Consumers still do not buy or sell properties based on statistics. This week, the news stories reflect how "new" home sales are up while others, at the same time, reflect that used home sales are down.
If consumers really must see this constant barrage of statistics, perhaps it is time for the real estate community to be working on statistics which really could or would encourage home sales. Or, at the very least, start to establish a hint of faith that the real estate market will improve in our lifetimes.
Simply put, homes should be sold "against" other similar homes, and not based on sales statistics from weeks, months, or years ago.
In order to encourage sales, the time has come to use recent sales of specific categories of homes in specific regions. Make it positive and current statistics only.
The realty agents and offices should be finding and including only the most favorable statistics for their local area(s) within their approach. Never mind the "fewer than two years ago" crap.
Tell us that "Five more north harbor homes were sold last month than in the south harbor area", or that "More homes were sold in East Springfield than West Springfield over the past two months". This type of statistics promotes the fact that homes have sold in each of these "local" areas very recently, which is more important than one area out-selling another.
At the same time, a listing for sale in West Springfield (the 'lesser' sales area) could be advertised with "More homes priced under $150,000 were sold in West Springfield than East Springfield" as an appeal to people looking in that price range.
The point is that this is the type of statistic that will reach the potential home buyers. A family which is qualified for a $140,000 property in the Springfield area will jump on the above statistic a lot faster than reading that the local Realty Association "reports" a decrease in home sales for the month of May compared with the two previous years.
Like with sports, TV ratings, and many other financial avenues, there are true statistics out there to make most any property statistically attractive. This is what the realty agents should be spending their time finding and "reporting" via their advertisements, blogs, and social networking. Remind local consumers about which areas and categories are most recently selling compared with others, and you'll be planting the seeds for future business.
If two other homes on your block have sold within the past three months, but none within two blocks either way, that should be making your home a lot more attractive.
Everyone needs to keep in mind that a home for sale is in competition with other homes in the same general area to be sold. Not with what did or didn't sell months or years ago. I'm 100% sure of that.
Tuesday, June 26, 2012
Monday, May 14, 2012
Why Would Anyone Want To Live "There"?
No, it's not a negative slant on a specific property or location. Actually, this is a question that every real estate agent should be asking themselves when about just before talking with a potential buyer or seller about a listing.
Yet, I personally see very very very little evidence of this within the literally thousands of property advertisements and sales presentations I have worked with over the past 23 years for residential properties. Making important changes in the way that residential properties are advertised, marketed, and presented, is a more significant step toward improving the real estate market than the constant stream of negative and/or meaningless statistics.
I'm so tired of seeing advertisements (whether online, newspaper, magazine, flyer, etc.) for homes that make them seem like 20 other houses in the same neighborhood. It's no wonder that buyers often do not express what they are looking for very well.
What needs to happen is that real estate agents (who insist on creating their own advertising copy instead of letting a pro handle it) need to start thinking of each home they have listed as if it is a person and they are creating an ad for the personals.
You want to arrange several "dates" for the home in search of the perfect match, and you know what you are looking for in a buyer (just like a man or woman).
Several of my real estate advertising/marketing clients start to give me the "You can't mention specifics - it's discriminatory" lecture either just before or right after they hire me. I have to tell them how well I understand that, and how well I know how to work around that.
Potential buyers have a general idea of what the home they want needs to include. A certain number of bedrooms and baths, for example, and within a certain price range and area. Based on the large inventory of homes on the market today, the basic criteria is easy to find. What the selling agent (and/or the seller) needs to do is take the marketing of the home one step further.
If you were a single middle-aged woman and noticed that 7 out of 10 personal ads for males between 40 and 55 all said not much more than "attractive, employed, and enjoy watching pro sports", chances are you would be rather frustrated at the similarity of the selection. Keep that in mind and look at advertisements for 2-bedroom homes within a 5 mile radius of your neighborhood. If it weren't for photos, you would have a hard time telling the difference and probably be swayed more by price than anything. That's my point.
There is no specific reason to want to live "there" as opposed to a similarly priced home 3 blocks away. And that's the key. It's not only what the house "has", it's what it "does" that needs to be pointed out, and quickly.
Who should live there, and why? It's not as though you could say "Asian couple with 2 kids ideal for this 3-bedroom condo...." in your advertising. Or "For middle aged empty nest professional couple".
But the advertising could appeal to the target audience for the property, and not be the same as if it were for either of those groups.
Using that "middle aged..." scenario, here is how an ad for a home geared toward them might read:
"2 + 2 single level near 20 minute train ride downtown approx. 600 feet from Starbucks in quiet pet friendly sub division with island kitchen and upgraded appliances." You are saying it without saying it. Most people seeing this description understand this is a home for at least one professional person that can easily get to and from work and easily cook their meals. A '20-something' just starting out may not care about getting downtown or the Starbucks or the single level. But that '20-something' is not a likely candidate for this house - just as that '20-something' would very likely not respond to a personals ad for someone in their 50's.
Catchy phrases such as "Where 3 kids successfully grew up and moved out" tells a large family that there are obviously schools nearby and room for kids. That could be more of a factor than "vaulted ceilings", "move-in condition", "must see to believe" and a lot of the content currently wasting money and space in property advertising.
Of course, this line of thinking should not be limited to the outside advertising. Don't think of it as the "2-bedroom ranch on Western Ave.". Think of it as the "place where a single female would have solid security", "a family with at least 2 young children could grow up", "house that is 5 minutes away from the theatre district", and so forth.
Think of a home for sale as if it is your single brother you are trying to find the right girl for. Who "should" be interested? Why? There is how to advertise and even talk with inquiries on the phone and online about. Maybe you can find him a house where it's easy to take long walks on the beach.
