use that as the marketing approach.

First, let me point out that I found out about this from a local newspaper story and am not familiar with the home or its seller, nor is the listing agent a current or past client of mine.

It seems that until the past few days, there was only one million dollar home officially on the market in Lombard, a western suburb of Chicago. Now there is another. This made the newspaper because the selling family is a former lottery winner who had this home built from the winnings, and now has listed the 14 room, 4,000+ square foot home at $1.1 million.

From what I have seen, the home appears to have all of the amenities of a million dollar home. Meanwhile, the other million dollar home currently listed in Lombard (as of this writing) is much larger and is listed for more than double the price (around $2.5 million). It means that this home stands alone for being listed in this price range within this suburb.

Rather than focus on the amenities, the advertising and marketing for this listing should be focused on why a potential buyer in this price range should relocate to Lombard, whether from nearby or from a distance.

There are people with enough money to purchase a home in this price range who would probably enjoy being the “big fish in the little pond”. Unfortunately for me, I’m not an expert on living in million dollar plus homes, but find it safe to say that being in a neighborhood of them leads to some decisions being made by other homeowners and the community. Being the only one of this type would likely afford some flexibility that an owner of such a property may not be able to have in other nearby communities. The story states that the home is on one of the largest lots in the community as well.

Lombard happens to be within a half hour of other suburbs which are more affluent and have sections with million dollar homes and estates. Thus, there are factors within the general area that have proven to attract such high caliber buyers.

If I was the agent and seller, I would be researching the current reasons why buyers and residents of million dollar homes within a reasonable distance of Lombard have moved in or remained in the area. The next step is to find the benefits of Lombard in comparison. Maybe it is at least part of the school system, proximity to upscale shopping, and so forth. The most positive result(s) should be the grabber for marketing this home. A “Million dollar living even closer to xyz” type of headline. Or “The biggest lot in town is ready”.

If I was a potential buyer of a million dollar home in the suburbs of Chicago, I just might want to be made aware of a unique property in this price range, even if the location is all which is unique. If I’m interested in the specific area where the house is located, then there is likely no competition. It becomes this house, or waiting for something else to come on the market.

Of course, this property has the endless rooms, full finished basement, a movie theatre, and much more that comes with a recently built million dollar property. These are features that can be found in other communities, but is not the biggest part of the story in Lombard.

Granted, it’s still going to be a challenge to find a buyer for a house in this price range. But if marketed with a unique approach for a unique property, there is more hope.

Solving New Hampshire and Maine

2011-09-22T14:52:00.001-05:00

The demographic makeup of the populations of both New Hampshire and Maine appears to be getting older rather than younger according to recent studies. How might this effect the real estate market?

At a recent meeting of the Business & Industry Association of New Hampshire, Peter Francese, Director of Demographic Forecasts for the New England Economic Partnership, presented the latest trends in population swing. His statistics show that households with residents aged 65+ are expected to almost double in New Hampshire within the next 10 years, making NH the second “fastest aging” state, behind neighboring Maine, in this category. The same study projects a drop of about 30,000 NH households among the 35 – 44 age group.

This information is, or should be considered, significant information for the real estate community. Instead, so far it is lumped in with other negative statistics, and without going for solutions. It’s time for some aggressive planning and thinking in response to this.

From my viewpoint, this is potentially devastating to New Hampshire and Maine. Putting this information out there that the middle age groups are leaving these states is harmful to everyone there who owns a family style home, whether they are looking to sell right now or not. A 4-bedroom home on the same block as a school won’t sell to a retired couple in their 70’s needing to be near a care facility.

Frankly, the next study to be done should be one to determine how this came to be. Seniors have been moving to Florida, Arizona, California, and other year-round sunny and warm climates for many years. Were it not for this study, I would not have had any idea that Maine and New Hampshire are places where senior living is on the rise.

Granted, I’m not looking at senior housing, but from constantly seeing real estate advertising and marketing around the country day after day, I can tell you that I don’t recall seeing anything targeting the senior market for these areas. This tells me that people entering their 60’s or 70’s have not been made aware of this either. Instead, the years of seeing and hearing about how many people retire and move (or take over their second home) in FL, CA, AZ, and others, will keep the senior mindset in that direction.

Maine and New Hampshire’s Chambers of Commerce, developers, and real estate companies would have to spend and produce a ton of publicity to attract the attention of seniors in the Midwest and the north thinking about retiring and moving to an area with good senior care and facilities in a big hurry. Otherwise, as the seniors currently occupying these homes pass on, it’s going to be difficult to find potential buyers.

Francese’s comments to the Economic Partnership included his saying that these states need more families to move there or stay there.

This puts the challenge in the hands of the real estate professionals in those states as much as the builders and developers. And it’s not an easy challenge, especially after reading the CoreLogic report earlier this month that showed an increase in the number of “under water” homes in New Hampshire for the 2nd quarter of 2011 to more than 40,000. That amounts to about 19% of all mortgaged properties in the state.

My first step would be to look closely at the schools and the attractions in New Hampshire and Maine. Find the achievement statistics and use publicity and social marketing to promote success for students attending schools in as many areas as the statistics will make favorable. Determine which attractions, activities, and shopping areas have the most appeal to the 25 to 54 age group. Research which businesses in these areas have the most employees within that age range and promote their successes.

Instead of sitting back and letting the demographics change and further damage the economy in these areas, take action to change the trend. If those involved continue to sit back and let this happen, the area may eventually be known as “Old Hampshire”.

Build It So That They Will Come

2011-09-12T15:39:00.002-05:00

The battle to solve the real estate market crisis continues with one of the few interesting ideas I have seen. This story is from the Milwaukee Journal. It’s about a builder who is building homes in the range of just 1,000 square feet, albeit with a garage, which would result in owning a home with cruise ship or dorm room style living. The builder’s idea is to price them at less than $100,000 new.

http://www.jsonline.com/business/128857588.html

Granted, the story is a newspaper story and not from a realty association or by anyone directly connected with the real estate industry. Yet, this is (or should be) a positive spin on a solution. I’d like to believe there are plenty of people out there who don’t want or need a lot of space and would welcome the chance to be a home owner within that price range. It might make the difference of a family or individual being able to afford a mortgage instead of renting.

Some of these homes would have multiple bedrooms, supposedly at 6 x 9 which could sleep 2 in each room.

However, this story wraps up with less than positive vibes. It goes on to say that the builder is only building two, which will go in one neighborhood in the Milwaukee area, and how the builder wants to see “if” there would be a positive response. (The opening already took place, and I do not have an indication as to whether or not it was successful.)

Even if the unveiling of these homes was successful, it is yet another instance of the “less than positive” marketing that continues throughout the real estate community. If I were marketing for Miracle homes, I would have been certain to point out that these “are the only the first two homes for this neighborhood”, and how “further expansion plans” are now in the works.

You have to act like you have a winner on your hands. That’s the first rule of promotion of a unique idea that fits a need. This isn’t just to pick on Miracle Homes, as this is the common problem with real estate marketing. Taking the “if anybody buys it, we will come” approach tells the public that you aren’t certain either. In a market where so much is uncertain in real estate.

The “wait and see if” attitude brought out in this story is way too typical, although it’s not the fault of the writer of the story. He was given the information and the interview. Sounds like the builder has been listening to too many realty agents or reading the negative statistics the agents and associations keep putting out there.

My point is that this is another version of the “Homes didn’t sell in this area last year after the tax credit ended, so they didn’t sell well again this year and we don’t know if they will next year” stuff the realty professionals have been dumping on us for a couple of years.

But in this case, it’s a solid idea. Builders across the country should be reading this story and feeling like they could expand upon the theory in most markets around the country and create a buzz. Realty agents should be lined up with potential buyers waiting to tour these smaller homes and asking about pre-ordering for their clients. Renters within 20 miles of these “first” homes should also be lining up to compare with their current apartment or unit and see if they could save money while being able to own. You have to start somewhere.

If you don’t use the opportunity to “build up” a buzz about a new property, there won’t be any reason to build up more new properties. And the market will be stuck the way it is.

Let's Appraise The Real Estate Market

2011-09-09T16:11:00.004-05:00

Just within the past two weeks I have had some mortgage lenders from different parts of the country tell me that they are not able to close loans or refinances because of low appraisals, even after miles of paperwork had been executed. Yet, none of them could explain it in detail.

Certainly, I’m not here to attack real estate appraisers. They have a job to do, and I don’t know the first thing about how to do the hard work they do. However, it looks like they (appraisers) are just as caught up in this mess of a real estate market as the realty agents, hopeful sellers, and frustrated buyers.

My displeasure with how the realty associations and many agents continue to toss out negative statistics by comparing home sales figures is well documented over the past two years. Many of the banks contributed to the fallout on the mortgage side. And so it goes.

Sure, the appraisers have to go buy comps and other local market information. But wait a minute. A home sold via foreclosure is, or maybe I make that “should be”, considered a special circumstance and not a determining factor.

Suppose there is a development of 10 homes which sold more than two years ago for an average of $300,000. Then suppose two of those homes went into foreclosure and sold for an average of $200,000 within the past six months. I would prefer to think that since the only two homes in that development which sold were due to foreclosure, that it would NOT mean that the other eight homes are no longer valued at $300,000. Yet, that’s what’s happening.

Yet, it’s not only the appraisers taking this path, although it appears that this is what is causing purchases and refinances to be blocked. The realty agents and associations are going along with this trend. And many potential buyers and sellers, along with mortgage lenders and those related to a transaction, are being, well, screwed, because of it.

Here is my solution. Stop the madness. Why can’t the National Assn. of Realtors create a separate category for “Non-foreclosed homes”?

Using the ten home development as an example, comps would show that the eight “Non-foreclosed homes” are valued at an average of $300,000. The fact that two homes sold for a lot less due to special circumstances should not impact the value of the others.

Even if the “special circumstance” properties were factored in for “weighted” statistics, the impact would not be as draining for all concerned. If the $300,000 homes development was only reduced to a value of $280,000 due to “special circumstances”, it would most likely open up for more loans than appraisers coming in closer to $200,000 (based on current comps) and the realty professionals going along with that.

Let me put this another way. Suppose another national electronics retailer is about to go under and has a “Going Out of Business” sale including laptops. Let’s say they have an inventory of 5,000 laptops which retail for $800 each. And, due to court order, they sell them all for $450 as a final sale.

Would that mean that every comparable laptop for sale via other retailers still in business would now be priced at $450 permanently? After all, 5,000 people bought that brand and model for $450!!

A foreclosure is a court order. The property owner(s) could not or did not pay their money, and lost the property, and it was sold in this manner.

How are these situations different?

Instead of coming up with more negative statistics to show why people aren’t buying and selling homes in most cities, it would be nice to have the people who shape the industry working on some serious and immediate solutions to this crisis. Before it's too late and thousands more hard working people lose their homes, too.

Statistics Don't Sell Homes

2011-08-17T14:43:00.002-05:00

Why are real estate agents giving potential home buyers so many reasons NOT to buy? The practice of bombarding the public with negative statistics about the real estate market instead of only focusing on positive ones is a bigger part of the problem than most people think.

Sure, not as big as the banks have caused by way of the mortgage crisis, but still up there on the list of reasons.

Suppose you are looking for a property, or looking to sell one right now. Let me ask you this. If you are looking to buy, is it because of a statisical comparison with past years?

(I didn't think so!)

If you are trying to sell, is it because of statistics from previous years?

(I didn't think so!)

As I review news stories and releases from around the country most every day, I am still amazed at the number of stories out there like this one from Tulsa:

http://www.tulsaworld.com/business/article.aspx?subjectid=32&articleid=20110813_32_E1_Metroa254755&rss_lnk=5

If this story focused on the fact that 913 homes sold during July in the Tulsa area and that more than 5,400 have sold there during 2011 (through July), I'd be impressed. Tulsa is not an area that has been in the business news, positively or negatively, lately. But homes are selling there.

Those are statistics the realty association should be putting out there. Maybe compare it with other cities with a similar population and demographic, and put the names of those cities in the "story" which haven't sold at that pace so far this year.

But, no. Still another realty association that finds the need to compare these sales statistics with recent years. And proceed to tell potential buyers how the market is suffering. They keep bringing up last year's tax credit as a reason for more sales during early 2010. Well, there is no more tax credit. Just how does this "help" the market today?

Obviously, it doesn't. At least it's obvious to me and to thousands of others who are trying to sell their property and move on. Again, I'll bet the reason for trying to sell now is not because of home sales statistics from 1 to 5 years ago.

Give us statistics which encourage sales and which will entice more potential buyers and help those looking to sell. How many "sellers" were able to enter a "rent to buy" agreement for their homes?

If more families could rent a home and have most of their monthly rent go toward a future purchase, it would allow more opportunities for sellers. It would allow more opportunities for individuals and families who can afford the rent, want the home owner responsibility, and can't get approved for a mortgage to do so. It would help to take some of the lowest priced homes off the market.

There are some very motivated and some very desperate sellers out there in most markets. But as long as the realty associations and news organizatons continue to bombard us all with apples and oranges negative statistics, we'll all be stuck in this rut.

What happened last year or five years ago does not impact a buyer or seller decision this week. At least it shouldn't. But knowing the number of homes in your area which have sold within the past 60 days could.

Why Turning Foreclosures To Rentals Makes Sense

2011-08-09T12:35:00.003-05:00

How about that? A politician with an idea that makes sense.

Actually, it's an idea I suggested in this very blog months ago, but maybe this publicity can make it come to life.

http://reed.senate.gov/press/release/reed-seeks-to-convert-foreclosed-homes-into-affordable-rental-units-provide-relief-to-victims-of-housing-crisis_--

If only this had been done a couple of years ago. The idea is to take foreclosed properties and turn them into rental units. This would have given many consumers who can't afford, can't get, or don't want a mortgage the ability to live in a house instead of a cramped apartment. Maybe they'd want to buy a home down the road. Even if they don't, they would be providing monthly revenue for the bank that owns the home, instead of sitting empty.

Multiply that scene by thousands, and that probably would have provided the banks with enough money so that our elected politicians wouldn't have been dumb enough to give these banks "bailout money". Only to have some of the banks hand that money to executives for bonus money and let the housing market continue to go down the tubes. And, of course, cause the government to cut back on everything else that bank money should have gone for.

Turning foreclosures into rental properties would also take thousands of listings off the market, and leave the buyers to go after properties offered by motivated sellers. At higher prices, of course. Taking foreclosures off the market would eliminate the majority of the vastly discounted property prices and therefore increase property values once again.

For a change, something a politician wants to do makes sense, and would actually benefit consumers. If only the others could understand that, this time.

Home Sales vs. Home Prices

2011-06-29T15:04:00.003-05:00

The negative statistics about the current state of real estate continue day after day. Instead of any positive ones. Yet, over the past few days, I have been seeing more and more stories about the drops in home sales prices be presented in a positive light.

As much as I have been preaching the need for positive stories dealing with real estate, I also preach that these should be legit stories. Yes, home prices are generally dropping even further in much of the country. However, that doesn't mean it is a positive.

The point is being made that more recent drops in average home prices are not as much due to foreclosures and short sales as they have been over the past couple of years. This is being treated as a positive. I'm not certain that's the case.

That fewer homes seem to be getting foreclosed upon is certainly a positive. But that is not enough to group this fact with others relative to home sales.

Home prices being much lower than 5 years ago is not a positive for a large group of home owners around the country, perhaps the majority.

Even though foreclosures are down now, there are still a ton of homes around the country for sale at foreclosure or short sale prices. Those are in addition to distressed properties practically abandoned by builders and developers. The mere availability of this many properties at lower prices serves only to bring down the value of the homes surrounding it. And that is not a positive for more people than the number who can buy under current market conditions.

Too many home owners are right now stuck paying more than the property is now considered to be worth, and are under water with their mortgage. They cannot sell "for less". If they take a loss and have to write an additional check at the time of sale, there is no money for a down payment and to finance a new purchase. So there is no choice but to wait until or unless the local market returns to the point where they could get a price high enough to justify selling it.

Meanwhile, many who would like to take advantage of the buyers' market out there cannot. The availability of mortgages has gone full spectrum, from having been too easy several years ago to being way too difficult now. And that's for those who can even afford a sufficient down payment.

The same banks which contributed to this crisis are now cutting back instead of getting in there and actually (gulp) helping their customer bases. They are loaning on fewer properties, cutting back or eliminating options such as reverse mortgages, and sitting on defaulted properties they technically own due to foreclosures.

As a result, the banks are really a big factor in keeping home prices down, just as they are in keeping home sales down from where they could be. With no end in sight.

If only the news media would keep all of this in mind when reporting the "positive" news about the current status of real estate.

While HUD Has "no comment"?

2011-06-27T12:38:00.004-05:00

After commenting earlier this month about the reduction of reverse mortgages, this article points out even more evidence of my point that seniors are looking at even fewer financial options in an effort to not outlive their savings:

http://www.chicagotribune.com/classified/realestate/ct-mre-0626-podmolik-homefront-20110624,0,6324717.column

The truly disturbing part of this article actually comes at the end, where the writer points out that HUD "had no comment". To me, this is an even bigger story than a large bank putting the stop on future reverse mortgages.

