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Category Archives: for sale

HOME OWNERSHIP RATES: ARE THEY CRASHING?

“You can make all the excuses you want, but if you are not mentally tough, and you’re not prepared to play every night, you’re not going to win. “ ~ Larry Bird

 

Homeownership Rates: Are They Crashing? | Keeping Current Matters

The Census recently released their 2014 Home ownership Statistics, and many began to worry that Americans have taken a step back from the notion of home ownership.

Easy… Chicken Little

The national homeownership rate peaked in 2004, representing a 69.2% of Americans who bought vs. rented their primary residence. Many have noticed a decline in rates since then and taken that as a bad sign.

However, if you look at the national rate over the last 30 years (1984-2014), you can see that the current homeownership rate has returned closer to the historic norm. 2014 ended the year with a rate of 64% just under the rate in 1985 and 1995.

Homeownership Rates Historically | Keeping Current Matters

Bottom Line

With interest rates and prices still below where experts predict, evaluate your ability to purchase a home with a local real estate professional.

REAL ESTATE HEADING IN THE “RIGHT DIRECTION”

“If you view all the things that happen to you, both good and bad, as opportunities, then you operate out of a higher level of consciousness.” ~ Les Brown

Real Estate Heading in the “Right Direction” | Keeping Current Matters

The housing market has taken a great turn toward recovery over the last few years. The opinions of the American public toward real estate took longer to recover, until recently.

For the first time since 2006, Americans have an overall positive view of real estate, giving the industry a 12% positive ranking in a Gallup poll.

Americans were asked to rate 24 different business sectors and industries on a five-point scale ranging from “very positive” to “very negative.” The poll was first conducted in 2001, and has been used as an indicator of “Americans’ overall attitudes toward each industry”.

America's View on Real Estate | Keeping Current Matters

Americans’ view of the real estate industry worsened from 2003 to the -40% plummet of 2008.  Gallup offers some insight into the reason for decline:

Prices Dropped

“In late 2006, real estate prices in the U.S. began falling rapidly, and continued to drop. Many homeowners saw their home values plummet, likely contributing to real estate’s image taking a hard hit.”

Housing Bubble

“The large drops in the positive images of banking and real estate in 2008 and 2009 reflect both industries’ close ties to the recession, which was precipitated in large part because of the mortgage-related housing bubble.”

Bottom Line

“Although the image of real estate remains below the average of 24 industries Gallup has tracked, the sharp recovery from previous extreme low points suggests it is heading in the right direction.”

If the news of recovery has you considering homeownership, meet with a local real estate professional to discuss the opportunities that exist in today’s market.

BUYING A HOUSE? EVERYONE SEEMS TO THINK THIS IS THE TIME

“The idea is to make decisions and act on them — to decide what is important to accomplish, to decide how something can best be accomplished, to find time to work at it and to get it done.” ~ Karen Kakascik

home for saleThere has never been a better time to purchase a home than this year.  Prices are still down as are interest rates.  There are still foreclosures and short sales on the market that will be a great buy for those willing to put a little sweat equity into their home. Read the equity report by clicking on the link below then take a look at the why buy now.
         Equity Report          Why Buy Now?

FIELDING A LOW BALL OFFER ON YOUR HOME

“Success is not final, failure is not fatal: it is the courage to continue that counts.” ~ Winston Churchill

pitcher

Consider before you ignore or outright refuse a very low purchase offer for your home. A counter offer and negotiation could turn that low purchase offer into a sale.

You just received a purchase offer from someone who wants to buy your home. You’re excited and relieved, until you realize the purchase offer is much lower than your asking price. How should you respond? Set aside your emotions, focus on the facts, and prepare a counter offer that keeps the buyers involved in the deal.

Check your emotions.

A purchase offer, even a very low one, means someone wants to purchase your home. Unless the offer is laughably low, it deserves a cordial response, whether that’s a counter offer or an outright rejection. Remain calm and discuss with your real estate agent the many ways you can respond to a lowball purchase offer.

Counter the purchase offer.

Unless you’ve received multiple purchase offers, the best response is to counter the low offer with a price and terms you’re willing to accept. Some buyers make a low offer because they think that’s customary, they’re afraid they’ll overpay, or they want to test your limits.

A counter offer signals that you’re willing to negotiate. One strategy for your counter offer is to lower your price, but remove any concessions such as seller assistance with closing costs, or features such as kitchen appliances that you’d like to take with you.

Consider the terms.

Price is paramount for most buyers and sellers, but it’s not the only deal point. A low purchase offer might make sense if the contingencies are reasonable, the closing date meets your needs, and the buyer is pre-approved for a mortgage. Consider what terms you might change in a counteroffer to make the deal work.
Review your comps.

Ask your REALTOR® whether any homes that are comparable to yours (known as “comps”) have been sold or put on the market since your home was listed for sale. If those new comps are at lower prices, you might have to lower your price to match them if you want to sell.

Consider the buyer’s comps.

Buyers sometimes attach comps to a low offer to try to convince the seller to accept a lower purchase offer. Take a look at those comps. Are the homes similar to yours? If so, your asking price might be unrealistic. If not, you might want to include in your counter-offer information about those homes and your own comps that justify your asking price.

If the buyers don’t include comps to justify their low purchase offer, have your real estate agent ask the buyers’ agent for those comps.

Get the agents together.

If the purchase offer is too low to counter, but you don’t have a better option, ask your real estate agent to call the buyer’s agent and try to narrow the price gap so that a counter-offer would make sense. Also, ask your real estate agent whether the buyer (or buyer’s agent) has a reputation for lowball purchase offers. If that’s the case, you might feel freer to reject the offer.

