Recent Blog Posts

How Do Your Actions Impact Others?

Tue, 14 Jul 2009 03:09:00 PDT

No matter who you are, your day to day actions have an enormous impact on those around you. In this episode of Tuesday Morning Coffee John Jones tells the story of one man who's simple act of kindness had a profound impact on another's life.

Practice Makes Perfect

Mon, 06 Jul 2009 19:00:00 PDT

In this edition of Tuesday Morning Coffee John gets off real estate and presents some inspiration via a model for success from Gary Keller, owner of Keller Williams Realty. This theory can be applied to any aspect of your life to improve whatever it may be you'd like to get better at. Hope you enjoy. As always we welcome your comments and/or suggestions for future topics for Tuesday Morning Coffee. If you have have any questions about real estate let us know! You can also view Tuesday Morning Coffee in HD via Facebook at http://www.facebook.com/TuesdayMorningCoffee

Marketing Real Estate In The Online Age

Mon, 29 Jun 2009 19:00:00 PDT

John Jones talks about the differences in marketing in the age of the internet. Web 2.0 has undoubtedly changed how we search for real estate and in Murfreesboro Tennessee it has given John Jones Real Estate's agents a decided advantage.

The sale of my home is in danger because the appraisal has come in lower than expected. What options do I have?

Sat, 27 Jun 2009 19:00:00 PDT

Low appraisals can become a big issue in a flat or declining real estate market. At this point, you really have three options:

Accept less for your home, allowing the buyer to qualify for his loan based on the lower appraisal;
Ask the buyer to put down more cash to cover the difference between the purchase price and the low appraisal - This is unlikely to happen in a Buyers' Market;
Cancel the transactions. However, keep in mind that an FHA or VA appraisal will remain with your house for six months. If your next buyer has FHA financing, you will run into the same appraisal problem.

Of course, the best option is to look closely at the value of comparable sales in your neighborhood before you even put your home on the market. These days we have to sell almost every home twice - first to the buyer and secondly to the appraiser. If you're honest with yourself about how your home compares to others that have recently sole, it will allow you to either price the house so the appraisal won't be a problem or at least be prepared up front for the possibility of a low appraisal.

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"We Buy Homes" You've seen the signs but what's the catch?

Mon, 22 Jun 2009 19:00:00 PDT

In this edition of Tuesday Morning Coffee John addresses the "We buy homes" or "Cash for your home" schemes that seem to have overtaken so many street corners in recent months. What are these people really out to accomplish and what can you do avoid being mislead when dealing with one of these companies.

Have a real estate question you'd like answered on Tuesday Morning Coffee? Let us know or feel free to join in the conversation here. Just click on the post title and sumbit your comments.

I've been seeing signs that say "We Buy Homes" or "Cash for Your Home". What's the deal with those?

Sat, 20 Jun 2009 19:00:00 PDT

While I can’t speak for the business model of any particular company, the We-Buy-Homes people typically purchase property with the intent of selling it to someone else for a profit. This means they want to buy your house for wholesale (at or below 80 percent of market value) so they can sell it to another buyer at retail prices.

If you have to sell quickly, or if your home needs significant repair, this can be a good option. But if you are trying to maximize your own profit on the sale of your home, selling it retail with a good Realtor will most often net you the most money.

If you’re thinking about doing business with one of these individuals or companies, here are a few things to keep in mind.

· A popular sales pitch for this type of transaction is that you will save money by not having to pay commission to a real estate professional. Make sure you have a good idea what your house is worth so you don’t give away more money in equity to your fast-cash buyer than you would have paid in commissions.

· Beware of people who want to buy an option to purchase your home; ask you to sign a contract they plan to transfer to another buyer; or offer to take over the payments on your loan. These tactics usually give your potential buyer a ton of power and the ability to walk away from the deal with little recourse for you. You take all the risk and whole thing has a good chance of blowing up in your face.

· If the fast-cash buyer offers to buy your home on a short sale, watch out. It is not uncommon for some investors to be working several of these deals at once. He closes on whichever deal gets worked out with the bank first and then abandons the others.

Whenever considering a fast cash deal, seek the counsel of a real estate attorney before signing any agreements.

Force Your YouTube Video To Show In HD

Wed, 17 Jun 2009 19:00:00 PDT

The HD revolution is now in full swing and you can now embed your YouTube videos to show in HD by default easier than ever. While you can still use the old &ap=%2526fmt%3D18 code before the &h1 in your embed code, you can now simply click on the video's embed code and the resulting menu appears to "Show In HD". Click that check box, copy the embed code and proceed as normal. It's going to be a great tool for making the internet a much more attractive place, putting HD in the hands of average YouTuber. See the difference below.