HUD is a government agency. The same government which appears to have practically wasted millions of dollars with its bank bailout program a couple years back. All that seems to have done is to bail out the coffers of some of the executives who may have helped to create this mess.

Having a government agency with "no comment" about this situation and its possible to probable negative impact on seniors is not a good sign.

Add this to the growing list of matters your local politicians should be discussing, but are not doing anything about.

Not that reverse mortgages are mass appeal or even ideal for every senior citizen. Without them, it is one less option for seniors. Here's hoping these seniors remember this when those same local politicans, who are now not helping them, come up for re-election.

An Orange Crush From China?

2011-06-21T15:54:00.003-05:00

It appears that some of the smarter realty agents are also aware of what I pointed out months ago when it comes to seeking places that buyers might come from. A couple months back I pointed out the increase in cash buyers from Canada who knew to take advantage of certain Canadian tax laws in order to purchase properties in certain U.S. markets.

Now comes word of a noteworth increase in home purchases in the Orange County California area, specifically from buyers coming over from China.

http://www.ocbj.com/news/2011/jun/19/chinese-buyers-spur-luxury-home-sales/

Those agents who have been on top of this trend stand to do quite well for themselves by figuring this out at the right time. There is definitely money to be made, and buyers and sellers to satisfy, instead of continuing to knock on the same doors week after week.

All this going on while some agents continue to dwell in negative statistics about the market instead of seeking opportunities from wherever they can find them.

The next opportunity for aggressive realty agents might be seniors. With the uncertainty about Social Security these days, many more seniors are even more alarmed about outliving their funds along with their property losing value.

Meanwhile, some of the banks continue to bungle their finances and add to the chaos destroying the real estate market. This week Wells Fargo has announced it is discontinuing adding reverse mortgages:

https://www.wellsfargo.com/press/2011/20110616_Mortgage

This means even fewer options for seniors. While several mortgage brokers continue to offer reverse mortgages, they tend to be less aggressive about marketing them. I'm afraid that many seniors will read or hear the Wells Fargo announcement and give up on considering this option. The result will be less activity on the mortgage side.

Combine that possibility with the number of buyers from China paying cash instead of going the mortgage route, and it increases the financial bind that banks and lenders are finding themselves in, along with the many who seriously need to sell their homes.

If you are among those who need to sell, remember to look for sources and places your buyer could come from. Chances are the buyer you need is not local or you would have known about it by now. There is a whole world of potential out there.

Try The International Angle

2011-05-18T15:02:00.002-05:00

Desparate times call for desparate measures, to borrow the cliche. This real estate market is certainly as desparate as many of us have seen in our lifetimes.

Sellers shouldn't give up hope, even if their agents have. I have commented several times over the past couple of years about looking to identify the logical potential buyer for your property. Face it, if your property has been listed for weeks (or longer), chances are the one buyer you need is not local, or has not been approached with an enticing reason to act.

While doing some research for one of my clients, I came upon an interesting piece from this past weekend. It contains suggestions for Canadians about steps to take in order to purchase U.S. real estate, and explains some of the factors to consider.

Upon first reading, the article seems complicated. Then again, I don't know Canadian tax laws and how their financial dealings within the U.S. work in comparison to this country.

This brings me to an important point. Properties are not selling. Yet, too many realty agents are staying within their territory, comfort zone, and the same approach no matter what. Sellers should expect more, or start doing their own research and homework to help their property sell.

Instead of reading the constant flow of negative sales statistics and passing out business cards at the local flower show, agents should be at the library or online researching the answers to questions they have about the Canadian tax laws raised in this story. I would do that in an attempt to find out which price range(s) would be most appealing to Canadians. If I had to, I would contact a financial planner or expert I know and have him or her help me with answers.

And I would do this by this Friday, with the idea of identifying a price range and ways to make properties appeal to Canadian buyers both financially and logistically.

Why by Friday? Because I would want to place an advertisement for the coming weekend's publication, perhaps the Globe & Mail which ran this story. They would be publishing stories geared toward their target audience, which tells me they are reaching at least some affluent investors who would find the story interesting.

If those same people saw an advertisement the following week (while the original story is still fresh in their minds) it would likely draw some responses.

Presto. I could gain some Canadian buyers ready to move on one or more properties to their liking, and demonstrate the financial advantages to them. And then collect buyer commissions in the near future, while developing a network for the future.

If I had a large property to sell, I would probably do this personally, and then tell my realty agent I have a buyer but I'd want a commission reduction because I got that buyer on my own. Even if I don't get that consideration, I would have helped to get my property sold while others are still sitting around on the market.

Although I don't normally give away my commission generating ideas this easily, for the sake of example, here is the article I'm referring to:

http://www.theglobeandmail.com/globe-investor/personal-finance/the-ins-and-outs-of-buying-us-real-estate/article2022807/?utm_medium=Feeds%3A%20RSS%2FAtom&utm_source=Report%20On%20Business&utm_content=2022807

Keep thinking about who COULD buy your property, instead of retreading who can't or won't.

One Sale Does Not Change The Market

2011-05-10T14:43:00.002-05:00

I'd like to think it was a reporter's attempt to make a story look like an important news story. No matter how large the amount of the transaction, this multi-million dollar mansion purchase is not a "market changer":

http://www.santafenewmexican.com/Local%20News/HIGH-END-Real-estate--10-5M-sale-could-signal-recovery

This story won't put a halt to other sales. But it also does not signal any trend. It is one transaction. In any real estate market, there are a limited number of multi-million dollar residential real estate transactions.

However, the story does cast a slightly negative light on the local market, and that is not good when it comes to the marketing of real estate. This story goes as far as to point out that this single transaction has a lot to do with the reported 18% increase in home sale prices for the quarter. Even though the property actually sold for less than it could have in better markets.

In other words, another potentially positive local real estate statistic shot down in flames. In this instance, it was by a reporter and not by a realty association, which seems to be the case in so many other cities.

As I have been saying for all these months, we need to change the "reporting" in order to change the mindset for marketing available properties.

I would like to think the reporter meant to say "Someone out there is willing to invest big bucks in the local real estate market" in a positive slant. Yet, adding in that this transaction was the reason for a home price increase and making it appear to be starting a trend took away any intended positive message.

The Rent vs. Buying Debate Continues

2011-05-03T15:43:00.003-05:00

This is about to sound like I'm contradicting some past columns, but I don't think so.

Trulia.com web site has introduced statistical research designed to show that in many large cities it is "better" to buy a home than to rent.

http://info.trulia.com/index.php?s=43&item=123

Obviously, I'm in favor of ways to get homes to start selling at a much higher pace around the country. Yet, I don't think this is a way to accomplish this. For as much as I use statistics to make a point, to enhance my enjoyment of sports, and for a variety of reasons, I also understand that there are instances where statistics need to be better qualified to make the intended point(s).

In this case, the "decision" of whether to buy or rent is not based on statistical reasoning. The plane is not equal.

Fewer and fewer potential home buyers can qualify for a mortgage these days. Even fewer have sufficient funds for enough of a down payment to purchase and then secure a mortgage. Each time either or both of those situations occur, it takes away the "rent or buy" as an actual option. If they can't afford to buy, then renting becomes the only option.

Many people already know that the current real estate market is a buyers' paradise. Yet, as our elementary school teachers would have told us in this sentence, the same market does not contain a paradise of buyers.

What the statistics in the article fail to point out is that the majority of the people are not making the choice they are basing their information on.

One of my suggested results actually reduces the distinction between renting and buying, and it would open up both avenues for years to come.

I'll say it again. Make "Rent To Buy" a major part of our vocabulary. This is a drastic measure, but the state of real estate calls for it.

Make homes currently in status as bank foreclosures available for rental only via annual (or longer) leases. The monthly "rent" payment could be used toward a purchase after 5 years if the renter so chooses. After 5 years, the bank would have been collecting the "rent" money and would know the reliability of the tenant. This, instead of sitting on an empty home not generating any revenue at all.

If investors can't buy foreclosure properties at bargain prices, it instantly raises average home prices back toward the level of "real" sellers, instead of foreclosures pulling down the prices for everybody.

And those who currently cannot get a mortgage and/or afford a down payment have instant options.

Meanwhile, apartment buildings would then need more competitive rates for shorter term leases, which would likely help the rental market.

My reason for suggesting the 5 year period before the tenant could then "buy" the home is significant. Again, those consumers who have no other options (or a choice) would be able to establish some equity without the hassle of a down payment and initial mortgage. Yet, those who do have the funds for a down payment and the credit background for a mortgage could then buy now at lower prices. It is possible that 5 years from now, those who buy now could be able to turn that profit by selling high.

This situation can be created, and for everybody's benefit. But as of now, the 'rent' vs. 'buy' consideration is still not a choice. At least 80% of the time.

Finding The Best Candidate To Buy Your House

2011-05-02T19:49:00.002-05:00

Looking to sell a home? Know your audience!

http://community.nasdaq.com/News/2011-04/allcash-home-sales-set-record.aspx?storyid=71985

This article from NASDAQ sums up the current real estate market as well as any other I have seen over the past 2 years. Yet, I’m not showing the link because I think this is a well done article. It is shown to make an important point.

The number of first-time home buyers has declined significantly, even compared with just one year ago when the market was already in decline. As this story relates, the trend for “investors” to pay cash for lower priced properties is still on the rise. While the tighter mortgage restrictions continue to make it a challenge for more and more people to get a mortgage, the number of first-time home buyers likely won’t be rising for some time.

Those who are currently home owners and would like to upgrade or downsize to a different home are often stuck with a mortgage they can’t get out of. If they take a loss to sell, they may not be able to afford what they want instead. And on it goes.

There is an important message in the NASDAQ story. Know your audience. If you are trying to sell your home, chances are you are doing everything you can to make it “family friendly” upon showings, and probably within your agent’s outside advertising. The above referenced article should make it clear that “family friendly” is not your audience.

Now, this doesn’t mean that you don’t need the new curtains or to keep the place looking good as new. But it does mean that you need to focus on the value of your home to an investor. That is who is buying, and, as statistics show, without the agony of waiting on getting a mortgage.

The priority should be on showing your potential buyer the ways your property for sale could make he/she/them money within the next 5 years. Although I have seen only a few examples of this of late, they are too few and far between.

One 3-bedroom home that I know of for sale has a lower level “family room”. It is not a basement, has window decorations and is a separate wing on that level. It so happens that the other homes in the development are all either 2 or 3 bedrooms. A few of the other units (both 2 and 3 beds) are also for sale, and now at well below the original new construction prices. Yet, only the advertising for this home points out that it is ready as a 4-bedroom home. At most, the current or new owner could put up a partition “door” and add more privacy, giving them a 4-bedroom home for under $100 (for the partition).

An investor with cash is more likely to see the value of getting a 4-bedroom house at 3-bedroom home pricing, knowing that he/she/they will eventually have a higher profit capability.

Again, based on current trends, being ready to show a cash investor how to get a 4^th bedroom in this home is a more likely “sale” than a first-time buyer with a big family knocking on your door to see it and then trying to get a mortgage.

Before I hear from realty agents out there, I am well aware there is a way this needs to be done. This property needs to be listed as a 3-bedroom home. Understood. But within the description and the “sales pitch” it should be clear that the easy opportunity exists to create a 4^th bedroom which would be larger than one of the upstairs bedrooms, without any room additions needed. That is targeting cash investors, and that is, at the moment, targeting who is buying.

Many homes for sale have at least one capability to increase in value with certain additions or improvements that cash investors would be interested in. A cash investor may not care about new curtains and new carpeting, which they could get for a few hundred dollars down the road when they are ready to sell. That same investor may instead notice if the property is zoned for an additional level, a pool, more parking, or whatever it may be.

Sellers should also monitor local business news. Watch for stories such as major retailers looking to open in specific cities or communities, new train or bus stations or routes, and new schools to be planned. A family, married couple, or individual probably doesn’t care about what will be built by 2016 nearby, but a savvy cash investor does. They can buy a property, hold on to it (without a mortgage to bog them down), maintain it, and be ready to put it on the market in time to be convenient to the new train station or whatever is being constructed.

Advertise the home without the “move in condition”, “near schools”, “breakfast nook”, and other sales points which target home buyers looking at 30 days from now. They either aren’t buying right now, can’t get a mortgage, or both. Advertise with any and every sales point that would cause a cash investor to see something that will be of value in 3 to 7 years. Know your audience.

Live In A Billboard?

2011-04-21T19:57:00.001-05:00

The 'turn your house into a billboard' concept actually has some merit from a marketing standpoint.

If you haven't heard, an advertising company is looking at painting selected houses as advertising billboards for their clients, and paying each participating homeowner's mortgage for the length of the contract.

http://money.cnn.com/2011/04/05/technology/adzookie/index.htm">http://money.cnn.com/2011/04/05/technology/adzookie/index.htm>

Participants must own and live in the home, and there are some other qualifying points. But in this time of urgency in the real estate community, the thing to do is look at how this could help home sales.

I'm sure some of you are thinking "no way!" and how a home that is a billboard could make a neighborhood less attractive to potential buyers. That could be, but there are a number of positives to consider.

A homeowner having their mortgage paid for several months benefits with the opportunity to sock away a few thousand dollars. That money could be used for a home improvement, toward a down payment of a larger or smaller home in the near future, or to help pay off other debts.

Selfishly, the homeowner doesn't have to deal with an advertisement on the outside. Using my own warped logic over the years, I reason that I spend far more time looking at the inside of my home than the outside. Other people see the outside way more than I do.

Suppose you are a potential home buyer in a community where a home's exterior has been painted to become an advertisement. You would know that the "ad" home will be painted back to its original color(s) within a few months, and in fact will look BETTER at that time because of the fresh paint job. Chances are the seller(s) you approach will be more willing to reduce even further when you act like the "ad" home is a distraction to the neighborhood. Acting that way could get you an even better deal, saving you thousands of dollars, and getting a home sold within that community.

Even if people are annoyed at the "ad" home, they will be talking about it, and probably watching to see when it will be painted back. In today's real estate market, this would be a classic example of the "Any publicity is good publicity" theory of marketing.

With advertising being so omnipresent and scattered these days, having a house being an advertisement might not be any more annoying than large billboards that practically touch an expressway, advertisements in public bathrooms, on trains, buses, and everywhere else we look every day.

Let me add that I know nothing about the company planning this, am not compensated, and have no involvement in this project.

There could be positive benefits for people if this works. The real estate community needs every positive it can get. I can't paint that any clearer!

Can They Market Homes Better Than This?

2011-04-18T16:14:00.005-05:00

I'm all for charitable donations and supporting a worthwhile cause. Meanwhile, the real estate market remains in a crisis, still lacking even one desparate measure in desparate times. I'm among those trying to come up with ideas and concepts to spur activity in the marketplace. I'm sure the charity mentioned in this story is worthwhile. Certainly the cause is.

http://www.stltoday.com/suburban-journals/metro/news/article_c996ae02-e223-5e29-9f70-0fa79adf73ea.html

The above story is about how a St. Louis area home builder will make a $1,000 donation to a specific charity for every home sold in a certain development. Fine and dandy - if you know of anyone who would purchase a home in order to have a charitable donation made. If someone is choosing between one of their homes and one or more others, would a charity donation sway their purchase?

I'm not wanting to sound mean. The intent is good. But the idea is to get buyers into homes. This "news story" really isn't good publicity. I'm disappointed that the reporter merely made this the P R piece the builder wants it to be.

Yes, I have a better idea for this very situation. Again, the idea is to get buyers into homes. How about these builders DONATE one of their homes to this charity? Let the charity "sell" the home to the highest bidder above a low reserve. This way, the "buyer" would likely get a better than ever price on a new home, AND it might be structured to be a huge tax deduction. (I'm not sure how the legal aspect would work, but I would like to believe some creative accounting could make this happen.) In addition to selling a home in this development, the builder would generate significant publicity from doing this and call attention to the entire development.

Buyers missing out on the "charity house" are likely to have come and taken a look. Maybe some would consider buying into the development, which would not have been a possibility otherwise. Perhaps other builders would look to do the same, whether for this charity or for another. One more idea out there to put buyers into homes.

Were Home Sales Statistics Truthful?

2011-03-21T14:51:00.002-05:00

It's bad enough how many realty associations and industry organizations are adding fuel to the fire with the barrage of negative home sales statistics in this marketplace.

Now comes word that this might become a credibility issue as well. A Southern California based real estate data firm, CoreLogic, has issued a report claiming that the National Association of Realtors appears to have overstated sales of existing homes by as much as 20% over the past five years.

This puts a double whammy on the recent statistics. Many realty associations have been releasing data showing the drops in home sales with comparative statistics. These, of course, put the various local markets in a bad light. So if it indeed turns out that the earlier statistics (1 year ago, 2 years ago, etc.) were actually inflated, it means that home sales have been sluggish for even longer than these associations would have the public believe.