Yet, I personally see very very very little evidence of this within the literally thousands of property advertisements and sales presentations I have worked with over the past 23 years for residential properties. Making important changes in the way that residential properties are advertised, marketed, and presented, is a more significant step toward improving the real estate market than the constant stream of negative and/or meaningless statistics.
I'm so tired of seeing advertisements (whether online, newspaper, magazine, flyer, etc.) for homes that make them seem like 20 other houses in the same neighborhood. It's no wonder that buyers often do not express what they are looking for very well.
What needs to happen is that real estate agents (who insist on creating their own advertising copy instead of letting a pro handle it) need to start thinking of each home they have listed as if it is a person and they are creating an ad for the personals.
You want to arrange several "dates" for the home in search of the perfect match, and you know what you are looking for in a buyer (just like a man or woman).
Several of my real estate advertising/marketing clients start to give me the "You can't mention specifics - it's discriminatory" lecture either just before or right after they hire me. I have to tell them how well I understand that, and how well I know how to work around that.
Potential buyers have a general idea of what the home they want needs to include. A certain number of bedrooms and baths, for example, and within a certain price range and area. Based on the large inventory of homes on the market today, the basic criteria is easy to find. What the selling agent (and/or the seller) needs to do is take the marketing of the home one step further.
If you were a single middle-aged woman and noticed that 7 out of 10 personal ads for males between 40 and 55 all said not much more than "attractive, employed, and enjoy watching pro sports", chances are you would be rather frustrated at the similarity of the selection. Keep that in mind and look at advertisements for 2-bedroom homes within a 5 mile radius of your neighborhood. If it weren't for photos, you would have a hard time telling the difference and probably be swayed more by price than anything. That's my point.
There is no specific reason to want to live "there" as opposed to a similarly priced home 3 blocks away. And that's the key. It's not only what the house "has", it's what it "does" that needs to be pointed out, and quickly.
Who should live there, and why? It's not as though you could say "Asian couple with 2 kids ideal for this 3-bedroom condo...." in your advertising. Or "For middle aged empty nest professional couple".
But the advertising could appeal to the target audience for the property, and not be the same as if it were for either of those groups.
Using that "middle aged..." scenario, here is how an ad for a home geared toward them might read:
"2 + 2 single level near 20 minute train ride downtown approx. 600 feet from Starbucks in quiet pet friendly sub division with island kitchen and upgraded appliances." You are saying it without saying it. Most people seeing this description understand this is a home for at least one professional person that can easily get to and from work and easily cook their meals. A '20-something' just starting out may not care about getting downtown or the Starbucks or the single level. But that '20-something' is not a likely candidate for this house - just as that '20-something' would very likely not respond to a personals ad for someone in their 50's.
Catchy phrases such as "Where 3 kids successfully grew up and moved out" tells a large family that there are obviously schools nearby and room for kids. That could be more of a factor than "vaulted ceilings", "move-in condition", "must see to believe" and a lot of the content currently wasting money and space in property advertising.
Of course, this line of thinking should not be limited to the outside advertising. Don't think of it as the "2-bedroom ranch on Western Ave.". Think of it as the "place where a single female would have solid security", "a family with at least 2 young children could grow up", "house that is 5 minutes away from the theatre district", and so forth.
Think of a home for sale as if it is your single brother you are trying to find the right girl for. Who "should" be interested? Why? There is how to advertise and even talk with inquiries on the phone and online about. Maybe you can find him a house where it's easy to take long walks on the beach.
Tuesday, May 1, 2012
Making Sense of Homeowner Census
The L.A. Times story from May 1st regarding "U.S. Home Ownership at 15-Year Low" certainly caught my attention as I continue to wonder why certain real estate related statistics are published during the current market crisis.
http://www.chicagotribune.com/business/la-fi-0501-homeownership-20120501,0,2726084.story
There is certainly cause for alarm, especially the statistics about how the number of home owners younger than 35 is at "its lowest point since 1994". This is not surprising. It is actually quite understandable.
The 21 to 35 age group no longer sees the value of owning a home over the long term. When those of us over 50 were growing up and venturing out into the real world, we were shown the value of home ownership. As long as you took reasonable care, your home would increase in value. You could live in it for as many years as you want or need, and then when it is time to move on, you could sell it and most likely make money for your effort. Even if you broke even, there was an expected financial benefit to ownership, and the feeling that in most instances (barring a financial emergency, death of a loved one, sudden job change, etc.) you would not be at risk to lose thousands of dollars when the time came.
However, this generation, especially those in their late 20's, has not seen that formula come to fruition for parents, family members, and parents and relatives of friends. Look at the "big ticket" spending habits of most people over the age of 40.
Many people I know would upgrade to a new (or newer) car every 4 years "no matter what". Now, 100,000 miles on a car means merely another maintenance checkup instead of "get rid of it". The increase of prices and the decrease of quality of many new cars have "forced" people to keep their current cars longer on average than ever before, and to avoid the "extra" transaction.
Now, after a few years (that is YEARS) of housing prices dropping, increases in foreclosures and underwater mortgages, and credit restrictions, there is no guarantee that a home buyer today can make any money by selling it years down the road.
A growing percentage of 20-somethings now are staying "home" to live with parents or family members, or teaming up with other family members or friends for a residence. They see doing so as a way to save money "now", whereas the 40+ generations used to see buying their own home as a means to financial security down the road.
The 40+ generations did not have 401K's and similar long-term investment opportunities available when they finished school and entered the job world. Saving money in a bank account was better than it is today, but was never a solution. Buying a home that could bring in $50,000 more ten years later (for example) was a viable option.