What Is A Lease Purchase?

Mon, 15 Jun 2009 02:40:00 PDT

In this edition of Tuesday Morning Coffee John explains lease purchases. Covering both the origination of the lease purchase (or lease option) and how it works. Are you a buyer or seller in the Murfreesboro Tennessee area considering the sale or purchase of a home but can't qualify for a mortgage right now? Are you a seller who needs to get out from under your mortgage payments quick but need top dollar for your home? A lease purchase may be an option for you.

Should we sell our home on a Lease-Option?

Sat, 13 Jun 2009 19:00:00 PDT

A Lease-Option or Lease-Purchase is an agreement where you rent your home to a potential seller who agrees to buy the house at a predetermined price at some point in the future.

There are instances when selling your house on a Lease-Option agreement makes sense, especially in a buyer’s market like we are currently experiencing. Offering Lease-Option terms on your property makes the purchase of your house obtainable for a whole new market of potential buyers. If you have already bought another house, a Lease-Option can ease the burden of paying two house payments by providing rent income. Additionally, this type of deal usually allows you to get a higher price for your home when the Option or Purchase is exercised.

Of course, there are risks. People looking to purchase on a Lease-Option often have credit issues that keep them from qualifying for a mortgage. This also means that a relatively low percentage (about 50% in our experience) of people actually close on the sale of the house. When you sell a home this way, you become a landlord and if the house does not close, your tenants often leave the property in worse condition than they found it.

If you’re considering selling your home on a Lease-Option, there are many other considerations to take into account that could mean the difference between a smooth, profitable transaction and a nightmare money-loser. So make sure that you get advice from a real estate professional who is experienced in these kinds of deals.

What's The Big Deal With Credit Reports?

Mon, 08 Jun 2009 19:00:00 PDT

This week John delves into credit scores. Covering everything from where you can get a free credit report on the web in a safe and secure environment to how your credit score is viewed by mortgage companies and other loan institutions, John presents a simple, to-the-point view of what makes up your credit score.

How does the $8,000 First-Time Homebuyer tax credit work?

Sat, 06 Jun 2009 19:00:00 PDT

In an effort to spur home sales, the Federal government is offering a tax credit of $8,000 to all First-Time Homebuyers who purchase a house before November 30, 2009. To qualify for the tax credit, a First-Time Homebuyer is defined as anyone who has not owned a home in the past three years.

One great thing about this program is that it is pretty straightforward. The $8,000 is a true tax credit and does not have to be repaid. If you have $1,000 coming back on your 2009 federal taxes, you would instead get $9,000 back—your original $1,000 plus the $8,000 tax credit. According to the IRS, this credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

Additionally, the US Department of Housing and Urban Development has now given FHA-approved lenders the go-ahead to develop loan products that allow buyers to immediately borrow the $8,000 to help cover closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent down payment required for an FHA loan. Unfortunately, these bridge loans cannot be used to cover the minimum 3.5 percent down payment.

100.5 FM WGNS Business Spotlight Interview

Tue, 02 Jun 2009 03:07:00 PDT

This weeks Tuesday Morning Coffee is excerpts from John Jones' interview last night on 100.5 WGNS. Topics include short sales, foreclosure, and marketing real estate, as well as little information about what makes John Jones and John Jones Real Estate tick.

What is a short sale? Why would I try to sell my home that way?

Sat, 30 May 2009 19:00:00 PDT

A short sale occurs when a lender allows the sale of a home to be completed by agreeing to release the mortgage lien on the property for less than what is owed on the loan. This kind of deal is typically negotiated between the bank and the homeowner under the following conditions:

The homeowner is facing financial hardship (from loss of income, mortgage rate adjustments, illness, etc.) that makes it difficult or impossible to keep the mortgage payments current.
The house is worth less than what is owed on the mortgage.

For homeowners facing foreclosure, selling their home in this fashion can be the thing that keeps their credit from getting completely destroyed. Unfortunately, many homeowners don’t find out that a short sale is an option for them until it is too late.

If you are behind (or about to get behind) on your mortgage payments, the worst thing you can do is to ignore the situation. Time is your worst enemy and your options diminish significantly as the days tick away. Talk to a real estate professional who understands the foreclosure process so you can make the smartest possible decision for you and your family.

