Archive for the ‘Flat Fee MLS’ Category
Fed Snapshot on Real Estate in 2010
An exerpt from the NASDAQ report states:
In all seven of its districts, though, sales of lower-priced homes outpaced those of higher-priced homes by a wide margin, the Fed reported. It credited the government homebuyer tax credit for boosting interest in less-expensive properties.
And the extension of the tax credit could act as a shot in the arm for purchase activity later in the year, the Fed suggested. “The extension of the credit into 2010,” the Fed noted, “could give an added impetus to the expected seasonal sales upturn this spring.” 
Concerns about the continued housing recovery abound among policymakers and the chattering class, however. Both the tax credit and the Fed’s purchase of mortgage-backed securities are slated to end in the coming months, and it’s unclear whether there will be sufficient demand for home purchases without those stimuli.
This week, the Mortgage Bankers Association released a forecast for mortgage activity; it anticipates that mortgage issuance will fall 40 percent from 2009. The decline will be led by a plummeting rate of home refinancing, the MBA said.
InfoTube.net reads between the lines: The market is being driven on the low end by Federal stimulus and the housing market will drop off after the April deadline for qualification passes. If you have a home to sell, you will see more buying momentum earlier in the year than later. To maximize your investment, clean, repair, stage and advertise your property on the internet during the first quarter of 2010. January – April will be the period we will see the more homes go under contract for the year.
Good news. Bad news. Real Estate Mixed Bag in 2010
The housing market has been sending some serious mixed signals for months now. The one certainty is that the real estate market is in flux, and will likely be for months to come.
FIRST, THE GOOD NEWS:
- Although interest rates have been increasing, they remain at historical lows. This is good news for buyers who act quickly, as none of the experts expect rates to remain this low later in 2010.
- The $8000 tax credit for first time buyers was expanded to include existing home owners, as well. The timing of this offer is crucial. Buyers must close on or before June of 2010 to collect their free cash.
- Home prices and demand have steadily increased month over month throughout October of 2009.
- Although some markets may slide a bit further, we are definitely in the last innings of the crash. Even if we have a bit more downward pressure, 2010 will be the bottom of the housing crash.
- Home seller’s who use the power of the MLS and the Internet to realistically market their properties, will see more buyers and will have much more pricing power than they’ve experienced in years.
- In markets, such as Phoenix, you can buy a new home for $800 a month, making it cheaper to own a home than rent it.
THE BAD NEWS:
- According to Bob Curran, director at Fitch Ratings, a mountain of foreclosures will hit the market in 2010. And, a 10.5 percent unemployment rate will cause a surge in new homeowners that will fall into default.
- Per Lawrence Yun, chief economists with the National Association of Realtors (NAR) expects a record 3 million foreclosures in 2010, up from 2.1 million in 2009.
- John Burns, president of John Burns Real Estate Consulting, is even more bearish. He thinks 50 percent more people will lose their homes to the bank than they did last year. Why? Lenders were under pressure to postpone foreclosures in favor of loan modifications. And, the banks weren’t staffed to handle all the defaulted loans, as they now are.
- The Office of Comptroller of the Currency and the Office of Thrift Supervison released a report that said the results of the loan modification program was disappointing. 61 percent of the loans that were modified are now in default again. The offices predict another wave of foreclosures in 2010, which could cause prices to fall another 5 – 10 percent before the market stablilizes.
- The Federal Reserve plans to end the program that has kept mortgage rates so low for so long. Rates have already passed the 5 percent mark in anticipation.
- The first time buyer and existing home buyer tax credit program expires in early 2010. To qualify for the stimulus, buyers must purchase by April and close no later than June of 2010. This program has certainly lured buyers into the market place and its expiration will take a toll on demand in the 3rd and 4th quarters.
InfoTube Prediction: Since the housing market peak in the summer of 2006, home prices have dropped over 30 percent on average. Prices in some markets such as Las Vegas, Phoenix and parts of Florida and California have fallen more than 60 percent. Some markets have further to go, but we are in the final innings of the crash. Even if we go lower, we will see the bottom in 2010. But, don’t look for a rebound off the bottom. The damage was too deep and too systemic for a “V” shape recovery. The housing market will skate along the bottom for quite a while and it will probably be 2013 before most people notice any rebound.