Now this is close to becoming a credibility issue totally separate from such a struggling market. The NAR shouldn't have to utilize its resources for crisis management while the very market it serves is in a crisis.

It has been too soon since the tragedy in Japan hit for us to realize how that is also another blow to the U.S. real estate market as well. Estimates are already coming that it will take upwards of five years to rebuild Japan. With the technology and innovations which have come from that country, I have to believe that international investors will be ready with funding to make sure it happens. That is funding which might otherwise be put into commercial properties and real estate related investing here in the U.S.

On the other side, think back to the early 90's and the California real estate boom. That "boom" was brought on in part due to overseas investors paying above and beyond the asking prices for upscale and high end homes in both Northern and Southern California. For many Japanese investors, high end homes in California were then a bargain compared with home prices in Japan at that time, even at inflated prices here in the States.

Now, especially with the incredible disaster facing Japan and the world, any such international activity in the United States is out of the question. Another blow to the U.S. market.

As much as I dislike using negative statistics in this marketplace (although I'm not representing a realty association in doing so), this is already showing up.

This past weekend, the Orange County Register (So. California) reported on the total sales for February 2011 as well as the first half of March for "luxury homes" (millions of dollars) in Newport Beach and Laguna Beach totaled: zero. After there were sales during January.

If only the focus could turn to how to get properties sold, instead of what the statistics should show.

The Industry Still In Denial

2011-03-18T15:53:00.004-05:00

It was just another day of reviewing real estate news looking for something other than the usual real estate professionals releasing negative statistics. Until I came upon a story from Springfield IL.

Of course, the story contains several negative statistics released by the local Association of Realtors. What makes this story so incredible is how the Association President blames "the weather and high gas and food prices" for the drop in home sales.

See for yourself:

http://www.sj-r.com/top-stories/x1777816246/Weather-economy-cited-in-24-3-percent-home-sales-drop

It's time to blame the Assn. President for not giving this story a much needed positive twist. If I had read that during Feburary 165 home sales were completed in the Springfield IL area, I'd could have been impressed. That month included a severe blizzard, a substantial increase in gas prices, etc. Yet, during that time, an average of more than 3 homes were sold every day. Someone could have figured maybe there are reasons to buy in that area.

It can't be that so many agents are in such denial. At least, I hope not. This is perhaps the worst case of the "You wouldn't want to buy a home here, would you?" syndrome I have seen coming from industry members.

We should all be working on solving the current problem. It is getting more serious every day. Many of those who are not afraid to purchase and can afford to can't get a mortgage. Even more can't get rid of their current property to make their next purchase.

Yet, this guy wants us to believe that if there was not a snowstorm, if gas was still at $2.40 a gallon, and the food crop was better this winter, more homes would have sold.

Not exactly a solution.

Here is it a month later. The snow is all gone. I'm still putting gas in my car, and still eating my regular meals every day. But my house still hasn't sold after more than a year on the market.

I suppose that's because of the St. Patrick's Day parades? Guess we'll find out next month.

Would Outside Incentives Help The Purchase Market?

2011-03-16T14:10:00.004-05:00

Some realty firms and builders have stepped up efforts with offers of an incentive, often worth thousands of dollars, to buyers upon closing. The trend seems to be leaning toward the incentive being something not specific to the property.

Offering or giving an incentive to a buyer is nothing new. In the past, it might be new furniture, a big screen TV, or some sort of a services discount or gift (i.e. free maid service for 3 months).

One big difference with incentives now is that many more are offered to buyers, whereas in the past it was often incentives to realty agents who brought the successful buyer. Even though it was about 20 years ago, I still remember a time I was doing a marketing presentation at a realty association meeting in the Los Angeles area. While waiting, several agents were pitching new listings they had to the other agents in order to draw attention in a then hot market.

The owner of a realty office with about 12 agents got up, pitched one of his listings, and then promised "an additional $5,000 in commission on a sale from any of you who get me an offer by 5:00 PM today". Now that was "creative selling" at its best!

Of course, at that time, his purpose was to attract attention to his listing and make other agents remember it ahead of hundreds currently available within the same area. And attract attention he did. Yet, the eventual buyer of that home had no clue. The "incentive" was used effectively where it needed to be.

Recently, I have seen sellers, realty companies, and builders offering some interesting incentives to the actual buyer. These range from a pick-up truck to installing hardwood floors. Some are specific to the property, others are geared toward the buyers.

A realty company in Birmingham AL offered a 4-year tuition to the University of Alabama Birmingham Medical School (over $22,000) with the purchase of a unit in an upscale development. The Birmingham News reported there were no takers. (On a separate note, that incentive was stopped. That was dumb to stop it. They should have continued it since not many other incentives are valued at more than $20,000, and if they got a "taker" the local and national publicity it would have generated would be worth far more than the amounts paid out!)

I also saw a news story about a seller who allowed the asking price to be reduced by $2,500 per week for several weeks.

In an active real estate market, such methods make sense when the idea is to make "your" property stand out. Agents and builders want buyers to consider their property ahead of others they are looking at. Of course, this assumes there are plenty of active buyers out there.

That's the difference. Right now, thousands of dollars worth of incentives don't matter nearly as much when people who want to buy can't get a mortgage and/or can't sell their current property to guarantee a move. Unless they are the right incentives.

For many, the "right" incentive would be a buyer for their current property so that it can lead to the next sale, or being able to get better financing for a first-time buyer.

Somehow, there has to be a way for "regular" sellers to compete against the foreclosures and short sales. But first, we need for buyers to compete. Period. The fact that there continues to be so many foreclosures and short sales on the market tells me that there people are not buying, even at lower prices.

Until people and investors can start buying a serious number of properties, a big screen TV or a pick-up truck won't make a difference.

Those Negative Home Sale Statistics

2011-03-10T15:58:00.003-06:00

You would think that Realtors would know not to make things any more embarassing when it comes to their take on the current state of home sales.

Now comes word from Minneapolis that home sales in the Minneapolis area declined more than 30% when compared with one year ago for the last week in February. This "report" points out how that week's drop was more than double the 12% decline of the previous week. Put that "report" together and it spells an alarming and disturbing trend for anyone trying to or thinking of trying to sell a house or condo in that area.

This "report" tries to make the excuse that sales were higher a year ago because of the real estate tax credit which was available to first-time buyers and sellers under certain conditions at the time. That tax credit is no longer available. Therefore, by making this excuse, this "report" is really pointing out how the market conditions are really less favorable compared with one year ago since that tax credit is no longer available to anyone. Such a "reminder" to the concerned consumers reading that certainly doesn't help the situation either.

Yet, I am sorry to report that there is one more disturbing element to this "report", as if the negative news to current and potential sellers isn't already enough.

It seems that this "report" that contains all this discouraging information didn't even need to be released to the media to spread the word about how miserable the market is.

Let me put it another way. It SHOULD NOT have ever been released. It could have been prevented.

The source of this information is the Minneapolis Area Association of Realtors. You read that right. The dues money that agents and realty offices throughout the Twin Cities area is going, in part, to have information such as this released to the public.

Why there is this need for realty associations around the country to continue to pump out even one negative statistic is beyond me. I would understand if this information was coming from outside public companies, investment bankers, commercial property brokers, or banks which do not handle mortgages by way of news releases. Entities such as those are looking for large investor monies and would take the chance to bash something competing for investment dollars.

"People aren't buying real estate to make money, but if you invest with us, you could earn x% within 10 years", could be used to entice wealthy consumers to invest in long term bonds or certificates which assure a payoff at some point.

Instead, the industry continues to shoot itself in the foot. Worse yet, they are helping to take down thousands of current and potential home sellers in the process.

Having said that, I have other news to report specific to the Minneapolis area. During the last week of February 2011, just 2 weeks ago, 608 initial purchase agreements for houses or condos were signed. That means that, while some people are questioning the real estate market at the moment, about 600 properties were sold within one week's time in and around that major city! And that's without a tax credit or any other significant incentive.

In fact, I was able to verify that statistic with the Minneapolis Association of Realtors. It again shows that if you dig hard enough, you can find some good news for consumers.

More Ways For Banks To Send The Wrong Message

2011-03-07T20:18:00.002-06:00

The majority of us can certainly understand the need to tighten up the mortgage industry after the fallout from too many subprime and high risk loans which failed a few years back. However, the punishment still doesn't fit the crime.

Getting a mortgage continues to become even more of a challenge these days, with upcoming additions to the process potentially raising costs for consumers and for mortgage brokers starting in April. At this point in the real estate crisis, issuing mortgages is no longer the problem.

New research starts out as a positive statistic, to indicate that more investors are paying cash for properties as they take advantage of the good deals out there for buyers. New research of the Southeast Florida market (from Palm Beach to Miami) shows that more than 54% of houses and condos sold there during the 4th quarter of 2010 were paid for in cash. (This research was provided by Zillow.com.) That comes to more than 7,500 sold properties PAID FOR WITH CASH!

The purpose of these statistics is to show that homes are selling and the deals for buyers are good. And that could be. In 2006, about 13% of homes were purchased with cash. From a little more than one in ten to more than half - in under 5 years. Of course, in 2006 there were plenty more mortgage programs more easily available.

What does today's trend have to do with the banks? Plenty.

Face it, the majority of the 7,500+ homes paid for with cash were bought by investors. I'm sure a percentage of them bought more than one property at these low prices.

Yet, these investors paid in full instead of going for mortgages. If you have the cash, you'll get a mortgage. But in just this one slice of the country, there were about 7,000 possible mortgage transactions that did NOT happen. It's time to look at why.

My guess is this is because of how little the banks have to offer in return for cash today, even when compared with 2006 when mortgages were the vast majority. A savvy investor wouldn't put up the entire $200,000 for a condo when they could get a decent return on a long-term CD instead. So they would get a mortgage, enjoy the tax advantage, and pay it off as scheduled, while investing the remainder of their funds someplace else.

It could have been CD's, Money Market, or other bank programs that paid more than the paltry amount they pay now. No reason for investors to look in that direction today.

If getting a mortgage wasn't such a hassle, a savvy investor could make a $40,000 down payment on 3 separate properties valued at $200,000 each, and have working capital left over to pay the mortgages for months to come. Then, they could invest their "working capital" into short and long-term CD's to grow their money toward future property payments, or use a home equity loan on one property to help pay down the others.

But now, these investors are passing by the mortgage opportunity and putting their trust into turning a profit as the market turns for the better. Heck, if an investor were to sell later this year and only make $5,000 more on a $200,000 property, they would likely do better than with a 6-month CD.

Some consumers watch for trends by investors. Now they can see that a bigger percentage of people buying property are NOT getting a mortgage, even when they could. Not exactly an incentive for the typical consumer to want to take out a mortgage to buy another property.

Oh, I also have a hunch that the 7,500+ sellers who received cash from the buyer probably didn't use their money to start a savings account and watch it grow.

Hopefully the banks will do what it takes to bring back the home mortgage as a viable option, before it's too late.

How To Win The Buyer vs. Seller Matchups

2011-03-04T14:44:00.001-06:00

As I have said throughout the real estate crisis, advertising and marketing continues to play a significant role in turning the market around. Not only how much, but how.

Agents advertising their listings need to, more than ever, focus on who the most logical potential buyer is. I’m not talking about ethnicity or nationality, or anything else that cannot be included within an advertisement. It is where and how you advertise a listing that makes all the difference in today’s market.

If you are a buyer, or an agent fortunate enough to have a sincere buyer, consider their needs. When you have an individual or group which is investing, that is when you might look closely at “fixer-upper” listings. At least, any which are at the lowest of the low in terms of price for the area the property is in.

This way, an investor can be presented with two options. Point out that he/she/they can look at flipping the property in the near future if local price comparisons would work in their favor. Or, point out how by contracting certain improvements over the next few months could place the property in the caliber of a comparable “move-in condition” home in the same community.

For example, suppose you have a 3-bedroom fixer-upper reduced to $175,000. Your research shows a nearby 3-bedroom home in “move-in” condition listed at $188,000. Let the investor see what needs to be done in order to equal or “beat” the $188,000 home, and let the investor determine the approximate cost to make that happen. If there is a fit, the investor then has a direct reason to jump all over the $175,000 home.

Why only show the “fixer-upper” to investors? Frankly, too many agents pushing listings should know the answer but don’t.

With the huge amount of inventory out there, many agents overlook that buyers looking for a home for the family or even themselves don’t need to purchase a “fixer-upper” and spend and work themselves crazy to save a few thousand dollars anymore.

They are finding ready-to-go homes that don’t need much work for right around the same price. Conditions have changed because of all of the lower priced homes out there in most communities. Families no longer have to buy the house without a floor but with cracked walls for less money in order to move in to the area they want. Chances are they can get a great price on a “ready to go” home that lets them spend Saturday afternoons at the movies instead of on their knees scrubbing.

Agents need to keep these factors in mind when trying to move their new listings. That includes advertising and marketing. Some buyers want the best place to move into and have it be functional. You should be able to point out that “for $5,000 more, you save the $10,000 worth of work and the hours of your labor to fix up the other property” to a family.

At the moment, the way to go is to think in terms of matchups. What fits best for the situation. In basketball, the best scorer on your favorite team doesn’t always match up against the opponent’s best scorer. It depends on which player is best equipped to defend. When it comes to a job opening, it isn’t always qualifications. It is often which candidate best fits in with others on the team that determines the hire. And in real estate, it now needs to be the buyer with the “best fit” for the seller. But first, it needs to be pointed out.

Agents - Get Your Clients Into The White House

2011-03-03T13:22:00.004-06:00

Now that I have shared this with my valued clients, I thought I'd share something for realty agents to share with some of their buyers and sellers. Especially those with teen children.

The deadline is coming up for applications for interns - at The White House. What does this have to do with Real Estate? Nothing.

What does this have to do with your appropriate buyers, sellers, and clients? It could a lot. In this (or, for that matter, ANY) real estate market, agents need to distinguish themselves. Not just sending out newsletters and reminders which have no bearing to the local market or what he/she is all about.

Suppose you have clients with children in high school. This is a reason to call or e-mail them and suggest that (names) apply for a White House internship. This shows your clients you are thinking of specifically them. They may pursue it, they may not. But chances are they'll tell others about what you did for them.

Once you get their attention, send them this link:

http://www.whitehouse.gov/about/internships?goback=%2Egde_3571887_member_45547363

Of course, I suggest to my advertising and marketing clients that they follow back in a few weeks to ask if (name of child or children) applied. Maybe they received a response from someone at the White House! Trust me. You'll get a more favorable reaction than if you called them to ask about local home prices.

How Banks Can Turn Around The Real Estate Market

2011-03-03T13:11:00.002-06:00

It’s one of the first marketing and public relations tips a young person learns. Do your best to turn a negative into a positive. That thought should be in big, bold letters in every banker’s office in the country.

There I was reading more less than encouraging predictions for the real estate market last night. About how the banks continue to slow down the foreclosure process, claiming it is because of the government’s mortgage modification programs. Whether or not such is really the case or if certain bank executives are too busy counting their millions in bonus money I don’t know. But I do know that this is the single most damaging element to the current real estate crisis.

Considering how the government handed over all those millions to several large banks instead of paying back thousands of specific loans, it is up to these same banks to make the sales of foreclosures the number one priority.

If you wonder why I blame the banks as I do, there is a quote from a Chief Economist at Standard & Poor’s in Banker & Tradesman saying that “The time it takes to do a foreclosure has doubled” in a story published earlier this very week. This is a lot worse than banks with one teller and 10 people in line, and our usual service gripes.

Those few consumers or investors with enough funds and/or secure enough employment to risk purchasing a residence don’t care if the next great deal is a foreclosure or a desperate seller with other motivation. They want a good deal. But if the banks are stalling the sale of foreclosures, it really means that those homes which are not under foreclosure seem “higher priced” to a potential buyer and thus less appealing.

Suppose the banks knew they should thank their lucky stars the government handed over the millions to keep them in business and got serious about helping the economy. And they made it so that homes under foreclosure were EASY to purchase and quick to close. That would entice the investors and potential buyers to get in on the best deals first, while they last.

As foreclosure homes start to sell at reduced prices, it would raise the number and percentage of available homes sold. If several homes under foreclosure in the same community were to sell within a short period of time, that would create a demand for homes in that area. Now the lowest priced homes have been purchased, and that opens it up for the most motivated sellers to adjust their pricing to be the next sale.

However, as long as the banks play the stalling game and degrade the sales of foreclosure properties, home values across the country continue to plummet and millions of current mortgages stay under water. While the banks continue to raise service fees for consumers and businesses and sitting on their foreclosures, they could be taking the lead to stimulate this economy. Here’s hoping they get the message and get aggressive about finding buyers for their properties. Quickly. Or renting them out for a monthly income. Before it’s too late for them, and for us.

Foreclosures are a negative, but I see the way to turn them into a positive.

Detroit property high on search list?

2011-02-24T14:28:00.004-06:00

The NAR has put out some startling news that puts a positive spin on the market, for a change.

Yet, it is hard to believe. They claim that the 2nd most search city on Realtor.com is (Are you ready for this?) none other than Detroit.

http://lansner.ocregister.com/2011/02/24/americas-most-searched-housing-markets/100849/

I can understand Chicago being on top of the list, even with its snowiest February in more than 100 years. My thinking is this is because a number of area residents got so fed up with winter that they would consider selling, and want to compare area home prices. Still others who live within the city limits of Chicago are not happy with the actions of the soon-to-depart Mayor, and are looking to move out of the city and in to the suburbs or perhaps beyond.

But Detroit?

The only thing I can figure is that with houses there being priced so low, and with the banks paying next to nothing for Certificates of Deposit and other investments, a number of people are looking at buying and holding properties in the Detroit area for a few years. They figure somehow the city will be rebuilt or at least be brought back to life somehow.

Meanwhile, this is the sort of information that the NAR should be putting out. It reminds people that consumers are using their sites and continuing to search for properties. This is much better than the damage they do by actually releasing the "home sales are down x% compared with last month and last year" stats they seem to constantly do. Those only reinforce the belief that the market is bad. Not that it is great, but people within the industry need to keep a positive slant at all times.

VA Loan Mess Exposed

2011-02-24T14:10:00.002-06:00

It's bad enough that even the largest of banks have added to the mortgage mess. Now the word comes out that Wells Fargo, Wachovia, and SouthTrust caused problems on some VA Loans resulting in a settlement just announced for veterans:

http://www.armytimes.com/news/2011/02/military-wells-fargo-mortgage-refunds-022111w/

It turns out this settlement was from a class action suit filed 2 years ago. So the veterans who have served our country get some money back, finally. That's the only good news out of this story.

But hold on. This raises some important questions:

1) How does the government, consisting of people we elected, let this happen? Why did the bank executives receive their millions of dollars in bonuses from the government "bailout" more than one year before veterans who have served received a settlement pittance?

2) Why is this story not all over the media? How come I found out about this via an article in the Army Times?

3) If this lawsuit was filed 2 years ago, how much did the law firm receive from this settlement or via other means? Sorry, but my hunch is that the amount they were paid took away from the pittance the veterans are getting.

4) Are you, the reader, outraged over the quote from Wells Fargo Home Mortgage Co-President Cara Heiden of “We hope that by settling this matter, we can demonstrate to veterans our steadfast commitment to doing right by them.”?

Some commitment. Two years later, a class action suit gets settled. If Wells Fargo was "commited to doing right", why did it take this LONG to pay out?

Time to say this still again. The next time the banks mess up the mortgage industry, let the government pay back the outstanding loans. Let the banks struggle for themselves. Please don't make the same mistake again. They penalized the mortgage holders and helped those who screwed them. Keep this in mind the next time you vote to elect someone to office.

Real estate agents - Let Your Dog Help Sell Your Listings

2011-01-20T16:11:00.001-06:00

One of my media coaching clients a few years ago had mentioned to me how much he enjoyed walking and how his dog was more or less conditioned to walk a couple of miles with him each day for exercise. Of course, I asked where he would do this and he told me how he would drive the dog over to a big park less than 5 minutes away. Which prompted me to ask him when he sold real estate.

He didn’t get the connection. I asked him why he wouldn’t walk the dog around the neighborhood and meet the other dog owners nearby in the process, and he didn’t know. I told him that’s why he had hired me. Having the training to address a group of people with confidence also applies in one-on-one situations.

His dog-walking time was taking away from his real estate time when it didn’t have to be. At least he was a very good listener, and that’s not something that can be taught.

Starting the very next afternoon, he began daily extensive walks within the square mile area surrounding his own house, which happened to be part of his farm area. He began to notice which houses had the dog houses, “Beware of Dog” signs, and/or the sounds of barking when he walked by. Over the course of the first three weeks, he was able to develop a route to “just happen” to walk his dog by many of the houses owned by dog owners.

Naturally, he got a few opportunities to say hello and meet some of his fellow “neighbor” dog owners. These other dog owners realized his consistent walking of his dog on a regular basis, and they became more familiar with him. After a few casual greetings with them, he would take the chance to mention that he handles real estate within the community and loves to work with dog owners because he so clearly understands their needs and requirements to find a suitable home. He would, of course, have business cards with him during his walks and gradually passed them out to neighborhood dog owners.

Even though his business cards said nothing about dogs, he soon got a referral and was successful at finding an ideal fit for a family with two large dogs and brought them into the neighborhood. Other deals followed over the next couple of years.

There was no extra cost for his marketing campaign. In fact, it didn’t even take any more time out of his daily routine. All it took was knowing how to create and follow up in a marketing situation. So if you still think the real estate market is going to the dogs, then take yours for a walk where it counts.

http://www.RealEstateMediaCoaching.com

Do home improvements benefit buyers OR sellers more?

2010-12-17T15:17:00.003-06:00

Home owners willing and/or able to fix up before selling will find it interesting that making improvements on the exterior pays off more within the warm weather states.

Remodeling Magazine has released many of the results of its "Remodeling Cost vs. Value Report" and there is a lot be learned from it. Many home owners think that doing even a small remodeling or home improvement job will automatically increase the resale value. Not always the case.

The study shows only one project, which is exterior, actually brings a higher direct return upon the investment upon sale, and this is primarily within warm weather states. Only a "steel entry door replacement" shows better than a 100% recoup of cost upon sale, showing an estimated 102.1% "return" upon resale.

Exterior improvements made more of a difference in the "return" along the west coast (Washington, Oregon, California) and along the South and Southeast corridor extending north only to Virginia and West Virginia.

As with most statistics, there are a number of ways to look at the impact. Sellers who think that by spending $5,000 on a home improvement they could then raise the asking price by $7,500 or more are going to be in for a disappointment.

Among the next highest exterior remodeling projects were upsacle fiber cement siding replacement recouping approximately 80% of the cost. Upscale vinyl window replacements and a wood deck addition each showed an approximately 72% of costs recouped upon the sale of the home.

A "minor" kitchen remodel finished among interior remodeling or improvements at around 72% of cost.

In other words, this annual study again shows that an improvement or remodeling project does not automatically increase the actual value of the property. Rather, (and generally speaking) its purpose is to accelerate the sale process of the property.

If your house shows with more quality, upgrade, or improvement work done recently when compared with similar houses within your community, the chances are better that the one buyer you need will be more willing to make an offer on your home first.

Since the vast majority of buyers and sellers are not aware of this study, learning about its findings could be a nice benefit for either situation.

A buyer, when told of or noticing an interior or exterior improvement or remodeling now has the means to point out that it does not mean an automatic raise in the value of the property, and maybe shouldn't be (in effect) "charged" $10,000 more in the asking price based on a $5,000 remodeling job.

Meanwhile, a seller can use this to point out that he/she recently spent "$5,000 on this project" while not raising or having the asking price reflect this. Show potential buyers that if they do go ahead and purchase you are providing them with additional value for a feature the buyer obviously likes.

Please keep in mind that I have been using some lower than realistic figures for the sake of example. But there is a lot more at stake in upgrading a home for sale. The study shows that a full basement remodeling has an average cost of more than $64,000 and recoups approximately 70% within the sale. Going by that, the seller "loses" $19,200 on the project. Or, if the seller expects to not only have the costs covered and perhaps clear some extra, it really means their asking price could be $20,000 or more higher.

Furthermore, the study shows that improvement projects such as a sunroom addition and installation of a backup power generator recoup less than 50% of the cost at sale.

My take from this is that it shows why so many properties have an asking price above their actual value. I don't know of any seller who goes ahead with a remodel, addition, or interior or exterior improvement who then does not increase the asking price.

If I were a seller, I would point out any such work I had done and its value, and then show how it has not impacted the asking price. In addition, I would become aware of opportunities to upgrade the property to be able to point out to my buyer what he/she could do to increase the long term value of the property.

I might say something like "I learned that for $40,000 we could add another 200 square feet to a finished basement. But it's an option and by not doing that I can keep this home priced at $xxx,000 for you." If my potential buyer does not know about this study, they will probably think that they could spend that $40,000 at their convenience over the coming months and then add at least $60,000 to the resale value. Maybe or maybe not. But I would not have mislead them in any way nor promised anything. Just pointing out future potential "profit centers" they may want to explore.

For those of you currently or looking at trying to sell, this study is worth thinking about before seriously considering spending on an upgrade, addition, or remodel. On one hand, it could mean you can present a more significant value to a potential buyer without spending a penny more. On the other hand, it could be worth comparing improvements you could make and how your home would compare to other similar properties in the area. If your situation allows you to "lose" a few thousand dollars to have the work done, but would help your home to sell faster by offering more benefits, it is also worth considering.

These are the statistics you should be reviewing, instead of the home sales comparisons (which are usually negative) from past years. All you care about is buying or selling the property today.

More reasons not to buy?

2010-12-06T13:59:00.002-06:00

Oh sure. People aren't buying in a stagnant real estate market. So let's take a quick break from real estate associations and offices pumping out the negative statistics to consumers.

Now let's look at cities which have decided to increase the property taxes by as much as 9%:

http://www.mainlinemedianews.com/articles/2010/12/06/main_line_suburban_life/news/doc4cf69ed785ba5886372746.txt

http://www.mainlinemedianews.com/articles/2010/12/06/main_line_suburban_life/news/doc4ce4206fb4c61428550764.txt

OK, you get the idea. It's called "Let's tax those homeowners who haven't been foreclosed upon and/or can't leave the neighborhood even more."

And now back to regular programming. The Memphis TN real estate market has been among the more depressed ones over the last couple of years.

How does the Memphis Association of Realtors, which consists of local agents paying their dues, react?

They want us all to know that home sales in that area for October were down 29% compared with one year ago. Now there's a reason to stop whatever we are doing and look into buying property there. If fewer and fewer people are looking there, why should we?

http://www.memphisdailynews.com/editorial/Article.aspx?id=54662

Heck, it's only the local governments and realty associations pumping out the reasons to keep the real estate market at a standstill.

Let's keep the home sales market looking bad......

2010-12-02T15:47:00.004-06:00

Another example of how it depends on where you read to track the real estate market.

At least one realty office understands the need to only report positive statistics:

http://www.mainlinemedianews.com/articles/2010/11/29/main_line_suburban_life/news/doc4cd1a06d79004599608009.txt

Yet, still another realty association keeps the NEGATIVE market statistics coming. Amazingly, it's the New York (state) Association of Realtors, which somehow thinks that reporting home sales dropping for the 4th consecutive month is necessary:

http://poststar.com/news/local/3d5c09d6-fbf4-11df-b44e-001cc4c002e0.html

Oh my. If they are going to remind us that fewer people are buying homes, how do they expect the market to get any better?

Revisiting renting vs. buying

2010-12-01T16:16:00.003-06:00

The debate continues about the advantages of renting vs. buying a home in the current economy.

To me, the debate should be continuing within the real estate community about how realty associations and organizations continue to add sparks to the fire instead of constantly going for a positive spin.

Here is another set of media examples:

First, here is a story about a realty association reporting a "mixed bag" of news, including the statistics showing the severe drop in home sales compared with one year ago.

As I keep pointing out, potential buyers at this moment don't care what happened one year ago, especially when it makes the current market look negative. If someone thinking about purchasing a home right now sees that sales are 35% less than one year ago, they might give up their idea, thinking that there are plenty of reasons not to proceed. There is no way this information is positive for local realty agents as a result.

The kicker is that the facts in this media story were provided by the Association of Realtors, which includes hundreds of realty agents paying dues only to have this negative publicity distributed to the media:

http://www.foxprovidence.com/dpps/news/local_news/region_3/warwick-single-family-home-sales-down-in-oct._3663498

Then, from the same day, this story about how in some cases (including this busy area of Southern California) it could cost a family MORE to rent an apartment than to own a condo. That might make some renters want to contact a local realty agent.

The crushing blow is that this is a reporter's story, and not released by a realty company or realty association:

http://www.the-signal.com/section/36/article/37263/

If realty agents and associations are not going to be aggressive and serious about taking steps to improve the marketplace, how is the market going to get any better? Isn't it in their best interests to do so?

When a home improvement goes astray........

2010-10-28T12:37:00.002-05:00

It is bad enough that many, if not most, properties are not marketed properly or as well as they could be. Having created and critiqued thousands of a wide variety property descriptions and advertisements over the years, I am still amazed at how agents with many years of experience leave out important selling points and/or fail to target likely potential buyers of certain properties.

While many of these same agents point to the marketplace rather than marketing, one result is that investors are not always able to get the exact information they need in order to make the best decisions. Now, a story I heard about this week has me wondering whether or not potential investors will also need to research home improvements while exploring a purchase.

It turns out that the owners of a very old Victorian house in the Chicago suburb of Evanston IL decided to upgrade an upstairs bathroom, having an enlarged marble based bathroom put in which extended out slightly over what was a balcony area to increase the size of the bathroom. What they did not take into account was the significant weight of a marble finish, and how it soon caused the house to begin a slight slant all the way into the ground. It is not yet determined whether or not there is any additional structural damage, but this information is scary enough. I’m glad I’m not a neighbor.

This raises a ton of questions, and I have absolutely no involvement in this. I can only begin to speculate about liability. I can see the contractor saying they did the work contracted for and had no knowledge of weight being an issue while arguing non-disclosure by the home owner. While the home owner is probably pointing fingers at the contractor, or perhaps a previous owner of the house. This can’t be easy for the insurance companies involved either, especially with the house having moved, aside from the possibilities of structural damage.

If and when that marble is removed and the bathroom in question is redone, this could be a major setback come the day of wishing to put this property on the market.

Back to why this is a marketing issue. As unfortunate and devastating as this is, there is a need for this to be dealt with publicly. We need answers from everyone involved in this.

Did the homeowners have any idea that adding the weight of marble finishes while expanding the size of the interior could cause such a problem? Did the city have any idea when they would have (or should have) issued a permit? Wouldn’t a professional contractor be aware of this prior to accepting the job? Was the home insurance carrier notified (considering it changed the size of the insured interior) of this change prior to the work being done?

More importantly for all of us, how does a home owner go about learning of the risks in order to make a major improvement? Let’s face it, while the owner(s) of this Victorian may well have wanted the benefit of an enhanced bathroom, the likelihood of this increasing the home’s value come sale time had to have been a factor in the decision to do this.

I’ll easily admit that I never would have thought of something like this happening either. I don’t know that, personally, I have ever heard of anything like this before. Yet, I’m sure that this event is not the only addition or home improvement which would bring on this sort of risk, in this instance to the current as well as any future owner of this same home.

While I’m sure lawyers from all sides will be racing to place the blame for this mess on someone else, the point is that a lot of people did not have sufficient research about the Victorian. And not giving this matter more publicity prevents that from happening.

Just as many realty agents do not market and advertise their property listings as well as could and should be done, it is similar to how there needs to be more information about making changes to these properties as well. There is a similarity.

For many, the first reaction to this story is to think “That home will never sell after this happened”. Yet, it might – if marketed properly. A builder or rehabber capable of handling that type of possible structural damage (or at least capable of adjusting the level of a home) might be able to work a significant profit.

Chances are that such a buyer/investor could work a major discount for the house before it is fixed, restored, or whatever actions need to be taken. By doing the needed work themselves, this new “owner” would save money, and wind up with a full restored Victorian and proof that the work was done. That would overcome the problem of the previous owner.

However, finding the builder/developer/buyer to do that takes the right advertising campaign, as well as the research on the property and the incident being available.

A fully restored Victorian in Evanston IL would command a pretty penny on the marketplace, especially being “good as new”. In advertising and public relations, this would be a classic case of turning a negative into a positive. “Own this fully restored Victorian…..” would make for an attractive advertising campaign. The aforementioned incident of the marble bathroom and a complete restoration would provide opportunities for additional publicity leading up to the sale. I have to believe that TV crews would be interested in video of before and after, and area residents interested in seeing a home of this caliber preserved and kept under ownership.

That’s what could happen, but with the right agent. Unfortunately, there are too many agents out there who would take the “new” listing, and their advertising would start with “Rehabbed Victorian with plenty of TLC……”, not invite any media publicity, and miss the whole point.

Let’s see what happens with this opportunity to rebuild this house AND rebuild market research and advertising. The real estate community depends upon it.

Listing of the Day - Advertising Critique - North Lauderdale FL

2010-10-04T14:47:00.002-05:00

Never mind the real estate statistics

2010-09-29T15:56:00.003-05:00

Why do the realty associations continue to cook their own goose? The members have no right to blame the "media reporting" for negative public perception about the current real estate market.

Let's use Texas as an example. The Texas Multiple Listing Services just published residential real estate statistics for the month of August, 2010. When compared with 2009, they show home sales for Dallas as "down 19%", Houston as "down 16%", and Ft. Worth as "down 14%". As for the "median price", this same period shows Dallas as ""up 5%" Houston as "down 1%", and Ft. Worth as "up 1%". One would likely conclude that fewer homes are selling even with sale prices holding steady.

Meanwhile, within 24 hours, the Houston Business Journal published a story about how Texas is expected to well regarding the appreciation of home prices over the next 12 months. It specifically refers to the Houston area as the market with the expected largest appreciation of home prices over any other city in the country. The same article includes the Dallas area with an expected rise of nearly 3%. This story compares with areas such as Florida which are expected to show continued depreciation among home prices over the next year.

Heck, here is the story:

http://houston.bizjournals.com/houston/stories/2010/09/27/daily6.html?surround=lfn

The information in both of these reports are not that much different. However, the irony of the Texas MLS "reporting" the negative home sale comparison while a business publication with no stake in the real estate market gives the information a positive local slant.

Real estate, like most commodities, is about today and the near future. What happened more than a year ago shouldn't have a bearing. Yet, like way too many of the realty associations and industry organizations, the negatives continue to be reported.

Suppose the Texas MLS had simply released the story about how home prices are beginning to appreciate in many areas when compared with last year, and not paraded the sales comparison. They could have given buyers and sellers some hope.

Meanwhile, the last I saw, apartment rental occupancy was way up in these same areas, especially in Ft. Worth, over the past year. At least the realty associations didn't report on that, too.

A new low for Baltimore

2010-09-17T15:30:00.004-05:00

I'd be the last person to defend a big bank, but this week's news brought out one instance where I need to do that. (Sorry, but I still contend that instead of the government handing out millions to the banks that screwed up the economy, they should have only repaid as many of the defaulted loans as possible.)

Again, the city of Baltimore filed a lawsuit against Wells Fargo, as if one bank had something to do with parts of Baltimore still being as dumpy and depressing as they were 25 years ago:

http://www.mortgageorb.com/e107_plugins/content/content.php?content.6671

Instead of spending money on cleanup and development efforts, the city chooses to pay a law firm to file these lawsuits so they can be thrown out.

This leads to another way to help with the banking crisis around the country. Let's ask all of the banks serving Baltimore to only lend on properties located in other cities and towns.

Baltimore officials won't mind. If there are no commerical or residential loans within the city limits over the next few years, the city won't have any reason to sue any of the banks!

It takes more than just a headline......

2010-09-07T15:34:00.001-05:00

Upon finding out that I will have an opening for at least one new real estate related marketing client later this month, I was looking at one of the networking sites I frequent, and saw this teaser:

"Investors: Don’t Just Estimate! We have all homes for sale ranked by investment potential."

This is the type of headline which attracts my attention, and more indicative of what agents and brokers should be doing to make their listings stand out, especially in this challenging market.

However, when I clicked on the link, all I got was a web page which was for visitors to either register or login. Not one word about any such property listings or rankings.

Therefore, within a matter of seconds, this guy’s idea went from solid to junk. But it should be a lesson for people in marketing, real estate or not.

Just having an effective headline doesn’t help. In this instance, it makes it worse. We not only don’t get the information we hoped when we click, but we don’t even get a confirmation that we can get it. Just because the page says to either login or register doesn’t mean that we would get the desired information after we register. Let’s face it, people aren’t anxious to give out their e-mail address and take their chances, especially when it means showing an interest in buying real estate.

What did I expect when I clicked? Either a list of properties as promoted, or at the very least an explanation of the criteria used in “ranking” the homes for sale. I still have no idea about what part(s) of the country these properties are supposedly located in, whether they are single family homes, multi-family, or strictly for investment potential. If for investment potential, it raises the question of single family, rental, flipping, rehabbing, etc. Instead, not even a “coming soon” or anything to indicate I got to the “right” site, and this was by clicking on the link provided.

However, I’m not going to go back to that site to find out.

Property ads - it's also the placement

2010-08-09T14:38:00.001-05:00

While I take a short break with the “Listing of the Day” advertising critique, there is definitely room for observation. Hopefully more agents are starting to realize that in this market, cookie-cutter advertising doesn’t cut it. There should be more outrage that I find the same problem areas in advertisements for million dollar homes that I do for $100,000 properties.

Each property should be treated as a unique property, even if it is in the middle of a development of 20 houses built exactly alike on the same circle drive. Heck, even in that case, one is likely to face east and thus not have the hot afternoon sun blazing into the living room and/or master bedroom. (See, there I go again!)

Even though in this age of political correctness it is increasingly difficult to write to your true target audience, there continues to be opportunities for better targeting than what I see in the majority of property advertisements.

For example, suppose you have a listing in an ethnic neighborhood and it is down the block from the elementary school. These days, you are no longer able to say “ideal for young Asian family” or whatever it may happen to be. Many agents and brokers become more concerned about staying within the guidelines, and reduce their ad for such a property to “close to schools”, and fail to realize how changing their advertising approach to something that soft in effect costs them business.

Using that example, suppose the husband in a Latin family sees this ad. He then sees the address, and realizes that the advertised home in an Asian community. He is looking for something in a Spanish community and will look at other advertisements. Chances are he will eventually contact ANOTHER agent with a property in his desired area.

How do you get around the “politically correct” restrictions? That is a tough challenge, but one that should be recognized as a challenge by agents and brokers who understand the importance of advertising for every single listing.

If this were my client faced with this situation, I would start with one important suggestion. Advertise this property, with the “close to schools” (in order to remain politically correct) in a publication and/or web site which specifically targets the Asian audience!

It is not only gearing each property advertisement toward its most likely audience. It is placing the ad(s) where it will have the best reach.

Some of you are thinking, “but I advertise all of my listings in one place all of the time”. If so, you are only reaching the same people all of the time. How are you going to sell the home in the Asian community if only a tiny percentage of Asians would happen upon the ad?

The placement of advertising is very often as important as the content. There might not be any “wrong” places to advertise, but keep in mind that the days of “just put an ad in the paper” or “it’s on Realtor.com” are no longer sufficient in order to list and sell in the current marketplace.

What's your name in real estate?

2010-08-04T13:08:00.000-05:00

For as much time as I spend on behalf of clients with regard to the advertising and marketing of specific properties, I still continue to advise them that branding remains an important ingredient to success in terms of real estate sales.

I have encountered some agents with the national brand name real estate companies who haven’t found it necessary to do as much branding as they should, thinking that the institutional advertising out there would attract more potential buyers and sellers to them based solely on their farm area. Finally, the evidence that this is not a good approach is starting to appear.

http://www.deloitte.com/us/americanpantrystudy

The research found via the above link provides proof that more and more consumers are receptive to “store brands” or “house brands” for their purchases. Granted, this is often due to the current state of the economy, and is for much smaller purchases than property. Yet, the trend is there. Obviously, real estate is also a changed industry because of the same economy. I have seen the complete details of this study and it shows a distinct increase in the percentage of consumers who now look at and purchase “house brands” instead of brand names.

While this is happening, I have more and more “brand name” real estate agents and mortgage lenders telling me they don’t see the need to increase their branding and advertising in today’s market.

I’m here to tell you that those agents, brokers, and lenders who know to spread the word will benefit much more and much faster than those sitting on their hands. Your decision to decrease your advertising and marketing budget is also a decision to increase the advertising and marketing of your more aggressive competititors.

Listing of the Day - Advertising Critique - Providence RI

2010-07-16T13:47:00.002-05:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

177 Morris Ave., Providence R I - 5 + 2 1/2 $599,000

http://projo.sawbuck.com/property/Providence_Metro/Providence/Blackstone/3389685-177-Morris-Avenue

This listing advertisement was randomly selected (as these all are) yet makes for a very interesting study. The photo spread is among the very best I have ever seen, while the description copy leaves a lot to be desired.

Although the primary photo is the only one of the exterior, it is taken from an excellent angle which makes the home show very well. However, it also clearly shows trees with no leaves. Not exactly a reflection of the July day on which I found this ad. (The largest newspaper in town's online site, on which this ad still appears as of press time, also shows that this home has been for sale 113 days as of this writing.)

On a separate note, I understand that the realty agents have little to no control over advertising sources which continue to show the number of days or period of time a property has been for sale. However, I don't understand why they, as advertisers, do not take a stand to have that information removed. Showing how many days creates a negative impression of "this house hasn't sold yet so there must be a problem with it" to a potential buyer.

Those who are impressed with the primary photo and click on the "additional photos" link get a wonderful full page with a 12 photo spread, including most of them being interior shots. Every photo in the spread features a different area of the interior. Even if some of the current colors may look a bit loud for some tastes, these photos display a wonderful feel for this home and do not duplicate. It is clearly the quality of the photos as much of the quantity. (Having 12 photos doesn't mean much if 4 of them are the same room from different angles - not the case here.)

However, after the wonderful buildup with impressive photos, the description copy quickly kills the momentum the listing agent had built up.

A family seeking a 5-bedroom home is not likely to be as concerned with the age of the home nearly as much as the features and appearance. In this instance, starting the copy with "Elegant 1927 Tudor with charming period details" is insane. Frankly, it might as well have read "This is really an old house so be aware" instead.

While the remainder of the description copy is somewhat more focused, it also ends on a lesser note than what it could be. I don't know for sure what an "Integral garage" is, and the closing "great opportunity" is what I call Realtor fluff since it tells me nothing. This copy might fit if it were a $150,000 home in a middle income area, but not for a half million dollar plus property.

What a difference it would make to update the primary photo to include the greenery and to create a realistic description copy befitting this home.

GRADE: C

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Advertising Critique - Jackson MS

2010-07-15T15:08:00.003-05:00

Listing of the Day - Advertising Critique - San Francisco CA

2010-06-22T16:07:00.002-05:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

48 Turquoise Way, San Francisco CA 3 + 2 $1,050,000

http://realestate.sfgate.com/homes/listing/123-2891/San-Francisco-CA-USA/2-beds/2-baths/SINGLE-FAMILY-type/1000000-3000000-price/Priority,0,,Price_Sales,0-ns/20-CH5521534--123-2975--290-371870--20-CH5522942--123-2891--20-CH5523019--20-CH5523010--193-367710--20-CH5522400--312-81000129-ls/199-t

For anyone that gets past the photospread, this is an excellent job of marketing a million dollar property. The primary exterior photo looks like a gated castle wall entrance and not the property itself, along with appearing to be very close to the curb for a mansion. A poor choice for catching the eye of an interested potential buyer. The remaining photos are mostly exterior and do not provide a scope of the size and features of the home. The last photo shows some of the interior, but appears to be to spotlight an exterior entrance to the inside.

For those who stick around long enough to read the description, it is compounded by having approximately half of the copy touting the location and the exterior features, including some Realtor fluff. The "incredible street presence" and "spacious public rooms" mentions could be turn-offs to buyers or investors of this caliber of property wishing to maintain a degree of privacy. Let alone that they have no idea of what the interior actually looks like after all of this time.

The lower 1/2 of the description, finally addressing the interior, is among the best I have ever seen in my 21 years of reviewing property advertisements. The agent's ability to walk you through with his description becomes a 'written tour' and is excellently done. He makes it seem like a million dollar property without any further Realtor fluff.

It took getting to that point to understand why the seller listed with this agent. That is before the ad reveals at the end that this property has a street address web site with more information.

However, the effective part is too late into the package. Think of a job resume where the applicant lists his/her most significant experience at the bottom, underneath the entry level positions. An employer probably isn't going to keep reading long enough to see the potential of the applicant. That's what happens here.

This problem could be easily fixed, even without adding photos of the interior (although that would certainly help). Simply reverse the order of the content, putting the interior description as prominent.

Until or unless adjustments are made:

GRADE: B-

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Advertising Critique - Miami FL

2010-06-21T14:00:00.001-05:00

Listing of the Day - Advertising Critique - Hampton Bays NY

2010-06-18T13:02:00.002-05:00

Listing of the Day - Advertising Critique - Huntington WV

2010-05-17T15:19:00.001-05:00

Listing of the Day - Advertising Critique - Boston MA

2010-05-14T15:21:00.002-05:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

2360 Centre St., (West Roxbury) Boston MA $249,997 3 + 1

http://realestate.boston.com/homes/listing/2205-71066925/Boston-MA-USA/2-beds/200000-250000-price/142-71072605--431-71072664--2190-71026759--2190-71026758--13699-136006--1049-71072671--2190-71026751--3195-71068710--2205-71066925--1745-71058035-ls/159-t/Price_Sales,1-ns

This one is typical of listing advertisements I like to use when meeting with a realty agent or group of agents who are potential clients. Here is an example of a home that has challenges but could be presented much better than this agent is.

The primary photo provides little more than an example of why agents need to ride herd over the photos of their listings. There is absolutely no reason for this to be such a wide shot from further back. All that does is show what a dreary weather day it was and the bare trees. (I found this ad in mid-May, so it is obviously an older photo, which is another negative.) We see a vehicle parked in the drive way on the right, and a poorly landscaped open stretch on the left. Both of those, plus some of the bare trees, would not have been in the photo had it been taken from closer in.

There is only one other exterior photo in the photo spread. While I understasd they want to show the "large yard", the photo that shows it with a clearly temporary fence not even completely upright and what looks like mud taking up much of the space. It is poorly landscaped. This photo does more harm than good, which is also the case on a couple of the interior photos shown.

Overall, the photo spread does more harm than good. Especially when it is obvious by the bare trees that it was taken weeks ago. Frankly, there is no excuse for these photos to be in a Boston Globe advertisement weeks after the fact.

Those who stick around long enough to read the copy read a careless description. It is then that we find out it is only the 2nd floor unit that is for sale. Because the primary photo is so far removed, it appears to be the entire house for sale. Nothing about this being a duplex or two-flat.

How about the copy reading "newer replacement windows"? One would think that an agent from a nationally known firm would know not to have "newer" and "replacement" together like that. Another red flag to a potential buyer. The "private driveway for 1+ parking" is not a plus when it tells us there is no garage while the exterior photos were taken on a rainy day.

At the end, the last sentence is "Walk to T, commuter rail....." and names a school. Besides "walk to" being an outdated term for Realtors in recent years, naming the school without telling a potential buyer whether it is a grammar school or high school does not help very much.

Based on a couple of the (good) interior photos, and with an exterior one taken to show this home properly, combined with description copy written by someone with expertise, this could be presented as an attractive property. This seller should be extremely disappointed in how their home is being presented.

GRADE: C-

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day Advertising Critique - Albany GA

2010-05-04T16:24:00.001-05:00

Listing of the Day advertising critique - Biloxi MS

2010-04-16T13:12:00.002-05:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

227 Rue Petit Bois, Biloxi MS 3 + 2 $249,999

http://www.homefinder.com/MS/Biloxi/60147845d_227_Rue_Petit_Bois

There is only one photo in this advertisement and it leads to a mixed reaction upon first glance. The house itself looks to be solid, well built, newer, and large, which is a positive. We can clearly see that there is an attached garage, also a positive in this warm climate environment. However, we have a car and a van in the driveway, a less-than-spectacular looking lawn, and what appears to be an empty house inside.

The description copy is also a mixed bag. Terms such as “amazing style” and “open concept living” were probably put in to add sizzle, but they fail to tell a potential buyer anything helpful. Even after personally reading thousands of property ads over the years, I’m not sure I know what “bullnose corners” are, while I have to guess that “s.s. appl’s” refers to stainless steel appliances.

The last sentence is Realtor fluff at its best, ending with “convenient w. Biloxi location too!”. We are left with no idea of what makes this property a good location. We can tell from the address of the property that it is in Biloxi, along with the fact that many potential buyers probably find this advertisement because they search by city. There are only 4 lines of description copy as it is, and wasting words wastes the selling opportunity for the listing agent. We are never told how many cars fit in the garage anywhere in this advertisement.

Worse yet, this ad still needs editing. One sentence starts with a lower case letter, it shows “s. S. Appl’s” just like that, which is not correct casing in addition to being a confusing abbreviation. Sorry, but this typesetting makes everyone look bad. If this is really how the listing agent turned in this ad, the newspaper should have made the necessary punctuation changes.

Meanwhile, the description does not enhance the photo, and vice versa. Too little thought went into the preparation. If this is a “custom home”, we have nothing in the photo to support that since it doesn’t look lived in. If this is a newly built home (which we are not told), the photo would support that, but the current description copy does not. For a quarter-million dollar property, when there are other homes in the same price range and area now available, potential buyers do not need to be seek clarification when they can easily click ahead to the next property. The seller is entitled to having the agent do more than put in a hastily snapped single photo and some fluff in the copy being the representation of this property.

GRADE: D

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day advertising critique - Annapolis MD

2010-04-15T12:32:00.002-05:00

Listing of the Day - St. Augustine FL

2010-04-09T15:34:00.002-05:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

1323 Powis Rd. St. Augustine FL 4 + 4 $275,000

http://homes.jacksonville.com/realestate?tp=homes2.jacksonville.com&classification=mdRealEstate&temp_type=detail&listing_id=43830433

This advertisement is actually quite interesting. The potential buyer is not told this is really for a Short Sale until the very last part of the description copy, appearing at a point by which they have been well 'sold' on the appeal of this property.

It will be interesting to check the reaction of my clients as well as agents who always read these critiques about the ethics of burying the fact that this is for a Short Sale. From a marketing standpoint, I'm somewhat impressed at how the agent does her job of "selling" the property first. Well, almost first.

The primary photo is an impressive view, showing the scope of the home with the photo taken at the best possible angle to show the large driveway and 3-car attached garage. However, there are no interior photos at all on the spread, and that is a big waste of opportunity. A family (or investor) looking at a 4-bedroom home, especially one that shows as well as this one does from the exterior, is bound to be curious to see how the inside looks. In addition, the side and back exterior photos appear to be taken in different light and make the house look to be in a different color than the front. While I can understand showing a home in relation to a pond or lake, we don't know whether this photo was taken looking from the home for sale, or from across the pond looking toward it. At least two of these photos should have been interior shots.

Although the description copy highlights several prime sales points, the "Realtor fluff" that starts it out should be eliminated and it would make the copy much more effective. The "Look no further" bit explains absolutely nothing about the property.

I like how the description copy (after the first line) provides an excellent balance of interior and exterior selling points. It furthers the point about the need for interior photos to appear within the picture spread and what a tremendous reinforcement opportunity is lost.

Holding off revealing this is a Short Sale until the end could entice investors to pursue it, but might lose a family looking for a home for the immediate future. Personally, I prefer this approach, since it reflects better on the listing agent. Far too many agents listing short sales make it obvious they spent about 10 seconds on the advertisement and make an investor skeptical that the agent is capable of getting a deal done.

GRADE: B-

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Dearborn MI

2010-04-06T15:05:00.002-05:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

711 Meridian St., Dearborn MI 4 + 1.5 $299,900

http://www.homefinder.com/MI/Dearborn/60187617d_711_Meridan_St

This advertisement is another example of why the primary photo is so important toward attracting potential buyers on first impression. The angle is not favorable at all. The eyes are drawn to the left side of the home, which has what is either an enclosed patio or an add-on. (The description copy doesn't even clarify.) We don't get to see whether or not there is a driveway and/or garage from this photo. This is Dearborn, home to a lot of auto company executives, and yet the parking situation is not dealt with at all in the exterior photo or the description.

In addition, this advertisement is still running in April, and the only exterior photo shows snow all over the property. Put these factors together, and the initial impression is that this home has been on the market for weeks, looks smaller because of the emphasis of the add-on or patio in the photo, and may not have any form of covered parking, despite an asking price touching $300,000.

As for the remainder of the photo spread, the majority of the interior photos are well done, but with one exception. Most of the time, including a photo of a bathroom is a positive, showing a nice design, plenty of room, new or modern fixtures, and the like. The bathroom photo on this spread is nothing but a negative. This enables us to see how narrow the room is, how "basic" its contents are, and how people can see into the room from the outside. (You can see the house next door looking out through the bathroom window in this photograph.) How on earth is that a selling point?

For those that stay on this property long enough to read the description copy, we have a case of too many abbreviations. I would like to think that for a nearly $300,000 property the agent would spend a few more dollars to have enough lines in the ad to actually indicate the selling points. What likely really happened is that the agent (or whoever handles the advertising) merely took the already written copy for the MLS and stuck it in the ad. As if that isn't bad enough, the opening line of copy refers to the "$150,000 in updates". Hopefully the view of the neighbor's house from the bathroom isn't one of those updates, but it's hard to say what they are.

It's the very end of the ad copy that tells a lot, "fam rm w/heatilator f/place, and sep kitchen eating". I'll admit that I don't know what a "heatilator" fireplace is, so I'm not sure if that's good or bad. (And if I don't know after seeing thousands of property descriptions, it likely isn't good for the occasional home shopper either.) The "sep kitchen eating" (without a period to punctuate the end of the copy) makes no sense. Do people have to eat in a separate kitchen? Or did they intend to say "eat-in kitchen". Guess we'll never know.

As careless as this advertisement is, it doesn't take that much time and effort to turn it around and make it effective. A more recent exterior photo from a better angle, one less interior photo, and copy written to show the true selling points would make all the difference.

GRADE: C-

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Chicago IL

2010-03-31T15:40:00.002-05:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

8156 S. Luella Ave. 3 + 2 $275,000

http://homes.searchchicago.suntimes.com/properties/search/detail.php?qBackToSearch=qTerms%3Dsell%26qSearchTab%3Dsell%26qAction%3Dsearch%26qRegion%3DChicago%252C%2BSouth%260%26qMinPrice%3D200%252C000%26qMaxPrice%3D300%252C000%26qBedrooms%3D2-%26qBathrooms%3D1-%26propertyType%255B0%255D%3DHouses%26pagesize%3D20%26view%3Ddetailed%26qtotal%3D42%26qSortBy%3DPrice%26qSortDirection%3DDESC&qAdid=mls-07480039&propertyNumber=8

A classic example of a property that could be marketed much better than it is in this advertisement.

In this instance, the choice of the primary photo is not a good one. Just because it is the only exterior photo in the spread should not make it an automatic choice. The big tree takes away from the exterior view while the wide shot serves to diminish the big size of this home, as touted within the description. In addition, the first line of the description copy indicates "Double Corner Lot", even though one cannot tell that due to the angle of this photo.

Ideally, the exterior photo should have been taken from a closer angle without the tree in the way and showing the scope of the corner lot. Furthermore, at least 2 of the interior photos in this spread would have better served to have been the primary photo and demonstrate the size and luxury of this home. For that matter, it appears that the leaves are falling off the trees, meaning this photo could well have been taken last fall (or earlier), and this ad appears at the end of March. Not exactly a "fresh" looking property based on the one exterior photo.

Most of the interior photos are the strongest selling points for this home, showing the size and lavish potential.

Not only is the description copy far too brief, but it fails to prioritize the selling points. Starting with "5 Minutes To Lake" is not an important consideration for the majority of potential buyers considering this community. Especially with a custom built home on a "double corner lot" located in Chicago. Listing an approximately 2,600 square foot home within a large city for under $300,000 is a significant headline, yet there is such little emphasis on this fact.

The picky potential buyer will also notice that the "Details" under the photo show "3 bedroom 2 bath" before the brief description copy shows "3 br, 1.5 ba", and that is a negative to, in effect, 'take away' 1/2 of a bath from a potential buyer.

In addition, the onslaught of abbreviations makes it appear that the advertiser was more concerned about saving money on the ad than presenting the selling points of the home. Even with my experience, I had to stop and think of what a "custom designed wbfp" is. I'm sure that will be another potential selling point that will go untouched by any potential buyers who stick around beyond the primary photo.

Yes, what might have been. A primary photo of one of the wide interior shots and a description about the large size and custom features for under $300,000 would make a huge difference for this seller, who should be very disappointed in the agent's efforts.

GRADE: C+

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Evansville IN

2010-03-24T15:07:00.001-05:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

734 Greengate Ct. Evansville IN 4 + 3 1/2 $249,900

http://realestate.courierpress.com/for-sale/listing/344-172834/Evansville-IN-USA/2-beds/1-baths/SINGLE-FAMILY-type/150000-250000-price/364-167557--344-172834--7821-172313--7821-170382--307-171616--24-5501655--7821-172750--323-170106--323-168044--1993-171681-ls/218-t

This advertisement is a mixed bag of good and bad. The primary exterior photo is a positve, showing off a well landscaped larger home with a unique entrance way that should attract potential buyers to click in for more.

However, as much as I like multiple interior photos within an advertisement, the use of photos of empty rooms takes away more than it adds. The left column clearly states that this is a newly listed property (showing as 6 days at press time). Showing us that the home is empty when this home does not appear to be new construction (and it doesn't appear to be, but that is a guess) is a negative. It raises questions. If this is new construction or just rehabbed to be sold, there is no indication. If the seller has just moved out, it seems odd that the photos and the actual listing would have been so recently done.

With other choices in this area and same price range, a percentage of potential buyers won't stick around past the photo spread to find out.

On to the description. It starts with a line of "Realtor fluff". The "You'll be proud to give out this address...." line is laughable. In this day and age, people are not into "giving out" an address. At least not a family that would seriously consider a 4-bedroom neighborhood home. For an investor it could be a different story, but use of this line to start narrows the focus toward investors only. That is not fair to the seller to narrow down the possibilities with the first sentence.

Some of the description copy does a good job at hitting interior selling points, such as the "full bath and a whirlpool bath", "walk-in closet", "large kitchen has a nook area", and how "one of the garages has been converted to an office". Yet, we don't see anything of the supposed 2 large garages on this property in any of the photos, not even the primary exterior shot. Same with the "beautiful fenced back yard".

Furthermore, the lack of any details whatsoever about the neighborhood, schools (and this is a 4-bedroom home), or the community, fails to support the first line about "You'll be proud....". We are not given one reason why a buyer would be proud of that address, whether that copy works or not.

The creator of this advertisement failed to coordinate between the photo spread, the description copy, and the adjacent information. If the listing agent had someone create this ad, he should have made certain it flowed a lot better before letting it go public. The seller has reason for concern, especially about people so easily able to find out the home is empty. Potential buyers are not given any reasons to possibly pursue this property until well after they have been shown reasons not to. If presented right, this property could be justified at over a quarter-million dollars. Presented the way it is now, it doesn't come close.

GRADE: C

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - New Haven CT

2010-03-19T13:47:00.002-05:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

Fountain St., New Haven CT $216,900 3 + 2

http://homes.localhomesinct.com/sales/detail/203-N297656

Listing advertisements such as this one are the reason I first got involved with the advertising and marketing of properties more than 20 years ago. The people have a right to know.

This home was built in 1937. This advertisement comes off as if it was designed when the house was brand new. There is no address given. I even checked on the company web site and didn't find one there either. The map feature shows the arrow on Fountain Street, but that isn't confirmed. Thus, no one could possibly drive by this property.

There is no description copy either. No selling points. Not even fluff copy. Other than being told 3 bedrooms and 2 baths and the square footage, we get only one other "fact". As of press time, this so-called advertisement shows "Monthly tax: $4,961". Say what? If I read that right the owner of this property pays $59,532 per year in taxes alone. No wonder the address is a secret.

All of this "information" comes after the primary photo, which I couldn't even identify when I first clicked on the ad to review it. Turns out it is a photo looking down on top of a fireplace. Unless this is the only fireplace in a house within miles, this is hardly a big deal. In more than 20 years of looking at property ads, I have never seen a single fireplace given such priority.

Out of 8 photos in the photo spread (the only redeeming part of this "ad"), only 3 have any merit toward a potential buyer. One of the exterior shots shows 2 cars in the driveway. Besides being a security concern, it reminds us that we don't know if the garage appearing in one of the photos is for this property or not. If it is only single lane parking for 2 cars, it means that a home owner with more than 1 car has to be concerned with the order of the cars being parked and struggle getting in and out on a daily basis.

Two photos show the back yard. Normally that would be fine, except that the lawn is in poor shape. Even if due to the season, these photos do not show the property in a good light. One of the living room photos reveals a poor quality table covered with a cheap looking table cloth. Not flattering for a home asking more than $200,000.

After all this, there is no agent name listed (which is almost understanable given the presentation), and the "Contact Information" link goes to the office web site and not a specific name or anything further about this property.

How a seller would allow this as a representation of their property is beyond me. How an agent from a name brand real estate office can, in 2010, put an advertisement online with no selling points and a possible serious financial error (not sure what to think about the "tax" line) is even further beyond me. The only way this agent would get a commission is to sell others a list of anyone who would actually inquire about this home based on this advertisement.

That there are a couple of decent photos raises the grade from F- to a straight F.

GRADE: F

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - West Chester PA

2010-03-18T14:46:00.002-05:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

330 St. James Rd., West Chester PA 3 + 1 $297,500

http://dailylocal.localre247.com/homes/listing/223-5476160/West-Chester-PA-USA/2-beds/1-baths/SINGLE-FAMILY-HOME-type/200000-300000-price/261-2492505--223-5476160--261-5623524--326-5669536--261-5604939--261-5488494--261-5580547--223-5478740--261-5558314--261-5597694-ls/13-t/Price_Sales,1-ns

Overall this advertisement is well done. The photo spread is prominent and includes numerous interior shots to give the potential buyer a fast but thorough overview. More importantly, it gives reason to continue along to the description, which gets right into the selling points without fluff copy. All of this combines to lend credibility to the agent, who clearly worked on presenting this advertisement.

If I was a potential buyer looking at this property, I would be satisfied with this advertisement, probably enough to want to follow up. If I was the seller, I would be pleased with how the home is presented and feel as though the key selling facts are included.

Yet, I see the need for some touching up that would take this ad up another notch.

The primary exterior photo does not do all that it can and should to present this home. This photo needs to be re-shot from a side angle over the left (from our current view) and extending the shot out to the right. Even though this shot gives a good perspective on the house, my feeling is that a potential buyer over the age of 50 would not go any further.

From this angle, we do not see a sidewalk or walkway leading toward the front steps. We do not see the garage or its proximity. But we do see a huge front lawn. These are concerns for many middle-aged and seniors who prefer a single level home but are more concerned about easy access. This house may have easy access, but it doesn't show on this photo. Granted, a young family needing a 3-bedroom home is probably enticed by the big and roomy front lawn, but in this market properties need to be well presented to all age groups.

While the description copy hits upon selling point after selling point (which is a big plus), a few simple changes would take this from a good advertisement to a great one.

One of those changes, however, is to fix the typo which appears as this is being written. The term "double oven" shows as "double overn". Yes, mistakes happen, but for the agent to take the time he did to formulate this advertisement, a few minutes to check and double-check upon publication would have saved him the embarassment. (I have had several agents and consumers tell me it is a red flag when another agent leaves any type of error in a listing, especially one in the $300,000 range.)

The other part to fix is the last part of the copy, which reads "outside entrance to attached 1 car garage". The idea of having the last few words be a selling point instead of the "must see!" type of fluff is excellent. However, this choice of words sends potential buyers out on a lesser note, right at the point where he/she is deciding whether or not to contact the agent and pursue this listing.

I'm confused. Is there a SEPARATE outside entrance? Is there ONLY an outside entrance? I don't know that I could go from inside the house right into the garage or if I would need to go outside, which partially defeats the purpose of an "attached" garage.

Since there is a 1-car garage for a 3-bedroom home, there are 2 better ways to handle presenting this. If, for example, there is a driveway with room for more parking (and we don't know based on what we see here), this would be a better way to go. Better choices to present this would be "parking for 3 cars" or "attached garage".

Overall, this advertisement is a few minor changes away from excellence.

GRADE: B

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Anchorage AK

2010-03-17T13:59:00.002-05:00

Listing of the Day - Knoxville TN

2010-03-10T09:24:00.001-06:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

844 Tanner Lane Knoxville TN $249,900 3 + 2 1/2

http://realestate.homemarketnow.com/for-sale/listing/7714-702574/Knoxville-TN-USA/2-beds/1-baths/SINGLE-FAMILY-type/150000-250000-price/7647-693905--7714-684396--7714-684460--7714-703151--7714-702574--7714-701563--7714-701075--7714-700916--8029-700692--7714-700136-ls/915-t

This listing agent spent more time on this ad than many other agents do, yet there is room for improvement - with the advertisement. The primary exterior photo is a very good photo for presenting the size and scope of the house and clearly shows the 2-car (or more) attached garage and the attractive landscaping. However, there is a very noticeable shadow covering the front lawn. Even though the house itself is in sunshine, there is no clear explanation for the shadow on this photo, leaving us to speculate.

It could be another home or building close by, thus limiting the amount of sunshine onto this property. My hunch is that it was a big cloud rolling in and the photographer was in a hurry to snap this photo while the house was still in sunshine. Sorry, but either way this doesn't cut it with me. The photographer didn't have to be in that big of a hurry, since he or she is helping to get a quarter-million dollar property sold. He or she could have taken the exterior photo from a different angle and not had that huge shadow be such a negative to an otherwise attractive property.

On a positive note, the use of extensive interior photos, including showing everything including the kitchen sink (literally) with most rooms from different angles is excellent. We can clearly see that this home is well taken care of based on the layout and the coordination of the furniture and appliances.

The description does what it is supposed to do, which is to begin with strong selling points right away. In this case the focus is on the community, and the copy sets the scene quite well. The best terms are "Landcapted yard - fenced and fully private w/large patio", and "filled with natural light". Terms like this which describe a definitive positive image in a few words are key in advertising an upscale property.

However, there is too much "Realtor fluff" instead of what are additional selling points. The use of "stunning showplace!" doesn't help a large family which isn't looking to entertain in this 3-bedroom home. The "Look no further - this is it!" at the end is a complete waste of space.

