The PMI Group rates 50 metro area’s for their risk of further housing price declines.   Their recent ratings found that the following 13 area’s have greater than a 90 percent chance of seeing further price erosion.

What does this mean for seller’s who need to sell?   If you live in one of the named locations, you should seriously consider reducing your price, before the market does it for you. 

In addition to a meaningful price reduction, seller’s in these cities need to get serious about their marketing efforts.  The single best use of your advertising dollars is to place your property on the MLS.   The MLS is ‘the’ database of available properties in this country.   If your home isn’t listed on the MLS, your property is essentially invisable to millions of home shoppers and thousands of real estate agents.

                         13 Scary Markets that Have Further to Fall

1. Ft Lauderdale-Pompano Beach-Deerfield Beach, FL
2. Riverside-San Bernardino, CA
3. Orlando-Kissimmee, FL
4. Miami-Miami Beach, FL
5. Tampa-St. Petersburg-Clearwater, FL
6. Las Vegas, NV
7. Los Angeles-Long Beach-Glendale, CA
8. Santa Ana-Anaheim-Irvine, CA
9. Jacksonville, FL
10. Phoenix-Mesa-Scottsdale, AZ
11. Sacramento-Arden-Arcade-Roseville, CA
12. San Diego-Carlsbad-San Marcos, CA
13. Oakland-Fremont-Hayward, CA

Note:  The PMI Risk Report examines major changes in mortgage and lending trends, as well as the rising unemployment and the impact of foreclosures to predict home prices for 50 major metropolitian area’s of the US.   To see the strongest markets, with the least risk of further price decline, please see our blog posting from October 9, 2008.

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The PMI Group just released its Fall 2008 Real Estate Market Risk Index for the nation’s 50 largest metropolitan area’s.   The PMI Risk Index indicated that increased foreclosures and unemployment have significantly heightened the risk of future home price declines in the 94 percent of all markets.

The good news, found in the report, is that 14 markets have less than a one percent chance of continued falling home prices.  In these markets, buyer’s should be cautioned that if they wait to buy, they will likely face higher home costs in the future.

If you are interested in buying a home in one of these 14 markets, indications are that prices have stablizied and you should seriously consider buying now.  An added bonus for buyer’s in these lucky markets is also the timing.  Yesterday’s half point Fed rate cut makes the costs of borrowing money for that dream home much less painful.

           14 Low Risk Markets with Stable Home Prices:

1. Fort Worth-Arlington, TX
2. Dallas-Plano-Irving, TX
3. Houston-Sugar Land-Baytown, TX
4. Pittsburgh, PA
5. San Antonio, TX
6. Memphis, TN
7. Indianapolis-Carmel, IN
8. Austin-Round Rock, TX
9. Columbus, OH
10. Denver-Aurora, CO
11. Cincinnati-Middleton, OH, KY, IN
12. Charlotte-Gastonia-Concord, NC
13. Milwaukee-Waukesha-West Allis, WI
14. St. Louis, MO, IL

Sidelined Buyers in these markets should act immediately to take full advantage of low interest rates and reduced home prices. Sellers in these markets should aggressively market their homes and take advantage of the exposure an MLS listing can provide.

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Coldwell Banker Asks Sellers for 10-day price cuts to spur home sales

One of the largest U.S. real estate companies said it is asking its sellers to cut their listing prices by as much as 10 percent to kick-start U.S. home sales in a market plagued by falling prices and near-record unsold inventory supply.

Coldwell Banker Real Estate said some 25,000 sellers, who have homes listed with its brokers, will cut prices during its first national, 10-day sales event starting on Friday, October 10th.  The goal, to lure potential buyers off the sidelines in the worst housing market since the Great Depression.

Most owners still are unrealistic when pricing their homes, and a reduction of 10 percent or less would push the properties “over the tipping point to a sale,” according to Coldwell Banker, which is based in Parsipanny, New Jersey, and is part of Realogy Corp.

“The main driver is to bring buyers and sellers together and to increase the activity in the marketplace,” Jim Gillespie, president and chief executive officer of Coldwell Banker, said in an interview.
…
Many sellers have been reluctant to slash asking prices, but they face competition from the large number of foreclosed homes on the market at discounted prices.

A recent Coldwell Banker survey found that more than half of the real estate agents said listing prices in their market are too high to attract qualified buyers. Brokers, however, believe that, depending on the market, a price cut of up to 10 percent will be enough to stoke sales.

Kathryn Taylor is one seller who hopes that’s the case.

“The economy. No movement for our home, or even any interest, just because people are scared,” she said, explaining her decision to cut the asking price on her parents’ home in Silver Spring, Maryland, by 10 percent for 10 days.

The two master-bedroom, two-bathroom home in an over-55 community was listed in May at $458,000, undercutting several nearby sellers of the same model.

