Saturday, October 27, 2007
Local Marketing is Best
Dear Sue
I think my real estate agent should advertise my house in the Bay Area. Our market here may be down but the people from the Bay Area come here with a lot of money, and in comparison to their market, our prices look great.
My agent said that she is reluctant to advertise anywhere out of our local area but she will advertise anywhere I want as long as I pay for it. She said that she would pay me back at the close of escrow.
Why is she so set against advertising in other areas? Isn’t getting more exposure the idea?
I would like your opinion on this matter.
Advertising Annie
Dear Annie,
You are right. Exposure is key. In order to get the highest possible price in the most reasonable amount of time a property must be exposed to as many ready, willing and able buyers at any given time as possible.
However, the exposure must be targeted, and the target should be where you will find most buyers. This is known as “target marketing” and where one gets “the biggest bang for their buck.”
If your target is “the buyer” who is shopping for a home in your area, one would be wise to advertise locally. Placing advertisements in newspapers outside your market area in hopes of snagging a homebuyer is like trying to catch Marlin in a trout stream. I am not saying it won’t happen but the odds are really low.
Real estate advertising needs to be in the local newspapers in the community where your home is located. For example; if I wanted to move to Grass Valley I wouldn’t pick up the San Francisco Chronicle, just as I wouldn’t pick up the Grass Valley Union to find a home in San Francisco.
To advertise in the Chronicle is very expensive for very little response, if any at all. One would be better off placing several ads in the local paper instead of just placing one expensive ad in the Chronicle.
Another target is the group of people who sell homes. As I said earlier, nine out of ten home sales occur with a broker. The most important exposure that a Realtor can offer his or her client is exposure to other brokers in the Multiple Listing Service. This data bank is the way that brokers know what properties are available.
A wise broker spends a great deal of time and money marketing to other brokers. If most sales originate with brokers, I know that brokers need to know what inventory I have for sale. This greatly increases the chances of selling that property.
Let your agent continue her efforts to market your home locally. It’s a Matter of Good Home $$s and Sense.
I think my real estate agent should advertise my house in the Bay Area. Our market here may be down but the people from the Bay Area come here with a lot of money, and in comparison to their market, our prices look great.
My agent said that she is reluctant to advertise anywhere out of our local area but she will advertise anywhere I want as long as I pay for it. She said that she would pay me back at the close of escrow.
Why is she so set against advertising in other areas? Isn’t getting more exposure the idea?
I would like your opinion on this matter.
Advertising Annie
Dear Annie,
You are right. Exposure is key. In order to get the highest possible price in the most reasonable amount of time a property must be exposed to as many ready, willing and able buyers at any given time as possible.
However, the exposure must be targeted, and the target should be where you will find most buyers. This is known as “target marketing” and where one gets “the biggest bang for their buck.”
If your target is “the buyer” who is shopping for a home in your area, one would be wise to advertise locally. Placing advertisements in newspapers outside your market area in hopes of snagging a homebuyer is like trying to catch Marlin in a trout stream. I am not saying it won’t happen but the odds are really low.
Real estate advertising needs to be in the local newspapers in the community where your home is located. For example; if I wanted to move to Grass Valley I wouldn’t pick up the San Francisco Chronicle, just as I wouldn’t pick up the Grass Valley Union to find a home in San Francisco.
To advertise in the Chronicle is very expensive for very little response, if any at all. One would be better off placing several ads in the local paper instead of just placing one expensive ad in the Chronicle.
Another target is the group of people who sell homes. As I said earlier, nine out of ten home sales occur with a broker. The most important exposure that a Realtor can offer his or her client is exposure to other brokers in the Multiple Listing Service. This data bank is the way that brokers know what properties are available.
A wise broker spends a great deal of time and money marketing to other brokers. If most sales originate with brokers, I know that brokers need to know what inventory I have for sale. This greatly increases the chances of selling that property.
Let your agent continue her efforts to market your home locally. It’s a Matter of Good Home $$s and Sense.
Friday, October 26, 2007
Thinking Outside the Short Sale Box
Dear Sue
I was one of those homebuyers who bought at the peak of the market, June of 2005. I could barely qualify to buy the property. I was lucky to get an introductory interest rate at just 3%. Even at this low rate it takes everything I have to make the payment.
