In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
2633 Laclede Ave Henrico, VA 23233 $421,000 Sally Slate, Napier Realtors ERA
http://www.homesforsalerichmond.net/Homes_For_Sale/VA/Henrico/13773878.html
This ad (for suburban Richmond VA) only has one photo available which is an exterior shot. While it is often effective to have the description cover the interior rather than reinforce the photo, this photo opens up questions which are not addressed during the all-important first impression.
The photo is taken from an angle which shows a side which is not brick and therefore makes a large portion of house appear to be added on. While I was wondering if the open area at the front is a driveway or sidewalk, the description makes no mention of a garage whatsoever.
Keeping in mind this ad is from the web site of a print publication, there is no excuse for the fact that I cannot find the number of bedrooms and bathrooms for this home. (If it is there somewhere, I couldn't find it after spending about 2 minutes looking specifically for that information.) The publication probably expects the agent to include it within the print description, while the agent probably expects the publication to include it within its regular format.
Sorry, but I blame the agent for this glaring omission. It shows me that she did not check her ad. (The random search I did to find this listing group was "2 or more bedrooms" so I have no way of knowing for sure.) I would also question the motivation of the seller he/she/they isn't monitoring the advertising from the agent they chose to represent them.
To make matters worse, the description goes on to mention a "3rd floor bonus room". There is nothing wrong at all with offering a bonus room. But take a look at that picture. Where is there a 3rd floor???? If there is a basement, it is not mentioned, but that would make it 3 level and still not a "3rd floor".
By this point, a potential buyer is confused about how many stories, does not know how many beds and baths there are, and has no information about a garage or any sort of parking.
There is no information about the neighborhood or the block in the description. We would need to make another click for "area schools".
What is a "new 50-year roof"? Does it mean the house is 50 years old already? Is it a 50-year warranty?
Everything of what is described within is "new", including the roof. Yet, the property is also described as "meticulously maintained". It could only mean this is an older property, or cause suspicion if so many things needed to be replaced or upgraded recently.
Frankly, this is a perfect example of why I am doing this column.
Grade: D
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property and is its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.
Random listings are chosen around the country. Your comments are welcome!
Monday, September 14, 2009
Friday, September 11, 2009
Listing of the Day - Indianapolis IN
In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
4930 N. Kessler Blvd. Indianapolis $296,000
http://www.homefinder.com/IN/Indianapolis/51827952d_4930_N_Kessler_Blvd
The photo tour at the top of the listing ad does not enhance the ad. The primary photo shows a wall, leaving it unclear whether or not this is a gated property or where the main entrance to the home is. The home seems off in the distance and thus doesn't seem as large as the description indicates. The photo of the swimming pool is too bright and left me confused as to the size of the swimming portion. The driveway photo shows cracked and two-tone pavement and does not even show a garage entrance. The interior photo is a cluttered room showing wires hanging. If the seller can't keep a neat office, it raises concern about maintenance of the home. Since the photo tour is atop this ad, none of these photos helps toward a positive first impression.
Even as I come to learn of the 3 acres and 5,000+ square feet, after having seen the photos it doesn't seem as impressive. The in-ground pool and full fenced yard are indeed positives to be pointed out early on.
We are then told the "interior is unique" and that we "will be amazed". However, we are not told WHY it is unique. Unique is not always good or functional for a potential buyer. "Unique" could mean hard to find parts or fixtures and be a negative without a reasonable explanation or illustration.
The description paragraph ends with the note that "Dick the Bruiser" once owned the home. I understand the possible appeal of a celebrity having purchased this home. However, in this instance, those old enough to remember him also come to realize this is an older property. Since this is an advertised property, the buyer now faces the possibility of wrestling fans coming by to see the house Dick the Bruiser used to live in, and that is most likely unwanted attention for the buyer and the neighborhood. A description stating "once owned by a nationally known celebrity" might entice a potential buyer to call the listing agent out of curiousity.
It isn't until reading the "Additional Details" that the selling points start to come out. The agent seems convinced that potential buyers will read all the way through. But they need solid reasons to do that, given the assortment of other homes available within the same area and price range.
If I were looking in that area, I probably would have clicked back to the menu after looking at the photos. Even if I had stayed through the description, my interest would have ended there, and I wouldn't have taken the time to learn the positives.
For the sake of this review, I continued to read the ad and THEN learned about the 2 car attached garage, 2 fireplaces, central air, and that this is all on a corner lot.
While it is 4 bedrooms and obviously large, there is nothing specific about proximity to schools or transportation. These are obvious considerations for a large family looking in this area.
What might have been...............
GRADE: C-
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property and is its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
Your comments are welcome!
4930 N. Kessler Blvd. Indianapolis $296,000
http://www.homefinder.com/IN/Indianapolis/51827952d_4930_N_Kessler_Blvd
The photo tour at the top of the listing ad does not enhance the ad. The primary photo shows a wall, leaving it unclear whether or not this is a gated property or where the main entrance to the home is. The home seems off in the distance and thus doesn't seem as large as the description indicates. The photo of the swimming pool is too bright and left me confused as to the size of the swimming portion. The driveway photo shows cracked and two-tone pavement and does not even show a garage entrance. The interior photo is a cluttered room showing wires hanging. If the seller can't keep a neat office, it raises concern about maintenance of the home. Since the photo tour is atop this ad, none of these photos helps toward a positive first impression.
Even as I come to learn of the 3 acres and 5,000+ square feet, after having seen the photos it doesn't seem as impressive. The in-ground pool and full fenced yard are indeed positives to be pointed out early on.
We are then told the "interior is unique" and that we "will be amazed". However, we are not told WHY it is unique. Unique is not always good or functional for a potential buyer. "Unique" could mean hard to find parts or fixtures and be a negative without a reasonable explanation or illustration.
The description paragraph ends with the note that "Dick the Bruiser" once owned the home. I understand the possible appeal of a celebrity having purchased this home. However, in this instance, those old enough to remember him also come to realize this is an older property. Since this is an advertised property, the buyer now faces the possibility of wrestling fans coming by to see the house Dick the Bruiser used to live in, and that is most likely unwanted attention for the buyer and the neighborhood. A description stating "once owned by a nationally known celebrity" might entice a potential buyer to call the listing agent out of curiousity.
It isn't until reading the "Additional Details" that the selling points start to come out. The agent seems convinced that potential buyers will read all the way through. But they need solid reasons to do that, given the assortment of other homes available within the same area and price range.
If I were looking in that area, I probably would have clicked back to the menu after looking at the photos. Even if I had stayed through the description, my interest would have ended there, and I wouldn't have taken the time to learn the positives.
For the sake of this review, I continued to read the ad and THEN learned about the 2 car attached garage, 2 fireplaces, central air, and that this is all on a corner lot.
While it is 4 bedrooms and obviously large, there is nothing specific about proximity to schools or transportation. These are obvious considerations for a large family looking in this area.
What might have been...............
GRADE: C-
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property and is its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
Your comments are welcome!
Sunday, September 6, 2009
Listing of the Day - Sept. 6th
NOTE: In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
http://www.slcity.com/manager/listings/l10772.shtml
1349 Zenith Ave., Salt Lake City UT $358,900
The property is not the most nor the least expensive home listed in the area.
This listing ad starts with a solid exterior photo that brings a positive first impression of the curb appeal of this home. Other than the photo that concentrates on the garage (which is helpful to get a feel for the home), any of the interior photos could also be used as the most prominent. The nice furniture that helps to scale the room sizes for the viewer, and these interior photos add to the appeal.
I like how the description paragraph goes right into the selling points of the interior. Maple cabinets along with granite and steel have appeal to many buyers, and this is enticing information which is not available or certain to those who look at the pictures before reading the description.
In other words, this is what a property ad is supposed to do. The exterior photo shows the look of the home and the nice garden and landscaping. Enough to entice a potential buyer to read the description. Wisely, rather than recapping about the landscaping right away, the first sentence targets selling points about the interior.
At this point, the potential buyer has a good impression of the exterior, and within seconds learns a plus about the interior, and wants to know more.
Frankly, one sentence in and I already know that this agent understands how a property advertisement should flow. Everywhere a potential buyer or client can start shows a different positive, and gives one or more reasons to continue to look at this property. He is helping to let this home sell itself, instead of him selling his services.
We go on to learn that the home has central air, a laundry room, dishwasher, and disposal and is well maintained. The photos reinforce the "well maintained" aspect.
The less appealing points, such as the age of the home, that it is not 2 "full" baths, and does not have a fireplace, are all included in the description. It is significant to note that these facts are further down, coming AFTER the positives. As obvious as this would seem, I have re-written hundreds of listings for clients which buried the positives, compared with how they are first here. In addition, this ad emphasizes how this property has been well maintained and refurbished over the years.
Also, factors such as "new and refurbished baths" and "converted patio" when combined with the good photos, help the potential buyer to accept the 'less appealing' points because it appears those have been addressed by the seller.
The copy and the photos tie together and it makes a big difference. As a potential buyer, if you only read about refurbished rooms and no fireplace in an older house and did not see any interior photos, chances are you would move on to the next property.
Another positive is that the names of the elementary, middle, and high school on the page, with a link to school information just below. Especially helpful for a 4-bedroom home.
For this listing ad, there is little that I would change. A potential buyer cannot tell from the photos that there is a downstairs level. The description says bedrooms are "2 main, 2 down" rather than "4 bedrooms". It is hard to tell from the exterior photo if this is a 2-level home or if there is a true basement. Whether or not there are a lot of stairs and the distance between a master bedroom and a possible child's room could be important.
One other matter is the neighborhood. We are not told if this home is close to schools and maybe a fact or two about the area. A "near elementary school", "close to expressway", or nearby point of interest could all help, especially for a buyer comparing this home to others in the same general area.
GRADE: B+
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property and is its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
http://www.slcity.com/manager/listings/l10772.shtml
1349 Zenith Ave., Salt Lake City UT $358,900
The property is not the most nor the least expensive home listed in the area.
This listing ad starts with a solid exterior photo that brings a positive first impression of the curb appeal of this home. Other than the photo that concentrates on the garage (which is helpful to get a feel for the home), any of the interior photos could also be used as the most prominent. The nice furniture that helps to scale the room sizes for the viewer, and these interior photos add to the appeal.
I like how the description paragraph goes right into the selling points of the interior. Maple cabinets along with granite and steel have appeal to many buyers, and this is enticing information which is not available or certain to those who look at the pictures before reading the description.
In other words, this is what a property ad is supposed to do. The exterior photo shows the look of the home and the nice garden and landscaping. Enough to entice a potential buyer to read the description. Wisely, rather than recapping about the landscaping right away, the first sentence targets selling points about the interior.
At this point, the potential buyer has a good impression of the exterior, and within seconds learns a plus about the interior, and wants to know more.
