How DO buyers search for homes?

This weekend, March 26-27th, 2011, Florida Realtors held a Statewide open house event. The entire weekend was a chance for buyers to see thousands of homes for sale from the panhandle to the Florida Keys. Locally, the Tallahassee Board of Realtors have over 245 homes open for buyers and sellers to view.

However, there are some facts that I wonder if others have noticed.  Local Realtors have had months to prepare for this weekend. Many of us are participating by holding multiple houses open, using this opportunity to showcase as many of their listings as possible. Yet, inevitably, there are those who elected not to participate. There are also reports from others of open houses with no attendance, others open for 2 – 4 hours with one showing, etc. (more…)

How Much Is My Tallahassee, FL Home Worth?

Determining a price when selling a home warrants careful evaluation and knowledge of market conditions. Today I met with sellers who paid a premium for a second home in Tallahassee in 2006.  Today they are considering selling, as they plan for their future  retirement. They  live in another State, and are likely to retire in South Florida. So at our seller’s consultation we discussed the following:

• Reasons for Selling (Which I just explained above)
• Timeline for Selling (No rush, they are enjoying having the home for now and being close to their child, but making plans to build on a lot in South Florida)
• Market Conditions ( for this home, 6 months ago, there was 9 months of inventory, today there is 31 months.)
• Pricing (Again, they bought at the height of the market. Since then, our area has had a 25% reduction in value across this neighborhood)

Although it may not seem like the sellers should be in  hurry to sell, here is what they might want to consider:

1. 20% was placed as a downpayment on the property. Market value today is 25% less than what you paid for the home. Taxes are based on non-resident, non-homesteaded value. There are maintenance, and mortgage costs of approximately $21,000 per year. Time spent in the home is approximately 2 months of the year. That’s $10,500 per month. Is this a good use of your money?
2. Your timeline is no rush, but maybe it would help to think of comparing the cost of owning this home to renting a home or small apartment for the 2 months out of the year that you are in town. Rent for 2 months, fully furnished 2 Bedroom 2 Bath apartment costs approximately $3000. That’s an annual savings of $18,000. Secondly, we are coming into a selling season, this is when buyer’s are looking, this is when your best chances for a sale are in this area. Waiting will only decrease your exposure to the number of buyers that are looking.
3. Market Conditions presently and historically indicate more inventory will come into the market in the Spring and summer months. Pricing and home conditions are the driving forces for sales today. Secondly, there simply are not enough buyers to keep values growing at this time, nor in the foreseeable future. Capturing a buyer today means, price it right, make it shine. Period.
4. Pricing: As mentioned, we have had a 20% reduction in sales, there goes your 20% deposit you placed on the property. The improvements you made to correct a drainage issue (which likely should have been addressed when the property was purchased), are likely not to be recovered. What making these major repairs will do, however, is keep a buyer in the game, because they would most likely not have that cash money to fix the issue, nor the experience to know how to address a major issue such as this. They would simply walk away. (A topic for another day, would be how Realtors help hold transactions together by providing or arranging quotes on repairs, or remodels that would work for their customers.)

Is it the right time to sell?  If you are realistic about home prices and market conditions, then, yes. This discussion, although hard to swallow, was frank, factual and forthright. There is no other way to discuss listings today. Holding a seller hostage by overpricing a listing is neither an ethical or professional service that any Realtor should represent. Most seller’s are appreciative of the facts, and the ones who are not will interview enough agents until someone tells them what they want to hear. Unfortunately, great Realtors will be picking up the pieces at the end of those listing terms.

As I am writing this post, another agent is telling me the story of her transaction today. A Buyer made an offer on the home and the appraisal is $20,000 lower than the contract price. The selling agent admits he let the seller set the price on the listing. How does that make him look now? Was it fair for the selling agent to take the listing at an overpriced amount? Who won here?

If you want an honest, ethical, professional opinion on the value of your home by a Realtor who knows the facts on pricing, market condition,  timing for the sale of your Tallahassee, FL home, then call on our team. Together, we will accomplish your goals and design a marketing plan suitable for selling your Tallahassee, Florida home. Click here for a FREE Selling Guide.

Other considerations might be, hold the property and lease it. Treat it as a long term investment, (which unless you can afford to walk away from cash, you should consider anytime you purchase a home with a mortgage.) That is another blog.

Mr. and Mrs. Home Buyer, what’s the thing you hate most about home shopping? I bet I know! ( been around long enough to hear the stories). Could it be that you are riding around, calling on real estate signs and getting different Realtor every time you call. I bet before you get home, you’ve got 15 home listings in your email,… from 15 different Realtors. Congratulations  you have just become a “Drip!”

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I love social media. When browsing the not so small world that we live in, where we are all probably a little more connected than we realize occasionally you stumble on things that surprise you. Sometimes these are welcome surprises such as realizing that your friends are friends with your other friends and you never made that connection until you see them holding the babies of your loved ones, or enjoying parades or parties together. Those are the feel good moments of our social media world.

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Oh the things you learn at Real Estate BarCamps or technology conferences. Being in real estate is about changing with the times. The Time for learning innovative marketing techniques and ways to give savvy buyers “Quick Responses” that can be viewed on the go has arrived. These “QR” codes can be viewed by smartphones with QR Code Reader Applications such as Google Goggles for your Android Phone, or several  iPhone QR readers and several others. The apps lead you to photograph the code, then translate that to the website where you can view more information.

So what would a Realtor want with this kind of contraption? Well, how many times do sellers ask, “How many people have you shown my home to?” or “Is anyone looking at my home?” QR Codes allow Realtors to track who is seeing their listings, and give us information on those people such as what kinds of people are interested in it so that we can adjust marketing plans and niche market.

These codes are put into websites, into marketing materials, magazines and print advertising, and even on real estate signs! (Coming this week to Debbie Kirkland’s Listings!)

There is certainly a shift in marketing. Shifts not only in marketing listings, or locating buyers, but in how Realtors market themselves. I spend a lot of time asking buyers and sellers what they want in a Realtor. I have found buyers and sellers want to work with a real estate agent utilizing the most innovative, productive marketing tools to help them reach their goals, and one that is resourceful and respectful of making the most of their customer’s time. Time management, organization, data production ~ customers want to cut to the chase and to accomplish their goals more effectively and efficiently. It’s more and more about timely communication and depth of marketing outreach.

So, forward thinking we go… watch for QR Codes on my listings soon! If you see one, send it to your friends! Get your reader and take a look at this new listing and the message above!

Want a Marketing plan for your home that reaches more buyers, want a QR Code for your home?

Boy! HGTV has set some pretty high standards for sellers, buyers and Realtors. Our expectations of the perfectly staged home, the immaculate house cleaning on an hours notice with the picture-perfect set of toddler triplets who live in a seemingly storefront bubble is what we have grown to expect.  However, that’s not the average person’s reality, now is it?

Often, we catch people rushing to make dinner for their families, interrupting visits with families, attending sick loved ones (including the furry sort). Timing is not often perfect, and life happens. As sellers we often wait for those buyers who are running late with their Realtors as well. Usually, there is a reason..we are showing on an average 15 – 30 listings before the buyers can make a decision. There are issues with buyers as well, mobility issues, children in tow or parent’s tagging along.  Patience is a virtue in the real estate business.

As Realtors we want you to focus on what is important as you are looking at a home, or prepping your home for sale. Prepare for your appointment, look over these Home-Buyer FAQ’s.

Focus on structural and functional details, imagine how furniture will fit in a room, research property taxes and flood zones. A little less time sitting on furniture, looking at baby pictures and let’s give this family their home back, for now!

Sellers, we have a goal, to make a sale. Get ready to sell. If it’s not perfect it doesn’t have to be upside down. If it is, reschedule.