Unfortunately, today's statistics and real estate market give little to no indication that a home buyer can or would profit down the road. While a qualified and thorough buyer can get a great deal based on today's market, there are not enough indications that this is a long term investment with a reward at the end of the tunnel.
Remember the Wendy's commercial years ago, "Where's The Beef?". That could now be done with potential home buyers asking "Where's The Profit Potential?".
Never mind the "more homes sold today than 2 years ago this month" crap we keep reading. Show consumers, especially the younger ones, why they should purchase a home due to long term potential gains, and we'll have some serious movement in the marketplace. Talk about easier said than done.
http://www.chicagotribune.com/business/la-fi-0501-homeownership-20120501,0,2726084.story
There is certainly cause for alarm, especially the statistics about how the number of home owners younger than 35 is at "its lowest point since 1994". This is not surprising. It is actually quite understandable.
The 21 to 35 age group no longer sees the value of owning a home over the long term. When those of us over 50 were growing up and venturing out into the real world, we were shown the value of home ownership. As long as you took reasonable care, your home would increase in value. You could live in it for as many years as you want or need, and then when it is time to move on, you could sell it and most likely make money for your effort. Even if you broke even, there was an expected financial benefit to ownership, and the feeling that in most instances (barring a financial emergency, death of a loved one, sudden job change, etc.) you would not be at risk to lose thousands of dollars when the time came.
However, this generation, especially those in their late 20's, has not seen that formula come to fruition for parents, family members, and parents and relatives of friends. Look at the "big ticket" spending habits of most people over the age of 40.
Many people I know would upgrade to a new (or newer) car every 4 years "no matter what". Now, 100,000 miles on a car means merely another maintenance checkup instead of "get rid of it". The increase of prices and the decrease of quality of many new cars have "forced" people to keep their current cars longer on average than ever before, and to avoid the "extra" transaction.
Now, after a few years (that is YEARS) of housing prices dropping, increases in foreclosures and underwater mortgages, and credit restrictions, there is no guarantee that a home buyer today can make any money by selling it years down the road.
A growing percentage of 20-somethings now are staying "home" to live with parents or family members, or teaming up with other family members or friends for a residence. They see doing so as a way to save money "now", whereas the 40+ generations used to see buying their own home as a means to financial security down the road.
The 40+ generations did not have 401K's and similar long-term investment opportunities available when they finished school and entered the job world. Saving money in a bank account was better than it is today, but was never a solution. Buying a home that could bring in $50,000 more ten years later (for example) was a viable option.
Unfortunately, today's statistics and real estate market give little to no indication that a home buyer can or would profit down the road. While a qualified and thorough buyer can get a great deal based on today's market, there are not enough indications that this is a long term investment with a reward at the end of the tunnel.
Remember the Wendy's commercial years ago, "Where's The Beef?". That could now be done with potential home buyers asking "Where's The Profit Potential?".
Never mind the "more homes sold today than 2 years ago this month" crap we keep reading. Show consumers, especially the younger ones, why they should purchase a home due to long term potential gains, and we'll have some serious movement in the marketplace. Talk about easier said than done.
Wednesday, April 18, 2012
Agents Should Be Careful What They Say
There I was in the midst of an all too rare real estate sales story with a positive slant when a quote segment from a local agent took the wind out of the sails.
This business story about the increase in home sales during the month of March along with a dip in housing inventory 'should' be the best possible news for current sellers as well as real estate professionals to come along in quite some time.
As much as I preach to agents that I provide either media coaching or advertising critiques or assistance for that you need to get the name out there and be a local "expert", a big part of this process is most definitely saying the right thing at the right time.
Normally, being the only agent quoted for a San Diego Union Tribune story appearing in the Business section would be a wonderful thing for a local realty agent:
https://www.utsandiego.com/news/2012/apr/17/spring-homebuying-season-heating/
However, the section about agent Clemente Casillas clearly hurts the cause. Saying, in effect, that it's too soon to tell and "could be a fluke" and revealing that Casillas had a listing on which there were "no calls" until the price was reduced were actually damaging things to say.
Bad publicity is not always better than no publicity, especially in this case. Casillas seemed to have overlooked the "message" she sent out to thousands of local home owners by those quotes.
Some of the readers are certain to "believe" that if a an agent prominent enough to be quoted in the major local newspaper is not convinced that the market is improving ("could be a fluke") that there is no reason for them to think so either. And more properties will sit for even longer.
Other readers who might be considering looking for an agent to help with a sale or purchase now are aware the Casillas carries listings which are not priced right, as evidenced by publicly admitting that there were "no calls on it" until the price came down.
In other words, this golden opportunity Casillas had to make the local real estate community AND herself look good to thousands of readers went down the drain because of a couple of quotes.
I also understand that Casillas wanted to be quoted for the story and needed to have an angle to be sure quotes were included. But they should not have been damaging ones, nor did they have to be.
All she needed to say was something like "I hope this trend is here to stay, even if it is too soon to know for sure. I can tell you that I had a listing that has been getting calls lately after a slow start."
Not to make an example out of Casillas, but the point needs to be made to other realty professionals and to current and potential home sellers. An agent is supposed to be positive and show the positive about the current market, rather than telling thousands of people it "could be a fluke". An agent is supposed to walk away from a home in which the seller wants an unrealistic price in today's market, let alone reveal that it "wasn't getting any calls".
Instead, the only positive I got from her quotes is that I'm glad she doesn't have any listings for anyone I know.
It's not what agents "think" about the current state of the housing market. It is what they are doing about it that matters.
This business story about the increase in home sales during the month of March along with a dip in housing inventory 'should' be the best possible news for current sellers as well as real estate professionals to come along in quite some time.
