We’ve all driven by a house with a FOR SALE sign out front that doesn’t budge or change day after day after day … and then the days become weeks and the weeks become months. We start to wonder why there aren’t any interested buyers. And then we ask ourselves, “Is there something wrong with that house? Why isn’t it selling?” It’s a good bet that there’s something going on with a property that doesn’t ever seem to sell. Maybe (perhaps likely), it’s simply overpriced, and the prospective buyers who’ve visited it like it but not enough to spend that much money on it. The first thing a buyer is going to ask their agent when they become interested in your home is "how long has it been on the market"? You may have asked your agent the same question when you purchased your home.
The reason your prospective buyer wants to know how long the home has been on the market is they are determining how they will negotiate with you. If a home has only been on the market a few days or a couple of weeks, the buyer will assume there won't be much room for negotiation and if they truly want the house, they will be more inclined to make a strong offer.
If your home has been sitting on the market for several weeks, the prospective buyer will use the 'days on market' to negotiate against you, creating a 'buyer advantage' in negotiations. The longer your home is on the market, the lower your offers will be (if you get any offers at all).
The Regional Multiple Listing Service keeps track of Cumulative Days on Market (CDOM) on all listings, and publishes that information for the consumer. This is why it is so important to put yourself in the best possible position to create a sale within 30 days after coming on the market. This will allow you to negotiate from a position of strength with the buyer. Many sellers who choose to 'test the market' at a higher price, or keep an elevated price with minimal showing activity, soon realize that they are now 'chasing the market' and eventually will need to sell for far less than they would have if they had been correctly positioned in the market in the first few weeks. The 'parade' of buyers comes by only one time - when you are a new listing on the market.
It there are a significant amount of online views with minimal or no showings, it becomes apparent that the Buyer/Prospect is ruling out your home before touring the home. This generally has to do with either price, location, dated interiors, and/or curb appeal. As your Agent, I am your advocate. I promise to be honest with you about any and all objections, even if it means you may be disappointed. I always stress the need to pay attention to what the market is telling you when going over listing documents. Generally, the first TWO full weekends of the listing period will tell you everything you need to know. The reason the number of days that house has been sitting on the market doesn't really matter. The reality is that the longer it sits without an offer, the more it stagnates. Interest (if there is any) wanes, and the more its owners feel the increasing pressure of trying to entice a buyer to make a bid on it. In order to avoid having your house end up being that house that sits on the market forever, it’s important to price your home to sell.
If your listing is exhibiting any activity warning signs, swift price modifications may save you tens of thousands of dollars over a home that has been on the market for an extended period of time. In the real estate profession there is a saying "Price Overcomes All Objections". If your home has objections, price modifications will be necessary to procure an offer.
Remember:
The Market Value of Your Home IS NOT:
1. What you have in it;
2. What you need out of it;
3. What it appraised for;
4. What you heard your neighbor’s house sold for;
5. What the tax office says it is worth;
6. What Zillow or Trulia says it is worth;
7. Based on memories and treasures;
8. Based on prices of homes where you are moving.
The True Market Value of Your Home IS:
1. What a Buyer is willing to pay for the property – TODAY.
2. Based on today’s market;
3. Based on today’s competition;
4. Based on today’s financing;
5. Based on today’s economic conditions;
6. Based on the Buyer’s perception of property condition;
7. Based on location;
8. Based on normal marketing time.
As a Seller You Control:
1. The price you ask;
2. Condition of the property;
3. Access to the property.
As a Seller You Do NOT Control:
1. Market conditions;
2. The motivation of competition;
3. The Buyer’s Perception of Value
Warning Signs:
1. AGENT elimination: If agents are not previewing, or if they preview, but do not show it, they are eliminating your property;
2. BUYER elimination: If your home is being shown with no results, buyers are finding nicer properties in your price range that they are making offers on;
3. In either case, this is an indication that your home is not priced at appropriate market value for its condition.
I take great pride in making every attempt possible to maximize the value of your home several ways. I begin by utilizing the comparable properties in the market and recommend a price that is in line with active, pending, and listings that have sold within the last 6 months. You should know that the comparables may, or may not ultimately determine the Buyer's perception of value. Condition, location, neighborhood surroundings, proximity to rental complexes and/or commercial structures will be evaluated by most Buyers before they even set foot inside your door. Often Buyers will drive by the home before setting an appointment with their Agent. This is why curb appeal is so important. Be sure that your front lawn is mowed, edged, and irrigated. It is very important to pay attention to what the market is telling you once your property goes into the RMLS. The perception is: The longer the home has been on the market the more likely it is perceived to be over priced and/or have something wrong with it.