“This is the first time we’re lowering it, and we really didn’t want to do that because we listed it to sell,” she said. “We knew things were tough, but the home is a really desirable unit in a neighborhood that rarely has anything come open so we didn’t think it would have any problems selling.”
…
Taylor, a retired government employee, is getting “more antsy” about selling. Her father passed away last year and her mother is moving to a nursing home that costs $9,000 each month.

With stock wealth being roiled, “it’s getting more and more important to keep her afloat by selling this house,” she said of her mother.

Sellers can opt to keep their asking prices lower after the 10-day sale, according to Coldwell Banker.

 Thank you for checking in with InfoTube.net.  Please feel free to post comments or questions.   I think I have one for Coldwell Banker….

It is estimated that over 400,000 homeowners could avoid foreclosure through participation in the voluntary program, by enrolling before September 30, 2011.

In order to qualify for the special refinancing, the original loan must have been originated on or before January 1, 2008. In addition, the existing mortgage payment must exceed 31 percent of the borrower’s gross monthly income.

FHASecure is another program designed to help homeowners refinance and avoid foreclosure. The program, which went into effect on July 14th, offers borrowers with ARM’s, the option to refinance with an FHA insured mortgage designed to lower the monthly mortgage payment. Under the FHASecure program, lenders can not disqualify borrowers based on loan payment deliquency and the lender may actually offer a second mortgage to make up the difference between the appraised value of the property and the outstanding balance due.

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The Case Shiller index of home prices across the US was just released.  Follow the link to learn about the present market in your city.

Home Prices in My Town

Thank you for visiting InfoTube.net. We will keep you posted on the market.

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With news of the financial crisis and the possible federal bailout of US lenders looming over our heads, it comes as no big surprise that August existing home sales were dismal.

In brief, the numbers provided by the National Association are as follows:

• Existing home sales were down another 2.2 percent in August, bringing the drop to 9.7 percent compared to 2007 levels.
• The average sales price of an existing home fell to $203,100 compared to $224,400 one year ago.
• The inventory of existing homes on the market fell in August to a 10.4 month supply.   A slight uptrend from the 10.9 month supply on the market in July.

Falling inventory levels are a bit of good news among all the bad news.   But keep in mind that the slight dip in inventory is not due solely to a growing number of sales.  Cancelations, listing expirations and owners who chose to withdraw their property from the market until activity picks up, also decrease the total number of homes on the market.

The current 10.4 month supply means we are still in a buyers market.   An inventory of 5-6 months is usually a sign of a balanced market, with an equal number of buyers and sellers.

To read the report from the National Association of Realtors, click the link.

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Property auction

Real estate auctions are a fast and efficient method for selling property.   They work on the principle of competitive bidding and provide an ideal situation for buyer and seller, alike.

The Benefits for Sellers Include:

• Speed- The auction selling process is swift and accelerated. 
• No Negotiations- Auctions eliminate haggling, counteroffers and remove the seller from the pain of negotiating.
• No Home Showings- Buyers are given specific dates and times that the property will be Open to the Public for viewing, before bidding begins.  The process eliminates the hassle’s of showing the home to numerous people, one person at a time.
• Certainty -The seller knows exactly when the property will sell, decreasing long-term carrying costs, such as mortgage payments, taxes, maintenance and insurance.
• Qualification- Potential Buyers are required to Pre-Qualify for financing before they can bid on the property.
• Exposure- Auction exposes property to a wide range of qualified buyers and the aggressive timeline to sale increases interest and urgency.
• Competition-Auctions create competition among buyers.  Due to the competitive nature of auctions, it is not unusual for the auction price to exceed the price the seller would have gotten through negotiations. 
• Real Value- Auction sales are live, real time events.  The auction process assures that the seller that the property was sold at its real market value.
• Serious-Buyers who attend auctions arrive ready and willing to buy.

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While the US housing crash is certainly not breaking news, the likely crash in commercial real estate values may be. 

Now bankrupt, Lehman Brothers, attempted to dump their commercial portfolio’s, without success.  Insurer AIG, who will face insolvency in the absence of a bailout, also has a huge portfolio of commercial property that they will be forced to liquidate.   Bank of America, Wachovia, Citibank, Merrill Lynch and other financial behemoth’s are also likely to dump billions of dollars of commercial real estate on the market, as they race to head off bankruptcy. 

This progression in the collapse our financial systems spells much more misery for the US home owner.  The human casualties will continue to rise, as thousands of “potential” home buyer’s will be eliminated from the housing market due to job loss.  In addition, we are likely to see an increase in housing inventory, as displaced workers can no longer afford the payments on their over priced homes.

It seems the real beneficiaries of the tax payer bailouts, which doubled the US national debt, are the banks of China and Japan who hold billions of dollars in US government sponsored enterprise (GSE) debt.