As much as I preach to agents that I provide either media coaching or advertising critiques or assistance for that you need to get the name out there and be a local "expert", a big part of this process is most definitely saying the right thing at the right time.
Normally, being the only agent quoted for a San Diego Union Tribune story appearing in the Business section would be a wonderful thing for a local realty agent:
https://www.utsandiego.com/news/2012/apr/17/spring-homebuying-season-heating/
However, the section about agent Clemente Casillas clearly hurts the cause. Saying, in effect, that it's too soon to tell and "could be a fluke" and revealing that Casillas had a listing on which there were "no calls" until the price was reduced were actually damaging things to say.
Bad publicity is not always better than no publicity, especially in this case. Casillas seemed to have overlooked the "message" she sent out to thousands of local home owners by those quotes.
Some of the readers are certain to "believe" that if a an agent prominent enough to be quoted in the major local newspaper is not convinced that the market is improving ("could be a fluke") that there is no reason for them to think so either. And more properties will sit for even longer.
Other readers who might be considering looking for an agent to help with a sale or purchase now are aware the Casillas carries listings which are not priced right, as evidenced by publicly admitting that there were "no calls on it" until the price came down.
In other words, this golden opportunity Casillas had to make the local real estate community AND herself look good to thousands of readers went down the drain because of a couple of quotes.
I also understand that Casillas wanted to be quoted for the story and needed to have an angle to be sure quotes were included. But they should not have been damaging ones, nor did they have to be.
All she needed to say was something like "I hope this trend is here to stay, even if it is too soon to know for sure. I can tell you that I had a listing that has been getting calls lately after a slow start."
Not to make an example out of Casillas, but the point needs to be made to other realty professionals and to current and potential home sellers. An agent is supposed to be positive and show the positive about the current market, rather than telling thousands of people it "could be a fluke". An agent is supposed to walk away from a home in which the seller wants an unrealistic price in today's market, let alone reveal that it "wasn't getting any calls".
Instead, the only positive I got from her quotes is that I'm glad she doesn't have any listings for anyone I know.
It's not what agents "think" about the current state of the housing market. It is what they are doing about it that matters.
Tuesday, April 3, 2012
Does Houston Have Another Problem Brewing?
Whether you live in Houston or not, this rather disturbing story has surfaced by way of the Houston City Council, indicating the possibility of local officials raising property taxes, increasing the fees for garbage pickup, and a host of other costly plans:
http://blog.chron.com/houstonpolitics/2012/04/city-could-study-tax-and-fee-increases/
Of course, we can all understand that city budgets are suffering just about everywhere. But to further penalize home owners would prove to be an absurd move. It was only a few weeks ago when I address some of the problems with the housing market in Houston, and how foreclosure sales are so prominent.
Perhaps instead of pumping out the negative statistics about the current market, the local realty associations should be lobbying and protesting these actions on behalf of the home owners they represent.
If these increases do go through in Houston, it will make it even more difficult for sellers than it already is. And, of course, as politicians go, if it passes in Houston then other big cities will implement it, and the real estate market will be further set back.
http://blog.chron.com/houstonpolitics/2012/04/city-could-study-tax-and-fee-increases/
Of course, we can all understand that city budgets are suffering just about everywhere. But to further penalize home owners would prove to be an absurd move. It was only a few weeks ago when I address some of the problems with the housing market in Houston, and how foreclosure sales are so prominent.
Perhaps instead of pumping out the negative statistics about the current market, the local realty associations should be lobbying and protesting these actions on behalf of the home owners they represent.
If these increases do go through in Houston, it will make it even more difficult for sellers than it already is. And, of course, as politicians go, if it passes in Houston then other big cities will implement it, and the real estate market will be further set back.
Friday, March 23, 2012
Keeping The Statistics Straight
Another bothersome day in the struggle to gauge the real estate market. This morning's real estate "headlines" contained 2 separate stories. One about "home sales up" and another about "mortgage applications down". And both covering some of the same time period.
There are a couple of problems here. Home sales being "up" is only if compared to one year ago. Mortgage applications being "down" means that fewer people are applying for financing. That is not a reflection of how many (or how few) were turned down for a mortgage. The statistic is based on the number of applications and not the results. Hence, some will be turned down and the number of closings will be even lower.
This constant comparison of real estate sales statistics compared with one year ago or five years ago is not doing anyone any good. Well, except for those few who get paid to research these comparisons, since it keeps them employed. I have yet to learn of anyone who has attempted to purchase a home or a property based on what the market was like a year ago.
Now it appears that mortgage rates are headed back up, even though these are still rates much lower than they were a couple of years ago. Some people will panic over this, as if it spells doom. However, it reflects times of years ago when mortgage rates were at least 2% higher, yet more proerties were selling.
Meanwhile, I have been hearing the "It's becoming a sellers' market" crap coming from more and more realty agents within the past month. This is hard to swallow. If homeowners start to believe that, we'll have a flood of people looking to list their homes at much higher prices than they should be. And some agents who will go along with them in order to get the listing. If it doesn't sell, they (listing agent) don't lose out. Practically every home owner would sell if they got an outrageous enough offer.
What that does is harm the truly motivated sellers out there, already competing against the foreclosures and distressed properties dominating the market.
And what that does is keep things as stagnant as they have been for the past two years.
So help me, I had an agent in the Phoenix area tell me that the current inventory of available homes there "has dropped to 15,000" and how it signals a "sellers market" their. I have no idea how this could be, considering that if I were looking to buy in that area, there would likely be hundreds of homes to choose from in the price range I'd be looking at. Before the rest of the neighborhood decides to list their homes too. Frankly, there would need to be at least one less zero in that amount for me to even think of that being a "sellers market". I wonder how many different states one would have to research before finding 15,000 serious and qualified buyers for a home.