Aggressive, ongoing marketing begins once the property is listed in the RMLS. There are many techniques required to maintain a dominating internet presence for your home. Many ads need to be manipulated on a regular basis to remain fresh and at the top of the Buyer's search. Several venues provide statistical data which defines how many views and/or clicks your listing is receiving on a daily basis. Those statistics are tracked in order to give us a sense of what the Buyers are thinking about your home.
Negotiation becomes extremely important once you have a Buyer that is interested in your home. I bring nearly 3 decades of experience to the table when it comes to the real estate process. Knowing how to negotiate in the current market should be left to the professionals. This is often the most critical component required to make sure you are not leaving any money on the table, and maximizing your bottom line.
In the end, following your Agents guidance will provide a smoother transaction. I am very conscious that the final decision is always up to you. I understand the need for making as much money as you can on the sale of your home. I will partner with you to make that happen with every piece of advice I provide.
Mark Vandervest, Principal Broker
FRESH START Real Estate, Inc.
Real Estate Sales & Acquisitions
Professional Property Management
503-941-0775 Office
503-941-0776 Fax
www.FRESHSTARTofOregon.com
Tuesday, June 16, 2015
Wednesday, March 26, 2014
Why The Zillow Zestimate Is Less Accurate Than It Looks
Far too many times people put way too much stock in the Zillow value of their home. It is so common that when I prepare for a listing presentation, I always check the Zillow value first, so that I know what is going through the mind of the Owner. Inevitably I have to educate Owners on the accuracy of Zillow, and how their valuations are determined.
I found the following post to be one of the most informative that I have seen. The Source is HomeVisor LLC, and the post was published by Brett Doshan.
Why The Zillow Zestimate Is Less Accurate Than It Looks.
A few months ago we wrote about the accuracy of the Zillow Zestimate, or maybe we should say, the Zestimate's lack of accuracy. This is obviously a hot topic - a Google search for ‘Zestimate accuracy' will quickly illustrate that there are a lot of questions and frustration around the Zestimate. Additionally, our Zestimate accuracy blog post is one of our most viewed posts.
We are actually big fans of Zillow, and we fully understand that no predictive valuation system is perfect, however we do have a major issue with the way Zillow calculates its accuracy. From its website, here is how Zillow calculates its accuracy:
Zestimate accuracy is computed by comparing the final sale price to the Zestimate on or before the sale date.
The important thing to note here is that Zillow uses the Zestimate ‘on or before the sales date.’ That is our issue – that they use the Zestimate after the listing price becomes public. That makes their Zestimate look more accurate than it really is since, what you will see in the data below, the Zestimate can change dramatically based on the listing price. Let me pose this scenario to you – say the Zestimate on your house is $439,000, you then list it for sale at $1,495,000, after your listing price is made public and picked up by Zillow, the Zestimate then increases to $1,200,000! This is a real example – you can check it out at this link. Let me ask you this, would you consider $439,000 accurate if you just listed your house for $1,495,000? That is a difference of over $1 million.
Here is the rub for us – if this house sells for, say, $1.35 million, Zillow will use its most recent Zestimate of $1.2 million when it calculates accuracy. That calculation will say that this house sale was within 11% of its Zestimate. This would be consistent with their claim that nationwide, 78.8% of all sales occur within 20% of the Zestimate.
However, a more honest assessment of their accuracy would be to use the price before the listing was public – to do that we use the Zestimate of $439,000 and a sales price estimate of $1.35 million – which puts the sales price at over 3x the Zestimate, not nearly as accurate!
That being said, we only had to look at a handful of For Sale listings in each city to find these examples, which leads us to believe this pattern occurs fairly often.
Are we cherry-picking listings to prove our point - of course we are! However, it does prove our point, the Zestimate can be very inaccurate and can move a lot based on the listing price. Looking at the three examples above, on average the Zestimate more than doubled after the house was listed for sale. And that, in our opinion, is what makes the Zestimate accuracy look much better than it actually is.
Our advice, as always when it comes to Zillow, is to use it as a data point during your research, but not to rely too much on it.
Reposted by:
Mark Vandervest, Principal Broker
Mark Vandervest, P.C.
Extraordinary Real Estate Representation &
Property Management
503-941-0775 Office
503-941-0776 Fax
www.TheOregonBroker.com
I found the following post to be one of the most informative that I have seen. The Source is HomeVisor LLC, and the post was published by Brett Doshan.
Why The Zillow Zestimate Is Less Accurate Than It Looks.