Frankly, one sentence in and I already know that this agent understands how a property advertisement should flow. Everywhere a potential buyer or client can start shows a different positive, and gives one or more reasons to continue to look at this property. He is helping to let this home sell itself, instead of him selling his services.
We go on to learn that the home has central air, a laundry room, dishwasher, and disposal and is well maintained. The photos reinforce the "well maintained" aspect.
The less appealing points, such as the age of the home, that it is not 2 "full" baths, and does not have a fireplace, are all included in the description. It is significant to note that these facts are further down, coming AFTER the positives. As obvious as this would seem, I have re-written hundreds of listings for clients which buried the positives, compared with how they are first here. In addition, this ad emphasizes how this property has been well maintained and refurbished over the years.
Also, factors such as "new and refurbished baths" and "converted patio" when combined with the good photos, help the potential buyer to accept the 'less appealing' points because it appears those have been addressed by the seller.
The copy and the photos tie together and it makes a big difference. As a potential buyer, if you only read about refurbished rooms and no fireplace in an older house and did not see any interior photos, chances are you would move on to the next property.
Another positive is that the names of the elementary, middle, and high school on the page, with a link to school information just below. Especially helpful for a 4-bedroom home.
For this listing ad, there is little that I would change. A potential buyer cannot tell from the photos that there is a downstairs level. The description says bedrooms are "2 main, 2 down" rather than "4 bedrooms". It is hard to tell from the exterior photo if this is a 2-level home or if there is a true basement. Whether or not there are a lot of stairs and the distance between a master bedroom and a possible child's room could be important.
One other matter is the neighborhood. We are not told if this home is close to schools and maybe a fact or two about the area. A "near elementary school", "close to expressway", or nearby point of interest could all help, especially for a buyer comparing this home to others in the same general area.
GRADE: B+
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property and is its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
Wednesday, September 2, 2009
Listing of the Day - Columbia SC
For more than 20 years, I have worked with realty agents and mortgage lenders regarding a variety of marketing and advertising matters, including writing literally thousands of individual property descriptions. In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
http://www.cbcarolinascolumbia.com/property/property.asp?PRM_MLSNumber=248101&PRM_MlsName=ColumbiaSC&VAR_AgentCode=FELICIJ&VAR_OfficeCode=cbjg03
226 Philmont Dr, Columbia SC 2 bed 2 bath $106,000
This one is not the least or most expensive listing the agent currently has.
As much as I preach making interior photos a part of advertisements and online profiles, this listing shows why it depends on the property. The exterior shot is an excellent one. It showcases an attractive well painted home with nice landscaping, the driveway, and the attached garage.
However, the interior photos which are used feature noticeably little or no furniture, making it impossible to tell if the house is really empty or if someone lives there that can't afford furniture. A couple of the photos could use an explanation and don't have them. My impression started out quite high based on the exterior photo but dropped significantly while viewing the interior ones. Since I knew this was not even the listing agent's lowest priced current listing, it is not as though this is a "fixer" or the lowest priced property in town.
The all-too-brief description tells us about the "open floor plan", but frankly that seems a stretch after seeing photos of an entire room with no furniture. Does this mean you should only have one or two pieces per room?
All we are told about the surrounding area is that this home is "convenient to interstate", but there is nothing about proximity to schools, shopping, services, or other forms of civilization. Otherwise, there really is not any appealing description. I don't see where this home is a bargain or has a desirable location.
I'm pretty sure that the listing agent (and other agents) would counter my last point by reminding me that there are places on the page to click for "Local Services", "school" and map information. Had I only been shown the primary exterior photo and an enticing description, I might have looked longer. This is a big part of the reason for doing this "Listing of the Day" feature. This agent spent time and effort to secure this listing. This property has some good selling points including curb appeal, especially for a home in this price range. It is not up to a potential buyer to look hard enough to find them.
Grade: D
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property and is its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
Please check back often for more "Listing of the Day" critiques.
http://www.cbcarolinascolumbia.com/property/property.asp?PRM_MLSNumber=248101&PRM_MlsName=ColumbiaSC&VAR_AgentCode=FELICIJ&VAR_OfficeCode=cbjg03
226 Philmont Dr, Columbia SC 2 bed 2 bath $106,000
This one is not the least or most expensive listing the agent currently has.
As much as I preach making interior photos a part of advertisements and online profiles, this listing shows why it depends on the property. The exterior shot is an excellent one. It showcases an attractive well painted home with nice landscaping, the driveway, and the attached garage.
However, the interior photos which are used feature noticeably little or no furniture, making it impossible to tell if the house is really empty or if someone lives there that can't afford furniture. A couple of the photos could use an explanation and don't have them. My impression started out quite high based on the exterior photo but dropped significantly while viewing the interior ones. Since I knew this was not even the listing agent's lowest priced current listing, it is not as though this is a "fixer" or the lowest priced property in town.
The all-too-brief description tells us about the "open floor plan", but frankly that seems a stretch after seeing photos of an entire room with no furniture. Does this mean you should only have one or two pieces per room?
All we are told about the surrounding area is that this home is "convenient to interstate", but there is nothing about proximity to schools, shopping, services, or other forms of civilization. Otherwise, there really is not any appealing description. I don't see where this home is a bargain or has a desirable location.
I'm pretty sure that the listing agent (and other agents) would counter my last point by reminding me that there are places on the page to click for "Local Services", "school" and map information. Had I only been shown the primary exterior photo and an enticing description, I might have looked longer. This is a big part of the reason for doing this "Listing of the Day" feature. This agent spent time and effort to secure this listing. This property has some good selling points including curb appeal, especially for a home in this price range. It is not up to a potential buyer to look hard enough to find them.
Grade: D
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property and is its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
Please check back often for more "Listing of the Day" critiques.
Monday, August 31, 2009
Listing of the Day - Kirkwood MO
For more than 20 years, I have worked with realty agents and mortgage lenders regarding a variety of marketing and advertising matters, including writing literally thousands of individual property descriptions. In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
http://realestate.stltoday.com/RealEstate/Sales/Listing.asp?lid=183-90044619
(This is a 2 bed 2 bath condo in Kirkwood MO, near St. Louis, listed at $499,000)
The description as written for the realty office's web site and also used in the area's leading newspaper and its web site does not even come close to making this seem like a one-half million dollar property. That should be priority #1 for a condo of this magnitude.
Not every community allows a "walk to" comment, but my focus is more about the walk to "restaurants, the library, and fitness facilities". While I realize brand names are not practical, "restaurants" doesn't cut it. Someone in a half-million dollar condo doesn't care if they can walk to Burger King, but there is appeal in "close to fine dining" if that really applies. A library in proximity targets families with kids (with this unit being 2 bedrooms) or someone who likes to go to the library, which is no longer common in these days of in-home high speed internet.
Another sentence starts with "this third floor unit". The exterior photo shows this as a 3-story building. Yet, the description does not reinforce its top floor presence. Big difference from a marketing standpoint. Some potential buyers might prefer a top floor, especially in this price range. They might want to know there would be no noise from people walking above and/or that their unit would be difficult for someone off the street to get access to.
While pointing out about the "custom eat-in kitchen" as this description does is more fitting of a half-million dollar condo, I would question saying it is "custom" during this introduction. Some potential buyers might fear an unconventional design, challenges with kitchen furniture, and possibly wanting to replace or restore, before they finish reading the sentence. And there are no photos available of this "custom" kitchen to eliminate any such fears. Just saying "eat-in" kitchen would be a better incentive. Upon showing, THEN it becomes "custom".
We also read about the "large bedrooms and baths offering beautiful views of the area". I would either stop the sentence after "baths" or better explain the "beautiful views" if those views support a half-million dollar condo. If the bedrooms "overlook the pond and the sunset" (for example), you have a description befitting such a unit. If the views really overlook the parking lot and the garbage bins or the condos next door, then it doesn't need to pointed out at all.
Taking out those words and terms which do not reflect the magnitude of the property also would serve to allow more word space for pertinent information to the eventual buyer. We don't know if this is the "lowest priced top floor unit in the neighborhood", whether or not this could be an investment property (rentals?), or, frankly, what makes this property worth nearly one-half million dollars.
I would also be concerned about the "2 garage spaces" as worded. If it is merely a common garage space for all units this could be a negative. Two people or a family looking at a 2 bedroom condo in this price range would be much more likely to want a private garage where they can store much more than one or two cars and could leave them unlocked. If this really means a 2-car garage, that must be spelled out, especially if it is attached. Being able to get into the car and go without having to go outside is a big plus in the St. Louis market due to the humidity of summer and the cold of winter. This should be a difference between an $80,000 unit and a half-million dollar condo.
On a positive note, the use of the term "vibrant community" is very descriptive and would fit much better with more specific and helpful examples. The den being "for work, reading, or just relaxing" paints a nice picture. (However, it eliminates the need to walk to the library that uses up precious copy space.)
My grade: C+
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property and is its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
Please check back often for more "Listing of the Day" critiques.
http://realestate.stltoday.com/RealEstate/Sales/Listing.asp?lid=183-90044619
(This is a 2 bed 2 bath condo in Kirkwood MO, near St. Louis, listed at $499,000)
The description as written for the realty office's web site and also used in the area's leading newspaper and its web site does not even come close to making this seem like a one-half million dollar property. That should be priority #1 for a condo of this magnitude.
Not every community allows a "walk to" comment, but my focus is more about the walk to "restaurants, the library, and fitness facilities". While I realize brand names are not practical, "restaurants" doesn't cut it. Someone in a half-million dollar condo doesn't care if they can walk to Burger King, but there is appeal in "close to fine dining" if that really applies. A library in proximity targets families with kids (with this unit being 2 bedrooms) or someone who likes to go to the library, which is no longer common in these days of in-home high speed internet.
Another sentence starts with "this third floor unit". The exterior photo shows this as a 3-story building. Yet, the description does not reinforce its top floor presence. Big difference from a marketing standpoint. Some potential buyers might prefer a top floor, especially in this price range. They might want to know there would be no noise from people walking above and/or that their unit would be difficult for someone off the street to get access to.
While pointing out about the "custom eat-in kitchen" as this description does is more fitting of a half-million dollar condo, I would question saying it is "custom" during this introduction. Some potential buyers might fear an unconventional design, challenges with kitchen furniture, and possibly wanting to replace or restore, before they finish reading the sentence. And there are no photos available of this "custom" kitchen to eliminate any such fears. Just saying "eat-in" kitchen would be a better incentive. Upon showing, THEN it becomes "custom".
We also read about the "large bedrooms and baths offering beautiful views of the area". I would either stop the sentence after "baths" or better explain the "beautiful views" if those views support a half-million dollar condo. If the bedrooms "overlook the pond and the sunset" (for example), you have a description befitting such a unit. If the views really overlook the parking lot and the garbage bins or the condos next door, then it doesn't need to pointed out at all.