Yes, I’ve seen some sites while showing property, some have impressed me, some have annoyed me, and some have taken my breath away, (positively and negatively).  I’m a Realtor, but more, I’m human and I understand how people live and care for the things they value or don’t value. It takes all kinds of people to make the world go ’round and if you really want to get hung up on all that, there’s lots of reality tv shows you can watch!

As for my customers, they will be taken care of and prepared for their showing appointments and their listing presentations, as well as they can, but… we may be late from time to time.

If you are thinking of selling your home.. and you believe it could be a candidate for a first time home buyer…and you want to move up… do not miss your opportunity! the 2010 Tax-credit for first time buyers, along with other first time home-buyer monies are about to come to an end. When that happens, it may be some time before you can expose your home again to the numbers of people that are buying right now!

The deadline for a first time buyer to be in contract is April 30th. The deadline for that buyer to close is June 30th. that leaves you about 2 months now to get your house on the market and get it sold!  If you are thinking of moving up.. do it now!! The chances of selling your home after these two months are decreasing every day! The economists are not optimistic on what will happen with no credit and tightening home-buyer qualification processes. Don’t delay. Click here for a FREE HOME VALUATION today!

This is what happened this week.. a first time home buyer came to me in search of a home..under $110,000. (In my experience most of these buyers are purchasing homes under $150,000 and using down-payment assistance programs.) The buyer came to me pre-qualified (which can take weeks or months for some buyers who have credit issues or verification issues). Within a few days we had “virtually” previewed these homes and after feedback from me on many that I had already seen with other first time home-buyers, we set out to see homes that would work for these buyers.

Granted,.. in Tallahassee, it is RARE to find a property under $110,000 that is is great shape,.. and “woo’s” the buyers. We found that property. It had been on the market just 17 days.. and probably did not sell because the pictures did not do it justice on the MLS. What a thrill, and the buyers saw it near the end of their search, after seeing other properties that needed much work. Getting a home ready to sell makes all the difference in a quick sale and a tired, unseen listing?

This contract went well, buyer and seller negotiated with the help of their REALTORS what I feel like is a fair transaction, no one having an advantage over another and we are on our way with the steps that follow.

We will use Tallahassee Lender’s Consortium for available down-payment assistance funds because I recognized that these buyers qualify based on their income for the use of these funds. We negotiated for a portion of closing costs to be paid by the seller and the buyer’s could not be more appreciative to have this purchase opportunity. using these funds will enable them to keep their down-payment money in their pockets for furnishings, for a roof replacement reserve, (upon my advice), and moving expenses.

We are on our way! I am thrilled for my first time home-buyers!

Buyers, if you want to know where to begin.. take a look at these 9 Steps To home Ownership and make an appointment today to meet with me to plan your next move! Register for your FREE Buying Guide!

In a market where there is a large supply of homes, what sets your home apart from the others? What will make your home more appealing, and what will bring a higher sales price?  Today’s buyers are shopping for three things: The best priced home, the most affordable monthly payment and financing, and the home in the best condition. Few buyers have money to make changes or repairs. Consult a REALTOR for the best pricing strategy..and don’t fudge by “testing” the market..you will waste valuable time. Few loan programs allow hold-backs for repairs, so having your home in great shape is key in selling quickly.

Here are 8 budget-minded projects to consider when preparing your home for sale:

1. Organize and clean your kitchen cabinets. Having space makes people feel there is room for their “stuff.”

2. Add or replace tile. Adding a backsplash looks expensive, but tile can be found for bargains.

3. Install granite or marble tile instead of slab granite. You can save thousands this way!

4. Freshen your Bathroom. Scrape nasty tile grout and re-grout. Change medicine cabinets, faucets, and lighting to match and update.

5. Paint Dark paneling and trim. Unless your home is a farmhouse… a splash of tinted color makes white trim “pop” and a room feel instantly clean. Note: Don’t’ paint unless you are good at it! Hire a professional.

6. Look Up! Change and clean return air ducts, ceiling fans and light fixtures. If it’s dirty, it is an immediate turn-off to buyers.