So, what does this mean for you and me?   In a nut shell, falling real estate values, more unemployment, more homelessness and more suffering. 

Why is it happening?  The policies of the Bush administration, who found it unnecessary to regulated or supervise the greedy bankers, most of whom are its friends and contributors. 

Is there an upside for residential homeowners?  The short upside is that the Fed will likely be forced to lower interest rates this week, which will help those who need to refinance or those who trying to qualify for a loan.

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Before we begin to address the repair issues, I would like for all sellers and buyers to remember that there is no perfect home.  Every house, new or old, will most certainly turn up a list of repairs.   If you are a buyer searching for a perfect house, you can stop searching.   There are no perfect houses.

The purpose of home inspections is to identify safety issues or serious (ie: expensive) problems that are in need of repair, before the buyer complete’s the home purchase.  The buyer will use an inspection report to compile a list of repairs that they want the seller to fix, before closing.   Since both parties desire to maximize their cash, sellers are often left to make a decision about which repairs are necessary or reasonable, and which are not. 

So, what helpful facts should sellers and buyers know about handling repair requests?

1. First, all Buyers should have an independant, professional home inspection and seller’s should only accept inspection reports done by a qualified, home inspector.  Sellers are not obligated to accept the opinions of the buyer, the buyer’s friend or cousin, or any non-professional, for that matter.
2. The Buyer should provide a copy of the inspection report, along with the list of items they want the seller to fix.   If the seller hasn’t received a copy of the report, they should ask the buyer to provide it, before responding to the buyers repair request.
3. The Buyer should not “nit pick”.  A request for repairs should focus on major problems and safety issues.   The buyer should not ask the seller to fix cosmetic problems, such as a bad paint job or peeling wallpaper.  The buyer should have addressed those issues in the purchase offer, during their initial walk through.
4. If a seller receives a long list of repairs, they can consider offering a home warranty that covers major defects.  This insurance can save a deal by easing the buyer’s fear that the home is a money pit.  For a few hundred dollars, companies such as American Home Shield, provide an insurance policy at closing, which  covers major items and gives the buyer peace of mind.
5. In a buyer’s market, they often want everything fixed.  Sometimes the seller can ascertain inside information about which “big ticket” items are the most important to the buyer, but the seller should always keep in mind that they risk the buyer walking, if they don’t agree to complete the entire list of repairs.
6. When a seller is presented with a lengthy repair list, they should remember that known problems become material facts.  If a seller declines to fix buyer requested repairs, the problems are now “known” and must be disclosed to any future purchaser, in the event the buyer walks and the deal falls through.
7. If a seller wants to cooperate with a buyer, but is unable or unavailable to oversee repairs, the buyer might be willing to accept a cash credit at closing to cover the expense estimates.   Many buyer’s are comforted by the fact they can use the seller’s money and hire their own contractors to make the repairs in a way the seller may not have done.

What Repairs Requests are Deal Breakers?  Which are Reasonable for the Seller to Refuse?

1. Lender Required Repairs-Any problem noted on an appraisal, such as a bad roof or structural problem, is grounds for the bank to refuse to lend money on the property until the problem is fixed and the structure is properly protected.   Sellers are advised to make all repairs noted on an appraisal.  They affect the buyer’s ability to borrow funds and complete the purchase.
2. Leaking Pipes-It is not unreasonable to ask a seller to repair water leaks and the damage which the leaks may have caused.  Unrepaired leaks raise mold issues and other problems seller’s don’t want to have if the deal falls through.
3. Water Penetration-Sellers should address water penetration issues.  Most are caused by improper drainage of water away from the home.  Adjusting the grade or installing a french drain is usually the fix. 
4. Roofing System-As stated in item #1, the seller should expect to repair or replace their roof, if deferred maintanence has caused water penetration issues.   If your roof is in good shape, sellers can aleviate problems ahead of time, by providing the buyer with a roof certificate, since most inspectors do not cover roof inspections.
5. HVAC and Hot Water Heaters-Usually, age is a good indicator of whether the seller should replace these systems.  The average life expectancy of a HVAC system is about 20 years, and about 10 years for a water heater.  It is not unusual for the buyer to ask for new systems, if the existing ones are on their last legs, but these are big ticket items for the seller to repair, so no easy answer here. 
6. “Tar Paper” Sewer Lines, aka “Orangeburg” Sewer Pipes-These pipes, which are made from tar paper, are famous for collapsing.  Generally, they last about 30 years before they disintegrate.  While replacing sewer lines is expensive, they are an item most sellers will replace.
7. Unsafe Decking or Handrails-Sellers should generally fix any items that effect the safety of the occupants, or are matters of local code enforcement.
8. Galvanized Water Pipes-Many homes built 30 years ago have galvanized, steel water pipes.   These pipes become clogged with minerals overtime, which is often the cause of low water pressure.  These type of pipes are also prone to rust and leaks.  While it isn’t unreasonable to expect the seller to fix leaks, few sellers are willing to replace all the plumbing lines.
9. Electrical System-The electrical panel should be safe and not overloaded.  The breakers should be marked with the name of the area of the home that they service.  Sellers, again should expect to repair any safety or fire issues that are found during the inspection.   If your home was built before 1960, it is likely the electrical service is Ungrounded, meaning the plugs have only two outlets.   Most sellers will refuse to rewire a house, simply because the service is Ungrounded, since it does not cause any problems.  A tip might be for the seller to offer to run “Romex” from the electrical panel to any new receptacles that the buyer intends to use for sensitive electronics and large appliances.  As a general rule, buyers who require grounded wiring should be looking for newer homes.
10. Foundation or Wet Basement-These are difficult issues that effect the very structure the home is built on.  These homes are best purchased “as is” at a steep discount.   Buyers should always think twice about purchasing a home with this type of problem.  Problems with or repairs to these systems never go away.  These are material defects and must be disclosed to any future purchaser.