Taking out those words and terms which do not reflect the magnitude of the property also would serve to allow more word space for pertinent information to the eventual buyer. We don't know if this is the "lowest priced top floor unit in the neighborhood", whether or not this could be an investment property (rentals?), or, frankly, what makes this property worth nearly one-half million dollars.
I would also be concerned about the "2 garage spaces" as worded. If it is merely a common garage space for all units this could be a negative. Two people or a family looking at a 2 bedroom condo in this price range would be much more likely to want a private garage where they can store much more than one or two cars and could leave them unlocked. If this really means a 2-car garage, that must be spelled out, especially if it is attached. Being able to get into the car and go without having to go outside is a big plus in the St. Louis market due to the humidity of summer and the cold of winter. This should be a difference between an $80,000 unit and a half-million dollar condo.
On a positive note, the use of the term "vibrant community" is very descriptive and would fit much better with more specific and helpful examples. The den being "for work, reading, or just relaxing" paints a nice picture. (However, it eliminates the need to walk to the library that uses up precious copy space.)
My grade: C+
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property and is its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
Please check back often for more "Listing of the Day" critiques.
Sunday, August 30, 2009
Listing of the Day - Aug. 30, 2009
For more than 20 years, I have worked with realty agents and mortgage lenders regarding a variety of marketing and advertising matters, including writing literally thousands of individual property descriptions. In an effort to improve the impact of the marketing of listings, I randomly choose current listings around the country in a variety of price ranges and comment on their effectiveness. No current clients of mine are used, nor do I know any sellers or buyers or have any additional information about the property.
http://www.estately.com/WA/Walla_Walla_County#listings/info/2507588
Frankly, the way this listing is presented is a perfect example of the need for this blog and marketing services specific to realty companies such as ours.
The copy begins by pointing out how this 3 bedroom home is authorized for a short sale. (And I’m not even going to address that the web page shows the property has been listed for more than 6 months.) Yet, each exterior photo, including the primary one, shows trees with few leaves and the lawn in poor shape. I first saw this listing in late August, yet the first photo I see from this “motivated seller” appears to be from no later than February.
Within the first paragraph of the description, there is a reference to the “generous views of the blue mountains”. Yet, the featured photo does not have any mountains in the background. Upon looking at all 7 photos shown by clicking through, I didn’t see so much as a single mountain or any such view.
Although I understand the intent of mentioning the “three stall shop”, this could be a limitation rather than an encouragement within this description. The “do it yourself” home owner or family that wants a workspace will be drawn to this. However, those who are not of that mindset finish reading that wondering if they would be paying thousands of dollars for a room or area that would not be of much use. Could this be used for or converted to an office, rec room, storage room, or guest room? Potential buyers want possibilities instead of possible limitations.
Meanwhile, this photo spread does little to nothing to enhance the property, in addition to failing to display any “mountain” views. As much as I preach about using interior photos more often and more prominently, the use of interior photos here backfires because the home is empty.
When looking at photos of an empty home, a potential buyer has no idea how furniture would appear, how much space there really is, or the true size of the room. A 3-bedroom home indicates a family living space and not a series of empty rooms. Showing an empty bedroom with a large window without curtains or any window coverings also poses a security threat. The months old photos of an empty home is the setting for a “squatters scam” in some parts of the country.
Although the description does point out the home’s proximity to
One other point about this and many listings from smaller or even medium sized towns, especially where properties are on the market for longer periods. This listing has no information about the community, other than the mention of a school. Chances are the buyer of this home will come from out of area. (If not, it would have happened by now.) And chances are this buyer also needs to be “sold” on advantages of moving to
If this is a “fixer” and would appeal to an investor or builder, then the description should include one or more reasons why they should invest in this community.
There are both higher and lower priced 3 bedroom properties in the area, based on the search column on the right at the time of this review. Yet, potential buyers are not given enough reasons to make this the most attractive property. Again, chances are the buyer will come from out of the area. Why stop at this home?
Listing Grade: D
Note: This commentary is uncompensated and for marketing purposes only and is no reflection on the featured property and is its accuracy is not guaranteed. Neither Dave Kohl nor First In Promotions shall be held responsible for any representations.
At this time, I have openings for more realty agent/office clients to critique current and brand new listings on an hourly basis. No current or past client listings are featured on this blog.Random listings are chosen around the country.
Your comments are most welcome!
Please check back often for more "Listing of the Day" critiques.
Assisted care becoming more specialized
There are times when specialization, whether in real estate or any industry, can get overblown. Kind of like in baseball where we now have the closer, the set-up man, the "hold", and the "one batter" specialist. To many, it all means relief pitcher.
Yet, in the case of assisted living, there is merit for a new specialization. Assisted living is now taking on added responsibilities in some cases. There are instances where clients are aged to the point of needing help with getting around and doing the everyday chores. In addition, some elderly people have special needs and/or are in recovery from surgery and need additional regular care. And, unfortunately for some, there are mental concerns to be dealt with.
This is why I was glad to read about the new development by a company called Signature Senior Living LLC in Texas. They have broken ground on a reported 58,000 square foot facility in Conroe TX which will have 79 individual units. Their plans already have determined that 55 of the units will be "assisted living" while 24 units are being designated for "memory care residents".
In this instance, specialty is a very important step. I have friends currently dealing with older family members with some stage of dementia with parents or relatives. It is nice to know that care facilities are starting to exist which will specifically be fit to handle this.
Furthermore, if marketed properly, this company (and other builders like it) will have an important marketing niche to fill space in their assisted care properties. As seniors get older and older, it would be reassuring for people to know when placing older parents into an assisted care facility that if a memory problem were to occur they would have not have to totally relocate.
Good call.
Yet, in the case of assisted living, there is merit for a new specialization. Assisted living is now taking on added responsibilities in some cases. There are instances where clients are aged to the point of needing help with getting around and doing the everyday chores. In addition, some elderly people have special needs and/or are in recovery from surgery and need additional regular care. And, unfortunately for some, there are mental concerns to be dealt with.
This is why I was glad to read about the new development by a company called Signature Senior Living LLC in Texas. They have broken ground on a reported 58,000 square foot facility in Conroe TX which will have 79 individual units. Their plans already have determined that 55 of the units will be "assisted living" while 24 units are being designated for "memory care residents".
In this instance, specialty is a very important step. I have friends currently dealing with older family members with some stage of dementia with parents or relatives. It is nice to know that care facilities are starting to exist which will specifically be fit to handle this.
Furthermore, if marketed properly, this company (and other builders like it) will have an important marketing niche to fill space in their assisted care properties. As seniors get older and older, it would be reassuring for people to know when placing older parents into an assisted care facility that if a memory problem were to occur they would have not have to totally relocate.
Good call.
The Listing of the Day series begins........
Every home is unique. People live exactly where they do for a number of reasons. For every home there is a story behind how and what made it that particular home.
In my 20+ years of experience working with realty agents and mortgage lenders on a regular basis has let me see, close up, how a variety of properties are presented and marketed. I would estimate that I have personally written more than 12,000 unique property descriptions. These range from single family homes and condos to commercial and investment properties from all around the country in all price ranges.
These descriptions have been used for everything from telephone hotlines to online to newspapers and magazines to radio and TV to flyers to listings books for real estate organizations.
However, at this point in time, fewer advertisements and property descriptions are successful than before. Listings are not selling at all or as quickly as they did years ago. Yet, it still takes one buyer to make it a successful transaction.
A retailer might need at least 10 sales per day, all to different people, to have a successful day. A service business may need at least 1 "order" per day, also from a different person or business each day, to be successful. Their sales and marketing efforts are directed toward attracting a large number of customers or clients on a consistent basis.
Some of you reading are probably ready to comment that they economy stinks and how many buyers can't get the financing to buy a home. That is true, but every day somebody is successfully purchasing a property in your area.
I see the realty associations and their statistics about how home sales have dipped over the past year or two. As I have so often commented, I instead see how many hundreds or even thousands of properties sold within that realty association's territory within the past month.
Again, a property only needs 1 buyer, not 20, to become a successful sale.
In other words, marketing and advertising means everything in this climate. I continue to find fault with how the majority of properties are first presented to potential buyers. First impressions are everything.
Part of my experience has consisted of helping realty agents to enhance their listing presentations. They have to show the seller why he/she is better qualified than the other agents they are considering to handle the sale of their property. Needing only 1 buyer.
Yet, they secure the listing and then treat it like any other. As if writing the description for ads is a simple formula. Frankly, it shows in more and more cases. In a market where homes would be on the market for 3 days if priced right, it doesn't matter as much. But in this climate, it matters more than ever.
Even when I have had to write as many as 50 separate property description ads in one day, I always make it a point to make every property unique. I never used a written template and filled in the blanks like it appears some agents do.
Part of my secret is that I would read descriptions of other similar properties for sale, often in different areas, and then be certain I come up with better selling points than the others. When doing this for clients, I use the same practices, even though there have been times I have lost realty agents as clients because I make what they perceive as too many changes in what they wrote.
For my next step, I am taking an idea I have been using for myself over the past few weeks and going public with it. I have begun to randomly select a "Listing of the Day" from different parts of the country and in different price ranges.
At least 3 times per week, I plan to present my critique of that listing description as it appears in at least one place to the public, and publish it on my blog.
Here is my hope:
1) Consumers who read these will keep these comments in mind when it comes time to select a realty agent to help sell their unique property, and be sure they get the best representation.
2) Agents who read these will make notes and improve the marketing approach for the listings they have now and secure in the future.
Since I feel as though I have written more property descriptions than the vast majority of realty agents (and I do not have a real estate license|) and have a 20+ year marketing background specific to real estate, I feel that my efforts can make a difference in picking up the real estate market.
Please note that the properties I will feature are randomly selected and will not be from any agent who is or has been a client of mine. As of this time, I do have openings for realty agents and offices to provide listing marketing critiques on an hourly rate basis.
Your comments are always welcome. We can all work together to get these properties sold much faster than the current market pace.
In my 20+ years of experience working with realty agents and mortgage lenders on a regular basis has let me see, close up, how a variety of properties are presented and marketed. I would estimate that I have personally written more than 12,000 unique property descriptions. These range from single family homes and condos to commercial and investment properties from all around the country in all price ranges.
These descriptions have been used for everything from telephone hotlines to online to newspapers and magazines to radio and TV to flyers to listings books for real estate organizations.
However, at this point in time, fewer advertisements and property descriptions are successful than before. Listings are not selling at all or as quickly as they did years ago. Yet, it still takes one buyer to make it a successful transaction.
A retailer might need at least 10 sales per day, all to different people, to have a successful day. A service business may need at least 1 "order" per day, also from a different person or business each day, to be successful. Their sales and marketing efforts are directed toward attracting a large number of customers or clients on a consistent basis.
Some of you reading are probably ready to comment that they economy stinks and how many buyers can't get the financing to buy a home. That is true, but every day somebody is successfully purchasing a property in your area.
I see the realty associations and their statistics about how home sales have dipped over the past year or two. As I have so often commented, I instead see how many hundreds or even thousands of properties sold within that realty association's territory within the past month.
Again, a property only needs 1 buyer, not 20, to become a successful sale.
In other words, marketing and advertising means everything in this climate. I continue to find fault with how the majority of properties are first presented to potential buyers. First impressions are everything.
Part of my experience has consisted of helping realty agents to enhance their listing presentations. They have to show the seller why he/she is better qualified than the other agents they are considering to handle the sale of their property. Needing only 1 buyer.
Yet, they secure the listing and then treat it like any other. As if writing the description for ads is a simple formula. Frankly, it shows in more and more cases. In a market where homes would be on the market for 3 days if priced right, it doesn't matter as much. But in this climate, it matters more than ever.
Even when I have had to write as many as 50 separate property description ads in one day, I always make it a point to make every property unique. I never used a written template and filled in the blanks like it appears some agents do.
Part of my secret is that I would read descriptions of other similar properties for sale, often in different areas, and then be certain I come up with better selling points than the others. When doing this for clients, I use the same practices, even though there have been times I have lost realty agents as clients because I make what they perceive as too many changes in what they wrote.
For my next step, I am taking an idea I have been using for myself over the past few weeks and going public with it. I have begun to randomly select a "Listing of the Day" from different parts of the country and in different price ranges.
At least 3 times per week, I plan to present my critique of that listing description as it appears in at least one place to the public, and publish it on my blog.
Here is my hope:
1) Consumers who read these will keep these comments in mind when it comes time to select a realty agent to help sell their unique property, and be sure they get the best representation.
2) Agents who read these will make notes and improve the marketing approach for the listings they have now and secure in the future.
Since I feel as though I have written more property descriptions than the vast majority of realty agents (and I do not have a real estate license|) and have a 20+ year marketing background specific to real estate, I feel that my efforts can make a difference in picking up the real estate market.
Please note that the properties I will feature are randomly selected and will not be from any agent who is or has been a client of mine. As of this time, I do have openings for realty agents and offices to provide listing marketing critiques on an hourly rate basis.
Your comments are always welcome. We can all work together to get these properties sold much faster than the current market pace.
Thursday, August 27, 2009
Hands free devices - but only in school zones?
I understand the intent of a new law, even if there are some inconsistencies. A regulation goes into effect next Tuesday (Sept. 1) in Texas requiring motorists to use a "hands free" device for phone calls, texting, and e-mails - but this law impacts school zones.
Anyone caught doing so within a school zone is subject to fine.
However, the various cities and counties need to post a sign at the entrance to a "school zone". While the majority are already indicated, this will mean additional costs for some cities and counties in the state.
Personally, count me among those who question the message this law sends. Us "older" folks will hopefully take this to mean extra steps to protect children. But I'm afraid that too many of the younger set, for whom the law is most intended, will do their own interpretation and think it OK to text and call and read their handheld devices when "outside" of a school zone. They will see it in the same category as "No ice cream after 9 PM" and go for 2 scoops at 6:00.
From a real estate standpoint, this could hold value for realty agents in the marketing of listings, and add appeal to potential buyers with young children.
A young family could then purchase a home down the block from a school and live in "a safety zone". According to this new law, their home would technically be "safer" than a similar home literally a block away (which happens to be outside of the school zone).
Will we see price increases for multiple bedroom homes located in or across from a school "safety zone"?
If it could result in a price increase and/or perceived as increased value for homes within these zones, how soon before this becomes a sales and negotiation point? This is different from zoning change requests, challenges to neighborhood boundaries, and other such attempts to impact local property values. Different because a home can't suddenly be included within a "school zone".
Thus, some current homeowners could have the luck of the draw and have one more sales feature than a neighbor further down the block. All because people are being told where they can text and call from with both hands on the wheel. There are no expressways or interstate highways which are considered part of a school zone, and that is the case all over and not just in Texas.
In reading up on this law, I didn't see anything indicating this is only a start toward banning texting or calling unless it is a hands free device in other places.
Just as bad, this regulation targets motorists. They will still have to be on alert for students walking across the street who are texting their friends.
That should want to make them call or text their local politicians. Even if they have to do it while driving on the expressway...................
Anyone caught doing so within a school zone is subject to fine.
However, the various cities and counties need to post a sign at the entrance to a "school zone". While the majority are already indicated, this will mean additional costs for some cities and counties in the state.
Personally, count me among those who question the message this law sends. Us "older" folks will hopefully take this to mean extra steps to protect children. But I'm afraid that too many of the younger set, for whom the law is most intended, will do their own interpretation and think it OK to text and call and read their handheld devices when "outside" of a school zone. They will see it in the same category as "No ice cream after 9 PM" and go for 2 scoops at 6:00.
From a real estate standpoint, this could hold value for realty agents in the marketing of listings, and add appeal to potential buyers with young children.
A young family could then purchase a home down the block from a school and live in "a safety zone". According to this new law, their home would technically be "safer" than a similar home literally a block away (which happens to be outside of the school zone).
Will we see price increases for multiple bedroom homes located in or across from a school "safety zone"?
If it could result in a price increase and/or perceived as increased value for homes within these zones, how soon before this becomes a sales and negotiation point? This is different from zoning change requests, challenges to neighborhood boundaries, and other such attempts to impact local property values. Different because a home can't suddenly be included within a "school zone".
Thus, some current homeowners could have the luck of the draw and have one more sales feature than a neighbor further down the block. All because people are being told where they can text and call from with both hands on the wheel. There are no expressways or interstate highways which are considered part of a school zone, and that is the case all over and not just in Texas.
In reading up on this law, I didn't see anything indicating this is only a start toward banning texting or calling unless it is a hands free device in other places.
Just as bad, this regulation targets motorists. They will still have to be on alert for students walking across the street who are texting their friends.
That should want to make them call or text their local politicians. Even if they have to do it while driving on the expressway...................
Friday, August 14, 2009
The auction process continues to grow and grow.......
The auction process continues to grow throughout the country, and it is not always due to foreclosure or REO's. Not at all. Residential auctions are now available to single family home owners willing to price their home right and looking to sell within a fixed time period to a qualified bidder.
Yet, most "local" real estate companies have yet to get on the bandwagon. The same offices faced with price reductions and homes on the market for 6 months and longer.
The link below is to a news story about a duplex sold at auction in Ohio. What makes this auction success so significant?
http://www.farmanddairy.com/news/duplex-sells-for-92400-at-auction/12831.html
The auction company which handled this property does not even specialize in real estate auctions. Did you see the other items sold at this auction?
I'll make my point again. Most realty firms still have not come on board to offer auctions as another avenue to expedite the sale of their listings. At the same time, companies lacking in real estate expertise are already conducting successful property auctions.
Earlier this week, Statler Towers, which is a legendary hotel and office building in Buffalo's Niagara Square, was sold for $1.3 million dollars. How? At an auction that had a bidding war - for a million dollar property. The winning group has already announced that they are beginning renovation work in September. As in next month.
I see where United Country Certified Real Estate Auction Services now plans to auction off more than 9,000 acres in Florida and Georgia, all by the end of this month.
Farm land in Illinois might be a challenging sale these days, but this is an example of how to attract attention:
http://www.earthtimes.org/articles/show/approximately-1600-acres-of-illinois-farmland-set-for-sept-10-auctions,925068.shtml
The above link is about a September auction of farm land.
Personally, after 20 years of continuously working with realty agents and mortgage lenders on marketing and advertising concepts, I find the auction possibility to be perhaps the most exciting innovation to come along in years. Individual home sellers can be involved in a sale by auction, with or without a realty agent. Individual realty agents, offices, or firms can receive complete support and local exclusivity to handle local auction sales. More importantly, qualified potential buyers can bid to their maximum on properties and know immediately if they are successful.
We can all move to add this component, or continue to dwell in the negative home sale and real estate statistics the media bombards us with every week.
If you need help getting involved in the property auction process, whether as a buyer or seller, please let me know.
Yet, most "local" real estate companies have yet to get on the bandwagon. The same offices faced with price reductions and homes on the market for 6 months and longer.
The link below is to a news story about a duplex sold at auction in Ohio. What makes this auction success so significant?
http://www.farmanddairy.com/news/duplex-sells-for-92400-at-auction/12831.html
The auction company which handled this property does not even specialize in real estate auctions. Did you see the other items sold at this auction?
I'll make my point again. Most realty firms still have not come on board to offer auctions as another avenue to expedite the sale of their listings. At the same time, companies lacking in real estate expertise are already conducting successful property auctions.
Earlier this week, Statler Towers, which is a legendary hotel and office building in Buffalo's Niagara Square, was sold for $1.3 million dollars. How? At an auction that had a bidding war - for a million dollar property. The winning group has already announced that they are beginning renovation work in September. As in next month.
I see where United Country Certified Real Estate Auction Services now plans to auction off more than 9,000 acres in Florida and Georgia, all by the end of this month.
Farm land in Illinois might be a challenging sale these days, but this is an example of how to attract attention:
http://www.earthtimes.org/articles/show/approximately-1600-acres-of-illinois-farmland-set-for-sept-10-auctions,925068.shtml
The above link is about a September auction of farm land.
Personally, after 20 years of continuously working with realty agents and mortgage lenders on marketing and advertising concepts, I find the auction possibility to be perhaps the most exciting innovation to come along in years. Individual home sellers can be involved in a sale by auction, with or without a realty agent. Individual realty agents, offices, or firms can receive complete support and local exclusivity to handle local auction sales. More importantly, qualified potential buyers can bid to their maximum on properties and know immediately if they are successful.
We can all move to add this component, or continue to dwell in the negative home sale and real estate statistics the media bombards us with every week.
If you need help getting involved in the property auction process, whether as a buyer or seller, please let me know.
Wednesday, August 5, 2009
Arizona property tax scam
It looks as though the real estate scam artists are now targeting parts of Arizona with an advertising solicitation designed to look "official" with regard to a "2009 property tax reduction review". Not only has the state's deadline for appeals for 2009 property taxes already past, but this company seeks a $189 "processing fee".
Fortunately, Arizona Atty. General Terry Goddard has issued a warning to the state's homeowners, although it is not yet known how many homeowners may have already fallen for this scheme.
Since I don't know how a scammer thinks, I would think that now that a warning has been issued in their targeted area, these crooks would start to target other areas. If you are a home owner, please be aware that such a scam exists. If you are a real estate or mortgage professional anywhere in the country, you may wish to warn your client base about what has happened in Arizona.
It is a helpful way to get your name and your services across to your client base.
Fortunately, Arizona Atty. General Terry Goddard has issued a warning to the state's homeowners, although it is not yet known how many homeowners may have already fallen for this scheme.
