Real Estate and Beyond Blog

I was speaking to a Realtor® today and we began talking about Active Rain. They have an account but are rarely on it. They began with enthusiasm, but soon felt out of place and felt their clever, wonderful posts were being overlooked by the "big names" (you know who you are). I have to agree that there is an inner circle of sorts....but it's a very welcoming friendly one. But I didn't want to try and convince this agent to keep trying to belong to the Active Rain group.....but rather the point is:

Google Doesn't Care How Many Friends You Have On Active Rain!!!!

The search engines don't notice who comments on your posts, nor even if there are comments. Google hasn't bothered to index only the featured posts, nor checked to see how many subscribers you have. Even the much-touted points are lost on Bing.

What Google and the rest of the search engines take notice of is content. Your content!! That's it!

 

 

 

We all like to be liked....and the points certainly appeal to our competitive nature (we are outside salespeople after all)....but if this was just a social club, then it would be a giant waste of valuable business time. Active Rain is a Google-magnet! Write for business, for the potential client who is searching for expertise that you have.

"But I write my posts and they rotate through the blog roll so fast that no one even notices them."

 

 

 

 Well....Google will find them, Bing will find them Ask.com will find them.....if you write them correctly! And the beauty of Active Rain is that there are plenty of blog posts giving you the needed tips to write them correctly. So remember what you joined Active Rain for in the first place, more exposure, Google-juice, and more business. Regardless of how popular you are in at Active Rain, Google won't care, it will index you anyway! :)

Karen

Karen Fiddler
Broker/Associate
www.great-western-realty.com

Serving all of Orange County, California Real Estate!

Should you wait until the market rebounds to sell your home? And yet, some potential sellers wonder if they’re better off waiting to sell until the market recovers. It really depends upon your ultimate goals of course, but if you’re at a stage where you need a larger home, then read on.

This week at our local marketing meeting we had a Mid Year Market Review. One of the broker panelists talked about this being one of the best move-up markets EVER! Let’s talk more about that. What makes it so?

Low, low prices! Very few areas of the country have been immune to the decline in values. And for many areas (especially those with the first and steepest declines), have stabilized and even ticked up slightly during the spring selling season while anxious buyers worked to comply with the First Time Home Buyer’s credit.

Low, low interest rates! There was rumor that interest rates would tick back up after the first quarter of the year, and that has not come about. Instead, we’ve seen rates dip, to unbelievable levels.

Do the math. Low prices and low interest rates in turn bring lower rates on insurance premiums and lower property taxes. When those variables are combined, you have two possible outcomes – either a lower total monthly mortgage payment, or more buying power.

So let’s say that in your location, home prices have declined an average of 25% over the past several years. Back then your house would have been worth $400,000. Let’s use a factor of 7.5% just for example’s sake for commissions plus other costs of selling. And on the purchase side, we’ll use a 2% factor for closing costs.

Your Current Home                             Then Your Home Value Now

$400,000                                                $300,000
-30,000 less costs to sell                          -22,500 less costs to sell 
370,000 net proceeds                               277,500 net proceeds  

Your Move-Up Home Then                 Your Move-Up Home Now

$800000                                                 $600,000
16,000 closing costs                                 12,000 closing costs
816,000 total cost then                            612,000total costs now

The two columns below really illustrate the power of the spread. This is the difference between what the cost of selling and purchasing was at the market peak, compared to what it could be now. The spread really works in your favor in this type of market.

Your Net Then                                          Your Net Now
$816,000 move-up sales price then            $612,000 move-up sales price now
370,000 cash from sale of home                   277,500 cash from sale of home
446000 net cost of move-up home then      344,500 net cost of move-up home now

THE SPREAD

$446,000 net cost of move-up home then
344,500 net cost of move-up home now
101,500 less today

That larger house cost you $101,500 less today than it would have before. Not only that, but the cost of owning that home is less over time, considering you can lock in a 30-year fixed rate loan at exceptionally low rates and count on that payment staying at an affordable level. And an added bonus? You’re paying property taxes bases on that lower rate. So if you’re toying with the idea of a larger home, maybe it’s time to run the numbers. Arming yourself with what-if scenarios can help you map out your future, and lay a plan out for success.