A few months ago we wrote about the accuracy of the Zillow Zestimate, or maybe we should say, the Zestimate's lack of accuracy. This is obviously a hot topic - a Google search for ‘Zestimate accuracy' will quickly illustrate that there are a lot of questions and frustration around the Zestimate. Additionally, our Zestimate accuracy blog post is one of our most viewed posts.
We are actually big fans of Zillow, and we fully understand that no predictive valuation system is perfect, however we do have a major issue with the way Zillow calculates its accuracy. From its website, here is how Zillow calculates its accuracy:
Zestimate accuracy is computed by comparing the final sale price to the Zestimate on or before the sale date.
The important thing to note here is that Zillow uses the Zestimate ‘on or before the sales date.’ That is our issue – that they use the Zestimate after the listing price becomes public. That makes their Zestimate look more accurate than it really is since, what you will see in the data below, the Zestimate can change dramatically based on the listing price. Let me pose this scenario to you – say the Zestimate on your house is $439,000, you then list it for sale at $1,495,000, after your listing price is made public and picked up by Zillow, the Zestimate then increases to $1,200,000! This is a real example – you can check it out at this link. Let me ask you this, would you consider $439,000 accurate if you just listed your house for $1,495,000? That is a difference of over $1 million.
Here is the rub for us – if this house sells for, say, $1.35 million, Zillow will use its most recent Zestimate of $1.2 million when it calculates accuracy. That calculation will say that this house sale was within 11% of its Zestimate. This would be consistent with their claim that nationwide, 78.8% of all sales occur within 20% of the Zestimate.
However, a more honest assessment of their accuracy would be to use the price before the listing was public – to do that we use the Zestimate of $439,000 and a sales price estimate of $1.35 million – which puts the sales price at over 3x the Zestimate, not nearly as accurate!
That being said, we only had to look at a handful of For Sale listings in each city to find these examples, which leads us to believe this pattern occurs fairly often.
Are we cherry-picking listings to prove our point - of course we are! However, it does prove our point, the Zestimate can be very inaccurate and can move a lot based on the listing price. Looking at the three examples above, on average the Zestimate more than doubled after the house was listed for sale. And that, in our opinion, is what makes the Zestimate accuracy look much better than it actually is.
Our advice, as always when it comes to Zillow, is to use it as a data point during your research, but not to rely too much on it.
Reposted by:
Mark Vandervest, Principal Broker
Mark Vandervest, P.C.
Extraordinary Real Estate Representation &
Property Management
503-941-0775 Office
503-941-0776 Fax
www.TheOregonBroker.com
Monday, March 10, 2014
Buying a Home is Now 38% Cheaper Than Renting!
Source: Forbes.com (3/5/14)
Is renting or buying a better financial bet? Every six months, Trulia’s chief economist Jed Kolko runs the numbers to answer that question and help you stay on top of the trends. So what does Trulia’s Winter 2014 Rent vs. Buy Report tell us? Although the gap between renting and buying is narrowing across the U.S., homeownership is still 38% cheaper than renting.
Homeownership remains cheaper than renting nationally and in all of the 100 largest metro areas according to Trulia TRLA -2.49%’s latest Winter Rent vs. Buy report. Rising mortgage rates and home prices have narrowed the gap over the past year, though rates have recently dropped and price gains are slowing. Now, at a 30-year fixed rate of 4.5%, buying is 38% cheaper than renting nationally, versus being 44% cheaper one year ago.
The rent versus buy math is different in each local market. Buying ranges from being just 5% cheaper than renting in Honolulu to being 66% cheaper than renting in Detroit. But even for a specific market, the cost of buying versus renting depends on how much home prices rise (or fall) after you buy. Our model assumes conservative home price appreciation, but – as we all know after the last decade – home prices can unexpectedly rocket or plummet. Buying Beats Renting Until Mortgage Rates Hit 10.6%.
Even though prices increased sharply in many markets over the past year, low mortgage rates have kept homeownership from becoming more expensive than renting. Also, in some markets, like San Francisco and Seattle, rents have risen sharply; rising rents hurt affordability relative to incomes, but rising rents make buying look cheaper in comparison.
Will renting become cheaper than buying soon? Some markets might tip in favor of renting this year as prices continue to rise faster than rents and if – as most economists expect – mortgage rates rise, due both to the strengthening economy and Fed tapering. For each metro, we identified the mortgage rate “tipping point” at which renting becomes cheaper than buying, given current prices and rents. If rates rise, Honolulu would become the first metro to tip, at a mortgage rate of 5.0%. San Jose and San Francisco would also tip before rates reach 6%. But those are the extreme markets. Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.