Before seller’s make a judgement about what items they will, or will not, repair, they should strongly consider that we are in a buyer’s market.  Buyers are hard to come by and they have a lot of home choices available to them.  If you need to sell, you should realize that it is likely the buyer will walk, if you refuse to address reasonable problems with your home.  In addition, if another buyer comes along in the future, it is likely they will ask that the same items be fixed.  Smart sellers should take a deep breath, and if you have to err, do it on the side of caution.   A qualified buyer has a great deal of value in this marketplace.  Please don’t lose your deal over a small deferred maintanence issue.

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Sellers should be prepared for the news that in a buyer’s market, buyers clearly ask for more repairs than they would have ask for a couple of years ago.   Sellers need to understand that it is critical to separate the emotional or insulting nature of an inspection report from the transaction itself.  And, although objectivity is a difficult task to master, seller’s should always be calm, never angry, when responding to the buyer.

Seller’s need remind themselves that the inspector works for the buyer.  It is the inspector’s job to document a large list of items that may cost the buyer money down the road.   This doesn’t mean the inspector thinks your home is a piece of trash or that you don’t maintain it.  They are simply noting items about your home that may need attention. 

So, what should the seller do after they receive a list of repair requests?   Although state laws regarding inspections and repairs differ slightly, most sellers have three options.

1. You can accept the entire repair request list.
2. You can decline the entire repair request list.
3. You can agree to part of the repair request list.

Each of the three options have a potential effect on the transaction.

If you accept the entire repair list, the deal moves forward and proceeds ultimately to the closing table.  Keep in mind you have to make the requested repairs and the buyer will do a walk thru before closing to make sure the repairs are acceptable.  Don’t try to save a little money by doing the work yourself, if you aren’t confident in the outcome of the job.

If you decline to make any repairs on the list, the buyer can accept the house in “as is” condition.  Or, they can cancel the contract and get their earnest money refunded.

If you agree to fix some, but not all, items on the list, the buyer can cancel the contract and get their earnest money back.  Or, accept the repairs you have agreed to do and proceed to closing.

Note:  As a general rule, repair request negotiations are one-time affairs.  They do not go back and forth with an offer and counter offer.   Repair requests do not involve other terms of the contract such as price, closing date, etc. 

Tomorrow, I will address what items on a repair list are reasonable requests and which should be declined.   If you have an specific issues, please leave a comment in section below.

Thanks for visiting InfoTube.net.

InfoTube homes for sale

The web is a great resource for the real estate or local scene enthusiast.  Today, we invite you to take a look at four of our favorite websites that specialize in keeping tabs on the ‘hood’.

Gasbuddy.com:  Just like the name says… this website is your best friend when it comes to finding the cheapest gas in your neighborhood.  Check out it out before you fill up.

AltosResearch.com:  Fantastic website for your current, local real estate market and trends.  The site shows graphs of real estate price trends in your town; housing market conditions, homes sales and demand trends, including average days on market; local home prices per square foot; the number of all homes for sale in your neighborhood. 

Altos focuses on the local market, which is what real estate is really all about anyway.  After entering my zipcode, I could instantly see what was really going on in my neighborhood, what prices were really doing and received the information I should know about my area.    

RottenNeighbor.com: What are your neighbors saying about you? This website reports on noise, odors and other neigborhood nuisances. The site pinpoints the homes of obnoxious, trashy or violent crazy neighbors, as well as registered sex offenders and vacant foreclosured homes.

If you want the dirt about any neighborhood or your daughters’ best friend’s neighborhood, Rotten Neighbor is the place to do some voyuering.

Introin.com: This website provides the inside scoop on apartments and rentals. It provides rental availability, building and landlord evaluations. Check it out before you sign that lease.

Thank you for visiting InfoTube.net. Please feel free to forward your tips, questions, comments or suggestions for feature in our column.

state_employees

Click the Link to Enjoy a Short, Funny Video Clip.