Thank you for visiting InfoTube.net. There hasn’t been a better time to buy or sell a home in 4 years. Check out our website for over 20,000 fresh home listings and feel free to place your property on our site for FREE. We’ve been helping buyers and sellers connect since 1988. We can help you, too!!
Don’t Take Your Home Off the Market During the Holidays
I’m thinking Turkey. The leaves have fallen, lawn mowers are stored and furnaces are in use. It’s at this time of year that many of our customer’s ask… “Should We Take Our Home Off the Market During the Holidays?”
The answer is definitely ”NO”. There are a lot of reasons to keep your home listed right through the New Year. And, there’s a special timely reason this holiday season!!
- The First Time Buyers Tax Credit has been extended until April 30, 2010 AND it’s been expanded. Step Up Home Buyers, who make a lot of money, can also receive $6500 in Tax Credits until April. Big tax incentives mean that smart buyers will be house shopping vs mall shopping this holiday season.
- Interest Rates are at Record Lows. 30 year fixed rate mortgages are below 5 percent. But, with the dollar weak and falling, low rates may not be around for long. Serious home buyers are aware of the difference that even a small interest rate increase would make in their house payment. The combo of Tax Credits and Low Interest Rates create strong urgency among buyer’s. Smart seller’s spruce up their homes and play into the pressure.
- Holiday Shoppers are Serious Buyers. Trust me. Everyone of us loves the holidays. So, the people who are out looking for homes in November, December and January are SERIOUS Buyers. Do you really want to pull your house off the market when the most serious people are shopping?? Think about it and gear up!!
- Less Competition. Many sellers don’t read our blog. They foolishly pull their homes from the market during the holidays, and this year will be no exception. Less competition and MLS exposure could make the difference between For Sale and Sold, this Christmas.
- Houses are Pretty during the Holidays. Staging your home is easy during the holidays. The mood is festive. Holiday colors are warm and inviting. Candles, centerpieces and decorations touch the heart and convey a peaceful lifestyle. Light the candles, make a roaring fire, bake some goodies and turn on some relaxing holiday music. Buyer’s love to see a home decorated and looking special. Don’t let this once a year opportunity pass you by.
- Curb Appeal. If your landscape and lawn isn’t that great, breathe a sigh of relief that no one else’s is this time of year, either. Add seasonal color, a wreath, perhaps some decorations. Just keep it subtle and classy. No mowing, no weeding and trimming, and best of all snow covers all…
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For Sale By Agent, Owner or Auction. Pro’s and Con’s
The real estate market is currently in a downward state of flux. In 2007, the bottom dropped out, the free fall began and we started rethinking everything we thought we knew about real estate.
Home prices are 40 percent or more off peak in some area’s of the country, so “Real Estate doesn’t always go up.” Selling by Agent or Owner?? Actually, the Banks sold more property last year than either. Dinner conversations now focus on “How can we get rid of this house??” Instead of “Flip this House”. Our worries aren’t about capital gains. Now, we worry that we owe so much, that we can’t afford to sell the house or live in it.
In today’s market, one thing is certain. There is little money to make and every dollar counts. So, if you need to sell, you have 3 options. By Agent; By Owner; By Auction. Should you Pick Door 1, 2, or 3????
By Agent Pro’s and Con’s
Pro’s:
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Real estate agents provide a comparative market analysis to justify price strategies and make recommendations about staging, showing and the condition of the property.
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Agents develop a comprehensive marketing program for your property that includes the MLS, photographs, virtual tours, internet website distribution and Open Houses.
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Agents handle the showings, contract negotiations, they offer legal-type advise and they are objective about the property and its condition.
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In a slow market with a lot of inventory, agents may possibly do a better job than a do-it-yourselfer. Many seller’s feel that penny pinching in this market may not be a smart move.
Con’s:
- Costs for brokerage services are extremely high. The typical fee is 6 percent of the sales price of the property. Many seller’s find that after they pay 6 percent of the gross price to the agent, then pay off the mortgage, they have no money left from their sale or worst case, they actually lose money on the home.
- The agent may have little experience. They may be difficult to reach or contact. They may not market your home as you want.
- Agent’s work for their own benefit and may have a conflict of interest with their seller’s. They may advise the seller to price their home for a quick sale, not the best price they can get. And, agents make double the money if they sell their own listing. This means if they have a buyer that is interested in their own listing, they work for the buyer, too, not just the seller paying their fee.