For full article with graphics, visit: http://www.forbes.com/sites/trulia/2014/03/05/buying-a-home-is-now-38-cheaper-than-renting/
Are you buying or selling real estate on Oregon? Do you have rental properties to manage? Give us a call. We can help!
Mark Vandervest, Principal Broker
Mark Vandervest, P.C.
Extraordinary Real Estate Representation &
Property Management
503-941-0775 Office
503-941-0776 Fax
www.TheOregonBroker.com
Is renting or buying a better financial bet? Every six months, Trulia’s chief economist Jed Kolko runs the numbers to answer that question and help you stay on top of the trends. So what does Trulia’s Winter 2014 Rent vs. Buy Report tell us? Although the gap between renting and buying is narrowing across the U.S., homeownership is still 38% cheaper than renting.
Homeownership remains cheaper than renting nationally and in all of the 100 largest metro areas according to Trulia TRLA -2.49%’s latest Winter Rent vs. Buy report. Rising mortgage rates and home prices have narrowed the gap over the past year, though rates have recently dropped and price gains are slowing. Now, at a 30-year fixed rate of 4.5%, buying is 38% cheaper than renting nationally, versus being 44% cheaper one year ago.
The rent versus buy math is different in each local market. Buying ranges from being just 5% cheaper than renting in Honolulu to being 66% cheaper than renting in Detroit. But even for a specific market, the cost of buying versus renting depends on how much home prices rise (or fall) after you buy. Our model assumes conservative home price appreciation, but – as we all know after the last decade – home prices can unexpectedly rocket or plummet. Buying Beats Renting Until Mortgage Rates Hit 10.6%.
Even though prices increased sharply in many markets over the past year, low mortgage rates have kept homeownership from becoming more expensive than renting. Also, in some markets, like San Francisco and Seattle, rents have risen sharply; rising rents hurt affordability relative to incomes, but rising rents make buying look cheaper in comparison.
Will renting become cheaper than buying soon? Some markets might tip in favor of renting this year as prices continue to rise faster than rents and if – as most economists expect – mortgage rates rise, due both to the strengthening economy and Fed tapering. For each metro, we identified the mortgage rate “tipping point” at which renting becomes cheaper than buying, given current prices and rents. If rates rise, Honolulu would become the first metro to tip, at a mortgage rate of 5.0%. San Jose and San Francisco would also tip before rates reach 6%. But those are the extreme markets. Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.
For full article with graphics, visit: http://www.forbes.com/sites/trulia/2014/03/05/buying-a-home-is-now-38-cheaper-than-renting/
Are you buying or selling real estate on Oregon? Do you have rental properties to manage? Give us a call. We can help!
Mark Vandervest, Principal Broker
Mark Vandervest, P.C.
Extraordinary Real Estate Representation &
Property Management
503-941-0775 Office
503-941-0776 Fax
www.TheOregonBroker.com
Wednesday, September 25, 2013
Quick Tips To Beat Out Cash Buyers
You’ve been searching for the perfect home for quite a while, and finally, you’ve found it! You get all of your finances in order and place an offer on the house.
However, you’re not the only one that loves the home, because there are multiple offers — and one of them is cash.
Cash buyers are seen as desirable because they’re almost always a guaranteed quick close.
They don’t have to borrow money from a bank therefore won’t have any financing hang-ups, which is where a large portion of offers fall through. Don’t worry; not all hope is lost.
Follow the steps below to beef up your offer and get your foot in the door.
Less Expensive Homes
If you’ve put offers in on homes at the asking price and are continually beat out by buyers that are paying more, then you might want to consider looking in a lower price range. This is an especially smart strategy for those living in fast-selling markets. By looking at less expensive homes, you can be the one that puts in an offer over the asking price.
20 Percent Down Payment
Save up a higher down payment for the price range of homes you’re considering. If you can come up with 20 percent, then you’re in a position to wave the appraisal contingency for financing with the bank. The more you have in cash, the better.
Take-It-Or-Leave-It Home Inspection
This means that based on the home inspection, you’ll take the property with all its issues, or you’ll walk away. What you won’t do is ask the seller to waste more of their time and money fixing every little problem that’s found.
Fees
Waive the seller concessions, such as closing costs and the home warranty, and pay your real estate broker’s fees. These extra costs add up in the mind of the seller and will show that you really want the property.
Going up against cash buyers can be extremely discouraging. But, just because they’re dealing in cash doesn’t mean they’ll get the property. Many investors think they can put in a low offer because they’re dealing in cash.
So show you’re serious about a property, follow the steps above and put in your best offer. You’ll be a homeowner soon enough!
Bonus Tip – Get Pre-Approved NOT Pre-Qualified
What’s the difference?
Getting pre-qualified – is the initial step in the mortgage process, and it’s generally fairly simple. You supply a bank or lender with your overall financial picture, including your debt, income and assets. After evaluating this information, a lender can give you an idea of the mortgage amount for which you qualify. Pre-qualification can be done over the phone or on the internet, and there is usually no cost involved. Loan pre-qualification does not include an analysis of your credit report or an in-depth look at your ability to purchase a home.
Getting pre-approved - is the next step, and it tends to be much more involved. You’ll complete an official mortgage application (and usually pay an application fee), and then supply the lender with the necessary documentation to perform an extensive check on your financial background and current credit rating. (Typically at this stage, you will not have found a house yet, so any reference to “property” on the application will be left blank). From this, the lender can tell you the specific mortgage amount for which you are approved. You’ll also have a better idea of the interest rate you will be charged on the loan and, in some cases, you might be able to lock-in a specific rate. With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. Obviously, this puts you at an advantage when dealing with a potential seller, as he or she will know you’re one step closer to obtaining an actual mortgage.
In a competitive market, this lets the seller know that your offer is serious – and could prevent you from losing out to another potential buyer who is paying cash, or already has financing arranged.
Once you have found the right house for you, you’ll fill in the appropriate details and your pre-approval will become a complete application.
Extracted from http://www.michaelsmortgageblog.com
Mark Vandervest, Principal Broker
Mark Vandervest, P.C.
Extraordinary Real Estate Representation &
Property Management
503-941-0775 Office
503-941-0776 Fax
www.TheOregonBroker.com
However, you’re not the only one that loves the home, because there are multiple offers — and one of them is cash.
Cash buyers are seen as desirable because they’re almost always a guaranteed quick close.
They don’t have to borrow money from a bank therefore won’t have any financing hang-ups, which is where a large portion of offers fall through. Don’t worry; not all hope is lost.
Follow the steps below to beef up your offer and get your foot in the door.
Less Expensive Homes
If you’ve put offers in on homes at the asking price and are continually beat out by buyers that are paying more, then you might want to consider looking in a lower price range. This is an especially smart strategy for those living in fast-selling markets. By looking at less expensive homes, you can be the one that puts in an offer over the asking price.
20 Percent Down Payment
Save up a higher down payment for the price range of homes you’re considering. If you can come up with 20 percent, then you’re in a position to wave the appraisal contingency for financing with the bank. The more you have in cash, the better.
Take-It-Or-Leave-It Home Inspection
This means that based on the home inspection, you’ll take the property with all its issues, or you’ll walk away. What you won’t do is ask the seller to waste more of their time and money fixing every little problem that’s found.
Fees
Waive the seller concessions, such as closing costs and the home warranty, and pay your real estate broker’s fees. These extra costs add up in the mind of the seller and will show that you really want the property.
Going up against cash buyers can be extremely discouraging. But, just because they’re dealing in cash doesn’t mean they’ll get the property. Many investors think they can put in a low offer because they’re dealing in cash.
So show you’re serious about a property, follow the steps above and put in your best offer. You’ll be a homeowner soon enough!
Bonus Tip – Get Pre-Approved NOT Pre-Qualified
What’s the difference?
Getting pre-qualified – is the initial step in the mortgage process, and it’s generally fairly simple. You supply a bank or lender with your overall financial picture, including your debt, income and assets. After evaluating this information, a lender can give you an idea of the mortgage amount for which you qualify. Pre-qualification can be done over the phone or on the internet, and there is usually no cost involved. Loan pre-qualification does not include an analysis of your credit report or an in-depth look at your ability to purchase a home.
Getting pre-approved - is the next step, and it tends to be much more involved. You’ll complete an official mortgage application (and usually pay an application fee), and then supply the lender with the necessary documentation to perform an extensive check on your financial background and current credit rating. (Typically at this stage, you will not have found a house yet, so any reference to “property” on the application will be left blank). From this, the lender can tell you the specific mortgage amount for which you are approved. You’ll also have a better idea of the interest rate you will be charged on the loan and, in some cases, you might be able to lock-in a specific rate. With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to look for a home at or below that price level. Obviously, this puts you at an advantage when dealing with a potential seller, as he or she will know you’re one step closer to obtaining an actual mortgage.
In a competitive market, this lets the seller know that your offer is serious – and could prevent you from losing out to another potential buyer who is paying cash, or already has financing arranged.
Once you have found the right house for you, you’ll fill in the appropriate details and your pre-approval will become a complete application.
Extracted from http://www.michaelsmortgageblog.com
Mark Vandervest, Principal Broker
Mark Vandervest, P.C.
Extraordinary Real Estate Representation &
Property Management
503-941-0775 Office
503-941-0776 Fax
www.TheOregonBroker.com
Sunday, August 4, 2013
Real Estate Open House: Doorway To Trouble?
Extracted from Marilyn Lewis’ blog on July 23, 2013:
You may think you have nothing to lose by employing this traditional marketing tactic. But critics say that's not true -- and your agent has more to gain than you do.
Now that real estate has emerged from its coma and more would-be sellers are listing their homes for sale, it's worth asking whether a seller's open house, that traditional marketing technique of real estate agents, is worth the effort.
Open houses are more effective at marketing real estate agents than they are at selling homes, critics say. They also present an opening for thieves who pretend to be homebuyers but in fact are there to steal the owner's belongings or to case the joint with the idea of returning later.
For buyers, searching for a home has changed with the Internet. That would seem too obvious to bother pointing out except that the numbers are so interesting. A National Association of Realtors 2012 survey of homebuyers and sellers found that:
· In 2003, 16% of homebuyers surveyed found their new home through a yard sign or open house (the survey did not distinguish).
· In 2012, just 10% found their home through a yard sign or open house ("The Internet has edged out all other sources in the process," the report says").
· Most (41%) buyers today go online first to learn about homes for sale.
· Just 3% turn first to an open house to learn about properties for sale.
In defense of open houses:
Despite this shrinking effectiveness of the open house as a marketing tool, 55% of sellers surveyed said they'd used one. And, as NAR spokesman Walt Molony points out in an email, 45% of buyers -- even more than in the late '90s -- do attend them.
"Not well understood is the fact that open houses also are attended by real estate agents, where they learn firsthand about properties that may be of interest to their buyer clients. So while a buyer may not have first learned about the home they purchased through an open house, their real estate agent may have," Molony says.
In the experience of Seattle broker Ray Akers, though, open houses are "a waste of time."
"No one has ever walked in and said, 'I love it. Where do I sign?'" he says. "People walk onto a car lot and buy a car. People don't do that with houses."
Agents typically advise their sellers to lock up or remove valuables and prescriptions, but Akers still worries about thieves who lift unsecured items from the home or who visit to learn the layout and vulnerabilities so they can make a return visit later.
Thieves worked an open house "I don't think it's wise to have an open house in an occupied house," Akers says, talking by phone. He recalls staffing an open house once when a couple distracted him while, he later learned, their associate rifled through drawers in another room. Fortunately, the home was vacant.
"The following day it was reported that several open houses were hit by the threesome. Had my open house been an occupied home, they could have walked out with valuables, prescription medicine, or my client's I.D," Akers says.
Need help with real estate?
Call me.
Mark Vandervest, Principal Broker
Mark Vandervest, P.C.
Extraordinary Real Estate Representation!
503-941-0775 Office
503-941-0776 Fax
www.TheOregonBroker.com
You may think you have nothing to lose by employing this traditional marketing tactic. But critics say that's not true -- and your agent has more to gain than you do.
Now that real estate has emerged from its coma and more would-be sellers are listing their homes for sale, it's worth asking whether a seller's open house, that traditional marketing technique of real estate agents, is worth the effort.
Open houses are more effective at marketing real estate agents than they are at selling homes, critics say. They also present an opening for thieves who pretend to be homebuyers but in fact are there to steal the owner's belongings or to case the joint with the idea of returning later.
For buyers, searching for a home has changed with the Internet. That would seem too obvious to bother pointing out except that the numbers are so interesting. A National Association of Realtors 2012 survey of homebuyers and sellers found that:
· In 2003, 16% of homebuyers surveyed found their new home through a yard sign or open house (the survey did not distinguish).
· In 2012, just 10% found their home through a yard sign or open house ("The Internet has edged out all other sources in the process," the report says").
· Most (41%) buyers today go online first to learn about homes for sale.
· Just 3% turn first to an open house to learn about properties for sale.
In defense of open houses:
Despite this shrinking effectiveness of the open house as a marketing tool, 55% of sellers surveyed said they'd used one. And, as NAR spokesman Walt Molony points out in an email, 45% of buyers -- even more than in the late '90s -- do attend them.