Since I don't know how a scammer thinks, I would think that now that a warning has been issued in their targeted area, these crooks would start to target other areas. If you are a home owner, please be aware that such a scam exists. If you are a real estate or mortgage professional anywhere in the country, you may wish to warn your client base about what has happened in Arizona.
It is a helpful way to get your name and your services across to your client base.
Wednesday, July 29, 2009
Why walk away from a downtown Chicago condo?
Another article which caught my attention is one from the Chicago Sun-Times about the rising number of potential buyers walking away from downtown Chicago condos just before the delivery date. The story does go on to cite examples, and also to anticipate how this trend might go as some important openings (including Chicago’s Trump Tower) come up before the end of this year.
http://www.suntimes.com/business/roeder/1689945,CST-NWS-roeder29.article
The article quotes one developer about how they have been very successful with overall sales and how that includes significantly fewer “walk aways” for a specific building. One of the major points of this column is to tie the concern about diminishing downtown condo sales to the current real estate marketplace.
Naturally, the story goes on to associate the downturn it reports on to the current conditions in the real estate market. That could be taking the easy way out. I, for one, question that.
We don’t know exactly how many condo developers or sales offices were contacted in total for the story. Yet, of the few that are mentioned, one reports successful sales to the tune of millions of dollars. A success story within a couple of miles of the area covered in this story.
I’m not here to pick on the reporter from this story. It seems to be the same mindset as when realty associations keep pumping out the “latest decline in sales from a year ago” statistics and blame the market instead of only reporting how many hundreds or thousands of homes have sold during the previous month. Yet, if that were “my” story to write, it would have come out completely different. I would be investigating what made the one development quoted in there so successful, whether or not compared with other condo buildings and developments in the same area. But since I am not an agent or developer, I’ll leave that research for someone else.
Some will counter this point because the article refers to people “walking away”, which could refer to their ability to secure or close on a mortgage. I can appreciate that viewpoint. However, the point is that a nearby development is not experiencing anywhere near as much of this same occurrence.
Instead, I’ll offer up my theory, and that is that I would closely examine the pricing of condos in downtown Chicago Within that 3 to 5 square mile area there is plenty of public transportation, retailers, restaurants, and services. . If one development is doing well, the reason for the others to be struggling is not location location location. This leaves price and value.
In other words, the “struggling” developers in the same area either do not have their units priced right for the buyers it hopes to attract, or are not offering enough in value. By “value” I refer to amenities which apply based on the location and the type of property. A major downtown condo best serves when it has parking, proximity to bus and train, grocery store, and plenty of businesses. Other factors such as the size of the units, views, number of stories, and exercise facilities. Is it possible that the “walk away” people did more research and the results told them to back off due to future resale concerns?
While I can’t answer that, I think that is a question that should be addressed with regard to pricing a listing or a development. But for now, we should be looking for reasons why these “walk aways” are happening at some locations but not at others nearby.
Thoughts?
Monday, July 13, 2009
If they are the builder - how is it not their fault?
Earlier today I saw a story from Florida about a major builder which identified defective drywall used in hundreds of homes (thus far).
http://www.justnews.com/news/20039942/detail.html
The builder seems to be responding both financially and in terms of the investigation. To me, their response raises more questions than it answers. I would like to know how this builder decided upon the "contractors and sub-contractors" it is now investigating. NOW investigating?
If they were not carefully investigated before, I would like to know how and why these firms were hired. Is Lennar a "builder" or are they really just a marketing agency?
All of a sudden it is not their company and is organizations they hire? This could then be a reason that the wrong materials were used in some instances. Shouldn't the "builder" have a handle on materials used throughout "their" built homes?
How dare they wait until AFTER lawsuits have been filed? Did they not check out every contractor and sub-contractor hired to build "their" homes?
We don't know yet to what extent this could impact the buyers (or tenants) in these homes that have been found in violation. Not to mention the loans on these properties, those that were purchased with the help of a Realtor, and countless others who could be impacted as this continues on.
This could be still another problem for banks and industry professionals. We don't know yet if owners or tenants are being forced to move or relocate over saftey issues, and how it could impact loans and credit. Yet, this is not related to the current economy, even though it could very possibly throw another wrench into a challenging and diffcult real estate and financial market.
Yet, this was not caused by banks, greedy lenders, or consumers with credit issues. It seems to be caused by a "builder" acting like a marketing company and hiring companies which were able to use the wrong material since nobody investigated when they should have.
It is tough enough for industry professionals to assist in the purchase or sale of a home. The safety of the home itself should never have become an issue. We should all be asking a ton of questions about new builder homes from this point forward. Worry about the credit of the potential buyer later.
And while we are at it, who inspected these homes????
http://www.justnews.com/news/20039942/detail.html
The builder seems to be responding both financially and in terms of the investigation. To me, their response raises more questions than it answers. I would like to know how this builder decided upon the "contractors and sub-contractors" it is now investigating. NOW investigating?
If they were not carefully investigated before, I would like to know how and why these firms were hired. Is Lennar a "builder" or are they really just a marketing agency?
All of a sudden it is not their company and is organizations they hire? This could then be a reason that the wrong materials were used in some instances. Shouldn't the "builder" have a handle on materials used throughout "their" built homes?
How dare they wait until AFTER lawsuits have been filed? Did they not check out every contractor and sub-contractor hired to build "their" homes?
We don't know yet to what extent this could impact the buyers (or tenants) in these homes that have been found in violation. Not to mention the loans on these properties, those that were purchased with the help of a Realtor, and countless others who could be impacted as this continues on.
This could be still another problem for banks and industry professionals. We don't know yet if owners or tenants are being forced to move or relocate over saftey issues, and how it could impact loans and credit. Yet, this is not related to the current economy, even though it could very possibly throw another wrench into a challenging and diffcult real estate and financial market.
Yet, this was not caused by banks, greedy lenders, or consumers with credit issues. It seems to be caused by a "builder" acting like a marketing company and hiring companies which were able to use the wrong material since nobody investigated when they should have.
It is tough enough for industry professionals to assist in the purchase or sale of a home. The safety of the home itself should never have become an issue. We should all be asking a ton of questions about new builder homes from this point forward. Worry about the credit of the potential buyer later.
And while we are at it, who inspected these homes????
Wednesday, July 8, 2009
How the local ATM could eventually increase your sales..........
Realty agents and lenders should take note of a story that broke in the Chicago area earlier this week when it comes time to contact or send a newsletter or reminder e-mail to current and potential clients. The story gives them and all of us a reason to check our nearest ATM machine, but it could eventually help you to get a sale or commission as well.
The story is about a woman in suburban Oak Forest IL who started a class action lawsuit against a local bank after she was charged $3 for using an ATM which failed to disclose that she would be charged a fee. It seems that if there is no sign on the ATM or electronic message on the screen warning of a service fee that it is then a violation of the Electronic Funds Transfer Act.
As a result, the Chicago Sun-Times reported that Marquette Bank preferred to offer a cash settlement rather than be subjected to additional legal fees to fight the suit, with a judge expected to rule in September. The reported settlement amount for this woman (and other users of that specific ATM) is supposedly $90,000. While I have a big problem with the law firm supposedly getting $27,000 of this money for its legal fees (I’d love to see documentation on the actual cost of filing this lawsuit!), that is for another discussion.
So now you are asking, “What does this have to do with me as a realty agent / lender?”. My answer is, nothing directly. My point here is that here was a woman consumer using her local ATM that figures to wind up with many times over the $3 she was charged, perhaps over $1,000, because she stepped up and complained.
I searched and did not find this story in other parts of the country, which I find surprising. But I was a realty agent or mortgage lender, I would be all over this story in communications with my current and potential clients in my database. It’s time they start checking the ATM machines they use to make certain there is a notice of fees involved. If not, there is now legal precedent which could bring them potentially $1,000 or more.
Even if they don’t find any ATM’s in violation, they will tell their friends about this. As a result, this gives these consumers at least one chance to mention and recall YOUR name and affiliation when they do. And doing this costs you nothing, while you get a group of people telling others that “my Prudential agent told me about this……”.
You might also suggest that if they can find a violation and collect a few thousand dollars they can put it into a home improvement to increase the value of their property for when the time comes to sell.
Trust me when I tell you this is better information for potential customers than negative statistics about last month’s local real estate market.
Now back to watching for stories that actually can help us all generate business in this real estate market………
The story is about a woman in suburban Oak Forest IL who started a class action lawsuit against a local bank after she was charged $3 for using an ATM which failed to disclose that she would be charged a fee. It seems that if there is no sign on the ATM or electronic message on the screen warning of a service fee that it is then a violation of the Electronic Funds Transfer Act.
As a result, the Chicago Sun-Times reported that Marquette Bank preferred to offer a cash settlement rather than be subjected to additional legal fees to fight the suit, with a judge expected to rule in September. The reported settlement amount for this woman (and other users of that specific ATM) is supposedly $90,000. While I have a big problem with the law firm supposedly getting $27,000 of this money for its legal fees (I’d love to see documentation on the actual cost of filing this lawsuit!), that is for another discussion.
So now you are asking, “What does this have to do with me as a realty agent / lender?”. My answer is, nothing directly. My point here is that here was a woman consumer using her local ATM that figures to wind up with many times over the $3 she was charged, perhaps over $1,000, because she stepped up and complained.
I searched and did not find this story in other parts of the country, which I find surprising. But I was a realty agent or mortgage lender, I would be all over this story in communications with my current and potential clients in my database. It’s time they start checking the ATM machines they use to make certain there is a notice of fees involved. If not, there is now legal precedent which could bring them potentially $1,000 or more.
Even if they don’t find any ATM’s in violation, they will tell their friends about this. As a result, this gives these consumers at least one chance to mention and recall YOUR name and affiliation when they do. And doing this costs you nothing, while you get a group of people telling others that “my Prudential agent told me about this……”.
You might also suggest that if they can find a violation and collect a few thousand dollars they can put it into a home improvement to increase the value of their property for when the time comes to sell.
Trust me when I tell you this is better information for potential customers than negative statistics about last month’s local real estate market.
Now back to watching for stories that actually can help us all generate business in this real estate market………
Thursday, July 2, 2009
Let's make them true "news" letters
I continue to subscribe to newsletters done by realty agents and mortgage lenders who are not (advertising / marketing) clients of mine from around the country. These can be an interesting resource for ideas (and columns). At least, they should be.
This morning, the morning of July 2, I received "my July newsletter" from a realty agent in Chicago. I have found his previous newsletters to be well presented even if the content has been inconsistent over recent months.
Thinking I'm going to truly see a "July" newsletter, I open it, and note that the first story is about home sales in April. Yes, April. I didn't check to see if it was April 2009. It didn't have to be. Geeez. This is July. I should have been reading about April during April or at the very latest within the first 10 days of May. Two months ago.