Zestimates Schmestimates!!!

Tue, 26 May 2009 19:00:00 PDT

There is a lot that can be said about Zillow.com's Zestimates. First off, what is a Zestimate? Well to put it simply its Zillow's estimate of what a home is worth. They pull their information from a number of sources and then run that info through an algorithm that spits out a number (which is supposedly what your home is worth). My "beef" with Zillow is that this number is completely and utterly wrong as much as it is right (at least in the Murfreesboro real estate market). Not only that, buy sellers are actually believing the Zestimates and expecting agents to be willing to list their home at inflated prices.

So is it Zillow's fault sellers are peddling their home to the Realtor with the highest list price? No way! Zillow freely admits it's an inexact science. Here's THEIR explanation of what a Zestimate is:

More and more we're finding potential sellers interviewing Realtors to list their home, sellers who are shopping for a real estate agent to give them that magic number they can sell the house for. Here's the bad news for those sellers, the Realtor doesn't have a say in what your home is worth! An agent can tell you all day long your home is worth $189,900 to get the listing when it's really going to sell for $164,900. Yes that is less than you paid for it and yes that is $15 grand less than the Zestimate (did you really think a machine or person who has never set foot on Tennessee soil could give you a good representation of what the local market will think your home is worth?) In fact, the Zestimate is more than we're even willing to LIST the house for (likely more than it will even appraise for, and most of the time you CAN'T sell a home for more than it appraises) fully expecting that we won't see a full price offer in a Buyers market like we're currently facing. You overpaid for the house two years ago, but lucky for you so did the guy who owns the house you want (and he's taking an even bigger hit).

In my time working for John I've heard one quote more than any other. It may be John's mantra, it could be inscribed on his headstone because he undoubtedly believes it to be words any Realtor can live by, "Your home is what someone is willing to pay for it". Not what you think it's worth, not what I think it's worth, not what any Realtor, nor Zillow, Trulia, the appraiser, the bank, the tax collector, the butcher, the baker or the candlestick maker.

Lucky for you...if you have the right agent to market your property (who didn't allow you to allow them to take an overpriced listing) and 5 buyers willing to "pay for it" at the same time. You'll probably still come out alright, if not better, than if you'd listed it John R. Realtor who'd still have it $10 grand overpriced 3 months from now with ZERO offers. (F.Y.I. that's another 3 payments you have to make on it and the market may be worse than it was...you missed the SUMMER BUYERS BOOM). You missed every buyer that was searching online under $175,000 (probably their agents too) which is a BIG chunk of the buyer pool.

What's the point to all of this you say? When choosing YOUR REALTOR you have to look past the numbers they are spitting out. Any man, woman, child, or machine can spit out an estimate of what your home is worth but what it all comes down to is who knows about your home and what it's worth to THEM.

Now for the shameless plug. Want a Murfreesboro locals educated opinion of what your home is worth? Try http://www.MidTNHouseValues.com

Breaking Your Lease Might Be Easier Than You Think

Mon, 25 May 2009 19:00:00 PDT

In this edition of Tuesday Morning Coffee, Realtor John Jones discusses how the current buyers market can lend itself to getting a seller to assist you with the fees associated with breaking your lease. You don't have to miss out on the $8000 Tax Credit just because you have 6 months left on your lease. Here's how to make the market work in your favor.

Also included is short Geico spoof featuring an excerpt from a real testimonial by a John Jones Real Estate client (the voice of Glen Price). See the original Testimonial Video HERE.

What's In Your Attic? Home Inspection Nightmares

Sun, 24 May 2009 19:00:00 PDT

Why do I need a home inspection? We get the question frequently and there are a number of reasons we suggest our buyers ALL get a home inspection done. This week alone we've seen two issues, one fairly uncommon, arise.

For instance, we had a client who against our advice didn't have a home inspection done. After beginning a renovation (upgrading the vinyl floor in the kitchen to tile) he found that there was a leak that had ruined the flooring not only in the kitchen, but all the way through a great room as well. This would definitely have been discovered by even the most inexperienced home inspector. In this case, saving the buyer from both a big headache and a hefty sum of money. The home was "run of the mill" and we could have easily found a very similar deal on a comparable property.