"Not well understood is the fact that open houses also are attended by real estate agents, where they learn firsthand about properties that may be of interest to their buyer clients. So while a buyer may not have first learned about the home they purchased through an open house, their real estate agent may have," Molony says.
In the experience of Seattle broker Ray Akers, though, open houses are "a waste of time."
"No one has ever walked in and said, 'I love it. Where do I sign?'" he says. "People walk onto a car lot and buy a car. People don't do that with houses."
Agents typically advise their sellers to lock up or remove valuables and prescriptions, but Akers still worries about thieves who lift unsecured items from the home or who visit to learn the layout and vulnerabilities so they can make a return visit later.
Thieves worked an open house "I don't think it's wise to have an open house in an occupied house," Akers says, talking by phone. He recalls staffing an open house once when a couple distracted him while, he later learned, their associate rifled through drawers in another room. Fortunately, the home was vacant.
"The following day it was reported that several open houses were hit by the threesome. Had my open house been an occupied home, they could have walked out with valuables, prescription medicine, or my client's I.D," Akers says.
Need help with real estate?
Call me.
Mark Vandervest, Principal Broker
Mark Vandervest, P.C.
Extraordinary Real Estate Representation!
503-941-0775 Office
503-941-0776 Fax
www.TheOregonBroker.com
Tuesday, July 30, 2013
Three Reasons to Buy that House NOW!
Here are three great reasons to consider buying a home today instead of waiting.
1.) Prices Will Continue to Rise
The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released last week projects appreciation in home values over the next five years to be between 12.3% (most pessimistic) and 32.8% (most optimistic). The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes any sense.
2.) Mortgage Interest Rates Are Increasing
As reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about one full percentage point over recent historic lows. The National Association of Realtors, the Mortgage Bankers Association, Freddie Mac and Fannie Mae, in their July forecasts, have all projected 30-year-fixed mortgage interest rates to be between 4.8 and 5.1% by this time next year. An increase in rates will impact YOUR monthly mortgage payment. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
3.) It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy. If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
Extracted from kcmblog.com on 7/30/13
Mark Vandervest, P.C.
Principal Real Estate Broker
503-941-0775 Office
503-941-0776 Fax
Beaverton, OR 97007
www.TheOregonBroker.com
1.) Prices Will Continue to Rise
The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released last week projects appreciation in home values over the next five years to be between 12.3% (most pessimistic) and 32.8% (most optimistic). The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes any sense.
2.) Mortgage Interest Rates Are Increasing
As reported by Freddie Mac, interest rates for 30-year fixed-rate mortgages have risen about one full percentage point over recent historic lows. The National Association of Realtors, the Mortgage Bankers Association, Freddie Mac and Fannie Mae, in their July forecasts, have all projected 30-year-fixed mortgage interest rates to be between 4.8 and 5.1% by this time next year. An increase in rates will impact YOUR monthly mortgage payment. Whether you are moving up or moving down, your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.
3.) It’s Time to Move On with Your Life
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise. But, what if they weren’t? Would you wait? Look at the actual reason you are buying and decide whether it is worth waiting. Whether you want to have a great place for your children to grow up, you want your family to be safer or you just want to have control over renovations, maybe it is time to buy. If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
Extracted from kcmblog.com on 7/30/13
Mark Vandervest, P.C.
Principal Real Estate Broker
503-941-0775 Office
503-941-0776 Fax
Beaverton, OR 97007
www.TheOregonBroker.com
Wednesday, October 6, 2010
When a Billionaire speaks... you might want to listen!
If HE Says It Is Time To Buy a Home, BUY A HOME!
October 5, 2010
“If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.”
– John Paulson 9/27/2010
WOW! That’s a powerful statement.
There is no question that John Paulson is a bull when it comes to residential real estate right now. Should we care what Mr. Paulson thinks? Should we listen to him? The answer to both questions is a resounding ‘YES’. Here are several reasons why.
Who is John Paulson?
Paulson is the person who made a fortune betting that the subprime mortgage mess would cause the the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson?
According to Forbes John Paulson is:
a multibillionaire hedge fund operator and the investment genius who made a killing going short subprime mortgages a few years ago.
According to the Wall Street Journal Paulson is:
a hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.
What did other financial players think of his statement?
The Wall Street Journal agrees with Paulson:
Ignore the critics. The odds have to be on his side… It isn’t just that home prices have fallen a long way. It’s also that, if you can get a mortgage, you are basically taking a reverse bet on the bond market. You could be a long-term borrower at fixed rates, instead of a long-term lender. Right now you can borrow for 30 years at around 4.3%. After the mortgage tax deduction, for some people the net effective interest rate is nearer to 3%. That’s going to prove an awesome deal if we see inflation again.