Have a Safe and Happy Labor Day Weekend.

Thanks as always for visiting InfoTube.net

Winner of the Best Sign Award

The first thing buyer’s ask is “How much is your asking price?”   If the price is too high, the buyer will quickly lose interest.  If the price is too low, you will quickly lose money.

In order to price a home correctly, you must understand your local real estate market and your competition.   The goal is to set an asking price that successfully competes with homes that are comparable to yours.   Setting the correct price is easy to do, if you follow these 6 simple steps.

Step 1.   Get to Know Your Competition:  Drive through your neighborhood, and other area’s that compete with yours.  Identify the homes on the market that are similar to the one you are selling, with approximately the same size and age as yours, with the same number of bedrooms, baths and lot size.   Visit local real estate websites, infotube.net, realtor.com, zillow and trulia to verify property details, square footages, asking prices, etc.  These website can also help you find a complete listing of all homes that you may not have found on your drive by search.

Step 2:   Tour Open Houses:  Visit as many open houses as you can to see for yourself how your home compares.  Learn as much as you can about the condition of these homes, such as upgrades done to the kitchens, baths and bedrooms.

Step 3:   Find Recently Sold Properties:   To correctly price your home, you need to know what others like it have actually sold for.   To find out this information, you can visit your local tax assessors office, as housing data is public information.  The internet can also cut down on your homework.  Many tax assessor offices provide housing data online.  You can also educate yourself by reviewing the “Recently Sold” feature at Zillow and Trulia.  While these technology websites don’t have data for every location, they do cover most of the country.

Step 4:  Add and Subtract:  You now have information about property currently on the market and data for recently sold homes.   Evaluate the asking and sales prices, property details, neighborhood ammenities and ask yourself how your home measures up?  

Step 5:  Be Honest and Impartial:   This is the hardest step for anyone attempting to value their own property.   Even Realtors, who price homes for a living, are notorious for overpricing their own homes.  Forget about what houses sold for in the past.  In most area’s, prices have decreased 15-20 percent in the past year alone.   Price your property inline with your competition or it will simply sit on the market.   Only competitively priced homes are selling in this market and buyers will only purchase what they perceive to be a good deal.

Step 6:  Set Your Price:   You have a complete picture of all the homes that compete with yours in the marketplace.   Price your property aggressively from Day One on the Market.   Pay attention to the effect subliminal pricing has on buyers and play to it.  If your competition is priced at $250,000, price your home at $249,000, for example.   Use your knowledge to to set a price that buyer’s can’t afford to pass up.

Congratulate yourself on a job well done!!!  Not only have you determined an asking price for your property, you’ve become an experienced expert in your local scene.  With your knowledge and sense of the competition, you will be able to honestly communicate about your homes’ advantages and disadvantages, when comparing it to other houses in the area.

Thank you for visiting InfoTube.net.

This is how You See Your House

Your Banker See

Your Tax Assessor See

1. Are the measurements of your property accurate?   Accessments are based on a price per square foot basis, so make sure you aren’t paying for a larger lot or home than you own.
2. Verify the accuracy of the number of buildings shown on the assessment roll.
3. Are you being assessed for any improvements you DON’T have, such as central heat and air, garages, fireplaces, basement, bathrooms, etc.
4. Is the stated age of the structure correct?  If not, the depreciation may be incorrect.

Second, you need to do some research and provide key information at your assessment hearing.   Generally, you will need to show…

1. Sales information about comparable properties in your neighborhood.  You can obtain this information from a realtor, your tax office or websites such as Zillow.com (Note:  Zillow is a national database and their information should be verified with a local source.)
2.  Make adjustments for special features such as pools, tennis courts, lot sizes, etc. and note age if you have one of these features, too.  A 20 year old tennis court should be accesssed for less than an new one, for example.
3. Check the condition of the property and take pictures of any problems that would require repair before you sell.
4. Gather bids on the costs to make the repairs and deduct the amount from the comparable properties.
5. If you don’t want to do the research, hire a licensed appraiser to do the work.  An actual appraisal is inexpensive.  One that is less than 3 months old works the best, if you need to argue your position.     

If after doing research, you believe your assessments are too high, schedule an appointment to appeal the valuation.   Pay attention to the deadlines.  If you miss the deadline, you will be stuck paying the higher tax.

Appealing your tax assessment is your legal right.  You deserve to be treated with respect and the tax offices’ job is to work with you, not against you.  With a little preparation and patience, you can get your tax bill lowered.   

Thanks, as always, for checking with InfoTube.net.    If we can help you, let us know.  If you have a story or advise for us, we always appreciate hearing from you.

InfoTube homes for sale

InfoTube.net showcases Featured Home Video Tours on its Homepage. 