The second situation we've run into is infestation. In another property the home inspection turned up not only the normal shortcomings of an aging home that can be repaired before the sale, saving the buyer the headache and money of dealing with unresolved an unknown issues, but also a Brown Recluse infestation. Those familiar with this spider know that it is a common species in Middle Tennessee but also highly poisonous and thus dangerous. Here are the images from the home inspection:

Not only that, but much more uncommon inhabitant was also found. This snake (see below) seems to have taken up residence in the attic of the home.

Now that's a problem most buyers don't want to deal with. Luckily the buyers of this property had the home inspection done and will be moving into the home reptile, insect, and probably problem free.

So what does the typical home inspection include?

1) Finding major defects.

Example: Structural failure, foundation cracks (due to water penetration causing excessive settlement), roof defects, etc.

2) Identifying problems that can lead to major defects.

Example: Defective roof mounted structures, stopped up gutters, defective or damaged windows, water in crawl space, excessive heat/moister build in attic (caused by inadequate ventilation which can lead to premature roof failure), and termite damage.

A home inspector will also check the home's heating system, central air conditioning system, interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure. Many inspectors will also offer services such as mold, radon and water testing.

We've even had a home inspection turn up a dead cat in an air conditioning unit. Another found that the sellers stored their unwanted trash in the crawl space. Take it from us You Want To Get A Home Inspection!

Wondering what other ODD things home inspectors come across? ThisOldHouse.com posted THIS article that featured everything from a home heating system made from car parts and holes in roofs, to light switches in a showers and aluminum foil pipes. The things some builders and homeowners do to houses never cease to amaze me!

Our lease is not up for six months, but we want to buy now. What can we do?

Sat, 23 May 2009 19:00:00 PDT

We are currently in a true Buyer’s Market. That means that there are a whole bunch of sellers chasing after a relatively small group of buyers. The beauty of that situation for potential buyers is that it gives them leverage in negotiations.

Until last year, we were in a Seller’s market with many more buyers than sellers. Anyone who bought a house the last couple of years knows that sellers had the ability to demand and get very close to their asking price and very favorable contract terms. This was because if the buyer balked, the sellers knew that it was highly likely that in short order they would have another interested potential buyer submitting an offer.

Today, the situation is completely reversed. Buyers have all the leverage because sellers don’t know when another offer will be coming if they fail to accept the one in front of them. Many rental leases have an “escape” clause that allows the renter to pay a fee to be released from the lease. If your lease doesn’t have one, your landlord may be willing to negotiate your release. Once you know what it would cost to get out of your lease, there are plenty of motivated sellers who would be willing to pay that release fee on your behalf if it allows you to buy their house now.

Appraisals: The Good, The Bad, and The Ugly

Mon, 18 May 2009 19:00:00 PDT

In this edition of Tuesday Morning Coffee, John presents both sides of the drama that can be a sub-par appraisal. Low appraisals have been known to kill the deal many times, especially in the current market conditions, but it doesn't have to be that way. There are options to keep the banks happy and get the deal done.

John, speaking with the issue fresh on his mind from recent experience, shares some of the causes of the potential deal-killer as well as the most common ways to save your real estate transaction.

The Skinny On Virtual Tours

Sun, 17 May 2009 19:00:00 PDT

Virtual Tours have gained a lot of popularity in recent years. There is no doubt that they can help a home sell faster. Statistics from REALTOR.COM show that listings with virtual tours get clicked on 40% more than listings without virtual tours." As more and more real estate agents have discovered this the internet marketplace has become diluted with more and more virtual tours that are really no more than glorified slide shows. Agents are wasting good marketing dollars to have one of the many online companies plug photos of the property into a program that animates the still images with motion. The reality of this method is that it's simply not cost effective for the agent and really doesn't offer the potential buyer any more info than the photos within the original listing.

The real benefit of a virtual tour comes from a REAL virtual tour. This means a tour that presents the home in a panorama or 360 degree tour which the end user can navigate at will to see all the features of a room. There are a number of different approaches to this, and most require a professional real estate photographer to take the images and create the tour, which can be more expensive (usually anywhere from $100 - $500 in our area) than the still image variety, but the results are typically quite astounding. Buyers can get lost in a tour and become emotionally attached to a home before ever setting foot in it.

Here's the low-down on both types of Virtual Tour Providers:

www.JohnCJones.com - My favorite of all virtual tours is the 360 degree and still image combination that we do in-house at John Jones Real Estate (of-course I'm partial, but I'm also one of the few people who have tried, and continue to try, nearly every virtual tour option available).