The lender told me that the interest rate would go up in three years. That means that I have until June of 2008 to sell my home. I tried to refinance but my lender said that my house doesn’t appraise for enough to get the loan I need.
I really want to keep my home but selling seems like my only option. I have been interviewing real estate agents hoping to get one that will get me out of this mess. One of them suggested that I stop making payments and let the bank foreclose on me. Another agent suggested that I ask my lender if I can do a short sale.
This is all very confusing to me and I can’t say that I like any of these suggestions because I would really like to protect my credit. Call me old fashioned but I am not comfortable walking away from a commitment.
I am looking for alternatives. Do you have any suggestions?
Trapped Ted
Dear Ted
First of all, you must have all the information before you can make any decisions. Many people in your position feel a great deal of shame and choose to put their head in the sand. These people usually end up in foreclosure and surprised when Uncle Sam sends them a tax bill.
Your search for alternatives is a great way to start taking control of your situation.
Before going the short sale or foreclosure route consult a trusted tax professional. Find out if the loses on a foreclosure or short sale are deductible or taxable. It is important that you understand the tax impact of discharging debt. The IRS currently considers debt relief the same as income.
Since you say that you would like to keep your home I want you to know that in past downturns in the real estate market I have seen homeowners get partners that share in the current debt and future appreciation. They make agreements that when the property is sold in the future they share in the appreciation. These partners can be friends, family members or investors. No matter what your relationship, it is imperative that you have your partnership agreement drawn up by a good real estate attorney.
Renting out a portion of your home is also something to consider. Think about renting out a room or two. Do you have pastures or storage buildings to rent? This extra income can offset your mortgage payment.
Maybe you have other valuable assets that you can sell such as rare stamp or coin collections, antiques, extra vehicles, boats, planes, trains, etc.?
Talk to your parents or grandparents about gifting your inheritance now. Many parents or grandparents would love to see their children enjoy their inheritance while they are still alive. Would they consider a loan against the inheritance?
Contact your lender and ask what they have available as an alternative to foreclosure or short sale. The Federal government as well as the lenders do not want to see people lose their homes. They are creating programs as I write, designed to help people to keep their homes.
I am sure there are number of other alternatives for you. Keep asking your friends, family and other professionals. Get on the Internet and Google for options.
There may be programs in the works that can help if you just do your research and hold on a while longer.
Thinking outside the foreclosure and short sale box is a Matter of Good Home $$s and Sense.
I was one of those homebuyers who bought at the peak of the market, June of 2005. I could barely qualify to buy the property. I was lucky to get an introductory interest rate at just 3%. Even at this low rate it takes everything I have to make the payment.
The lender told me that the interest rate would go up in three years. That means that I have until June of 2008 to sell my home. I tried to refinance but my lender said that my house doesn’t appraise for enough to get the loan I need.
I really want to keep my home but selling seems like my only option. I have been interviewing real estate agents hoping to get one that will get me out of this mess. One of them suggested that I stop making payments and let the bank foreclose on me. Another agent suggested that I ask my lender if I can do a short sale.
This is all very confusing to me and I can’t say that I like any of these suggestions because I would really like to protect my credit. Call me old fashioned but I am not comfortable walking away from a commitment.
I am looking for alternatives. Do you have any suggestions?
Trapped Ted
Dear Ted
First of all, you must have all the information before you can make any decisions. Many people in your position feel a great deal of shame and choose to put their head in the sand. These people usually end up in foreclosure and surprised when Uncle Sam sends them a tax bill.
Your search for alternatives is a great way to start taking control of your situation.
Before going the short sale or foreclosure route consult a trusted tax professional. Find out if the loses on a foreclosure or short sale are deductible or taxable. It is important that you understand the tax impact of discharging debt. The IRS currently considers debt relief the same as income.
Since you say that you would like to keep your home I want you to know that in past downturns in the real estate market I have seen homeowners get partners that share in the current debt and future appreciation. They make agreements that when the property is sold in the future they share in the appreciation. These partners can be friends, family members or investors. No matter what your relationship, it is imperative that you have your partnership agreement drawn up by a good real estate attorney.