I take it this guy has nothing current and topical to write about for his "July" newsletter. He might have been better off not to send it out. The "lead story" was already outdated, no matter what the information it contained.
If I was a client of his, I would not be pleased that "my" agent is providing me with information that is no longer timely. I also find that a lot of the sales statistics we are bombarded with as it pertains to real estate is not pertinent either. I would let him know that I am interested in what is happening in the local market "today" and that I will start looking for someone who can tell me that on a regular basis. As it is, I preach about how realty agents do not provide enough information which is specific to local home owners, and examples like this only add fuel to the fire.
Why am I reacting so heavily to one newsletter from one agent that I don't even know?
There is an answer for that. In this marketplace, everyone associated with the real estate community needs to work harder in order to survive and hopefully thrive. Even one agent sending information from more than 2 months ago as their "current" newsletter gets a few people to think that there is no progress and little hope for the real estate market to rebound.
In all likelihood, based on its overall appearance, this agent is using one of those services that composes and sends the newsletter out for different agents around the region or around the country. My hunch is that this newsletter isn't just going out in the Chicago area today. But if I were a realty agent that was considered responsible for having sent this out, I would have already canceled this service and be putting out my own retraction.
My point of contention is that if this agent "doesn't have time" to compose his own newsletter, it would mean he is making a ton of sales. If he is making sales, THAT should be what his newsletter is all about. He should be describing elements of his successful sales (which can be done without naming names, etc.) and showing what a good month June was and what he hopes to accomplish during July. This would make an appropriate July newsletter.
If this agent did not generate any sales during June, he should not be going back to April for content. Frankly, this sort of newsletter could very well be a reason he did not generate sales, since he offers not one compelling reason to contact him today.
You see, I have no idea if he even got a sale during June, or if he made several and raked in thousands of dollars. Yet, I still don't know this minutes after reading HIS newsletter.
Earlier today, I took steps to bring two realty agents together from different parts of the country to try and bring a couple of properties to auction before the listings expire. My hope is that this story will result in another property being sold as a result of the listing agent's effort prior to the expiration date and from a winning bid solid enough that the seller didn't refuse it and move on.
Hopefully my client could use that success story in her newsletter within a matter of days. It could help the real estate market one property at a time.
This morning, the morning of July 2, I received "my July newsletter" from a realty agent in Chicago. I have found his previous newsletters to be well presented even if the content has been inconsistent over recent months.
Thinking I'm going to truly see a "July" newsletter, I open it, and note that the first story is about home sales in April. Yes, April. I didn't check to see if it was April 2009. It didn't have to be. Geeez. This is July. I should have been reading about April during April or at the very latest within the first 10 days of May. Two months ago.
I take it this guy has nothing current and topical to write about for his "July" newsletter. He might have been better off not to send it out. The "lead story" was already outdated, no matter what the information it contained.
If I was a client of his, I would not be pleased that "my" agent is providing me with information that is no longer timely. I also find that a lot of the sales statistics we are bombarded with as it pertains to real estate is not pertinent either. I would let him know that I am interested in what is happening in the local market "today" and that I will start looking for someone who can tell me that on a regular basis. As it is, I preach about how realty agents do not provide enough information which is specific to local home owners, and examples like this only add fuel to the fire.
Why am I reacting so heavily to one newsletter from one agent that I don't even know?
There is an answer for that. In this marketplace, everyone associated with the real estate community needs to work harder in order to survive and hopefully thrive. Even one agent sending information from more than 2 months ago as their "current" newsletter gets a few people to think that there is no progress and little hope for the real estate market to rebound.
In all likelihood, based on its overall appearance, this agent is using one of those services that composes and sends the newsletter out for different agents around the region or around the country. My hunch is that this newsletter isn't just going out in the Chicago area today. But if I were a realty agent that was considered responsible for having sent this out, I would have already canceled this service and be putting out my own retraction.
My point of contention is that if this agent "doesn't have time" to compose his own newsletter, it would mean he is making a ton of sales. If he is making sales, THAT should be what his newsletter is all about. He should be describing elements of his successful sales (which can be done without naming names, etc.) and showing what a good month June was and what he hopes to accomplish during July. This would make an appropriate July newsletter.
If this agent did not generate any sales during June, he should not be going back to April for content. Frankly, this sort of newsletter could very well be a reason he did not generate sales, since he offers not one compelling reason to contact him today.
You see, I have no idea if he even got a sale during June, or if he made several and raked in thousands of dollars. Yet, I still don't know this minutes after reading HIS newsletter.
Earlier today, I took steps to bring two realty agents together from different parts of the country to try and bring a couple of properties to auction before the listings expire. My hope is that this story will result in another property being sold as a result of the listing agent's effort prior to the expiration date and from a winning bid solid enough that the seller didn't refuse it and move on.
Hopefully my client could use that success story in her newsletter within a matter of days. It could help the real estate market one property at a time.
Wednesday, June 24, 2009
Rent to own - or rent to survive?
The “rent to own” scenario I have been preaching about for the past year has finally been gaining in strength, yet I continue to have some real estate professionals express concern to me about the negatives.
http://www.dailyherald.com/story/?id=300715
The above link is to still another story about how builders have begun to enter the foray. They see the same things I do. There are a number of potential buyers out there that have enough for a down payment and to handle a reasonable monthly mortgage, but do not have enough credit to get a mortgage or perhaps need a few more months to reach that point. But they would “own” now if not for those conditions.
Sellers have reasons to “rent to own”. Not only would a “tenant” cover their mortgage cost, but one with the desire and strong possibility of buying the property is going to take much better care of it on a day-to-day basis. In most cases, it frees up the seller to move elsewhere, whether a move up, down, or laterally.
Yes, I understand there are some risks on both sides. A “tenant” could suffer a job loss or a severe strain in this economic climate and have to vacate, thus resulting in the major expense of the current owner. An owner could suffer a similar economic blow and force a tenant out. Several realty agents I have discussed this with feel that these possibilities make a rent-to-own scenario too risky for them. I can understand that, even though the concern is really that the realty agent does not want this to reflect on their services if things go wrong. Yet, these same realty agents seem unwilling to negotiate an exit strategy into a contract.
If a rent-to-own tenant suffers a financial setback, he/she/they could have a 60 day out clause, perhaps forfeiting a deposit paid initially and designed to go toward eventual ownership. This would provide a period of weeks for the “seller” to either find another tenant or consider alternatives such as an auction for at least the balance of the mortgage. Depending on the amount remaining on the mortgage, there could even be room for the seller to then profit while being done with the property and yet give a fresh buyer a great deal. If an owner suffers a setback, the tenant would be covering the existing mortgage.
For builders, they see the value of having tenants in units which have already been built and cost money to maintain if no one is in them. As more of them take to this idea, it could mean the difference between builders staying in business or not to have tenants in as many of their already built homes as possible.
My message to potential buyers with credit issues is to strongly consider this possibility. Builders are worth checking with, especially since there is a likelihood of a new unit and fresh warranties. My message to sellers is to weigh the risks of being able to get out from under a mortgage and move on vs. staying in your current situation. And my message to realty professionals is to consider ways to make this system seem better so that you don’t lose your commissions to a local builder.
It appears there are potential buyers with the financial capability but without sufficient credit. In many cases, the financial capability could win out. For everyone.
http://www.dailyherald.com/story/?id=300715
The above link is to still another story about how builders have begun to enter the foray. They see the same things I do. There are a number of potential buyers out there that have enough for a down payment and to handle a reasonable monthly mortgage, but do not have enough credit to get a mortgage or perhaps need a few more months to reach that point. But they would “own” now if not for those conditions.
Sellers have reasons to “rent to own”. Not only would a “tenant” cover their mortgage cost, but one with the desire and strong possibility of buying the property is going to take much better care of it on a day-to-day basis. In most cases, it frees up the seller to move elsewhere, whether a move up, down, or laterally.
Yes, I understand there are some risks on both sides. A “tenant” could suffer a job loss or a severe strain in this economic climate and have to vacate, thus resulting in the major expense of the current owner. An owner could suffer a similar economic blow and force a tenant out. Several realty agents I have discussed this with feel that these possibilities make a rent-to-own scenario too risky for them. I can understand that, even though the concern is really that the realty agent does not want this to reflect on their services if things go wrong. Yet, these same realty agents seem unwilling to negotiate an exit strategy into a contract.
If a rent-to-own tenant suffers a financial setback, he/she/they could have a 60 day out clause, perhaps forfeiting a deposit paid initially and designed to go toward eventual ownership. This would provide a period of weeks for the “seller” to either find another tenant or consider alternatives such as an auction for at least the balance of the mortgage. Depending on the amount remaining on the mortgage, there could even be room for the seller to then profit while being done with the property and yet give a fresh buyer a great deal. If an owner suffers a setback, the tenant would be covering the existing mortgage.
For builders, they see the value of having tenants in units which have already been built and cost money to maintain if no one is in them. As more of them take to this idea, it could mean the difference between builders staying in business or not to have tenants in as many of their already built homes as possible.
My message to potential buyers with credit issues is to strongly consider this possibility. Builders are worth checking with, especially since there is a likelihood of a new unit and fresh warranties. My message to sellers is to weigh the risks of being able to get out from under a mortgage and move on vs. staying in your current situation. And my message to realty professionals is to consider ways to make this system seem better so that you don’t lose your commissions to a local builder.
It appears there are potential buyers with the financial capability but without sufficient credit. In many cases, the financial capability could win out. For everyone.
Monday, June 22, 2009
What happens in California stays in California
What happens in California sometimes stays in California, and sometimes it doesn't. It is way too soon to tell with regard to The California Foreclosure Prevention Act that took effect last week.
The intent is to require mortgage lenders to prove they worked with the homeowner to make a loan modification before they can begin foreclosure procedures.
This is with all the best of intentions. Yet, already there are 2 schools of thought on this.
One is that it could provide enough options to make a difference and prevent some people from losing their home and somewhat reduce the number of foreclosures. This in turn helps to keep property values higher when an area has fewer foreclosures to pull down the average home price.
The other thought is that not everybody facing foreclosure can be helped enough to make a difference and that is only delays the inevidible while costing the owner facing foreclosure more time and money.
Similar measures have already been attempted in California over the years and, obviously, were not completely successful. This time around, people from other states will also be monitoring to see if there is any (or enough) positive impact on the marketplace over the next few months. If there is, look for other states to look into this.
Meanwhile, I have seen several stories and heard from a few different sources which are not endorsing many of the "loan modification" programs now being made available. It appears some are being started by people looking to make a fast buck at the expense of home owners too stressed out to take a serious look at the potential long term impact of a loan modification.
Whatever your feeling, it is important to note that consumers do not pay for a legitimate loan modification program if and when it really does make sense. There are some web sites and advertisements out there looking to confuse consumers into thinking they need to pay an up front fee to get a certain loan modification program. Not true.