This service is in partnership with a national provider which I'm keeping confidential (consider it a trade secret, like the recipe for Coke or KFC). The beauty of this tour is it is high-def, can be full-screen, embeddable, and you can add custom audio for the tour (or each image if you'd like, no more lame elevator music...record a description of your property to point out the features of the room they are looking at). Not local to Murfreesboro, Tennessee? Send me a message and I'll clue you in!

As a Real Estate Photographer, I offer this same service to other agents in the area, so it's not exclusive, but it's one of the many benefits of using a company with a full-time Technology Consultant. HERE and HERE are two examples.

www.propertypreviews.com - My personal favorite of the still-image-with-motion variety. The service is FREE (which is why it's my favorite and they do offer some additional paid syndication options, including export to YouTube) and easy to use. See an example HERE.

www.youtube.com- Create your own with software you didn't know you had. Most Windows XP PCs have Windows Movie Maker pre-installed which makes animating the images (or video if you'd like) as easy as drap-and-drop, save, upload, done. The best part of using YouTube is that search engines LOVE YouTube videos. See an example HERE.

www.visualtour.com- Another create-your-own company. This one is one of the top national competitors. Their service relatively inexpensive (a setup fee and $29.95 per month for all the tours you can muster) but also a little dull considering that propertypreviews.com offers almost all of the features for significantly less money. See one HERE.

www.tourfactory.com - Yet another national competitor, Tour Factory is very similar to Visual Tour in almost every way. One of my favorite "Techie" agents Sam Miller is an avid Tour Factory user. They offer competitive pricing ($49.95 per tour or discounted monthly packages) and the interface is simple and effective. They also offer the option of having a professional real estate photographer photograph your property for an additional fee. See an example HERE.

www.obeo.com- These are a little on the expensive side coming in at $200 - $350 depending on the features. They send a professional photographer to shoot the property (though in my experience the provided photographer left something to be desired, but bear in mind different areas provide different photographers). Obeo offers REALLY COOL add-on features that are worth the money on a high end listings, such as interactive floorplans (see how you can arrange your furniture) and Style-Designer (try out different paint colors, flooring, cabinets, and counter tops). These features are by far the cream of the crop when it comes to "helping" a prospective buyer become emotionally attached to a home. You can get lost in an Obeo tour and spend hours on end imagining the possibilities of a home. Try one yourself HERE.

www.realtourvision.com - This company is another national competitor. They offer 360 panoramic tours through area vendors or you can attempt to create-your-own. (I don't suggest going that route unless your looking for something to kill ALOT of time. Trust me. It ain't as easy as it looks.) The quality is pretty good and the "hot spots" (spots they can click on to move from one area to the next) are a great function, giving the user a sense of moving through the house. Try one out HERE.

Videographers - I must admit I've never used a videographer but a professional real estate videographer can take a virtual tour to a whole new level. True...there is no interactivity like many 360 degree tours, so the user cannot choose what they want to see. So what makes this superior to the normal old photos-with-motion approach? It can look phenomenal and can give a buyer who's been combing through hundreds of home listings a welcome bit of relief with the freshness and uniqueness is provides them. We know for a fact that the most important part of a buyers experience is their emotional connection to a home, hence the smells and depersonalization that created the industry of home staging. Real estate videography it it's online equivalent. But be careful results can vary widely. Your best bet? Visit www.wellcomemat.com/videographers and see who's available in your area. HERE's a good example I found.

There are a number of other options for providers that do basically the same thing. The important thing is to decide if a virtual tour is important to you (and it should be) and what kind is right for you, your area, and your budget. Many Realtors will take care of this for you (whether it be included in their fees or an additional cost), some offer the service if you'll just request it, and others are still stuck in the dark ages.

The most important thing to remember is the addition of a virtual tour usually entices a buyer to linger on your property longer and in our business that's usually a good thing!

Should I buy a distressed property?

Sat, 16 May 2009 19:00:00 PDT

When purchasing a distressed property, there is normally a trade-off for the buyer. In exchange for getting a good deal on a house you are willing to take on some repairs and inconvenience. Bank-owned houses and short sales are the most prominent types of distressed properties. In both cases a financial institution is calling the shots and setting the pace for the transaction. It is not uncommon for a bank to require anywhere from two weeks to three months before they even look at your offer.

Just remember that the distressed property purchase process is a marathon, not a sprint. If you expect a quick transaction, you will likely be disappointed. However, if you enter into the process expecting to experience some head-scratching frustration when the bank stops communicating or makes curious decisions, your patience and perseverance could be rewarded with a great deal on a house.