The user submitted Video Tours rotate on the home page in random order, with a new video appearing upon each visit.   Video’s are also uploaded to YouTube, one of the most heavily trafficked sites on the web, automatically.

“Thousands of visitors begin their search on the InfoTube home page,” said Tommi Crow, President, “this is an ideal time for home sellers to showcase their property in a high traffic location.”  Because the service is new, only a few video’s are in the space right now.   “The timing couldn’t be better for seller’s to enhance their listing with video, and spotlight it on our home page” said Crow.

Video is the future of real estate marketing, so grab your digital camera and show us what you Love about your house.  You have nothing to lose and a lot of additional exposure to gain.

Thank you visiting InfoTube.net and good luck on the sale of your home.

6 Ways to Determine that you Hired a Crummy Realtor or Real Estate Agent:

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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

InfoTube.net homes for sale website, combined with a flat fee MLS listing places your property in front of millions of home shoppers each month.    But, in a difficult housing market with far to few buyers and far too many sellers, there is another way to reach millions of new buyers per month…Video.

Making a Video about the benefits of living in your home is easy and fun to do.   Dust off that digital camera you don’t often use, and put it to work selling your home to a whole new audience.   

Tips for Shooting a Good Video Home Tour without Editing:

1. Plan Your Tour and Your Shots:   Decide what property features are important and how you will highlight them visually.   Make sure you clean and stage the area’s that will be on video so your house looks its best.   Plan the order of the shot in the same sequence as someone would tour the home.  Start with the front walk up, entry, etc. to make your video easy for the viewer to follow.
2. Get familiar with your camera. The on-off switch, zoom and record buttons.   You can pause between scenes by touching the “shoot” button and resume filming by touching it again.  (Practice a little to see how the camera works inside your home.)
3. Use the video camera like a still camera.  You can walk with a camera, but the video will be shaky. Keep the camera as still as possible.  A tripod is an excellant tool used to steady the shot.  
4. Shoot 3 Basic Shots of each Feature:  Start with a Wide Shot to establish the location.  Zoom slightly to use a Medium Shot to follow action or frame a view or scene.  Use a Close Up shot to show off a detail or something special.
5. Watch how much you zoom.  The camera registers better if you move closer to the subject, versus just zooming in.  Also, avoid using the zoom if you are hand holding the camera.   You won’t be able to keep a steady shot.
6. Try to shoot at least 10 seconds for each shot.   If you are panning the scene, 10 seconds will produce a nice flow and the viewer won’t get sick trying to watch while the room spins.
7. Lighting is a must.   Do not shoot toward a bright window.  Lower the blinds and turn on all the lights, if you can’t get another angle.  Lamps or drop lights aimed at the subject and positioned behind the camera are an ideal way to light your space.  If shooting outdoors, try a cloudy day, early morning or late afternoon when harsh sun won’t wash out color and details.  Also when shooting outdoors, make sure the subject is facing the sun.
8. Plan to bring emotion and life into your presentation.   Include historical facts, neighborhood shots, nearby attractions, special views, street scene’s, neighborhood schools and parks, splashing hot tubs and roaring fires.   Add fresh flowers in the kitchen and dining room.  Set the dining room table.  Place candles around tubs and fireplaces.  Add color outdoors with inexpensive hanging baskets or pots of flowers.   You don’t need to plant them unless you want to.  You can hide the pots in the dirt or behind shorter plants. 
9. Time the Video.   The majority of viewers will not sit through a video longer than 3 minutes, unless it is really compelling.
10. If can have a lot of fun Editing, if you have a newer computer.  Movie Maker is Free on Microsoft software.  IMovie is free on Apple.  While you don’t have to edit to make a great video, editing is great for adding captions, music or voice overs, or selecting the best scene.  We will discuss editing and special effects later next week.

Video’s don’t sell a home all by themselves, but they certainly attract serious buyers.  Do yourself a huge favor and upload your home video tour to InfoTube.net today…we will put it on Youtube for you.

The owner did a great job of giving the local flavor and outdoor activites in the area.   He also did a good job of showcasing his home and all it has to offer.

InfoTube.net invites you to upload a video of your home and neighborhood, today.   We will upload it to YouTube for you.

Thanks for visiting InfoTube.net and upload those video home tours today.  Buyers are waiting.

“Should I buy or rent??” is question people are asking themselves a lot these days.   The answer can often be found by using the Real Estate Rule of 15.

Here is how the Rule of 15 works for real estate investors:

1. Determine the rental rates for the area you are interested in.   Rental rates can be found at Zillow, Trulia or a new fun website Rentometer.
2. Calculate how much you would pay in rent for one year.  (Example:  $1000/month x 12 = $12,000/yr)
3. Multiple the annual rent by 15.  (In our example, $12,000/year x 15 = $180,000.
4. Look up and compare the asking prices of comparable properties in the same area.
5. If the sales prices in the area are higher than the annual rent times 15, the location is still over priced for the market and prices will continue to fall.  In other words, keep renting and banking cash.
6. If the sales prices of homes in the area are lower than your annual rent times 15, the market has probably gone through most of the bust cycle and if may be safe to step in and buy.