After all, if there were that many potential buyers in Phoenix, there wouldn't be time, or the need, for all of the meaningless statistics about home sales. Unfortunately, this isn't anybody's market at the moment.
There are a couple of problems here. Home sales being "up" is only if compared to one year ago. Mortgage applications being "down" means that fewer people are applying for financing. That is not a reflection of how many (or how few) were turned down for a mortgage. The statistic is based on the number of applications and not the results. Hence, some will be turned down and the number of closings will be even lower.
This constant comparison of real estate sales statistics compared with one year ago or five years ago is not doing anyone any good. Well, except for those few who get paid to research these comparisons, since it keeps them employed. I have yet to learn of anyone who has attempted to purchase a home or a property based on what the market was like a year ago.
Now it appears that mortgage rates are headed back up, even though these are still rates much lower than they were a couple of years ago. Some people will panic over this, as if it spells doom. However, it reflects times of years ago when mortgage rates were at least 2% higher, yet more proerties were selling.
Meanwhile, I have been hearing the "It's becoming a sellers' market" crap coming from more and more realty agents within the past month. This is hard to swallow. If homeowners start to believe that, we'll have a flood of people looking to list their homes at much higher prices than they should be. And some agents who will go along with them in order to get the listing. If it doesn't sell, they (listing agent) don't lose out. Practically every home owner would sell if they got an outrageous enough offer.
What that does is harm the truly motivated sellers out there, already competing against the foreclosures and distressed properties dominating the market.
And what that does is keep things as stagnant as they have been for the past two years.
So help me, I had an agent in the Phoenix area tell me that the current inventory of available homes there "has dropped to 15,000" and how it signals a "sellers market" their. I have no idea how this could be, considering that if I were looking to buy in that area, there would likely be hundreds of homes to choose from in the price range I'd be looking at. Before the rest of the neighborhood decides to list their homes too. Frankly, there would need to be at least one less zero in that amount for me to even think of that being a "sellers market". I wonder how many different states one would have to research before finding 15,000 serious and qualified buyers for a home.
After all, if there were that many potential buyers in Phoenix, there wouldn't be time, or the need, for all of the meaningless statistics about home sales. Unfortunately, this isn't anybody's market at the moment.
Tuesday, March 6, 2012
Your New House Has Arrived?
There is both a funny and a serious side to the concept, now supposedly available for the western states, of buying a prefab house already furnished and having it delivered.
My first reaction to this was to have fun with it:
http://consumerist.com/2012/03/now-you-can-buy-an-entire-house-from-ikea-for-86500.html
Visions of convincing a bank or credit card company that it is a legitimate purchase, but how it cannot be shipped to the address on the account since it is a "new" house. Chances are the delivery people are not including hauling away the current house on the property as part of the deal. Wondering how the delivery people will find the address to bring the house, since there is no house currently on the property.
Then there are matters such as having electrical and plumbing facilities in place so that the new house can be fully functional upon installation. And in the right place at that. This doesn't even include any local ordinances and comparing the size of these prefab homes with those in the neighborhood.
Try getting conventional financing when there is no home in place to be appraised, and the price is the price, including furnishings and appliances.
However, if this is serious, there is opportunity here for consumers and for realty agents. An enterprising consumer could probably get a great deal on residential land in a lot of areas where little to nothing new is being built. Heck, a large lot might be able to hold two of these things and enable an entrepreneur to possibly live in one and rent or lease out the other. There are not many opportunities in most areas for 2 furnished and "ready to go" homes to do such a venture for less than $200,000 (although this does not include the cost of the land).
Even at one prefab house for less than $90,000 (not including the land), it seems a reasonable deal since it includes furniture and utilities, as well as the setup.
I'm wondering if a realty agent could come out with a commission on the sale of the land, and then not have to go through the hassle of issues with the prefab home, since that is a direct purchase. It would make for a much "easier" commission for agents who see this opportunity.
More importantly, it would get more people into more homes. That's what it should be all about.
Some developer or investor could do well with a 'discount' purchase of residential land, and then by filling it up with prefab housing. In and near larger cities, they could do a 10-year "lease to buy" of $1,000 per month, and likely save the "tenant/buyer" quite a bit of rent money. After the 10 years, the developer/owner pockets $120,000 (for the $86,000 home), and can then charge a "move-in" fee of thousands more. This after the depreciation of the homes and paying off on the land their group of prefab houses sits on. All without design, building, and installation costs and hassles.
Sure, the furniture company involved in these wants to find more ways to sell its items in volume. But my hope is that realty agents, investors, and unconventional lending sources will take a serious look at these opportunities. This is "easier" than dealing with foreclosures and REO's, and would help to spur the real estate market.
That part is not prefabricated.
My first reaction to this was to have fun with it:
http://consumerist.com/2012/03/now-you-can-buy-an-entire-house-from-ikea-for-86500.html
Visions of convincing a bank or credit card company that it is a legitimate purchase, but how it cannot be shipped to the address on the account since it is a "new" house. Chances are the delivery people are not including hauling away the current house on the property as part of the deal. Wondering how the delivery people will find the address to bring the house, since there is no house currently on the property.
Then there are matters such as having electrical and plumbing facilities in place so that the new house can be fully functional upon installation. And in the right place at that. This doesn't even include any local ordinances and comparing the size of these prefab homes with those in the neighborhood.
Try getting conventional financing when there is no home in place to be appraised, and the price is the price, including furnishings and appliances.
However, if this is serious, there is opportunity here for consumers and for realty agents. An enterprising consumer could probably get a great deal on residential land in a lot of areas where little to nothing new is being built. Heck, a large lot might be able to hold two of these things and enable an entrepreneur to possibly live in one and rent or lease out the other. There are not many opportunities in most areas for 2 furnished and "ready to go" homes to do such a venture for less than $200,000 (although this does not include the cost of the land).
Even at one prefab house for less than $90,000 (not including the land), it seems a reasonable deal since it includes furniture and utilities, as well as the setup.
I'm wondering if a realty agent could come out with a commission on the sale of the land, and then not have to go through the hassle of issues with the prefab home, since that is a direct purchase. It would make for a much "easier" commission for agents who see this opportunity.
More importantly, it would get more people into more homes. That's what it should be all about.
Some developer or investor could do well with a 'discount' purchase of residential land, and then by filling it up with prefab housing. In and near larger cities, they could do a 10-year "lease to buy" of $1,000 per month, and likely save the "tenant/buyer" quite a bit of rent money. After the 10 years, the developer/owner pockets $120,000 (for the $86,000 home), and can then charge a "move-in" fee of thousands more. This after the depreciation of the homes and paying off on the land their group of prefab houses sits on. All without design, building, and installation costs and hassles.
Sure, the furniture company involved in these wants to find more ways to sell its items in volume. But my hope is that realty agents, investors, and unconventional lending sources will take a serious look at these opportunities. This is "easier" than dealing with foreclosures and REO's, and would help to spur the real estate market.
That part is not prefabricated.
Friday, February 24, 2012
No Comment? About A Multi-Million Dollar Home?
Another instance of a poor decision in the marketing of a property, and this comes from an agent that handles multi-million dollar homes in a city the size of Chicago. It is not just the state of the current real estate market that's entirely to blame for this situation. Some serious exploring of how properties for sale are advertised and marketed would be a definite help.
Eric Ferguson is a media celebrity in the Chicago area, based on his role as co-host of the extremely successful morning show on WTMX-FM. Therefore, when he decided to sell his Lincoln Park area mansion and listed it for just under $3 million, it became a news item.
Listing agent Joanne Nemerovski of Prudential became the beneficiary of a ton of "free" publicity about this when the Chicago Tribune picked up the story:
http://www.chicagotribune.com/business/chi-the-mixs-eric-ferguson-selling-lincoln-park-mansion-for-2995-million-20120223,0,4863058.story
However, she flat out blew this opportunity. The newspaper story starts out by providing a description of the property and some of its amenities. The agent could not buy this type of publicity. Thousands of fans of Ferguson and the radio station, along with thousands of regular readers of the Business section of the Tribune in print and online were reading a positive vibe about the property. Until the last paragraph, that is.
She "declined to comment" about why Ferguson is looking to sell the property, with the story adding that Ferguson did not return a call.
I can understand Ferguson not returning the call to comment. It is not his role to provide the newspaper with a reason for his decision. But I absolutely do not understand Nemerovski's reasoning behind the "declined to comment".
Some will argue that she is "representing" her client by not commenting. She should have been ready for this prior to issuing the listing. It's up to her as the agent to have her "story" ready from the Fergusons for when this came up.
As it is, the story also mentions that the Fergusons are asking $540,000 more than they paid for this mansion back in 2004 although it does not specifically mention any improvements since it was built. A potential buyer or investor could be motivated to explore the listing details to find out if a $540,000 "increase" is justified or not before possibly proceeding. After all, homes no longer automatically increase in value in this market, especially by more than a half-million dollars in an 8-year period.
Working in the media, even in one of seemingly the more secure jobs in radio, there has to be at least one solid reason for the Fergusons to make this decision. However, by not playing the public relations angle and having an 'answer' ready, this "declined comment" could delay the sale of this property even further.
Nemorovsky and the Fergusons should have been ready for this. All she needed to do was to respond something like "Eric wants to downsize" or "Eric wants to return to the suburbs where he grew up" or "There are some family matters making this necessary", and this story would have come off like a commercial endorsement to benefit all.
Even if not completely true, it would not have tarnished the marketing effort.
Instead, that neither the agent or the seller would "decline comment" about the house makes it appear that there is something about the property being hidden. That may or may not be the case. Now, all of the advertising in the world may not overcome that neither would comment about a reason for the house being put up for sale, and leave thousands of readers skeptical.
Any buyer or investor capable of qualifying for or paying cash for a multi-million dollar property is extremely likely to explore the reason for the listing going on sale before proceeding. It is not as though this is the only multi-million dollar home available in Chicago or its metro area.
Other such properties where the seller "is looking to move to Arizona", "wants to retire", "is looking to downsize", and/or "selling at a loss", are far more likely to get an inquiry for the agent over one for which the seller AND the agent "decline comment".
This has nothing to do with the current state of the market, recent home sale statistics, the flucutation of home prices, or problems with mortgages. Based on the asking price being higher, this is not a Short Sale or an act of desperation either.
It has everything to do with the marketing. While it is true this is a newspaper story and not a paid advertisement, it is the agent that is supposed to be representing the property and her client as best possible. Putting it out there as if there is something to hide does not do that.
If there truly is nothing to hide about this mansion, or any other properties for sale, people should know that. Like with the home sale statistics and the mortgage problems that continue to plague the real estate industry, we all need answers.
Eric Ferguson is a media celebrity in the Chicago area, based on his role as co-host of the extremely successful morning show on WTMX-FM. Therefore, when he decided to sell his Lincoln Park area mansion and listed it for just under $3 million, it became a news item.