Legitimate entities, such as some banks, offer a loan modification program with no up front cost since they understand that those in need to not have the funds needed to preserve their current mortgage. Keep that in mind.
You may have noticed that some lenders are now offering a 40-year mortgage in addition to the conventional 30-year. They make it look appealing for the short term by showing monthly savings sometimes as much as $200 per month above the 30-year. However, some 40-year mortgages require an upfront payment to implement. When factored out, it reduces the monthly savings. For example, a $2,000 fee to save $200 per month comes out to $167 per month for the first year. Do the math with those figures and it amounts to a $33 per month savings for the first year. Without knowing what mortgage rates will be like in 1 year.
If you respond by saying "but in 1 year I could refinance", you would be right, but you would also be faced with still another fee to refi. That assures you would have spent to save a bit more than $1 per day.
Note that this is only for the short term with a 40-year mortgage. For the long term, needing 10 more years to pay also serves to increase the amount of interest you would be paying on the property.
Put this all together and it shows why financially challenged home owners should explore other options besides a loan modification to prevent foreclosure and to hopefully maintain (or not decrease) their credit status.
It becomes time to not be concerned about a profit and to be concerned with getting the loan balance paid off. If the house is valued at $300,000, but there is $200,000 left on the loan, the distressed owner would be out of his/her/their obligation with a sale for $200,000. A potential buyer, and it only takes one, would be more apt to "steal" the home for $200,000 than to wait until the $300,000 asking price comes down to $250,000 in 3 months.
The seller frees up the obligation, and could then rent or live within their means for as long as needed.
With single family home auctions now available through which the seller has a right to refuse the "winning" bid, situations such as this are now possible.
Simply put, it does not need to cost any more to avoid foreclosure.
The intent is to require mortgage lenders to prove they worked with the homeowner to make a loan modification before they can begin foreclosure procedures.
This is with all the best of intentions. Yet, already there are 2 schools of thought on this.
One is that it could provide enough options to make a difference and prevent some people from losing their home and somewhat reduce the number of foreclosures. This in turn helps to keep property values higher when an area has fewer foreclosures to pull down the average home price.
The other thought is that not everybody facing foreclosure can be helped enough to make a difference and that is only delays the inevidible while costing the owner facing foreclosure more time and money.
Similar measures have already been attempted in California over the years and, obviously, were not completely successful. This time around, people from other states will also be monitoring to see if there is any (or enough) positive impact on the marketplace over the next few months. If there is, look for other states to look into this.
Meanwhile, I have seen several stories and heard from a few different sources which are not endorsing many of the "loan modification" programs now being made available. It appears some are being started by people looking to make a fast buck at the expense of home owners too stressed out to take a serious look at the potential long term impact of a loan modification.
Whatever your feeling, it is important to note that consumers do not pay for a legitimate loan modification program if and when it really does make sense. There are some web sites and advertisements out there looking to confuse consumers into thinking they need to pay an up front fee to get a certain loan modification program. Not true.
Legitimate entities, such as some banks, offer a loan modification program with no up front cost since they understand that those in need to not have the funds needed to preserve their current mortgage. Keep that in mind.
You may have noticed that some lenders are now offering a 40-year mortgage in addition to the conventional 30-year. They make it look appealing for the short term by showing monthly savings sometimes as much as $200 per month above the 30-year. However, some 40-year mortgages require an upfront payment to implement. When factored out, it reduces the monthly savings. For example, a $2,000 fee to save $200 per month comes out to $167 per month for the first year. Do the math with those figures and it amounts to a $33 per month savings for the first year. Without knowing what mortgage rates will be like in 1 year.
If you respond by saying "but in 1 year I could refinance", you would be right, but you would also be faced with still another fee to refi. That assures you would have spent to save a bit more than $1 per day.
Note that this is only for the short term with a 40-year mortgage. For the long term, needing 10 more years to pay also serves to increase the amount of interest you would be paying on the property.
Put this all together and it shows why financially challenged home owners should explore other options besides a loan modification to prevent foreclosure and to hopefully maintain (or not decrease) their credit status.
It becomes time to not be concerned about a profit and to be concerned with getting the loan balance paid off. If the house is valued at $300,000, but there is $200,000 left on the loan, the distressed owner would be out of his/her/their obligation with a sale for $200,000. A potential buyer, and it only takes one, would be more apt to "steal" the home for $200,000 than to wait until the $300,000 asking price comes down to $250,000 in 3 months.
The seller frees up the obligation, and could then rent or live within their means for as long as needed.
With single family home auctions now available through which the seller has a right to refuse the "winning" bid, situations such as this are now possible.
Simply put, it does not need to cost any more to avoid foreclosure.
Tuesday, June 9, 2009
Real estate market musings..........
Upon reviewing more of the day to day real estate news stories of late, I am coming to the conclusion that the real estate market should actually be divided into 2 parts.
This reflects more on the mortgage side, but loans are a huge factor in determining the market, especially in today's credit crunch.
The 2 factions would be divided among those really looking to buy or sell and those who would like to refinance if and when conditions are right. People looking to buy are looking for the right home for their "right" price, and are not going hold off on the "right" deal because mortgage rates have risen within the past 2 weeks. Yet, it seems that too many people within and outside of the real estate community believe otherwise.
Those looking to refinance should be on high alert at the end of this month. The government is playing games with mortgage rates and that will probably continue for some time. They lower the rates to spur activity, and then raise them again to slow down the flow and keep those in the industry busy enough to survive (in most cases).
My personal prediction is that the rates will drop again on Tuesday June 30th, and perhaps by at least 1/2 point. You can't go by what has happened to the rates in Junes past, just as I say the experts should not keep going by home sales statistics from years past either.
Those who have also been tracking the rise and fall of mortgage rates over the past 8 months would have noticed the reductions coming prior to holiday weekends. The first significant drop took place right before Thanksgiving weekend in November. It happened during the exact week that a lot of people were traveling, preparing for the holiday, and generally not ready. Those who were in position started taking advantage of the reduced rates, but it wasn't everyone.
Same thing happened during the Christmas and New Year period, and again in February prior to the Presidents Day weekend. It was after Memorial Day that the mortgage rates have risen to their highest in a while.....from their lowest in years.
Why June 30th? Because it is the end of the month and end of the quarter, which distracts from lenders and financial types dealing with closings on properties, and closing out their month of June and 2nd quarter. Not coincidentally, this date comes 2 business days before the business world shuts down for Independence Day weekend. (Most businesses are considering Friday July 3rd to be a holiday.) This would also be 4 weeks after the current rise in rates.
But for those who would purchase, again, I don't see mortgage rates being prohibitive even if a bit higher than during prior weeks.
Within the past 2 days, I have read articles and opinions from the rentals angle. One point of view says that because fewer multi-family unit loans are available it means that fewer new apartment units will be built, resulting in reduced inventory. The angle is that less inventory will result in higher rents for what is available, and that means many who would be renters might be better off to purchase.
The other side of that coin indicates the same circumstances could be better for renters. Entities which develop apartment buildings for income would stand a greater chance of obtaining one or more new construction loans for multi-family if and when their present holdings are full and producing demonstrated income. That would seem to favor keeping rentals at reasonable rates in order to have them filled. Thus, a "renters' market" if I may coin a new phrase.
As of today, I favor the "renters market" argument. There are plenty of vacancies in many cities for rentals. Look through your local real estate section under "Apartments" and you'll find some of those "1 month free" type of offers.
Regarding the housing market, I have been saying this for months and will continue. With housing prices dropping in many cities, the issue for many sellers is finding a qualified buyer. When that is the issue, it means that the price is reasonable and that potential buyers are trying to get the property, but do not qualify.
The problem I have with that scenario is that the potential buyer winds up "turned away" and then either goes elsewhere or stays put. Rent to buy could be the way to go. If that potential buyer didn't qualify for a loan, chances are they could afford the monthly mortgage on the property they are seeking.
Often times the potential buyer is turned down due to credit issues, and NOT because they don't have a reasonable down payment. I'm not saying it's easy, but I am saying I don't hear about much of an effort to make something happen so that buyer and seller can both move on.
This reflects more on the mortgage side, but loans are a huge factor in determining the market, especially in today's credit crunch.
The 2 factions would be divided among those really looking to buy or sell and those who would like to refinance if and when conditions are right. People looking to buy are looking for the right home for their "right" price, and are not going hold off on the "right" deal because mortgage rates have risen within the past 2 weeks. Yet, it seems that too many people within and outside of the real estate community believe otherwise.
Those looking to refinance should be on high alert at the end of this month. The government is playing games with mortgage rates and that will probably continue for some time. They lower the rates to spur activity, and then raise them again to slow down the flow and keep those in the industry busy enough to survive (in most cases).
My personal prediction is that the rates will drop again on Tuesday June 30th, and perhaps by at least 1/2 point. You can't go by what has happened to the rates in Junes past, just as I say the experts should not keep going by home sales statistics from years past either.
Those who have also been tracking the rise and fall of mortgage rates over the past 8 months would have noticed the reductions coming prior to holiday weekends. The first significant drop took place right before Thanksgiving weekend in November. It happened during the exact week that a lot of people were traveling, preparing for the holiday, and generally not ready. Those who were in position started taking advantage of the reduced rates, but it wasn't everyone.
Same thing happened during the Christmas and New Year period, and again in February prior to the Presidents Day weekend. It was after Memorial Day that the mortgage rates have risen to their highest in a while.....from their lowest in years.
Why June 30th? Because it is the end of the month and end of the quarter, which distracts from lenders and financial types dealing with closings on properties, and closing out their month of June and 2nd quarter. Not coincidentally, this date comes 2 business days before the business world shuts down for Independence Day weekend. (Most businesses are considering Friday July 3rd to be a holiday.) This would also be 4 weeks after the current rise in rates.
But for those who would purchase, again, I don't see mortgage rates being prohibitive even if a bit higher than during prior weeks.
Within the past 2 days, I have read articles and opinions from the rentals angle. One point of view says that because fewer multi-family unit loans are available it means that fewer new apartment units will be built, resulting in reduced inventory. The angle is that less inventory will result in higher rents for what is available, and that means many who would be renters might be better off to purchase.
The other side of that coin indicates the same circumstances could be better for renters. Entities which develop apartment buildings for income would stand a greater chance of obtaining one or more new construction loans for multi-family if and when their present holdings are full and producing demonstrated income. That would seem to favor keeping rentals at reasonable rates in order to have them filled. Thus, a "renters' market" if I may coin a new phrase.
As of today, I favor the "renters market" argument. There are plenty of vacancies in many cities for rentals. Look through your local real estate section under "Apartments" and you'll find some of those "1 month free" type of offers.