- Agents often give short notice or no notice of showings, which is a problem for busy seller’s. In addition, your listing agent is not the person who will typically show your home. This means that the best features and benefits of your property may not be pointed out.
For Sale By Owner Pro’s and Con’s
Pro’s
- The biggest reason to sell your own home is the money. Agent’s fee’s are steep (6-7 percent off the top of the sale) wiping out thousands of dollars in profit from the bottom line. For the average homeowner, real estate commissions erase a huge chunk, if not all, of their entire equity in the home.
- By Owners control their sale. Many seller’s have bought and sold a lot of property in their lives. They know how to price their home, show their home and negotiate the sale better than a stranger could.
- Today, ‘For Sale by Owners’ have the marketing power that agent’s do. Gone are the days that “By Owner” marketing options were limited to throwing up a yard sign, hoping that a buyer stumbles upon it. Sellers now have access to all the tools that agents use to buy and sell property. Homeowners can purchase access to the MLS, Realtor.com, and other major real estate portals for a few hundred dollars, they can have an attorney draft the contract, leaving many to ask “Why pay 6 percent?”.
- FSBO’s have a Price Advantage. They don’t have a 6 percent tarriff to pay on their sale, which gives them an advantage when working with buyer’s or pricing their home below their “listed” competition.
- Many seller’s don’t trust real estate agents. They don’t want to place their most valuable asset in the hands of a commission sales person, who may or may not, be operating in their best interests.
Con’s:
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The biggest problem for ‘by owner’ seller’s is that people love their homes and it is hard to be objective. Emotional attachments make pricing, negotiating and showing the home difficult for a lot of people.
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Seller’s aren’t realistic about the need for a marketing program that will attract enough attention to draw buyers. Agent’s don’t spend money placing property on the MLS, Realtor.com and major websites because they enjoy it. They do it because those are the only methods that work to efficiently reach buyers and sell property. Throwing a sign in the yard or running a classified ad won’t work in this market. If you aren’t willing to use all the marketing tools that the agent’s use, your chances of succeeding are small.
- Showing the Property. If you live out of town, travel for your job or are unable to show the property with little notice, then selling by owner is not a viable option.
- The Work and the Time. When you list with an agent, all the work is done. The marketing, advertising, showing, negotiating, inspections and closing are handled by the agent. When you sell property yourself, you have to be prepared for the work and the time it takes.
For Sale at Auction Pro’s and Con’s
Pro’s:
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It’s Fast and Easy. Property auctions are quick and simple. The entire process only takes about 28-30 days from start to finish.
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Avoid Random Buyer Tours of your Property. When you sell by auction, there are usually one or two days for all buyer’s to tour the property at a set time and date. Seller’s do not have to endure months of random strangers calling to walk thru their home with little to no notice. Other than the posted showing times, seller’s can live normally in their home without having buyers constantly disrupt their lives.
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No Negotiations. Once the gavel falls, the price is set and the deal is over. The frustration of and time wasted on lowball offers, counter offers, repair negotiations are eliminated.
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More Money. The true definition of market value is defined by what a buyer is willing to pay and a seller is willing to sell for. This is the beauty of the auction process. In good markets and good locations, buyer compete for their dream home in real time. Sometimes, the nature and urgency that is created in an auction environment will yield a higher sales price than a listing agent would recommended.
Cons:
- The biggest con is that your home might not sell. Although we picture auctions as busy places, with huge crowds frantically bidding and waving their paddles in the air, that isn’t always the case. In slow markets with a lot of inventory, there are times when few people show up and the auction day is a bust.
- The Final Sales Price: If your opening bid is low and only a few buyer’s show up, you might sell the home for a lot less than you hoped or thought. If you are considering an auction, you may want to set a Reserve Price, which dictates that no sale will occur below X amount of dollars.
- The Buyer may not Meet the Terms. Although auction buyers should be pre-approved, and will forfeit their deposit if they don’t close the deal, deals do fall through, just like in conventional sales. For people who chose auctions for a quick sale, it could be a big issue, if the buyer is unable to meet their closing date.
- The Cost: The cost of an auction is often as expensive as listing with an agent. Sometimes, the seller will owe fee’s to the auctioneer, even if the sale fails to happen or the reserve is not met.
Thank you for visiting InfoTube.net and for looking with us behind doors one, two and three. If you need to sell, the method is your choice. Just consider the pro’s and con’s of all three, considering your lifestyle, budget, time and expertise before you make a final decision.
4 Mistakes Home Seller’s Make
As the spring home selling season approaches, many homeowner’s rush to put their houses on the market. Interest rates are low, tax rebates and sales incentives abound, and home prices are more affordable than they have been in a decade.
But, before you throw the ‘for sale’ sign in the yard, please educate yourself about the common mistakes you should avoid, if you want to sell your home. Decades of real estate experience have proven again and again, that making these mistakes, even once, will stop any sale in its tracks.
- Pricing: Setting an unrealistic price is the biggest mistake home seller’s make. The home MUST be initially priced at or under its competition, or you are simply wasting time and money. Some seller’s toy with the notion of “low balling” their asking price, hoping for bidding wars and a quick sale. While this strategy sometimes works on lower priced property, it doesn’t work in higher price ranges. Buyer’s in a higher price range simply think that the seller is desperate, which always results in even lower offers, not bidding wars. We won’t address overpricing, because there is nothing to say. The truth is no one will overpay for your home, it won’t appraise anyway, so please keep it off the market, until you are ready to be realistic.
- Property Condition: Know as much as you can about the condition of your property, fix everything that will stop a sale, and disclose everything you know about the property condition to the buyer. If you don’t, when the problematic inspection report is revealed, the buyer will cancel the contract and walk. Afterward, the seller will find themselves in a much worse position because they lost momentum, valuable time on the market, and the cancelation signals that something was wrong with the house. The seller will also be required by law to disclose everything found on the prior inspection report, so there is nothing to gain and a lot to lose by hiding the facts.
- Working with Today’s Buyer’s: It is a mistake to not entertain any offer, no matter how low the inital offer is. Buyer’s in this market make low ball offer’s first, to test the desperation of the seller. You will never know what price a buyer may be willing to pay for your home, if you don’t negotiate with them.
- Potentially Unqualified Buyer’s: NEVER get into a contract with a buyer who isn’t financially qualified for a loan. A letter of prequalification is not enough to take a home off the market. First, know who the lender is and require full underwriting approval within days of the acceptance of the offer. Be sure to write this loan approval (not prequalification) provision into your contract. Maintain your Active Listing Status and DO NOT indicate that your home is Contract Pending until the buyer has verifiable loan approval.
Thank you for visiting InfoTube.net homes for sale or rent website. Feel free to post a Free Listing. Or, Upgrade to a Featured Home Ad which provides buyer’s all the information, video’s and pictures they are looking for. A Featured Home listing costs only $19.95 and the listing stays active until you sell or cancel.
More Home Buyer’s Find Property via the Internet
According to a report by the National Association of Realtors, 32 percent (1/3 of all buyers) of home buyers first saw the home they purchased on the internet. Buyer’s who found their home through a real estate agent dropped 14 percentage points to 34 percent, during the same time period.
Despite the slowdown in the housing market, buyers and sellers have increased their use of the internet when buying or selling a home. “The internet is a very important tool in today’s real estate market”, said Tommi Crow, CEO of Crow Erickson, Inc., the company that manufactures the InfoTubes and InfoBoxes found on real estate signs from coast-to-coast. “Home sellers know that they can use the power of the internet to reach millions of home shoppers as effectively as a real estate agent would”, said Crow, and, they can save themselves thousands of dollars in the process”, said Ms Crow. “Americans are successfully buying and selling real estate without using agents, and that trend continues to grow”.
Home seller’s who want to maximize their online exposure use InfoTube.net, combined with the services of Why 6 Percent. The combination of the two marketing programs provide home seller’s with a home listing on their local MLS, Realtor.com, Google, Yahoo, MSN, Craigslist, Zillow, Trulia, Infotube, Homes for Sale Live and other major web portals, which attract millions of home buyers each month.
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Where a Home Buyer Found the Home Purchased* |
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2001 vs. 2008 |
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Source |
2001 | 2008 | ||
| Real Estate Agent | 48% | 34% | ||
| Internet | 8% | 32% | ||
| Yard Sign | 15% | 15% | ||
| Friend, Relative or Neighbor | 8% | 7% | ||
| Home Builder or their Agent | 3% | 7% | ||
| Print Newspaper Ad | 7% | 3% | ||
| Directly from Sellers / Knew the Sellers | 4% | 2% | ||
| Home Book or Magazine | 2% | 1% | ||
| Other | 3% | N/A | ||
* Source: National Association of Realtors
Thank you for visiting InfoTube.net. Sellers can place a Free Home Listing on InfoTube.net, which advertises their property listings to tens of thousands of home buyers each month.
Good news for Sellers. Housing Sales Increase.
Sales of existing homes rose to their highest levels since 2003. Watch the short video from CNBC for a synopsis of the latest housing numbers from across the nation.
5 Idea’s to Turbo Charge your Home Sale
If you have a property to sell, we have 5 proven marketing idea’s that you should consider. In addition to our guarantee of more buyer attention for your property, these tips are FREE and EASY to do.
5 Surefire, Guerilla Real Estate Marketing Tips for Sellers
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Use an InfoTube or InfoBox and keep them FULL at all times. Buyers love the convenience of curbside home info, which is the reason your brochures disappear so quickly. Nothing is more disappointing than an empty InfoTube, and it leaves the impression that you could care less about selling. Print plenty of brochures and be vigilant about keeping your tubes and boxes filled. There is no better advertising, and the price is literally a piece of paper.
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Place a listing for your home on every website that provides free home classified’s. 90 percent of home shoppers begin their search on the web and multiple site listings increase the odds of your property being seen. 3 MUST’s for your real estate listings are InfoTube.net, zillow and craigslist.
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Network- Place your home listing information on your myspace or facebook page. If you Twitter…Tweet your house
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Post on Real Estate Forums. Contribute to real estate forums and include the link to your home listing in your signature.
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Do a Video Tour. Video is a great way to show off your property and surrounding neighborhood ammenities. Highlight scenes that enhance your still photo slideshow. For example, if your area has a park, new school, nice shopping or great view, grab your digital camera, shoot and show us. Sites like InfoTube.net feature home video tours on their home page and they upload them to youtube automatically.
If you have a few bucks to spend, nothing increases your exposure to home buyers like an MLS listing. For $399 you can buy a showcase listing on Realtor.com for 6 months, and still sell your home yourself. The combined traffic to the MLS real estate hubs is around 8 million visitors per month. 6 months times 8 million shoppers=48 million prospective home buyers.
Happy Thanksgiving and thanks for visiting InfoTube.net.
Find Hidden Real Estate Prices
Although the logic escapes me, many Realtors do not provide sales prices, when advertising homes for sale. They operate on the old, tired business practice of printing teaser ad’s or brochures, that force customers to call or email a sales person. This annoying ”game” is a disservice to buyer and seller, alike. But, many agent’s still hide basic property information, attempting to latch onto an unwitting customer they can flip into some type of sale.
The new Google Base website for home listings circumvents this questionable and irritating practice, by revealing the hidden sales prices for listed homes.
Tip for Buyers: If you are house hunting and resent the phone tag game, go to Google Base to find the hidden asking prices. Refuse to track down any sales agent to get basic information. Unfortunately, for the innocent home seller, I always eliminate properties from my candidate list, when I discover the listing agent is a game player. I simply move on to the next listing that is represented by someone who values my time and intellegence. Life is too short to put up with a listing agent who plays hide and seek with the home seller’s information.
Tip for Sellers: If your home is listed with an agent, have them acknowlege in writing, that they will provide easy access to all information about your home, including the price. Make sure they use an InfoTube or InfoBox to ensure that home information is readily available to drive by traffic. Seller’s, you don’t profit from missed buyer inquiries, nor do you benefit from an agent flipping potential buyers to other listings. A good agent will give your home as much exposure, to as many people as possible. And, they will utilize all means, low and high tech, to provide instant information when the customer wants it…even while they are sitting in front of your home.
Thank you for visiting InfoTube.net. Please let us know if we can assist you in the sale of your home or help you with an MLS listing.
Average Days on the Market for US Towns and Cities
How long does it take to sell a home in your town or city?
| CITY | DAYS ON MARKET |
| OAKLAND, CA | 113 |
| NEW ORLEANS, LA | 157 |
| DALLAS, TX | 165 |
| CINCINNATI, OH | 192 |
| CHARLOTTE, NC | 70 |
| HOLLYWOOD, CA | 80 |
| PHILADELPHIA, PA | 76 |
| LOS ANGELES, CA | 84 |
| PHOENIX, AZ | 155 |
| HOUSTON, TX | 83 |
| CHICAGO, IL | 162 |
| SAN DIEGO, CA | 65 |
| SAN JOSE, CA | 92 |
| DETROIT, MI | 175 |
| JACKSONVILLE, FL | 197 |
| MEMPHIS, TN | 110 |
| BALTIMORE, MD | 115 |
| BOSTON, MA | 64 |
| SEATTLE, WA | 76 |
| WASHINGTON DC | 74 |
| LAS VEGAS, NV | 97 |
| PORTLAND, ME | 64 |
| LOUISVILLE, KY | 85 |
| ATLANTA, GA | 127 |
| ALBUQUERQUE, NM | 32 |
| FRESNO, CA | 111 |
| NORFOLK/VA BEACH, VA | 35 |
| ASHEVILLE, NC | 142 |
| BELLEVUE, WA | 123 |
| VENTURA, CA | 20 |
| LAKE KEOWEE, SC | 186 |
| PORTLAND, ME | 72 |
| PANAMA CITY, FL | 206 |
| PHILADELPHIA, PA | 102 |
| LOUISA CO., VA | 124 |
| BULLHEAD CITY, AZ | 126 |
| WOODLANDS, TX | 80 |
| ASHLAND, MA | 109 |
| AUSTIN, TX | 68 |
| TWIN CITIES, MN | 104 |
| DES MOINES, IA | 99 |
| ST LOUIS, MO | 102 |
| NEW YORK CITY, NY | 198 |
| LOWER EAST SIDE | 175 |
| UPPER WEST SIDE | 146 |
| UPPER EAST SIDE | 175 |
| WEST VILLAGE | 250 |
**Thanks to Linda DeVlieg for alerting us to the error of our ways, darn it…The Average Days on the Market for Albuquerque, NM is around 72, not 32 ):
To view listings of homes for sale, click HERE.
Selling Tip: If your home has been on the market for a lot longer than the average days for your area, it signals that something may be wrong with your price, property condition, location or marketing exposure.
To increase your exposure to buyer’s looking for homes, consider an MLS listing. The MLS reaches more than 8 million buyer’s per month. Hand’s down the best advertising you can do for the money. Seller’s can post a free home listing at InfoTube.net, increasing your internet exposure for FREE.
5 NEW RULES FOR REAL ESTATE INVESTING
The new, US economy brings with it, a whole new set of rules for investing in real estate. In the past, real estate has been a tried and proven method for quickly building wealth, but the current rules for successful investing have changed.
Making money in real estate is still a possibility, but investor’s must pay very close attention to the changes that this ecomonic cycle brings. Today’s investors need to reexamine their criteria for buying, selling or holding property. They also need a lot of patience and flexibility, along with complete and detailed research, before they jump in and take advantage of some of the best bargains seen in years.
NEW RULES FOR INVESTING IN TODAY’S REAL ESTATE MARKET
NEW RULE #1: LOCATION, LOCATION, LOCATION. For the baby boom generation, the suburbs were “the” location for profit and life style. Fuel was cheap, commutes were short and the ‘burbs’ offered the big house, with picket fenced yards and the image of the Leave It to Beaver lifestyle. Not so much, today. Today, it is the urban scene that is making a comeback. While homes in downtown area’s are generally more expensive on a price per square foot basis, buyer’s today are willing to pay a bit more money for less square footage. Urban center living eliminates long commutes, urban sprawl, expensive fuel bills and provides nearby ammenities without the need to drive.
NEW RULE #2: STAY PUT AND DO NOT REMODEL WHEN THE MARKET IS SLOW. In the past, many homeowners gained equity by renovating their old home while the market was slow. The improvements added value to their real estate, while they waited for more favorable market conditions. In the 2008 housing market, any major renovations should be analyzed purely from a return on investment perspective. According to Remodeling Magazine, which just published its Cost vs Value Report, homeowners should be warned that they will not recover as much of their costs for remodeling as they did in the past. The best investment today’s homeowner can make in terms of renovating fall in the category of paint, landscape and green, energy saving features.
NEW RULE #3: Technology and Networking are the Key to Locating Great Properties. Home listings, valuations and other crucial information for real estate investment used to be available only through a real estate agent. Now, the genie is out of the bottle and the best sources for real estate information can be accessed with nothing more than the click of a mouse. More technology has also made it possible for home seller’s to list their property on the powerful, national MLS, without listing with a agent. Companies like Why 6 Percent.com, and its national network of broker’s, list property for seller’s, investors and builders who want the exposure the MLS provides, but do not want to pay 6 percent of their sales price for the priviledge. Technology has changed the way buyer’s and seller’s connect, and the way that property is advertised. Smart investor’s should take advantage of this new alternative, as it offer’s accuracy, speed and control unmatched by the traditional route of buying and selling through agent’s only.
New Rule #4: BIGGER IS NOT ALWAYS BETTER. In the past, agent’s and home builder’s advised buyer’s to purchase as large of a home as they could possibly afford. As a result, home size in the 1970’s averaged about 1700 square feet, with 3.1 people in the average family. In 2004, the average size of a home was around 2400 square feet with only 2.6 occupants on average. Today’s lending and energy crisis has changed our thinking and bigger is not necessarily the best investment. Buyer’s are looking for a home that meets their needs without paying for space they don’t need. Today’s investor needs to adapt their thinking and focus on useable living space, energy saving ammenities, security and conveniences instead of targeting the over blown McMansion. Another demographic also backs up the theory that smaller may be better. For the next two decades, retiring baby boomers will be scaling out of their McMansions, now that their families have left the nest. The boomer’s will favor smaller homes with more ammenities, located in convenient neighborhoods that are clean and safe.
New Rule #5: FLIPPING IS OUT. BUY AND HOLD IS IN. Today’s falling prices and the huge inventory of unsold property means that potential bargains are plentiful. Smart Investor’s will take advantage of the current market and lock themselves into a good deal now, and hold the property until stability returns. Prospective investors should be warned that the crash we are experiencing will not turn around anytime soon. Prices will continue to fall, though not as dramatically as we have seen in the recent past. As prices firm and inventory is sold, the patient investor will see gains, but they should plan on waiting five years to ring the register.
Thank you for visiting InfoTube.net. If you have any questions or investment stories to share, click the comment link below. All postings are anonymous.
Home Sellers Make More Money when Agent is NOT Involved
- InfoTube homes for sale
Asheville, NC – August 22, 2008- A study, conducted by the well respected Consumer Reports publication, found that home sellers who used a real estate agent made less money than sellers who sold by owner. The report also found that nearly all of the people who sold ‘by owner’ received near their original asking price
“This is great news for people who need to sell their home”, said Tommi Crow, President of Crow Erickson, Inc and InfoTube.net. “Consumer Reports published a well researched and unbiased article that clearly finds home sellers are financially better off selling their home without an agent.” Real estate commissions take a huge bite out of the money sellers receive at closing. For example, a typical real estate commission would erase about $18,000 of equity on a $300,000 home.
The September 2008 Consumer Report findings are similar to the results from studies conducted by Stanford and Northwestern Universities. All three studies concluded that “for sale by owner” (fsbo) sellers made more money than sellers who used an agent.
“The release of this study is very timely news for some, and life changing news for others,” said Crow. Zillow.com recently reported that nearly 30 percent of the people who purchased a home in the last 60 months, now owe more money on their home than it is valued at. Furthermore, Zillow found that 45-60 percent of buyers, who purchased in 2006, are upside down.”
“For fortunate homeowners that have a lot of equity, the possibility of keeping more money from their home sale is great news. For the unfortunate, who have little or no equity in their homes, the report offers real hope in knowing they can clearly sell their property for a realistic asking price, without paying commissions they can not afford,” added Crow, also a real estate broker for over 20 years.
About Crow Erickson, Inc
Crow Erickson, Inc. is a privately held corporation founded in 1988. The company manufactures outdoor marketing products used in the real estate industry and for a variety of purposes. Its brand name products are Made In the USA and can be purchased at The Home Depot, Lowes Hardware, ’neighborhood’ hardware franchises, sign companies, for sale by owner companies, Boards of Realtors and other business locations from coast-to-coast.
The company website, http://www.InfoTube.net, offers free real estate marketing services, online shopping and a retail store locator. Its services include free internet classified listings, free color brochures and flyers, free legal forms and contracts, home tour video’s, opt in email services for home buyers and sellers, a community forum, blog, 5. MLS listing services, marketing tools and replacement parts for its products.
®InfoTube is a registered trademark of Crow-Erickson, Inc.
6 Signs of a Lousy Real Estate Agent
At InfoTube.net, we strive to help home owners sell their property, whether it is listed by owner or listed with an agent. Sellers, who can afford the luxury of a full service real estate agents, often get less expertise and help than they deserve and pay for.
6 Ways to Determine that you Hired a Crummy Realtor or Real Estate Agent:
- Bad Behavior: Each state has a real estate association that moniters agent behavior and tracks compliants. Check the agents record before you hire them. If you are already working with an agent that you suspect has acted in an ethical or unlawfile manner, contact your state association to review compliants from previous customers. The state association also tracks criminal behavior by agents.
- Part-Timers: If you are willing to pay thousands of dollars in fee’s to a real estate agent, make sure they aren’t a waiter in real life. Just because an agent is licensed, it doesn’t mean real estate is their full-time job. Insist on a seasoned, full-time agent, before you give up six percent of your sales price. The 6 percent real estate monopoly means they all charge the same amount to sell a home, so hire a pro.
- No Contact: When you are spending big bucks to sell your home by agent, instant communication is a “must do”. If your agent doesn’t return calls in a timely manner, use email, or they have only one contact number…the relationship won’t work. The last thing a seller needs in a bad market is to find they lost a buyer to the competition because no one could reach the listing agent.
- Insists You Use Their Partners: Realtors who insist or push a particular lender, inspector, title company, mover or lawyer, are likely receiving “kick backs” and making undisclosed money. Agents scamming a referral fee should send up a huge red flag. It’s your money, so you should use the services of whoever you want in your transaction.
- Clueless: Good Realtors are not the shy, quiet type. They are sales people and they are full of advice. If your agent makes no suggestions about improvements, drippy faucets or something…they are probably not fully engaged in selling property. If they don’t firmly recommended a sales price and have facts to back it up, they probably don’t have the experience, confidence or personality to get the job done.
- Push In House Listings: Some real estate brokerages hold listings “in house” for some time, giving their company a chance to “double dip” and earn both the listing and selling commission. Avoid brokerages who push in house listings and Insist that your property be placed on the MLS immediately upon signing of the listing agreement. This questionable business practice is also known as a “pocket listing”. Agents who pocket list harm buyers by limiting the inventory they can select from, and cost sellers time and money by limiting their exposure to all buyers in the market and increasing the odds the listing will look stale, once it is placed on the MLS.
InfoTube.net has thousands of home listed for sale by owner and by agent. Search our database of fresh listings today and if you want the advantage of the MLS without paying 6 percent of your sales price in fee’s, get a low, flat fee MLS and sell today for thousands less.
Thanks for visiting InfoTube.net and good luck on the sale or purchase of your home
Real Estate Agent’s Cut Their Commissions
The September issue of Consumer Reports magazine has some great news for home sellers. Haggle on the real estate commission before you sign a listing agreement.
The 3 year study released Monday by the respected, non-profit group found that:
- 71% of home sellers were successful in getting the agent to reduce their fee.
- Seller’s who paid a 3% commission were just as satisfied with the job performance as those who paid the “traditional” 6% fee.
- Seller’s who paid the most commission, ironically had the most regrets about their selling experience.
- Nearly one-third of home sellers said they should have been more aggressive when negotiating the commission they were charged.
- Over half of the 9141 polled responders reported they paid less than a 6 percent commission to sell their home by agent.
- Re/Max and independant brokers were more willing to deal and lower their fee’s. 77 percent of sellers who listed with these firms reported that they cut the commission.
- 67 percent of Keller Williams, Prudential and Century 21 agents agreed to lower their fee’s, when ask. While only 64% of Coldwell Banker agents lowered theirs in response to the seller’s request.
- According to Consumer Reports, “We found that paying an agent a lower commission rarely had any effect on the sales price.”
- 82 percent of respondents sold with the help of an agent, and received an average price of $5000 below the asking price.
- 17 percent of respondents sold their home without an agent, and they reported receiving roughly the asking price for their homes.
- A shocking fact was also revealed in this report. Only 46 percent of home sellers attempted to negotiate the fee at all.
In conclusion, if cutting the costs of sell your home is important, it pays to haggle, negotiate or walk away if you are not successful in getting an agent to reduce their commission. Nearly all Agents will cut their fee’s or you can easily find one who will .
Another alternative for sellers in tough times, list on the MLS , act as your own agent and save a bundle of cash.
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