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Average Days on Market

Source: Altos Research & Real IQ

An architect has designed an 80 story building that continually changes its shape by using the wind.   The “first if its type” building is under construction in Dubai, with a grand opening scheduled in 2010.  There are also plans to construct two more moving buildings, with one located in Moscow and another in  New York City.   

The building design is like nothing we’ve ever seen before.  It offers sweeping and constantly changing views, as the building exterior shape actually moves. 

The downside… being fabulous and cutting edge will not come cheap.   Rumors are circulating that residences will be priced around $3000 per foot.  

Be forewarned, that the evening news, websites, radio shows, TV programs and foreclosure bus tours that tout foreclosures can be purchased for a bargain, or worse, that they will make the purchaser wealthy in coming years are little more than “paid for” hype.    Don’t buy it.

In my 25 years of real estate experience, I have discovered that for the most part, foreclosures are no bargain.  They are laden with serious problems and lengthy delays, making them “deals” for only those pro’s with patience and a strong stomach.

Foreclosed homes are not wonderful, like the media would have you believe.   The large asset departments that handle foreclosures (REO’s) are managed by employee’s with hundreds of files and no incentive to help the sale close.  They don’t care if the property sells or not, they earn their paycheck, holidays and vacations, in either case.   The truth is that only one of every three offers made to a lender will actually end in closing and Buyers should expect to wait weeks to learn if their offer was accepted. 

In addition to the hassles of dealing with the “could care less” personnel at the lending institutions, getting these homes inspected is also a challenge.  In many cases, entry before the sale is not even possible.  No effort has been made to clean the homes or remove the abandoned trash.   The utilities have long been disconnected.  And, all lenders have a “as is” clause in the sales contract, which states that the lender is not responsible for the condition or repair of these homes, even if they are obvious and necessary.

Another problem with buying foreclosures is that the  owner who lost the home long stopped caring about the property, and in some cases, even retaliated in anger. 

• Always assume if something broke or stopped working, the owner didn’t spend money to fix it.
• Some angry people actually retaliate by attempting to destroy the house. They smash holes in walls and ceilings, plug the drains and turn on the water to flood the home, rip through the sheet rock to steal copper and wiring to sell as scrap.
• They steal the appliances, light fixtures, kitchen cabinets and HVAC units to resell.
• They leave anything and everything behind that they do not want.  In many cases, this even includes helpless animals which are discovered locked inside the abandoned homes.

Buying foreclosures is not for the faint hearted and it is a myth that bank-owned properties are a bargain.  In truth, REO’s are a messy hassle and the cost of repairs often exceeds the value of the home, after the repairs are done.  

I don’t care what commercial you watched or which seminar you attended, if you they haven’t told you this information, they did not prepare you for the reality of the purchasing a home lost to foreclosure.

Thank you for visiting InfoTube Homes for Sale. 

Home Buyers are in the enviable drivers seat when shopping for a home.  Big savings can result from lowball offers, if they are presented and negotiated smartly.

The Best Case Scenario for Lowball Offers

1. The property has been on the market for at least 120 days.
2. The sales price has been reduced 3 or more times.
3. At least a month has passed since the last price cut.
4. Sellers have a compeling reason to move such as death, illness, divorce or job loss.
5. Homes advertised as “all offers considered”, “willing to negotiate” or “must move.”
6. Neighborhoods with an inventory glut and heavy competition.
7. Sellers who have owned the property for over 5 years. 
8. Homes that are back on the market, after being under contract.

Tommorow we will look at presenting and negotiating a lowball offer.  

Thanks for visiting www.infotube.net

    If the seasons have changed and your home is still on the market, do yourself a big favor and update your photographs.  There is nothing that turns off buyers and screams “Stale Listing” like the picture of a snowy lawn in the height of spring.

The spring selling season is the kick off for home shoppers who are sick and tired of winter glum.   Play to your audience and replace those dismal, gray, outdoor photo’s with ones of bright flowers, blooming tree’s and green grass.   And, if your area hasn’t welcomed spring yet, fudge a little and use ones you took in prior years.

Please don’t forget check your interior shots, too.    Replace any of those that are dated or make your home look cold and uninviting.   Buyers don’t find those photo’s of Christmas decorations, snow on the patio or roaring fires inspiring in mid-April.

Changing your photo’s at www.InfoTube.net is easy and quick.   Stage your shots and upload them to your computer.  Be sure to name and number them so you remember what each photo is and the order of appearance.  (Note:  Watch our 2 Minute How To Upload Photo’s Video) Then, log into your desktop and click Edit Photos.   Replace all the dated pictures and congratulate yourself on going the extra mile.

Remember, our business is helping you sell your home and we want you to look good.   Nothing attracts buyers like a good picture, so do your best and happy spring!!!

At a Superbowl party this weekend, a “desperate to sell” homeowner ask if there were any tricks to help him sell his home in a down housing market. He said he had tried all the regular ideas like cleaning the house, organizing it and pricing it right, but nothing was working. He ask, “What else might we do to attract a buyer?”

If you’ve tried all the traditional home selling tips, it may be time to consider a creative incentive to get the ball rolling.

1. Buy the Buyer an Attractive Mortgage Rate: Pay “points” upfront to the lender to permanently or temporarily buy down the borrowers interest rate. Buying the rate down is smart for a number of reasons. First, a lower interest rate will reduce the buyers monthly payment making your home more affordable. Secondly, since the buyer must qualify for a loan, a lower payment means people who earn less money can qualify to buy your home. Thirdly, “Below Market Financing” sets you apart, when advertising your property.
2. Pay the Buyers Closing Costs:
With housing prices at record highs, many buyers find themselves coming up short on the cash needed for closing. Make your home more attractive to cash strapped home shoppers by offering to pay their closing costs. A little cash savings may make all the difference between a buyers ability to buy your home or not.
3. Offer Seller Financing:
Seller financing is very attractive because it is cheaper, quicker and more convenient than borrowing from a traditional lender. There are risks, such as loan default, but if you need to sell, owner financing is a powerful tool. Note that you can cut your risk of default by insisting the buyer make a larger down payment, which they forfeit if they default. And, always hire a real estate attorney to draft the loan documents.
4. Give Aways and Freebies:
Home sellers, take a marketing clue from home builders and developers. Use freebies during market downturns to lure buyers with things they can’t live without. The real estate pro’s offer buyers everything from free appliances, trips, gift certificates, decorating allowances, club or golf memberships, cars, swimming pools, etc. to entice them to buy today. While freebies cost money, they do draw attention, which may be just to ticket in getting your home noticed.
5. Overcome an Objection or Problem:
While it may be impossible to solve all problems or objections permanently, offering to buy your way out of a few of them may help you sell your home. For example, if parking is a problem, offer a year of free parking for the new homeowner. If your homeowner association dues are high or if special assessments are blocking your sale, eliminate the problem by paying the dues yourself for a time or split the assessment costs. If your home is dated or in need of repairs, give the buyer an allowance for home improvements that they can make after they move in. If your area is suffering from insurance shock, offer to reimburse the first year premium. When marketing a home, buying your way out of trouble can often times help you more than reducing your sales price by the same amount of money.
6. Last Ditch Effort—Offer a Bonus to the Broker who brings you the Buyer.
While I personally hate this option, consider offering a bonus to any agent who gets a buyer to the closing table. It is not a secret that sales people are money motivated, like most of us. Offer the broker more money to sell your home, than he could earn by selling someone else’s, and see for yourself which home sells first.