Don’t signal desperation.

Buyers are sensitive to signs that a seller may be receptive to a low purchase offer. If your home is vacant or your home’s listing describes you as a “motivated” seller, you’re signaling you’re open to a low offer.

If you can remedy the situation, maybe by renting furniture or asking your agent not to mention in your home listing that you’re motivated, the next purchase offer you get might be more to your liking.

By: Marcie Geffner

Marcie Geffner is a freelance reporter who has been writing about real estate, home ownership and mortgages for 20 years. She owns a ranch-style house built in 1941 and updated in the 1990s, in Los Angeles.

WHY BUYERS AND SELLERS SHOULD USE REALTORS

home for sale Buyers need a Realtor to guide them through the process of buying a home.  Every so many years, forms are updated, rules change and lending practices change.  A buyer can’t navigate all of this alone, they need someone who is up to date on all the rule changes – that is where a Realtors come in to play.  Realtors need to take a certain amount of continuing education every year, so Realtors can remain on top of their game.

Click this link to read the 175 reasons a buyer should use a Realtor.

Sellers also need a Realtor when it comes time to sell their home.  The average person only sells a home two or three times in a lifetime.  A Realtor does it for a living and closes many transaction per month.  Wouldn’t you rather have someone who knows what they are doing than trusting your closing to just yourself and the buyer.  Check out the infographic below (from “Keeping Current Matter”)  for why you should not be a “For Sale By Owner”!

FSBO-2014

 

3 REASONS TO LIST YOU HOME WITH A LOCAL AGENT.

3 REASONS TO LIST YOU HOME WITH A LOCAL AGENT.

“Always desire to learn something useful.Sophocles

During my daily reading, I came across this piece that I found to be good advice. Enjoy!

3 reasons to list home with a local agent.

YOUR GOALS MUST BE SPECIFIC AND MEASURABLE

YOUR GOALS MUST BE SPECIFIC AND MEASURABLE

“The secret of getting ahead is getting started. The secret of getting started is breaking your complex, overwhelming tasks into small manageable tasks, and then starting on the first one.” –  Mark Twain

Key element number 3 in achieving your goals is that your goals must be specific and measurable.   Just saying you would like to make $100,000.00 this year won’t get you $100,000.00.  You need to map out your plan of action.  This course of action fits the self-employed as opposed to a person drawing a salary. If you are not self-employed, then your salary is tied to what the company thinks you are worth.  An employee will either have to prove he/she is worth more, change companies where there is room to grow or do something on the side that is your own business and where you control how much you make.

Remember, just saying you want to make $100,000.00 isn’t enough; you need to break that amount down into months, then weeks, then days and hours if that will help you visualize the way to achieve your goal.

For this example, I will use real estate sales, since that is what I am most familiar with, but you can apply it to just about any sales position or position where you are paid by the size jobs you bring to the company.

Let’s say the average sales commission – on your side – is $1,500; how do you figure you can make $100,000.00.  Simply divide 100,000 by 1,500 to come up with the amount of deals you need to achieve that number.  So 100,000/1,500 = 66.66 – we will round that number up to 67.  Now you are going to divide 67 by 12 – the number of months in the year (or you can divide by 11 or 10 if you want to take 1 or 2 months off during the year.)  Since you are just starting out, we’ll use the number 12. So 67/12=5.58.  That means you will have to make 5.58 sales every month, or rounded up, 6 sales every month. If you prefer calculating by the quarter, or every 3 months, you will need to make 18 sales every quarter.

OK that sounds easy enough, but are you going to sit and wait for those sales to drop in your lap, or are you going to do something pro-active to get those sales.  Let’s think in terms of how many people it takes to get one listing, or how many homes you need to show before you make one sale.

Let’s start with listings. I’m going to use an arbitrary number, but you will need to find your own number.  Ok, lets say it takes talking to 15 people before you get one listing and you want to acquire 5 listings per month. How many people do you need to talk to in one month to get those 5 listings?  Simply multiply 5×15 to get the number 75.  Now if you break that down into weeks you will divide 75 by 4.33 which equals 17.32.  I always like to round-up since it will be hard to talk to a third of a person.  So now we have a number – 18 people you need to talk to in one week.  You can break that down even further by dividing 18/7=2.57 people per day. Again, round-up to 3 people per day. So now you have a plan of action on getting more listings. To get 5 more listings in one month, you will have to talk to about 3 people per day who are interested in listing their home.

We all know, in this economy, just because you have a listing it doesn’t mean it will sell. You also have to try to sell homes.  On average, how many homes do you show a prospective buyer before they purchase a home – 10, 20, 30?  For this example, we will just use the number 12.  You will need to show 12 homes before your buyer decides to purchase one. You want to sell 6 homes in one month, therefore you will need 6 buyers and show each buyer 12 homes. That’s a whopping 72 homes in one month, or 17 homes in one week – a little easier number to work with! Break that number down more and you need to show 3 homes per day – 17/7=2.42.

Oh, you have no buyers and want to know how are you going to get 6 buyers every month. Utilize the same formula you used to get a listing.  If you have to talk with 15 people before you get one buyer you will need to talk with how many people? 15×6=90 people per month or 90/4.33=20.78 people per week – round-up to 21 then divide 21/7=3 people per day.  So there you have it.  You will need to talk to 3 people every day about selling their home and another 3 people every day about buying a home to get your listings and buyers; and you will need to show each buyer an average of 3 homes per day.

Now you have a plan of action to reach that number of $100,000.00 this year – so get talking!

If you want to lose weight, run a marathon or anything else – just apply the above formula and break down your goal into bite-size pieces.  It makes achieving your goal a lot easier to swallow.

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