If you want to dip into your local housing market, make sure you do the research before you buy.  There is a lot of inventory to consider, including a vast pool of foreclosures and distressed property.  The best advise is to proceed, but do so with caution and all the facts.

Thank you for visiting InfoTube.net.  Don’t forget about our new video uploads .  It easy and fun to create a virtual open house for your home.  With our free Youtube uploads it also means you attract a whole new audience of home shoppers.

Show and Sell!!

Asheville, NC - (August 5, 2008) –Crow Erickson Inc, the leading manufacturer of outdoor marketing materials for real estate agents, home builders and individual home sellers announced today that www.infotube.net has been enhanced to include “do-it-yourself” video tours of homes for sale. 

Today’s announcement is the latest example of how InfoTube.net is investing in new technology to assist home sellers in today’s market place. 

“Our new video service, with free uploads to YouTube.com, creates a fantastic opportunity for home sellers, real estate agents and home builders to expose their property to a world wide audience,” said Tommi Crow, Founder and President of Crow Erickson, Inc.   “Our technology, combined with the power of Youtube.com, makes it easier than ever to create a video home tour that is accessible from anywhere.”

While it is not news that 80% of would-be homebuyers start their search for a home on the internet, the practice of using video to view real estate is just beginning to boom.  Unlike still photographs or 360-degree tours, video clips add a personal touch that helps home shoppers decide which home might be right for them.  “Our videos are an actual walk-through of the property, just like you were walking through the home yourself,” said Crow.  “The content is user generated and often features scenes from the neighborhood and town, too.  Each video is unique and has a personality all its own, which can really make the task of home screening a lot quicker and more fun.”

Only a small fraction of home sellers and real estate agents take advantage of the marketing potential that video brings to an entirely new audience.   As Crow explained: “While video tours won’t replace seeing a home in person, they certainly provide an exciting opportunity to capture the attention of an elusive creature…today’s homebuyer.  InfoTube is excited to be a part of this powerful, new trend in marketing homes.”

 About Crow

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.

Thanks for checking in with www.infotube.net .  We appreciate your business, feedback and questions.

InfoTube.net launches “Do-It-Yourself” Home Video Tours starting Monday, August 4, 2008, as a part of our Featured Home Ad program.

Our goal with video is to drive buyer traffic and provide another avenue for seller’s to reach the largest audience possible.   We will also automatically distributed all video’s to YouTube.com, as a part of our service.

Grab your digital camera or phone this weekend and create a movie about your property, neighborhood and home town.   Video’s are easy to make and a lot of fun to watch.   Best of all, today’s tech savvy home shoppers love video’s!! 

Lights, camera, action, InfoTube.  Let’s Show and Sell.

Thanks for visiting www.infotube.net and best of luck on your home sale.

 

5 Tips that Home Sellers Can Not Ignore about Marketing to Home Buyers:

1. When you create your InfoTube home ad, remember that the “Headline” is the most important part.   If the headline grabs attention, the person will read your ad, which is what motivates them to call you for a showing.
2. When you write an ad, take the most powerful, effective selling point you can say about your property and move it to the beginning of your home ad.  
3. It’s all about the reader.  Tailor your ad “copy” to your customer by avoiding “I”, “me” and “we”.  Use “You” or “Your” Instead and speak to your audience.
4. Appeal to the Heart.  Buying a home is an emotional experience, which means your marketing should be benefit focused versus property or feature focused.   Try to provide a sense of what it is like to live in the property and stress the emotional benefits the buyer of the property will experience. 
5. Use Verbs, Not Adjectives when describing a property feature.   Instead of saying “large, custom deck,” the emotional approach would be to say “relax on your spacious deck and take in the view at the end of a long day”.

Review the copy in your InfoTube.net home ad and if it doesn’t “speak” to the heart of a buyer, rewrite until it does.   A powerful, well-written ad converts “hits” to “showings” in a buyer’s choice market.

Breaking News:  In order to provide our customers with the most exposure for their home listings, we have hot new feature that will bring your home ad to life, for real.   We are finalizing the testing now, so please check back for the details later this week.  It is really exciting and a lot of fun.

Thank you for visiting www.infotube.net and best of luck on the sale of your home!!!

Children or Not… A big part of determining “location, location, location”, is the quality of the school district. 

Often, a school’s report card, actually determines the locations a buyer would consider moving to.   And, for sellers living in a good school district, the schools are essentially an invisible upgrade can make the difference between For Sale and Sold.

With a new school year rapidly approaching, check out ratings for over 120,000 school districts at GreatSchools.net.