Instead, the facts found below in the description are left out of the places they would have had much more impact. For example, we are not told anywhere on the page (or I couldn't find it - and I was specifically looking) anything about the size of the attached garage. Facts such as this home being just over 5 years old are among those which would "sell" a lot better than "This is it!". Once a potential buyer loses interest, he/she/they are not going to continue reading below to see if there are additional selling points.

What starts out as a description with punch slowly deteriorates into Realtor fluff, and there were more sales points that should have been used.

A few changes to the description and the seller and agent would have a winner.

GRADE: B-

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Midland TX

2010-03-01T13:48:00.001-06:00

Listing of the Day - Tucson AZ

2010-02-22T13:08:00.001-06:00

Listing of the Day - El Paso TX

2010-02-19T13:41:00.001-06:00

Listing of the Day - Dayton OH

2010-02-11T12:31:00.001-06:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

1500 Elm Brook Trail, Dayton OH 4 + 3 1/2 $250,000

http://classifieds.daytondailynews.com/real-estate-homes-apts/all/single-family/listing/636710/?sale=for_sale&q=dayton%2C+oh&minprice=150000&maxprice=250000&bed=2&bath=1

So what if the primary exterior photo is not from a bright, sunny day. The first impression photo is very real. Snow on the ground and a cloudy day in the background. Yet, the size and scope of the house comes "shining" through to a potential buyer. The wide driveway and 3-car garage as part of this large 2-story home are immediately evident.

This ad has one of the best photo spreads I have seen in years, and not because there are 20 photos overall. A couple of them wisely duplicate a room but provide different angles to give a more positive perspective. From having seen the photos, and seeing a large amount of description copy to read, I already feel as though this is a very professional presentation of an upscale listing.

The description does not let the reader down either. I didn't find any spelling errors or confusing abbreviations. Better yet, there is absolutely no "Realtor fluff" (such as "shows well", etc.), leaving every phrase to bring out selling points.

Many of these selling points are unique, and the agent carefully brings them out. Points such as "sunny morning room", "bay window", and "basement is plumbed for an additional bath" add a ton to the first impression. This is important when you consider there are several other homes in this price range also available right now.

I especially like the "finished basement features a media room wired for 7.1 surround sound" line. A movie or music lover understands he/she could have a state-of-the-art system right off the bat. If a potential buyer doesn't care about that, it still shows the precision and capabilities of the property, becoming an immediate future selling point.

Even at the end of the description, major sales points are still flowing. From the "oversized shower" and "double sinks" of the master bath to then pointing out it is a 3-car garage, the benefits continue.

This agent even includes "high speed internet" among the "Interior Features" below. A great strategy, especially for a 4-bedroom home where chances are more than one computer would be in use.

Mentioning features such as the surround sound, internet, and double sinks are huge because they tell us exactly how the buyer can and will use the home on a regular basis. These are practical amenities that some homes either do not have or fail to point out.

Simply put, this is one of the most well done listing ads I have seen in years. The sellers should be pleased with how their home is being marketed.

GRADE: A

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Jackson MS

2010-02-10T13:40:00.002-06:00

Listing of the Day - Columbus GA

2010-02-09T14:39:00.001-06:00

Listing of the Day - Phoenix AZ

2010-02-08T14:58:00.002-06:00

Listing of the Day - Hinsdale IL

2010-01-06T14:08:00.001-06:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

16w751 90th St. Hinsdale IL 3 + 3 $269,900

http://www.homefinder.com/IL/Hinsdale/45388527d_16w751_90th_St

Only one photo to create the first impression. Yet, upon randomly choosing this advertisement during the first week of January, the one photo has green grass and blue sky from what looks like a summer day. Keep in mind that Hinsdale is a quaint and upscale suburb of Chicago. Right off the bat we can easily guess that this home has been listed for a long time, or if not then it is not a current photo. Either way, that is not a good start.

In addition, the angle of the photo is not as good as it could be. It is too wide of a shot and does not feature the exterior details, nor does it make it clear that it has a 2-car attached garage.

The description copy begins with "New in '06:" and goes into an abbreviated list of amenities. Some would think that the house was built in '06 from that way that is written, while others would have already seen the line to the left showing that this home was built in 1978. Three year old improvements are not "new" enough to make that the first selling point. Features such as "kitchen cabs, appls, front door, crown molding & trim, ceiling fans in all bedrooms" which are more than 3 years old?

Next, we are told that the house is being sold "as is" and "needs a few repairs, mostly cosmetic". I understand that this has to be explained. Yet the "mostly cosmetic" essentially negates the entire description we had just read, which highlights the 3+ year old amenities.

Next, we get what I call the "fluff" copy about the seller being "very motivated". Sorry, but it sure doesn't show, at least not from this agent. Showing a summer photo in January? "New" from 2006?

It's only when we read the quick facts below (which a lot of people who check out this advertisement won't even stick around for) that we discover there is a 2-car attached garage and central air. These are better selling points than most of the ones listed.

Nothing about the community, schools, or the neighborhood either to entice a potential buyer.

While I understand the mention of "possible short sale" is intended to encourage offers, it doesn't work in the context in which it is presented. Factor in the photo, the 2006 reference, and the other negatives, and the vast majority of this page really says "Offer anything and get this property off the market ASAP" without offering nearly enough reasons to do so.

It is even more disappointing to note that I randomly selected this listing via the Chicago Tribune web site, which is one of the busiest real estate web sites in the country. The lack of effort from the listing agent comes across throughout. I wouldn't be surprised if I check back in 6 months and see the exact same ad, even if the photo would then appear to be fresh.

GRADE: D-

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Riverside CA

2010-01-04T13:33:00.002-06:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

2895 Donovan Court Riverside, CA 4 + 2 $284,900

http://pe.sawbuck.com/property/Inland_Empire/Riverside/Presidential_Park/1139767-2895-Donovan-Court

The first problem with this listing advertisement is not completely the fault of the agent (advertiser). Upon finding this advertisement on New Year's weekend, the top fact to the right of the listing price was that this home has been listed for 180 days. Ouch. On one hand, this is not the advertiser's fault, given that every listing advertised via this source provides the number of days each specific listing has been on the market.

While such information helps the consumer, it often hurts the listing agent (advertiser). Yet, I say "not completely" the advertiser's fault. If I were the advertiser at this source I would pull any ads on the market for more than 35 days maximum. After 6 months on the market, showing that amount of time does the property and the advertiser more of a disservice. A potential buyer knows he or she can wait for more price reduction and feels no sense of urgency to follow up. I have seen too many instances over the years where realty agents and offices put up with policies by advertising sources instead of dropping out and forcing change. But that is a separate matter.

Even though the seven photo spread for this advertisement features mostly interior photos, this photo spread does not do the job the way it should. The primary exterior photo is too far back. I understand showing the line of palm trees, but the photo leaves too much sky and street and not enough detail of the house itself. The second photo is either of the side or the rear of the home, but the angle shows more of neighboring properties and takes away from the focus being on this home.

Most of the photos have a July date clearly visible at the lower right, serving as another reminder of how many months this home has been listed. Even worse are the angles of a few of them. One shot of the den has a lamp in the way, while the photo of the office or library shows two computers and accessories with wires dangling all over the place. (Obviously, these computers do not come with the house but make the sellers appear sloppy.)

The description copy consists of numerous abbreviations, although I will say that in this instance the abbreviations are easy to understand. Yet, even as the primary exterior photo shows an attached garage, we are not told for sure it is a 2-car garage until further down on the page, likely after a potential buyer would have moved on to the next listing. Instead, the description copy wraps up commenting about the "Motivated Seller". I wonder what has kept them motivated for 6 months.

Wrapping it all up at the bottom is the name and office of the listing agent, but without any direct contact information. It appears that a potential buyer needs to contact a service of some sort and there is also space for a login. This is a problem because I got to this advertisement through the biggest local newspaper web site. Thus, I know nothing about any "service" or login.

Sorry, but if I'm the listing agent, I wouldn't put up with an advertisement showing how very long this listing has been on the market, while not showing direct contact information. Even if it's not the agent's fault.

GRADE: D+

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Fargo ND

2009-12-28T19:42:00.001-06:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

18th St. South, Fargo ND 2 + 1 1/2 $125,000

http://www.harmonhomes.com/real-estate/homes-for-sale/North-Dakota/Fargo/detail/41234326

The first impression of this listing advertisement is not positive at all. Some of the advertising copy appears to bleed into the photo making it hard to tell whether or not that is planned. The photo itself is not visually appealing. Frankly, it looks like a photo taken from the back of the unit featuring 3 separate garages. It is nearly impossible to tell whether a small tree at the lower right corner of the home is growing into the the upstairs overhang or was being thrown out at the time of the photo.

Worse yet, this advertisement does not show an address. (I got the "18th Street South" location from the map link.) People looking on this site (and other advertising web sites) have plenty of other properties to choose from that give the exact address. Not showing this probably eliminates potential buyers seeking a particular neighborhood and/or school district. In this case, this is one of the higher priced listings for a 2 bedroom home.

Adding to the confusion is that the beginning of the description tell us this is a "twinhome". Then, the remainder of the description fails to clarify whether or not this is a shared property and whether or not the land and entire building are included within the price. This is not sufficient information to entice a potential investor either.

The first line of the description copy refers to the $4,000 price reduction. However, the price reduction shows as being from November 16, and I found this advertisement 40 days later. Sorry, but more than 10 days later it tells people who were aware of the price reduction that there still hasn't been activity on the listing, and it tells those "new" to this listing that this property has been sitting on the market.

Next, the first reference to what is inside the home tells us that it includes "windows, light fixtures, and floor covering - carpet and vinyl". To put it mildly, that description doesn't exactly make this home seem like the greatest listing ever. Especially when this listing is among the higher priced ones in the market for 2 bedroom homes!

In the next sentence we learn of the "large deck with a restive view of the backyard". Restive? Then, we learn that "Plan includes living room, kitchen/dining area with access to deck....".

Finally, the last sentence of the description says "Get ahold of us for more details". There is no such word as "ahold", but I'm probably the only person to still be reading that far.

All anybody learns from this advertisement is why this property has been on the market for so long.

GRADE: F

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Pumping the negatives about home sales again

2009-12-23T12:58:00.003-06:00

You probably saw the statistics released today (Dec. 23) that "new home" sales are down for the month of November. From the first moment I learned of this and read the wire service announcement, I was already expecting and starting to read the negative references.

The first national story quotes the Chief Economist of the National Assn. of Home Builders about these "awful" numbers. The story infers that it is a reflection of the federal home buyer tax credit having been extended into April and how it means buyers don't have to "rush".

I'm feeling that by the time you are reading this, you have probably been bombarded with still more gloom and doom stories from the media about this. Hardly anybody will take the time and effort to point out these are "new home" figures. Not everybody is looking for new construction in this day and age. Yet, because of these figures, potentially millions of people will think that the real estate market is going back into the dumps.

Hours earlier, we had all kinds of positive indications. Home sales (or as we now have to say, resales) were acutally UP about 7% for that same month of November. That is a far more important statistic.

But a lot of people who are potential home buyers won't understand the difference. They will either go back to thinking that the real estate market doesn't favor them, or that they can wait until March or April to explore possibily taking advantage of the federal tax credit.

To me, this calls for crisis management. Realty agents can't have their client base thinking that right now is not a good time to buy or sell. If I were a licensed agent, I wouldn't care that this is Xmas week. I'd be calling, sending e-mail alerts, texts, or whatever I do to reach my client base, hopefully by the end of the day today. I'd be letting my database know that statistics released by the Home Builders Association are only for new construction and repeat the National Assn. of Realtors statistics about the increase in home sales for November. Followed by a reminder about the "limited time" left for the federal tax credit. The problem is that very very few of the agents will actually do this.

The key to buying or selling a property and getting the best possible deal is really based on how well (or poorly) you use statistics and information that is available. It's your call.

Listing of the Day - Nashville TN

2009-12-22T14:35:00.001-06:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

7009 Red Apple Rd. Nashville $249,900 3 + 2 1/2

http://www.homefinder.com/TN/Nashville/50033886d_7009_Red_Apple_Rd

Even though there is only one photo in support of this listing ad, the exterior photo is an excellent choice. It is easy to see the size, scope, and beauty of this home right along with the detailed landscaping.

This home appears even newer than having been built in 2003 (as shown early on the left column), and seeing that it has approximately 2,600 square feet reinforces the size we can see on the photo.

However, the description copy kills the momentum and the positive vibes for a potential buyer. The agent (or whomever wrote the description) overlooks that he is asking the buyer to invest 1/4 million dollars by giving us one sentence split apart by dashes.

The opening phrase of "Great buy in the cane ridge area" is supposed to read "Cane Ridge" (as it does further down the page). This is not a good reflection on the agent. Next it says "showings by owner". Red flag!

Do you mean to tell me that a home that photographs this well won't be shown to a potential buyer by the listing agent? As if the owner is going to be able to answer potential buyer questions about the community?

Next, the "description" copy tells us that the "mailbox is at 501 appleseed ct.". For one, it should read "Appleseed Ct." with proper use of capital letters. For another, that information has no place at the point where the copy is supposed to entice the buyer to want more information. Does this mean that the eventual buyer will have to walk to the corner every day just to get the mail?

Then, the end of the description copy, which reads "landscape lighting & irrigation- " Say what? Does that mean the ditch is lit up?

There is more. This is a large 3 bedroom home, and parking is always an important factor. Yet, further down in the facts column for Parking, all it says is "Concrete Driveway, Electric Door Opener". Besides the fact that NOW capital letters are used when not necessary (as opposed to street names), the writer of this ad has overlooked something very important.

What does the "Electric Door Opener" open? You see, I read over this entire page several times, and never did find any mention of a garage. And there is none in the photo. If there is a garage, does it hold 1 car? 2 cars? We are not given the slightest hint.

Based on this ad, if this property ever sells, the listing agent should give the "owner" the commission.

GRADE: D+

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Tulsa OK

2009-12-09T15:39:00.002-06:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

14?? S. Quincy Tulsa OK 2 + 2 $250,000

http://tulsa.re.adicio.com/properties/search/detail.php?qBackToSearch=qAction%3Dsearch%26qCity%3Dtulsa%26qState%3DOK%26qBedrooms%3D2-%26qBathrooms%3D1-%26qMinPrice%3D150%252C000%26qMaxPrice%3D250%252C000%26pagesize%3D20%26view%3Ddetailed%26qtotal%3D374%26qSortBy%3DPrice%26qSortDirection%3DDESC&qAdid=tulsa_gtarmls_921173&propertyNumber=2

This advertisement is a disaster and an embarassment to realty professionals everywhere.

First, there is no street address for this property. The one I put at the top is a guess based on the street map, and one never knows for sure with Google maps. While it is true that some listings out there, even in this market, do not have a street address either, it is especially odd in this instance.

We can't even tell whether or not this property has been built or completed yet. I can sometimes understand not having an address when there are circumstances such as renters in the property, multi-unit, land value, or commercial or mixed. But there doesn't appear to be any reason why this address needs to be a secret.

Next, this ad boasts a photo spread. Fine, if there were ANY real photos. All we get are drawings. Those are not photos.

Thus, before we get to the description (for anyone still interested), we already do not know an exact location or have any idea of what the unit looks like. Hardly an enticement to read on.

And it doesn't get any better. Square footage for the unit is listed in the advertisement as "N/A". So we don't know the size of the unit either. Great.

The copy reveals this is an "ultra modern condo" yet is in the "Historic" Cherry Street District. The third sentence reads "Custom cabinets, granite, qual upscale appointments". Granite what? Exactly what is a "qual upscale appointment"? Over 20 years in real estate marketing, and I have zero idea what that means.

Then, we are told interior features include a security system and smoke detector. Whoopee doo. How does that make this property unique?

But there is more. Listed under "Exterior Features" are "gutters, sidewalk, sprinkler system". Boy, does this agent know how to impress?

Just to top it off, although the agent's name and listing office are shown, we would then have to click (an additional step) just to get her contact information.

Not only are there plenty of other listings in the same area, but this is not the most or least expensive 2-bedroom home or unit, and this one (whatever it is) is priced at $250,000.

Let me get this straight. They are asking one-quarter of a million dollars for a property based on no street address, no unique features, so square footage, and we aren't even sure if it has been completed or not.

I'll bet that while you are reading this, and hopefully sharing my disgust, the listing agent is probably telling a colleague about how bad the local real estate market is and that she hopes she gets some activity soon.

This agent should be glad about only one thing. That she doesn't have a listing appointment already scheduled with me. And after seeing this, that will never happen.

GRADE: F

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Grand Rapids MI

2009-12-03T15:15:00.002-06:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

4605 Woodcreek Dr. SE, Grand Rapids MI $249,900 5 + 3

http://realestate.mlive.com/?classification=real+estate&temp_type=detail&tp=RE_mlive&property=mlive.com&finder=buy&ad_id=308517398

This listing advertisement is very much a mixed bag compared with most. The photo spread and primary photo do provide a solid first impression. Then again, the excellent landscaping and the trees filled with leaves mean that this photo was taken weeks if not months ago, and this ad appears at the start of December.

