What Does it Take to Sell a House Today?

I am asked this question daily, in one form or another. Agents in the office are frustrated that one of their listings is still unsold. Clients wonder why no one is looking at their property. Builders with unsold inventory want the answer. Neighbors are worried about the house next door. Everyone wants to know the secret, and since I'm Broker in Charge, I must know, right?


Well I do! It's really very simple. Be competitive! No matter what the market is doing, houses sell because they are competitive.


Now, truthfully, there are houses that just have no market. But they are rare. Nearly all properties can be sold in a timely manner if the owner and marketing company make sure they are competitive.


The Beauty Contest.
It is imperative that the property win the beauty contest. The sellers need to take a hard look at their own property and honestly answer if they'd buy it in the condition it is in. Is it competitive with competing properties? Do they have brushed nickel fixtures while yours has brass? Is the paint shabby or outdated? Does the property have old wallpaper on the walls? Is the furniture arranged to enhance the beauty of the property? In short, is it dazzling?


Those properties that are dazzling are winning the beauty contest and are selling quickly, even in a slow market. Those that are not dazzling are simply sitting, waiting for an offer.

The Price War.
To successfully sell your property quickly and easily, you MUST win both the beauty contest AND the price war. How do you win the price war?


The successful seller will price his property AHEAD of the market. Looking at comparables is like looking in the rear view mirror while you're driving. It does give you a good picture of what has been happening in the market, but it doesn't predict the future. The agent's job is to predict the future.


First, looking at comps gives you a price range in which your home is likely to fall. But remember in a downward trending market, your home will sell in the lower quadrant or below, depending on how long it takes to sell. It might sell at $200,000 today, but by tomorrow there may be a better looking house on the market for less money. The right price is a moving target, especially in a difficult economy.


Setting a price requires looking at the competition, and not just in your own neighborhood. Buyers look at multiple neighborhoods, so all of those are your competition. If you are offering to pay closing costs, but so is everyone else, then you're still part of the herd. If you have granite countertops, but so does all the competition, then you're still part of the herd. Many times the only difference in two homes is the price, or the seller's willingness to be flexible.


Being competitive in the price war means having your home priced just below the market. That attracts attention. If everyone with granite countertops is priced at $200,000, then price yours at $195,000. While we don't want you to "give it away", we do want you to be successful selling your home, and aggressive pricing in a downwardly trending market is essential.


So the answer to the question is, for a successful sale, BE COMPETITIVE!!!

Forest Acres Office Shows Charity During the Holidays

2009 may have been a tough year in the real estate business, but that didn't stop the agents in the Forest Acres office from sharing their blessings.

All it took was a comment by Sara Burnside during one of our sales meetings, and we were collecting and donating warm clothing to the children in Afghanistan. She described conditions of bitter cold, and children without coats, gloves, hats, warm clothes. Many agents donated warm clothing; others donated money with which our small soldier committee went shopping. To read more about the overall effort by St. Michael's Episcopal Church, read this article in The State newspaper: A white Christmas - in Afghanistan - S.C. at War - TheState.com.

Rules for 2010

One of my friends sent me an email with these rules for 2010. Even though we've all seen this before, it bears another read:

Health :

1. Drink plenty of water.
2. Eat breakfast like a king, lunch like a prince and dinner like a beggar.
3. Eat more foods that grow on trees and plants and eat less food that is manufactured in plants..
4. Live with the 3 E's -- Energy, Enthusiasm and Empathy
5. Make time to pray.
6. Play more games
7. Read more books than you did in 2009
8. Sit in silence for at least 10 minutes each day
9. Sleep for 7 hours.
10. Take a 10-30 minutes walk daily. And while you walk, smile.

Personality :

1. Don't compare your life to others. You have no idea what their journey is all about.
2. Don't have negative thoughts or things you cannot control. Instead invest your energy in the positive present moment.
3. Don't over do. Keep your limits.
4. Don't take yourself so seriously. No one else does.
5. Don't waste your precious energy on gossip.
6. Dream more while you are awake
7. Envy is a waste of time. You already have all you need..
8. Forget issues of the past. Don't remind your partner with His/her mistakes of the past. That will ruin your present happiness.
9. Life is too short to waste time hating anyone. Don't hate others.
10. Make peace with your past so it won't spoil the present.
11. No one is in charge of your happiness except you.
12. Realize that life is a school and you are here to learn. Problems are simply part of the curriculum that appear and fade away like algebra class but the lessons you learn will last a lifetime.
13. Smile and laugh more.
14. You don't have to win every argument. Agree to disagree...

Society :

1. Call your family often.
2. Each day give something good to others.
3. Forgive everyone for everything.
4. Spend time w/ people over the age of 70 & under the age of 6.
5. Try to make at least three people smile each day.
6. What other people think of you is none of your business.
7. Your job won't take care of you when you are sick. Your friends will. Stay in touch.

Life :

1. Do the right thing!
2. Get rid of anything that isn't useful, beautiful or joyful.
3. GOD heals everything.
4. However good or bad a situation is, it will change..
5. No matter how you feel, get up, dress up and show up.
6. The best is yet to come..
7. When you awake alive in the morning, thank GOD for it.
8. Your Inner most is always happy. So, be happy.

Have a Wonderful 2010!!!!

Is Expanded Tax Credit a Possibility?

We all know about the $8,000 tax credit for first time home buyers, right? Just in case, anyone who has not owned a home in the last 3 years qualifies for a credit, of 10% of the sales price of the home, up to $8,000. The credit expires on November 30th.

There's a movement to expand this credit to $15,000, to include anyone buying a primary residence, no income caps, and eligibility for 1 year from the date of passage. This is proposed by Senator Johnny Isakson (R-Georgia), who is himself a Realtor. Senator Isakson wants to help Main Street, not Wall Street, and he believes this proposed legislation is critical.

Here's the reasoning, and the information you should know when you call your congressman ... and call him you should! The real estate market is beginning to bottom out, according to most sources. However, it will not rebound until the move-up buyer is back in the market in force. Right now we have first time buyers in the market, taking advantage of the tax credit for first-timers. We also have investors in the market purchasing the bank-negotiated homes that are being sold at bargain prices.

Move-up buyers are not in the market in the numbers that they usually make up, and they are critical to the long term, sustained recovery of the real estate market and the economy as a whole. The National Association of Realtors estimates that the move up buyer usually makes up 65% to 70% of the market nationwide. Today, however, the move-up buyer is less that 50% nationwide. That statistic alone is affecting the median price range of all homes sold, and is also affecting the pricing of individual homes.

According to Harvard economists, as quoted on Fox News Monday, 21% of the gross national product is real estate related. From my own experience I've seen that real estate led the country into this recession; it is reasonable to expect that real estate will lead the country out of this recession. Indeed, history shows that real estate has led the country out of every recession in recent history. However, to do so we need the move-up buyers back in the market in full force.

The proposed $15,000 tax credit will do just that: bring the move-up buyer back into the market nationwide. NAR economists estimate that for every home sold, $63,000 is put into the local economy, stimulating the economy as a whole. This is based on a $200,000 sales price. 10% ($20,000) goes back into the economy for commissions, mortgage origination costs, closing costs and inspections. 1% ( $2,000) is paid in transfer taxes and government fees (this is based on an average of nationwide governmental transfer fees), $5,300 to $5,600 is paid in repairs and "freshening" the home in preparation for selling, plus an average of $10,000 to $15,000 in purchases made by the new homeowner for furniture, upgrades to the home itself and moving expenses. Then the economists use a multiplier of 1.35 to 1.65 to estimate the effect on the economy as a whole. That brings the number to $63,000 that is put back into the economy!

The cost to the taxpayers? Mark Zandi, chief economist of Moody's Economy, estimates that the $15,000 tax credit, as proposed, would cost the American taxpayer $36 billion. He further estimates that the taxpayers would see a direct return on their investment of over $33 billion.

How you can help: Call or write your congressman today. Tell him that you want him to support this legislation. And here is a list of our congressmen:

• Sen. Lindsay Graham, 803-933-0112 -- http://lgraham.senate.gov/public/


• Sen. Jim DeMint, 803-771-6112 -- http://demint.senate.gov/public/


• Rep. Joe Wilson, 803-939-0041 -- http://www.joewilson.house.gov/


• Rep. James Clyburn, 803-799-1100 -- http://clyburn.house.gov/index2.cfm


• Rep. John Spratt, 202-225-5501 -- http://www.house.gov/spratt/

It's your career and your livelihood. It's your client's lives!

Changes to the Mortgage Loan Business Continue to Affect Buyers and Realtors

There have been lots of changes to the mortgage loan business in the last year. The latest to affect the real estate purchase process are the changes to Regulation Z, which take effect July 30, 2009.

The specific changes relate to the timing of collecting up-front fees, wait periods after receipt of disclosures and before consummation, and redisclsure before closing if the APR increases beyond the tolerance.

Fees

• Fees such as appraisal fee and credit report fee cannot be collected until after the early disclosures (Good Faith Estimate & Truth in Lending) are received by the consumer.

Wait Period

• There is a 7-business-day wait period between the delivery of early disclosures and the signing of the closing documents
• Rush closings are not possible

Redisclosure

• If the interest rate or fees included in the APR increase more than .125% (0ne-eighth of a percent!), then the Truth in Lending must be redisclosed. This means the lender must compare the original Truth in Lending APR with the final HUD APR. If the numbers are within 1/8 % of each other, everything is fine. If not, the new APR must be redisclosed.
• A decrease in the APR does not require redisclosure
• The buyer must receive the redisclosed Truth in Lending at least 3 business days prior to loan closing

What does this mean to Realtors? We need to make sure the original Good Faith Estimate is as accurate as possible, since the closing costs charged are a part of the final APR (Annual Percentage Rate). It is crucial that the Good Faith Estimate be correct up front so that the closing costs on the HUD will either match the Good Faith Estimate or be lower.

Thanks to Trey Baker and Bank of America for providing this information during our sales meeting on July 21, 2009.

Don't Believe the Media

If you listen to the news:

• You'd believe that real estate is doing poorly.
• You'd believe that it is impossible to get a new loan to purchase a home.
• You'd believe that it is impossible to sell your home.
• You'd believe that it is an awful time to be a real estate sales agent
• You'd believe that the economy is in trouble

My best advice to anyone, especially real estate sales agents is to IGNORE the NEWS! Especially if you live in Columbia, South Carolina.

Columbia is fortunate in that our real estate market is always reasonably healthy. While we didn't experience phenomenal growth over that last several years, we also aren't experiencing the problems that some other areas of the country ARE experiencing.

Right now in Columbia, SC, you can purchase a home and get a mortgage loan to do so ... as long as you're willing to repay the money. Mortgage rates are still low ... averaging 6.5%, depending on your down payment amount and your credit score. You'll probably need a small down payment (typically 3% to 5% of the purchase price), but there are a few programs available that require no down payment. There is a great selection of homes from which to choose, and some isolated "deals" out there. It is a great time to buy.

If you need to sell a home first, or need to move to another city, you're still in luck. While it is true that in general, it takes a bit longer to sell a property these days, it is still possible to do so within your time frame if you're willing to make your home stand out among the others. Your Realtor will tell you all the things you need to do to accomplish your goals. But the facts are that many homes are selling very quickly in Columbia, and a few have had multiple offers presented. It is still a great time to sell a home in Columbia, SC.

And now to the idea that it is a bad time to be a Realtor. Not so. In my office of 38 Realtors, we have agents who are having the best year they've ever had. We are achieving our goals and the goals of our clients. Our "new" agents are putting sales on the board and building their careers, while our "seasoned" agents are doing well. This is a good time to be a Real Estate Salesperson ... if you're serious about your career.

In other words ... don't listen to the media!!!!