GreatSchools was founded by a former teacher, as a free resource for people concerned about education.   And, it has evolved into a great resource for real estate investors, too.

Greatschools offers comprehensive profiles for thousands of schools.  Profiles include exclusive ratings, parent reviews, powerful search and compare tools, helpful advise and an online library with hundreds of articles that help parents navigate the K-12 process.

Thank you for visiting www.infotube.net and best of luck on the sale of purchase of your property.

Rentometer.com is a very handy tool for anyone looking for a new place to rent or investors searching for the best place to buy a piece of rental property.

The website is simple and easy to use.  Simply, type in a  zipcode, add the number of bedrooms you are interested in, and, with one click, Rentometer comes to life with a map display and property links for all the rental options and rates in your selected area.

This site is a great example of why map mashups are so popular.   It is one of the most useful rental sites on the web I’ve seen and it is a lot of fun to use. 

Bookmark this one for future use or look in our blogroll.  We have it posted there, too.

Thank you for visiting www.infotube.net and thank you for your business.

The National Association of Realtors reports that 30%-40% of all homes currently on the market are foreclosures, bank owned or distressed property.    For the average home seller, that means a lot of competition from banks and lenders when they sell their home. 

While this fact may seem dire on the surface, smart home sellers see the silver lining.  The successful have learned to use the vacant, abandoned foreclosure home as a tool to sell their well-loved and cared for home.  

Smart Sellers Know:

The Comparable Sales Data for all competing homes on the market in their area because banks don’t do give aways.   Sales facts can quickly dispell the misguided shopper who believes they can purchase a Mac Mansion for $50,000. 

• Contrary to the “Buy a Foreclosure and Get-Rich-Quick” late night infomercials, buying a foreclosure is usually no bargain unless the home is a dog, or medicore property at best.  
• Banks list homes that are in good locations and condition near the full market value, so the upside is extremely limited.  The lender typically recoops their investment and the costs of the foreclosure sale, when the property is sold.  Many buyers falsely believe that foreclosures are deals of the century.   For the most part, they are certainly not.

Smart Sellers Know:

To make all home information readily available to buyers because foreclosures are a crap shoot.   This includes warranties, guarantee’s for work done, appliance and equipment manuals, details about workmanship and home improvements.  Utility bills and a list of contractors who have performed work or maintanence should also be prominently displayed for the buyer on the first showing. 

• Foreclosures are sold as ”Buyer Beware” properties.  In other words, the Seller has no knowledge about the property or its condition, and full responsiblity for purchase lies with the buyer.
• Lenders are exempt from disclosure laws that alert buyers to home defects and problems.    Meaning that the lenders often have no knowledge about the property and have no duty to disclose major problems, even if they are aware of them.

Smart Sellers Know:

Their home should be “in move” in condition because foreclosures certainly aren’t.   All repairs and maintenance should be done before the buyers inspection.   The home is free of clutter, freshly painted, landscaped and shows a geniune “pride of ownership”.

• Abandoned, unkept foreclosed homes often sit vacant on the market for months.  They are overrun with weeds, dirt, vermin, and are as a whole, disgusting to imagine oneself living in.
• Foreclosures are sold “As Is”.  The buyer can not ask the lender to pay for basic repairs.
• Many foreclosures are complete wrecks.   The homes have been stripped, vandalized and abused.   Buying a neglected home is a gamble at best.
• Most foreclosures can’t be properly inspected, if at all.  The power and water is disconnected.  Hidden water pipes were probably exposed to freezing temperatures last winter.   Cluelessly buying anything , especially foreclosures that offer no legal recourse or seller responsiblity, are deals for those with experience and high risk tolerance only.
• Foreclosure buyers usually spend $400-$600 for a limited home inspection, just to find that the repair list is more terrifying than a late night horror flick.   When the lender refuses to fix problems, the buyer walks the deal.  The buyer is back on the street and the money paid for the worthless inspection is gone.

Smart Sellers Know:

To make the purchase of their home very certain, quick and easy for the buyer.   A “No Brainer”, if you will.  

• Only 1 in 10 offers made to banks and lenders ever makes it to the closing table.   If a buyer needs a home to live in, odds are, a foreclosure won’t work.
• There is always a problem getting accurate information about a foreclosure.  There could be liens, judgements or more than one note or deed of trust.   If buyers don’t know exactly what they are doing, they can lose their shirt.
• Buyers have to deal with mounds of paperwork when buying a foreclosure.  Most of the added legalise pertains to covering the tail of the lender.
• Buyer can not usually designate a closing attorney or title company to work with. 
• Buyers often wait months to close on a foreclosure.   Contrary to common sense, lenders are in no real hurry to get deals done.  Weeks can pass before questions are answered or contract terms are addressed.  Buyers can count on additional problems with legal work, title insurance, appraisals and financing.