And Forbes said:
As this is the best time in 50 years to buy homes, Paulson advised his listeners to take 30 year mortgages to buy a home as “your debt and interest payments get locked in at record lows, while the price of your home will rise.”
Are others also saying now is the time to buy?
Just last week, we posted that there is a growing number of people saying that NOW is the time to buy, including:
The Wall Street Journal
Professor Karl Case, founder of the Case Shiller House Pricing Index
The wealthiest families in the country and
70% of everyone else in America
Bottom Line
Thinking of buying a home? Are you taking advice from a friend or family member telling you that now is not the time? It may be time to listen to people who better understand the opportunities that exist in real estate today.
It is important to know the market when purchasing a home, as well as the guidelines that will need to be followed if you will require financing. As always, I am here to help. If you, or anyone you know, are thinking about buying or selling a home, please call or e-mail me. My goal is to make the complicated seem easy, without pressure, and keep you ahead of the market.
Best regards,
Mark Vandervest, Principal Broker
RE/MAX Equity Group, Inc.
9790 SW Nimbus Avenue
Beaverton, OR 97008
503-495-4973 Office
503-319-5848 Cell
Email | Website | Facebook | LinkedIn | Twitter | Blogger
Now… more than ever…
~ There is simply no substitute for experience. ~
“People Before Profit… Reputation Before Revenue!”
Copyright© 2010, Mark Vandervest, P.C. – All rights reserved.
No portion may be reproduced without express written permission of Mark Vandervest, P.C.
October 5, 2010
“If you don’t own a home, buy one. If you own one home, buy another one. And if you own two homes, buy a third and lend your relatives the money to buy one.”
– John Paulson 9/27/2010
WOW! That’s a powerful statement.
There is no question that John Paulson is a bull when it comes to residential real estate right now. Should we care what Mr. Paulson thinks? Should we listen to him? The answer to both questions is a resounding ‘YES’. Here are several reasons why.
Who is John Paulson?
Paulson is the person who made a fortune betting that the subprime mortgage mess would cause the the real estate market to collapse. He understands how the housing market works and knows when to buy and when to sell. What do others think of Paulson?
According to Forbes John Paulson is:
a multibillionaire hedge fund operator and the investment genius who made a killing going short subprime mortgages a few years ago.
According to the Wall Street Journal Paulson is:
a hedge fund tycoon who made his name, and a fortune, betting against subprime mortgages when no one else even knew what they were.
What did other financial players think of his statement?
The Wall Street Journal agrees with Paulson:
Ignore the critics. The odds have to be on his side… It isn’t just that home prices have fallen a long way. It’s also that, if you can get a mortgage, you are basically taking a reverse bet on the bond market. You could be a long-term borrower at fixed rates, instead of a long-term lender. Right now you can borrow for 30 years at around 4.3%. After the mortgage tax deduction, for some people the net effective interest rate is nearer to 3%. That’s going to prove an awesome deal if we see inflation again.
And Forbes said:
As this is the best time in 50 years to buy homes, Paulson advised his listeners to take 30 year mortgages to buy a home as “your debt and interest payments get locked in at record lows, while the price of your home will rise.”
Are others also saying now is the time to buy?
Just last week, we posted that there is a growing number of people saying that NOW is the time to buy, including:
The Wall Street Journal
Professor Karl Case, founder of the Case Shiller House Pricing Index
The wealthiest families in the country and
70% of everyone else in America
Bottom Line
Thinking of buying a home? Are you taking advice from a friend or family member telling you that now is not the time? It may be time to listen to people who better understand the opportunities that exist in real estate today.
It is important to know the market when purchasing a home, as well as the guidelines that will need to be followed if you will require financing. As always, I am here to help. If you, or anyone you know, are thinking about buying or selling a home, please call or e-mail me. My goal is to make the complicated seem easy, without pressure, and keep you ahead of the market.
Best regards,
Mark Vandervest, Principal Broker
RE/MAX Equity Group, Inc.
9790 SW Nimbus Avenue
Beaverton, OR 97008
503-495-4973 Office
503-319-5848 Cell
Email | Website | Facebook | LinkedIn | Twitter | Blogger
Now… more than ever…
~ There is simply no substitute for experience. ~
“People Before Profit… Reputation Before Revenue!”
Copyright© 2010, Mark Vandervest, P.C. – All rights reserved.
No portion may be reproduced without express written permission of Mark Vandervest, P.C.
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