Renting out a portion of your home is also something to consider. Think about renting out a room or two. Do you have pastures or storage buildings to rent? This extra income can offset your mortgage payment.
Maybe you have other valuable assets that you can sell such as rare stamp or coin collections, antiques, extra vehicles, boats, planes, trains, etc.?
Talk to your parents or grandparents about gifting your inheritance now. Many parents or grandparents would love to see their children enjoy their inheritance while they are still alive. Would they consider a loan against the inheritance?
Contact your lender and ask what they have available as an alternative to foreclosure or short sale. The Federal government as well as the lenders do not want to see people lose their homes. They are creating programs as I write, designed to help people to keep their homes.
I am sure there are number of other alternatives for you. Keep asking your friends, family and other professionals. Get on the Internet and Google for options.
There may be programs in the works that can help if you just do your research and hold on a while longer.
Thinking outside the foreclosure and short sale box is a Matter of Good Home $$s and Sense.
Thursday, October 25, 2007
Are Home Sales Seasonal?
Dear Sue
It is raining. The days are getting shorter and the nights are getting colder.
My husband and I have spent the entire summer getting our house ready for sale. We had no idea that it would take so long. Our plan was to have it on the market last August.
Now that we are finally finished, my husband thinks we should just get our house on the market right away. I think we should wait until March or April of next year when everything is green. I don’t think our house will sell with winter coming on and the holidays right around the corner. I think people have other things on their minds.
My husband argues that we should just do it. He retires in December and wants to move to a warmer climate. I think that with so many homes on the market now and the winter months upon us we should wait until spring. What do you think, Sue?
Ready Retiree
Dear Ready
Since timing is critical in Real estate, “when” to put your home on the market is a very important consideration.
Most home sellers believe that spring is “the” time to sell. It is true that nature is putting on one of its best shows and everything is beautiful. People are also energized and feel like getting out and about.
The problem with putting one’s home on the market in the spring is that most everyone else does it too! I call it the spring glut. Presently we have an unusually high level of inventory and spring will bring even more. The abundance of competition puts the seller at a disadvantage. The more choices the buyer has the more he or she is able to negotiate.
Home buying and selling is not a seasonal enterprise. Realtors are not seasonal workers rolling in and out of an area every spring. In my career December has been one of the busiest months. I have actually sold homes and land on Christmas Eve.
The best time for homebuyers to buy is when they need to. The best time for home sellers to sell is when they are ready. You spent the entire summer getting your home in top condition. It probably looks great! Get it on the market now.
Marketing your home when it looks it’s best and you are ready is a matter of good home dollars and sense.
It is raining. The days are getting shorter and the nights are getting colder.
My husband and I have spent the entire summer getting our house ready for sale. We had no idea that it would take so long. Our plan was to have it on the market last August.
Now that we are finally finished, my husband thinks we should just get our house on the market right away. I think we should wait until March or April of next year when everything is green. I don’t think our house will sell with winter coming on and the holidays right around the corner. I think people have other things on their minds.
My husband argues that we should just do it. He retires in December and wants to move to a warmer climate. I think that with so many homes on the market now and the winter months upon us we should wait until spring. What do you think, Sue?
Ready Retiree
Dear Ready
Since timing is critical in Real estate, “when” to put your home on the market is a very important consideration.
Most home sellers believe that spring is “the” time to sell. It is true that nature is putting on one of its best shows and everything is beautiful. People are also energized and feel like getting out and about.
The problem with putting one’s home on the market in the spring is that most everyone else does it too! I call it the spring glut. Presently we have an unusually high level of inventory and spring will bring even more. The abundance of competition puts the seller at a disadvantage. The more choices the buyer has the more he or she is able to negotiate.
Home buying and selling is not a seasonal enterprise. Realtors are not seasonal workers rolling in and out of an area every spring. In my career December has been one of the busiest months. I have actually sold homes and land on Christmas Eve.
The best time for homebuyers to buy is when they need to. The best time for home sellers to sell is when they are ready. You spent the entire summer getting your home in top condition. It probably looks great! Get it on the market now.
Marketing your home when it looks it’s best and you are ready is a matter of good home dollars and sense.
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