In addition, what looks like a spread with 7 different photos is really 5. The two exterior shots are really the same photo from a different angle. A closer review of the interior shots, done because 2 looked very similar, reveals that indeed the same room is featured in 2 of the photos from opposite corners of the room. For a 5 bedroom home with 2 levels, I would like to think there would be other impressive photo opportunities available instead of duplicating.

Putting all of the description copy in capital letters makes it a challenging read. Some would question the internet protocol of "yelling" by using all caps. All caps takes the 'personality' out of the copy/

Whoever wrote the description copy also assumes too much at the start of the description. While I appreciate and consider it a positive that mentioning the school district is a priority with a 5 bedroom home, the mention of "Kentwood taxes" in the very first sentence takes this down a notch. It is quite likely that home owners and home buyers in that region get the meaning of "Kentwood taxes". However, I am not from this area, so I have no idea of what the significance might be. Since this is a 5-bedroom home, there is a strong chance that the buyer of this home will come from out of the immediate area. Per my "first impression" theory of real estate marketing, the first sentence needs to contain selling points that present strong appeal to any and all potential buyers. Don't confuse even one. They can click away at any time.

Run-on sentences abound in this description as if there is so much information it won't all fit. Sometimes that is a good selling approach. However, there is fragment "with second set of stairs leading to the second floor". That fragment took up 10 words. If I were even going to include this fact as a major selling point (and that's up for debate), I could have said it as "dual staircases". Would have left me with space for 8 more words, and that would have been plenty to point out another selling point. And this comes before the "lots of closet for storage" sentence at the end of the description.

As if someone seriously looking for a 5-bedroom home needs to be told how to use the closets.

With all of the extra words instead of selling points, we, for example, are not told at any point in this advertisement how many cars fit in the attached garage. This is Michigan where it is about to be the snowy season, and one has to believe the residents of a 5-bedroom home own more than one vehicle.

Overall, this house just might sell itself. There aren't many 5-bedroom homes with 3.5 baths available in this area at this price range. Yet, the agent is NOT selling this listing due to reasons I have already mentioned. The seller should not be pleased with this advertisement.

GRADE: C-

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - North Little Rock AR

2009-11-30T10:52:00.002-06:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

4209 Bunker Hill Dr. North Little Rock AR 4 + 2 $239,900

http://realestate.yahoo.com/Arkansas/North_Little_Rock/4209-bunker-hill-dr:3225d5ea522746dae0aecba0b011fc8;_ylt=AkkYaheioXEiZvExWZB7ivZn47Qs

Although there is only one photo for this advertisement, this exterior shot does a good job of providing a potential buyer with a good perspective of this home. It is easy to tell this is a sprawling home, and needing a wide angle lets us see that it is on a side street surrounded by trees. The leaves being off the trees and on the ground shows this to be a recent photo. (However, if this home does not sell by the end of the year, the ad should be updated with a winter photo.)

The description of this home does an excellent job of taking the reader from one room to another, pointing out at least one (selling point) feature about each area described. For example, "Family room with a fireplace and a game room with a bar and built in cabinets" makes the room stand out from other ads that might just say "family room".

Even though the description copy ends with "A Must See", this is minimal of what I call "Realtor fluff" and does come at the end.

I like how this advertisement is tied together. Given the limitations of one photo, the photo does set the home apart, and the description copy continues along the same lines. The selling points that make this home unique are well scattered. It is obvious that time and effort went into this advertisement.

The only negative is that there are spaces for school information which is "not available". However, this is common on Yahoo and may not be the fault of the advertiser.

In another positive, clicking on the "additional information" link takes us to the office advertisement for this listing, which is also well done. In fact, there are several interior photos which after having read the description serve as a strong reinforcement to the selling points of this home.

This advertiser took into account that a potential buyer from out of the immediate area could find this home via Yahoo, and makes the presentation a strong enough one to entice a potential buyer to click to the next step. Too many agents expect a potential buyer to click further and fail to sell the property enough to entice the next step.

Here is a good example of a property which is not the most or least expensive of its type within this region, but provides enough information to shine above other listings.

GRADE: B

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Folsom CA

2009-11-24T14:55:00.001-06:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

127 Casselman St, Folsom CA $269,900 3 + 2

http://template.metrolistmls.com/sacramentobee/cgi-bin/GetOne.cfm?MLSNum=90076410&

The first impression is not as strong as it could be. The initial photo is one of only 2 exterior photos, and because of the big tree in front it shows off little more than the garage and driveway. The other exterior photo is of the back of the house. As a result, we are unable to get a true feel for the appearance of the exterior. Of course, we easily see the For Sale sign in the front. As if that would have any impact on a potential buyer. Over the years, I have seen it too many times where the For Sale sign seems to have an impact on the angle of a photo. Not a smart move.

While presenting several interior photos is usually a good thing, the empty room shots make it difficult for a potential buyer to envision how furniture or decorations would fill the room. Seeing a tag (which appears to be a price or service tag) on the dishwasher in the kitchen shot seems odd, since there is nothing in the copy to indicate any new appliances.

The description copy is too much Realtor fluff and not enough facts to entice a potential buyer. We are not told or shown why this is a "Great Location". We are told this property is "Turn-Key", but having seen that it is empty from the photos makes a potential buyer think of the work needed to fill the house with furniture. Using description copy for "Look at the pics!" is a waste of time. Being told this is "Not A Short Sale or REO" could be interpreted as this home not being available at a low or special price.

Having RV or boat parking could be a plus, although we don't know enough about the location to determine if there is a lake and/or recreation area nearby. The very last fact is "Horse prop", with no further details.

As a potential buyer, I could GUESS that the home is in or near a recreation area, could have horses and is near camping and boating. But, frankly, I have no idea. I also know this property is empty.

This home is far from the only one in this same area and within this price range. I can't even see what the actual front of the house looks like. Details and selling points are few and far between.

Use of "Response to offers immediately" within the description is not only poor grammar (which reflects on the listing agent), but indicates desparation.

In my opinion, the agent will keep going back to the seller saying "I'm not getting offers which are high enough" and blame the marketplace. The seller should blame the agent for presenting this property in such a way that there is little to no reason to make a full-price offer.

GRADE: D+

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Austin TX could be looking even better..........

2009-11-23T16:04:00.003-06:00

The news release from the Board of Realtors actually has some positives in it. This should not be such big news to me, but given the amazing amount of "less than positive" statistics many realty associations spew out, it is at the point of pleasant surprise.

Yet, the picture could still have been painted brighter. This is the news release they sent out:

---------------------
AUSTIN (Austin Board of Realtors) – According to the Multiple Listing Service report by the Austin Board of Realtors, the volume of home sales in the Austin market surged last month, possibly because of the tax credit for first-time homebuyers.
Last month, 1,823 homes were sold, a 38 percent increase from 1,322 in October 2008. The median price of Austin homes in October 2009 was $182,000, a 5 percent decrease from the same month the previous year.
In the early part of this year, the home sales volume in Austin was down significantly compared with 2008. However, that gap in sales volume began to close in July 2009 when the local market reached a volume similar to the same month in the year prior.
“Sales volume like this is similar to what we saw in 2005, which is an encouraging sign,” said Jay Gohil, chairman of the Austin Board of Realtors. “It’s possible some of this surge in volume was related to the original deadline for the first-time homebuyer tax credit, so it’s good for our market that the tax credit was both extended until April and expanded to include more current and prospective homeowners.”
---------------------

Again, I look at this type of news from a marketing perspective. The idea is, or should be, to make this information as positive as possible. This realty board exists to assist the dues paying realty agents and offices and to promote home and property ownership in the area.

But there is too much copy in this release that pulls this story back down. They don't know for a fact that the tax credit has any bearing on this information. The very last quote, from the Chairman of the Board, says "it's possible some of this surge.....". That is our final impression from this story - saying that there is a "possible" reason. Sorry, but facts are supposed to support statistics, not a theory.

It's not up to me, but to illustrate my point, here is how I might have released the same information they did, by doing some editing of this copy:

- - - - -
AUSTIN (Austin Board of Realtors) – According to the Multiple Listing Service report by the Austin Board of Realtors, the volume of home sales in the Austin market has surged.

Last month, 1,823 homes were sold, a 38 percent increase from 1,322 in October 2008. The median price of Austin homes in October 2009 was $182,000, a 5 percent decrease from the same month the previous year. In the early part of this year, the home sales volume in Austin was down significantly compared with 2008.

“Sales volume like this is similar to what we saw in 2005, which is an encouraging sign,” said Jay Gohil, chairman of the Austin Board of Realtors. “It’s also good for our market that the tax credit was both extended until April and expanded to include more current and prospective homeowners.”
- - - - -

Talk about addition by subtraction!

Depends on which part of California.......

2009-11-19T15:00:00.003-06:00

For those who wonder why I constantly gripe about how real estate is marketed, Southern California has provided still another example of the need to get it right.

The most recent home sales statistics are coming out around the country this week. Since the Southern California marketplace is not always a reflection on national trends (to put it mildly), I decided to pay special attention to news from the area.

Overall, it appears that home sales have risen and selling prices are down, at least for those who find it significant to compare against previous months and years. My opinion is that there should not be the automatic comparison that people in the industry insist on. In a challenged market, especially, the emphasis from within the industry should be on the positive.

Links are below to some of the articles I reviewed. You can see the issue here. Portions of Orange County clearly show an increase in sales, a positive statistic indeed. Yet, less than an hour drive to the south, San Diego home sales statistics are not bright.

According to the latest statistics, home sales are down while prices are up around San Diego. Granted, you can't twist the truth. But there are times when it could be hidden just a bit. My issue continues to be that realty associations and people within the industry continue to endorse publicity for these negative statistics. We have different realty associations, all with thousands of dues paying members and wanting the same things, counteracting each other by feeling the need to put out the negative along with the positive.

To put it another way, if I were a licensed realty agent in San Diego, I would be furious about the release of these statistics. The smart thing to do would be to release ONLY the positive statistics, such as the portions of Orange County and L.A. County and how the market is looking better on average throughout Southern California. Instead, a potential investor doing even mild research for Southern California is going to pass on San Diego upon seeing the information in question.

Already today, I have had a mortgage lender advertising client of mine, who services Southern California, pass on the San Diego area while still considering Orange County. Based on the research I shared, and I am not at all biased toward one area or the other. He wants the most bang for the buck in an active marketplace.

Of course, there will be regions and communities which do better than others in any real estate market and climate. We should hear about those. It helps to spur interest and attract attention to properties in those areas. But we should NOT hear about the areas that are suffering. It does not serve current home owners well at all. Which I thought local realty firms are supposed to be doing.

Here are some of the articles I explored. With so much difference between one area and the next, the positives are negated, and the negatives sour the overall impression.

http://southcoasthomes.freedomblogging.com/2009/11/18/laguna-beach-home-sales-up-619-over-last-october/

http://www.kpsplocal2.com/news/local/story/Riverside-County-Home-Sales-Prices-Fall-in-October/HJyF9VB3U02JxhZXtKUgdQ.cspx?rss=2276

http://www.10news.com/news/21641119/detail.html (San Diego)

http://www.vcstar.com/news/2009/nov/17/government-is-helping-stabilize-the-housing/?partner=yahoo_feeds

Listing of the Day - Pittsburgh PA

2009-11-17T16:16:00.002-06:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

924 Rita Dr. Pittsburgh PA 4 + 2.5 $155,000

http://www.zillow.com/homedetails/949-Rita-Dr-Pittsburgh-PA-15221/2135626632_zpid/

NOTE: It is rare that we use a Zillow.com ad for this evaluation. However, this was linked to me via the Tribune-Review Newspaper site.

The first impression with the exterior photo is a positive one, showing the exterior and surrounding looking toward the front. Normally a lawn littered with leaves is not good, but in this instance it adds to the photo because it is a reasonably current photo.

However, the only 2 other photos are also exterior shots from about the same distance, with only the angles changing. We can barely tell there is an attached garage, yet we are not told in the description whether or not it is a 1 or more car garage. That could be a "lost" sales point right there.

We have no interior photos to choose from even though the description begins with "Spacious home with a lot of character". We do not see this, and this, plus the "convenient location" comment at the end of the description are examples of what I call "Realtor fluff" in the copy. We do not see the "character" or know what this home is "convenient" to.

Out of all the features and "character", we are first told about the "plaster crown moldings" in the description. Once again, the advertisement does not target the likely potential buyer. This is hardly the biggest concern for a family looking for a 4-bedroom home.

Further into the description, there is a misprint of "&amp". That is how it shows on the advertisement. I understand with HTML code things like this can go wrong. However, this shows me (and a savvy potential buyer) that the agent or the office obviously did not check this ad.

There are several strong sales points within the description for a potential buyer who sticks around on this page long enough to see it. Amenities such as the Central AC, 2 fireplaces, zoned heat, and a laundry room are excellent points for a 4-bedroom home, especially in a city with all 4 seasons.

Information about local schools ranging from elementary to high school is included. As important as this is along with a 4-bedroom home, this is one of few listings which actually provide that.

However, the "last impression" on this page happens to be Zillow's map comparing this property at its asking price with other surrounding homes. Fine in concept. But upon further review, this map shows this home to be at least $13,000 HIGHER than any of the others included.

The map situation is not necessarily the fault of the agent or the listing office. But since it appears to me that nobody checked this ad, they probably don't realize the damage done. If I were this advertiser, I would either demand that the map be removed from this page, or I would pull this listing ad effective immediately. There is nothing in the property description to help me justify this being the most expensive property. Not to say that there are not good reasons. For example, something like "only 4-bedroom home on the block" in the description would easily explain the higher charge.

If I was the seller of this home, I would be furious about that map and strongly question the agent whose job it is to represent and sell this home.

Right information, but wrong way to present it. This is another of those listing advertisements which could EASILY be improved and get this home sold.

GRADE: C+

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Rapid City SD

2009-11-13T15:25:00.001-06:00

In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.

175 Swiss Drive, Rapid City SD 2+1 $159,900

http://www.munroteam.com/listings/26742EAE-0B4A-6C66-AB7ADB8FDBDFAF2B.shtml

If I had to sum up the critique of this listing ad in one word it would be "understated". No sizzle. Not nearly enough to entice a potential buyer into seeking it out.

I found this ad via Yahoo real estate, complete with just one photo and a minimal description. As in one just one photo, one sentence, and no surrounding information even filled in. I could have stopped there and commented about how it makes little to no sense to have a property ad on Yahoo and let it sit there unattended. But there are 2 places to click for "further details", which led me to the realty firm's own site. However, even the web page about this listing comes up short.

First, the 12 photos with a slide show makes for a postive first impression. A good blend of exterior and interior photos for the most part. However, 2 of the exterior photos are only trees and a mountain view, with absolutely no perspective on the house itself. We don't know if we need to be on the deck or out on the road to see this, or if it is a view from one of the rooms. (If either one is a view from any of the rooms, it would be quite appealing to a potential buyer to know that, but instead we are left hanging. That is still another missed opportunity to reel in a potential buyer.)

While it always helps to "sell" the area or neighborhood around the house, the limited description spends way too much copy hyping the area, and nowhere near enough about the house itself. The agent overlooks that a potential buyer could drive up and walk around the trails and forest and lake at no cost, without having to own property nearby. The purpose of this ad, which represents the seller of this home, is to sell the merits of the home.

All we get in the entire descriptions of the interior is "loft, tile floors, wood stove, and main floor bedrooms". That's after an extra click on "interior". We are also told this house is "completely remodeled" but are given no idea, either by the photos or the description as to WHAT they refer to. The skeptical investor is likely wondering about the cause of a "complete" remodeling.

It is also a challenge to get a feel for this "two-story" home with "main floor bedrooms" and a loft. Makes me wonder if there is a realistic use for a second level or if it is really a one-story house with an attic or spare room above.

Since we are not even told how far from a town this home is, or the distance to schools, shopping, highway, etc., we are left to guess as to whether this is a mountain retreat.

This seems to be a house that would have appeal as a second home, summer home, or an executive retreat. Based on this, chances are the buyer of this home could be from beyond 50 miles away, as opposed to moving out of the nearby town. In concept, it would be through Yahoo that potential buyers should be attracted to this home.

Yet, the Yahoo ad, as mentioned earlier, is a throwaway on first impression. Not enough into to want to make a potential buyer link over to the company listing page, such as what I did. But even when someone does, they don't get any of the sizzle.

If this were my listing, I would be 110% certain that anyone looking on Yahoo Real Estate got the concept of a mountain retreat home with views and pounding out the amenities left and right. Potential buyers should want to know more about the AREA, not be stuck to guess about the property.

GRADE: D+

Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property. Its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.

At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.

Your comments are most welcome!

Listing of the Day - Fresno CA

2009-11-11T15:51:00.001-06:00