7. Address your Front Door. Does it need paint, hardware, replacement? The front door and entry sets the mood for the house. Check your lighting here too!

8. Make your Garage look like a garage. Do you use it for storage, or is it a home for your vehicles? Nothing is better than driving into a garage on a rainy day!

Small investments like these can make the difference in your home selling or sitting on the market. Immaculate SELLS! Roll your sleeves up for profits!

Did you know that a Realtor is bound to continue their education according to the National Association of Realtors Code of Ethics?  Ethics training is paramount and after this comes all that goes into maintaining knowledge of every aspect of an industry that changes more than just about any other industry. Changes in market conditions, real estate law, financing and underwriting, zoning regulations and even building codes to name a few. Few customers realize the amount of education required of Realtors, not just for continuing education, but in achieving designations and certificates of study.

If that is not enough, learning how to effectively market properties, utilizing the latest technology and tools available keeps one not only ahead of competition, but enhances all listings by giving them greater visibility in todays marketplace.   We are moving toward technology in every aspect of our lives, who knew Realtors would need an understanding of technology to be effective marketers?  It is mind boggling considering most Realtors, when they began their careers had virtually no marketing experience. Many veteran agents have time under their belt, but do they use current marketing tools? It is a question customers must ask of their agents prior to listing with a Realtor.

Todays agents must be masters at listings, sales, and marketing.  All of these things are imperative to success. All of these change often, and all are changing with advent of social media avenues. Avenues for finding buyers and sellers and investors have changed.  Marketing methodology has morphed. A good Realtor will know what is working and what is time-worn and ineffective.

Over the past two years my marketing strategies have changed. I’m an avid reader and have been watching trends move from print advertising to the tools that today’s buyer and sellers use on a daily basis. I have attended seminars online and in person on marketing strategies, employed these in my new website, and expanded my visibility into social network environments by providing information about Tallahassee in hopes of attracting residents to our area and in obtaining buyers while establishing credibility with local sellers.

Learning about social media and marketing has helped grow my business, establish my brand, and has given me inspiration to help others learn what I have over the past few years. I have held technology seminars and continue on this path. tomorrow I will be hosting a Virtual REBarcamp webinar education seminar at my office where area agents will learn from some of the best in the business. Together we will learn, discuss and implement new marketing strategies for the upcoming year. The schedule below is what we will follow during this Virtual REBarCamp.

Keep in mind all that goes into your Realtors business and how they utilize the tools of technology along with their knowledge of all that is imperative to know in our industry. Give your Realtor a pat on the back for all that they put into your listings, your home search and your investment analysis!

Virtual REBarCamp Schedule for January 4, 2010.

Do I Qualify For The Tax Credit?

I’ve received calls this week about the extended tax credit from several current home-owners. This Tax credit was extended to a brief window in 2010. Now, not only is there a ta credit for first time buyers, but long term homeowners who want to sell and move as well.

If you or someone you know someone you know are considering  a move in 2010, DO NOT miss this tax savings!  Things will most likely be very different in 2010 as our government re-considers tax credits and the ability to keep offering these credits. Do not assume they will last. There will be an end, and there is no proposal at present or predicted to continue these tax credits.

Call Debbie Kirkland, your Realtor and Real Estate Professional if you have questions on selling your home or purchasing before April 30, 2010.  Debbie Kirkland, Realtor  850-212-0440

The rules are below:

For a link to this IRS Publication Click Here

IRS Special Edition Tax Tip 2009-13

If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.

Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.

1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.
2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.
8. No credit is available if the purchase price of the home exceeds $800,000.
9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
10. A dependent is not eligible to claim the credit.

For more information about the expanded First-Time Homebuyer Credit, visit IRS.gov/recovery.

Links:

First-Time Homebuyer Credit

IR-2009-108, First-Time Homebuyer Credit Extended to April 30, 2010; Some Current Homeowners Now Also Qualify

YouTube Videos:

Recovery: New Homebuyer Credit – November 2009