Listing agent Joanne Nemerovski of Prudential became the beneficiary of a ton of "free" publicity about this when the Chicago Tribune picked up the story:
http://www.chicagotribune.com/business/chi-the-mixs-eric-ferguson-selling-lincoln-park-mansion-for-2995-million-20120223,0,4863058.story
However, she flat out blew this opportunity. The newspaper story starts out by providing a description of the property and some of its amenities. The agent could not buy this type of publicity. Thousands of fans of Ferguson and the radio station, along with thousands of regular readers of the Business section of the Tribune in print and online were reading a positive vibe about the property. Until the last paragraph, that is.
She "declined to comment" about why Ferguson is looking to sell the property, with the story adding that Ferguson did not return a call.
I can understand Ferguson not returning the call to comment. It is not his role to provide the newspaper with a reason for his decision. But I absolutely do not understand Nemerovski's reasoning behind the "declined to comment".
Some will argue that she is "representing" her client by not commenting. She should have been ready for this prior to issuing the listing. It's up to her as the agent to have her "story" ready from the Fergusons for when this came up.
As it is, the story also mentions that the Fergusons are asking $540,000 more than they paid for this mansion back in 2004 although it does not specifically mention any improvements since it was built. A potential buyer or investor could be motivated to explore the listing details to find out if a $540,000 "increase" is justified or not before possibly proceeding. After all, homes no longer automatically increase in value in this market, especially by more than a half-million dollars in an 8-year period.
Working in the media, even in one of seemingly the more secure jobs in radio, there has to be at least one solid reason for the Fergusons to make this decision. However, by not playing the public relations angle and having an 'answer' ready, this "declined comment" could delay the sale of this property even further.
Nemorovsky and the Fergusons should have been ready for this. All she needed to do was to respond something like "Eric wants to downsize" or "Eric wants to return to the suburbs where he grew up" or "There are some family matters making this necessary", and this story would have come off like a commercial endorsement to benefit all.
Even if not completely true, it would not have tarnished the marketing effort.
Instead, that neither the agent or the seller would "decline comment" about the house makes it appear that there is something about the property being hidden. That may or may not be the case. Now, all of the advertising in the world may not overcome that neither would comment about a reason for the house being put up for sale, and leave thousands of readers skeptical.
Any buyer or investor capable of qualifying for or paying cash for a multi-million dollar property is extremely likely to explore the reason for the listing going on sale before proceeding. It is not as though this is the only multi-million dollar home available in Chicago or its metro area.
Other such properties where the seller "is looking to move to Arizona", "wants to retire", "is looking to downsize", and/or "selling at a loss", are far more likely to get an inquiry for the agent over one for which the seller AND the agent "decline comment".
This has nothing to do with the current state of the market, recent home sale statistics, the flucutation of home prices, or problems with mortgages. Based on the asking price being higher, this is not a Short Sale or an act of desperation either.
It has everything to do with the marketing. While it is true this is a newspaper story and not a paid advertisement, it is the agent that is supposed to be representing the property and her client as best possible. Putting it out there as if there is something to hide does not do that.
If there truly is nothing to hide about this mansion, or any other properties for sale, people should know that. Like with the home sale statistics and the mortgage problems that continue to plague the real estate industry, we all need answers.
Tuesday, February 21, 2012
Does Houston Have A Problem?
It's the next round of home sales and pricing releases around the country. The newest chance to see if the various realty associations have cut down on adding to the negative publicity about the current real estate market.
This one from the Houston Association of Realtors is attempting to show a positive spin:
http://www.har.com/mls/dispPressRelease_print.cfm?month=02&year=12
However, they have a few too many statistics included. Serious real estate market observers will see right through this, and that's not good.
This story builds up the so-called rise in home sales and relative steadyness of home prices for January and the months prior.
But it also shoots itself right back down. The real reason for this is right there in the story. As in the part about the increase in foreclosures, and how they now account for a much bigger percentage of home sales.
Why is the home sales market "up"? Because more and more former home owners have been foreclosed upon. Take away those statistics, and, well, it sheds a different light on the current marketplace.
This is where Houston has a problem. As well as other cities. The current market isn't really "up". If fewer people were losing their homes due to financial reasons beyond their control, it would not appear as if home sales are up.
It is really foreign investors, flippers, and a few speculators who are buying the homes out there, and doing so because in many cases they get a below market deal by acquiring a foreclosure.
That even more people are being foreclosed on in the Houston area, while many other parts of the country are "reporting" that the number of foreclosures has dipped, certainly should not be treated as the "positive" news the HAR is doing in this story.
This one from the Houston Association of Realtors is attempting to show a positive spin:
http://www.har.com/mls/dispPressRelease_print.cfm?month=02&year=12
However, they have a few too many statistics included. Serious real estate market observers will see right through this, and that's not good.
This story builds up the so-called rise in home sales and relative steadyness of home prices for January and the months prior.
But it also shoots itself right back down. The real reason for this is right there in the story. As in the part about the increase in foreclosures, and how they now account for a much bigger percentage of home sales.
Why is the home sales market "up"? Because more and more former home owners have been foreclosed upon. Take away those statistics, and, well, it sheds a different light on the current marketplace.
This is where Houston has a problem. As well as other cities. The current market isn't really "up". If fewer people were losing their homes due to financial reasons beyond their control, it would not appear as if home sales are up.
It is really foreign investors, flippers, and a few speculators who are buying the homes out there, and doing so because in many cases they get a below market deal by acquiring a foreclosure.
That even more people are being foreclosed on in the Houston area, while many other parts of the country are "reporting" that the number of foreclosures has dipped, certainly should not be treated as the "positive" news the HAR is doing in this story.