Regarding the housing market, I have been saying this for months and will continue. With housing prices dropping in many cities, the issue for many sellers is finding a qualified buyer. When that is the issue, it means that the price is reasonable and that potential buyers are trying to get the property, but do not qualify.
The problem I have with that scenario is that the potential buyer winds up "turned away" and then either goes elsewhere or stays put. Rent to buy could be the way to go. If that potential buyer didn't qualify for a loan, chances are they could afford the monthly mortgage on the property they are seeking.
Often times the potential buyer is turned down due to credit issues, and NOT because they don't have a reasonable down payment. I'm not saying it's easy, but I am saying I don't hear about much of an effort to make something happen so that buyer and seller can both move on.
Friday, May 29, 2009
Would you buy an "award winning" home?
My continuing search for positives and much needed creativity continued as I read the story in the Milwaukee Journal about Mayor Tom Barrett presenting the “Mayor’s Design Awards” for design excellence with categories based on design, environmental concerns, and architecture.
The story went on to name various buildings, some city owned, others historical sites, and others which are commercial that are being named and information about what was done to earn the honor. I came away thinking this is a good idea, and then wondering why I hadn’t heard about this before.
Next, I thought about how local real estate offices are supposed to know their community of service inside and out, and even if for selfish reasons want to see local property values as high as possible. The Design Awards in Milwaukee are for some city and some commercially owned properties. What about residential?
I’m sure there are some new condos and developments somewhere which are making a big deal about how environmentally friendly they are, or have an environmental improvement completed or about to be. There are others which take special pride in a garden or gardening arrangement. And the list of possibilities goes on.
Selling a condo in an “award winning environmentally sound building” would seem to be a plus for the listing agent and for the seller when this unit is put up against hundreds of other condos also available in this buyers’ market.
Various city and community leaders should be aggressively looking for anything which could accelerate local property sales. As we have detailed in past columns, each property sale generates thousands of dollars to people and companies (commissions, taxes, transaction fees, moving expenses, etc.) and brings money directly and indirectly into city coffers.
Before you wonder what difference an “award winning condo” or “award winning single family home” might make, start naming movies you have gone to see AFTER you learned that a film had been nominated or won one of the major awards. Yet, you didn’t go see it when it was playing down the street for weeks.
Let’s see if we can work together and develop a residential property awards program.
The story went on to name various buildings, some city owned, others historical sites, and others which are commercial that are being named and information about what was done to earn the honor. I came away thinking this is a good idea, and then wondering why I hadn’t heard about this before.
Next, I thought about how local real estate offices are supposed to know their community of service inside and out, and even if for selfish reasons want to see local property values as high as possible. The Design Awards in Milwaukee are for some city and some commercially owned properties. What about residential?
I’m sure there are some new condos and developments somewhere which are making a big deal about how environmentally friendly they are, or have an environmental improvement completed or about to be. There are others which take special pride in a garden or gardening arrangement. And the list of possibilities goes on.
Selling a condo in an “award winning environmentally sound building” would seem to be a plus for the listing agent and for the seller when this unit is put up against hundreds of other condos also available in this buyers’ market.
Various city and community leaders should be aggressively looking for anything which could accelerate local property sales. As we have detailed in past columns, each property sale generates thousands of dollars to people and companies (commissions, taxes, transaction fees, moving expenses, etc.) and brings money directly and indirectly into city coffers.
Before you wonder what difference an “award winning condo” or “award winning single family home” might make, start naming movies you have gone to see AFTER you learned that a film had been nominated or won one of the major awards. Yet, you didn’t go see it when it was playing down the street for weeks.
Let’s see if we can work together and develop a residential property awards program.
Tuesday, May 26, 2009
Home buyers and sellers are customers, too......
Whether real estate related or not I regularly follow various marketing related sources and columns as much as possible. I found the recent story about the Yelp consumer review web site finally beginning to allow business owners to respond to bad reviews most interesting.
In this age of road rage, high unemployment, and consumers who carry a grudge no matter what the circumstances that a business which receives a complaint or critical review had not been able to present its side of the story until now. Speaking as a consumer, this move could “save” Yelp. From time to time I see consumer reviews of products and services, and reviews of matters such as hotel room stays and the like. As a consumer, I find it helpful if I see a possible negative from a customer of a product or service I am considering. But I can’t help but wonder about the other side to the story. The consumer that wrote a negative commentary about a business could have stiffed that same business previously, but we don’t know that without the business having equal time.
What does this have to do with real estate? Little to nothing at this time. The column I read about Yelp got me to thinking. I don’t know of any “review” source specific to real estate transactions. Yet, for the vast majority of us, real estate is the biggest transaction(s) we make in our lifetime.
As a consumer, I have a choice of hundreds of realty firms I could list or buy a property through. I also have the choice of using a “discount” brokerage, an “assisted sale” service, or selling it myself. This is a very important decision. Yet, I don’t have a web site or source to go to for reviews about real estate transactions. Does this make sense? I can read what others in my community think about the local hardware store or about last weekend’s new movies, but I don’t know if they had a good or bad experience with a local realty company when they bought their home?
Personally, I have heard stories from all sides. Over the past 20 years, I have worked with realty companies on radio, TV, newspaper, phone, and internet advertising and marketing. I have presented to entire offices, realty agent expos, and at seminars. But I have also represented FSBO companies and publications, including interaction with the public (buyers and sellers), even though I am not a licensed agent and had no direct involvement in the transaction. So I know there are 2 sides to every story, just as I know there a ton of stories out there that it would benefit all sides to be aware of.
These days, consumers don’t know who to trust when it comes to a real estate transaction. I see where there has been another set of state court rulings about realty companies tacking on an additional “administrative fee” at closing that mysteriously was in addition to the promised commission to that realty office. Not every realty office has been doing this, but I have no way of finding out which ones are. It is enough work for buyers to deal with additional fees and costs associated with getting a mortgage done, let alone having to deal with it still again on the property side. I’m not saying that all realty companies are ripping off sellers, but I am seeing instances of this going to court, and there is a percentage of people who won’t take the time and effort to bring it to court over a few hundred dollars.
My point is that there should be at least one source for consumer reviews of real estate transactions, but the realty offices involved should also have the opportunity to respond.
Almost 3 years ago I was one of the sellers of a multi-unit investment property and was not able to choose the realty agent I would have preferred. This agent did well at a couple of things, but also, in my opinion, screwed up on another which delayed the transaction and cost me an additional legal fee. Even knowing people on the inside, I realized that taking the time to complain to the brokerage or realty association may or may not have accomplished anything. I am 99% sure I wouldn’t have benefitted financially from doing so, and these matters remain internal. Yet, if I had a “public” place to show the documentation I had about the mess-up, I would put my side of the story against anything that agent could show in defense, and let the public make their own intelligent decision about whether or not to use her services.
For the thousands of properties which have sold within the past month, there are thousands of good and bad stories about the services rendered to make them happen, with thousands of dollars at stake. I’ll admit it took me seeing the story about a consumer web site not related to or specific to real estate to make me realize the need.
My “to do” list now has another entry. To work on getting a “real estate transaction review” source in place and to do it soon. I’m sure almost every current and past home owner has a story (whether especially good or bad) about a realty agent or company to share. Meanwhile, thousands of realty agents and companies also have a response or defense ready, if only they had the opportunity to defend themselves. I’d like to get “future” home buyers and sellers to that information.
Please share yours at ideas@firstin.com .
In this age of road rage, high unemployment, and consumers who carry a grudge no matter what the circumstances that a business which receives a complaint or critical review had not been able to present its side of the story until now. Speaking as a consumer, this move could “save” Yelp. From time to time I see consumer reviews of products and services, and reviews of matters such as hotel room stays and the like. As a consumer, I find it helpful if I see a possible negative from a customer of a product or service I am considering. But I can’t help but wonder about the other side to the story. The consumer that wrote a negative commentary about a business could have stiffed that same business previously, but we don’t know that without the business having equal time.
What does this have to do with real estate? Little to nothing at this time. The column I read about Yelp got me to thinking. I don’t know of any “review” source specific to real estate transactions. Yet, for the vast majority of us, real estate is the biggest transaction(s) we make in our lifetime.
As a consumer, I have a choice of hundreds of realty firms I could list or buy a property through. I also have the choice of using a “discount” brokerage, an “assisted sale” service, or selling it myself. This is a very important decision. Yet, I don’t have a web site or source to go to for reviews about real estate transactions. Does this make sense? I can read what others in my community think about the local hardware store or about last weekend’s new movies, but I don’t know if they had a good or bad experience with a local realty company when they bought their home?
Personally, I have heard stories from all sides. Over the past 20 years, I have worked with realty companies on radio, TV, newspaper, phone, and internet advertising and marketing. I have presented to entire offices, realty agent expos, and at seminars. But I have also represented FSBO companies and publications, including interaction with the public (buyers and sellers), even though I am not a licensed agent and had no direct involvement in the transaction. So I know there are 2 sides to every story, just as I know there a ton of stories out there that it would benefit all sides to be aware of.
These days, consumers don’t know who to trust when it comes to a real estate transaction. I see where there has been another set of state court rulings about realty companies tacking on an additional “administrative fee” at closing that mysteriously was in addition to the promised commission to that realty office. Not every realty office has been doing this, but I have no way of finding out which ones are. It is enough work for buyers to deal with additional fees and costs associated with getting a mortgage done, let alone having to deal with it still again on the property side. I’m not saying that all realty companies are ripping off sellers, but I am seeing instances of this going to court, and there is a percentage of people who won’t take the time and effort to bring it to court over a few hundred dollars.
My point is that there should be at least one source for consumer reviews of real estate transactions, but the realty offices involved should also have the opportunity to respond.
Almost 3 years ago I was one of the sellers of a multi-unit investment property and was not able to choose the realty agent I would have preferred. This agent did well at a couple of things, but also, in my opinion, screwed up on another which delayed the transaction and cost me an additional legal fee. Even knowing people on the inside, I realized that taking the time to complain to the brokerage or realty association may or may not have accomplished anything. I am 99% sure I wouldn’t have benefitted financially from doing so, and these matters remain internal. Yet, if I had a “public” place to show the documentation I had about the mess-up, I would put my side of the story against anything that agent could show in defense, and let the public make their own intelligent decision about whether or not to use her services.
For the thousands of properties which have sold within the past month, there are thousands of good and bad stories about the services rendered to make them happen, with thousands of dollars at stake. I’ll admit it took me seeing the story about a consumer web site not related to or specific to real estate to make me realize the need.
My “to do” list now has another entry. To work on getting a “real estate transaction review” source in place and to do it soon. I’m sure almost every current and past home owner has a story (whether especially good or bad) about a realty agent or company to share. Meanwhile, thousands of realty agents and companies also have a response or defense ready, if only they had the opportunity to defend themselves. I’d like to get “future” home buyers and sellers to that information.
Please share yours at ideas@firstin.com .
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