Karen Crowson, Realtor®
Alain Pinel Realtors
(925) 784-6208
Karen@KarenCrowsonHomes.com

Tri Valley real estate for buyers and sellers in Livermore, Pleasanton, and Dublin.

I can also help you in the surrounding areas of Alameda County and Contra Costa County including Castro Valley, San Leandro, San Lorenzo, San Ramon, Danville, Brentwood and Mountain House

Prompted by Richard Weeks' Blog this morning, "I say a lowball offer is better than no offer at all."

I am in agreement with Richard's point, but we should go a step further.  Let's never again even murmur "Lowball Offer" to clients.

Establishing Expectations and Goals:

We need to establish expectations in our Sellers, and one point that needs to be established is that there is no such thing as a "Lowball Offer."  "Lowball" is a term that is loaded with emotional overtones.  And we are being paid to reduce emotions in the interaction.

I tell my Sellers, "There is no such thing as a "Lowball offer."  If it is 8 bucks and a ham sandwich, I am going to tell you.  And you are not allowed to get angry.  We have a goal to get you a great price for your home, and getting angry is not productive.  Always bear in mind, the only number that matters is the final, net proceeds from your sale.  Keep your eye on that ball."

Offers are either "Accepted," "Not Accepted," or "Negotiated."  Either "Accepted" or "Negotiated" should be any Agent's goal.  "Not Accepted," like the big RED scrawl "REJECTED" in the example that Richard mentions, may be posturing for ego gratification more than aimed at selling at a great price.  Agents who pander to and encourage their clients' outrage at offers do a favor to no one with their unprofessional behavior.

Winning the Battle and losing the War:

Eight years ago we tried to buy a home in Cary.  FSBO.  We offered $178,000 on a $187,000 asking price.  And we got slam-dunked.  The Sellers felt "Lowballed" and "Insulted."  Two silly knee-jerk responses.  They should have countered with anything, or said that they preferred a full price offer, in a professional way.  They would have received full price.  My wife liked the house.  But, their price was "Firm."  And the crudely frosty letter they sent instead of a friendly phone call gave us pause about coming back to them.  I told my wife, "I think we have been disqualified from owning their home," and she agreed.  And 90 days later, they sold for $180,000, never knowing that we would have paid their full price had they handled if differently.

But, they got to stroke their egos in their determination to brush us off vehemently.

Let's never murmur "Lowball" to clients...

.

___________________________________________________________________________________________

Mike Jaquish, REALTOR® 

919-880-2769  www.MikeJaquish.com 

Try my "No Hassle Home Search"  No registration required!

Broker Associate, KELLER WILLIAMS® Realty, Cary, NC

An article in the Wall Street Journal, Housing Market Stumbles, describes how home sales seem to be deteriorating, but it isn’t just a stumble; the housing market has fallen and won’t get up. The WSJ piece projects the dreaded “double-dip” in housing, a prediction that has grown more popular in recent weeks.

 

What most seem to overlook, however, is that the fundamentals of housing are being rearranged. The overall market was never truly in recovery; the brief periods of upward momentum were, in general, a response to an artificial stimulus applied by government—a stimulus which was neither permanent nor productive.

 

With the numbers of new home starts falling, with housing inventory rising, and with the potential for several million additional foreclosures, the housing market is entering a new phase where the old rules no longer apply. Past statistics regarding recovery from recession are meaningless, for the current recession has little in common with those of the past. And those who have homes to sell, those who wish to purchase a home, and those in real estate related businesses must adjust to the fundamentals of this market.