Monday, January 30, 2012
Broker Blames Advertising For Bad Market????
As long-time readers of this blog are aware, I have spent hours sharing my thoughts of a variety of specific real estate advertisements from web sites and newspapers, and demonstrating how much room there is for improvement in most cases.
This, along with continuous questioning of why realty associations continue to publicize negative statistics about home sales instead of only taking a positive slant.
Imagine my anger and frustration when I saw this story from this afternoon about a San Diego realty firm President complaining about how regional and national web sites which use information his office, and other realty offices, provide in order to enhance their (site's) home search capabilities.
http://www.mediapost.com/publications/article/166773/arg-realty-claims-ip-theft-pulls-real-estate-list.html?edition=42796
The subject actually has the nerve to complain that this practice is partially to blame for the state of the current real estate market.
Immediately upon reading this nonsense, I offered up the following response on MediaPost, which originated this article:
+ + + + + + + + + + +
There are two sides to this story, which seems to only have covered one side. The story fails to point out how often (or seldom) some of the "other" sites update their listings and information. For example, my understanding is that Yahoo updates every week.
In addition, I have seen numerous instances where the content of a listing ad on a "national" site has differences compared to what is posted on a realty office web page or site. This story does not reflect that point of view. Furthermore, I can't believe that Mr. Abbott (who I do not know and to the best of my knowledge has not previously been a client) has the nerve to be publicly quoted that these other sites have "slowed the recovery of the housing market". He can't really think that if a potential buyer who has to enter specific criteria to search for homes in locations where his office has listings will give up if the one listing they look at is no longer available.
Having personally created more than 12,000 individual property ads during my 23 years of real estate related marketing and advertising duties, I can easily show him examples of how many realty firms do not even inspect ads they have directly placed within a variety of media and distribution sources.
All this while the very realty associations his office and its agents belong to continue to publish negative statistics about the current local housing markets. He should be asking his association people how reporting that (for example) "Local home sales were down 4.8% last month compared with a year ago" is a help to local sales. But, sure, Mr. Abbott can go ahead and blame other web sites which, so far, have been promoting information his people have created without his office or agents having to pay for it.
+ + + + + + + + + +
I have yet to check Mr. Abbott's office web site to review the listing advertisements on there, but it probably will be a fun task at some point in the near future. Considering the thousands of realty agents that love the fact that Yahoo, Trulia, and other large real estate related web sites bring themselves and their listings "free" additional publicity, there must be a reason why Abbott's advertisements are not producing any results for him and his people.
After all, he and I seem to agree that it takes better advertising and marketing of properties to improve the real estate market.
This, along with continuous questioning of why realty associations continue to publicize negative statistics about home sales instead of only taking a positive slant.
Imagine my anger and frustration when I saw this story from this afternoon about a San Diego realty firm President complaining about how regional and national web sites which use information his office, and other realty offices, provide in order to enhance their (site's) home search capabilities.
http://www.mediapost.com/publications/article/166773/arg-realty-claims-ip-theft-pulls-real-estate-list.html?edition=42796
The subject actually has the nerve to complain that this practice is partially to blame for the state of the current real estate market.
Immediately upon reading this nonsense, I offered up the following response on MediaPost, which originated this article:
+ + + + + + + + + + +
There are two sides to this story, which seems to only have covered one side. The story fails to point out how often (or seldom) some of the "other" sites update their listings and information. For example, my understanding is that Yahoo updates every week.
In addition, I have seen numerous instances where the content of a listing ad on a "national" site has differences compared to what is posted on a realty office web page or site. This story does not reflect that point of view. Furthermore, I can't believe that Mr. Abbott (who I do not know and to the best of my knowledge has not previously been a client) has the nerve to be publicly quoted that these other sites have "slowed the recovery of the housing market". He can't really think that if a potential buyer who has to enter specific criteria to search for homes in locations where his office has listings will give up if the one listing they look at is no longer available.
Having personally created more than 12,000 individual property ads during my 23 years of real estate related marketing and advertising duties, I can easily show him examples of how many realty firms do not even inspect ads they have directly placed within a variety of media and distribution sources.
All this while the very realty associations his office and its agents belong to continue to publish negative statistics about the current local housing markets. He should be asking his association people how reporting that (for example) "Local home sales were down 4.8% last month compared with a year ago" is a help to local sales. But, sure, Mr. Abbott can go ahead and blame other web sites which, so far, have been promoting information his people have created without his office or agents having to pay for it.
+ + + + + + + + + +
I have yet to check Mr. Abbott's office web site to review the listing advertisements on there, but it probably will be a fun task at some point in the near future. Considering the thousands of realty agents that love the fact that Yahoo, Trulia, and other large real estate related web sites bring themselves and their listings "free" additional publicity, there must be a reason why Abbott's advertisements are not producing any results for him and his people.
After all, he and I seem to agree that it takes better advertising and marketing of properties to improve the real estate market.
Thursday, January 26, 2012
Why Can't We Trust The Big Banks?
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?
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?
Tuesday, January 17, 2012
Bank of America Plaza Goes To Foreclosure
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!
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!
Tuesday, January 10, 2012
Finish This First - Then Move Forward
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.
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
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.
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.
Monday, December 12, 2011
More Negative Publicity For The Home Sales Market
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.
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.
Thursday, December 1, 2011
How A Hospital Can Help Chicago Home Sales
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.
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.
Thursday, November 10, 2011
Nashville Spins
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.
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.
Thursday, October 13, 2011
It Doesn't Snow In October
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.
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.
Friday, October 7, 2011
Why Are Our Houses Worth More Than Last Year?
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?
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?
Monday, September 26, 2011
Location vs. Price
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.
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.
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