 

While some areas of the country have seen improvement—markets in the northeast and parts of California—other areas, especially those with the potential for additional foreclosures, are still experiencing weak demand and falling prices. Those needing to sell their home will have to market and price more aggressively; prepare for a longer period on the market; and will have to be flexible to micro-changes in their market.

 

An anemic job market, expected to continue well into the decade, has changed housing for the foreseeable future. And those areas with double-digit unemployment can expect additional price declines. Nationwide, prices should remain well below the levels of recent years; and, with few exceptions, appreciation will be minimal.

 

What we’re experiencing is not a double-dip in housing, not a “stumbling,” but a market experiencing a fundamental adjustment downward. With the current and projected absorption rates, we’re likely to have high levels of inventory for several years; and if we add in the indeterminate number of future foreclosures, structural and fundamental changes seem unavoidable. The potential inventory of homes must decline to levels appropriate for the current and anticipated absorption rate—an event unlikely in the short term—in order to begin a recovery; and until that occurs, the housing market has fallen and won’t get up.

 

The Housing Guru: The expert source for all your housing questions

 

 

A reporter's words on the evening news stopped me dead in my tracks.  She was discussing the release of Apple's earnings, which blew away Wall Street estimates by a mile, thanks in large part to the brisk sales of iPhones and the iPad.  In a compromised economic environment, Apple's profit managed to grow 78% in the last quarter, due to a healthy and continuing demand for its products.  It sold an astounding 3.3 million iPads and 8.4 million iPhones in the quarter. 

On a purely personal level, it should have come as no surprise to me.  When I decided to add the iPad to my arsenal of tools, I visited the local mall to check it out.  The Apple store is wide open and mammoth . . . and it was mobbed.  Getting the attention of any of the staff was tantamount to trying to get an audience with the pope.  I wandered aimlessly for awhile, inching ever closer to the booty, aching to get my hands on it to see what the hype was all about.  Ten minutes into my exploration I knew I had to have this exciting new toy. 

There is a direct connection between this and our business, or any other for that matter, I recognized in an epiphany.  If you have a great product, one that you can create a demand for, you have the keys to the kingdom.  There's no magic in Apple's success.  They deliver what the public wants, create anticipation through the media of new products and word travels like an out of control forest fire.  What if we can reach out to our target audience and make our product irresistible. Whether our product is our inventory as real estate professionals or ourselves as the obvious choice for our constituency, how much easier our job would be once we get past the initial hurdle.  The obvious caveat is, there has to be substance in what we're selling.  There can be no artifice, no cotton candy mentality.  Now I have to figure out how to make it happen.  Maybe I need to ask Apple's marketing geniuses for a meeting.

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About the author:

Geri Sonkin is a Licensed Broker Associate/Stager/Decorator serving Long Island sellers and buyers for over 24 years.  Areas of expertise include Nassau County, Suffolk County, Queens and Brooklyn.  Specializing in resales, new construction, co-ops/condos, waterfront homes, estates, short sales, rentals and staging your home to sell for the most money the market will bear.  For more information: www.LongIslandsBestHomes.com  For new construction: http://2274Woodbine.GreatCustomHome.com   516-425-6098  

All text and graphics contained herein Copyright © 2010 Geri Sonkin & its licensors. All rights reserved

 

We've recently tried on a new look for our local pages (state/county/city), and to much of our chagrin it has been received by some in our community with a thumbs down. I'd like to let our community know that we are reading every post written on our network about this change, and following the comment stream intently.

 

 

 

 

 

 

 

 

Our members needs are our #1 priority.  Every change we make is always done with the goal to bring value to our community.  In this instance our primary goal was to increase relevancy to these pages and add valuable information to consumers landing on these pages. We also needed to make these changes to prepare the foundation for some exciting changes coming to ActiveRain in the near future.

However with that said, we hear you all loud and clear and now understand that having a points based directory by state is very important!

For everyone who is trying to catch up on this debate, I've included an image of the state page before the change, and after. Please let me know in the comments below which you prefer and why. 

Before:

After: