Bargain Hunting

The old adage of Supply and Demand make it a great time to purchase a home. Not many folks are looking to buy right now, which obviously affects the demand. As far as the supply side, although our number of homes on the market has been reduced since the initial economic downturn, there are still too many homes relative to the number of buyers.


To those who are looking, great for you! Do your homework and be tough in your negotiations. To those who are THINKING that they really would like a bigger home, or more privacy, or more yard or acreage, I ask "What are you waiting for?"


Here are 3 examples of great buys in Murfreesboro, TN:


1. A 1704 sq.ft. home built in 2000 with 3 bedrooms, 2 and 1/2 baths, a bonus room and 1 car garage sold 3 years ago for $126,500. It is now listing for $94,000 or $55/sq.ft.


2. Need more space? How about 2400 sq.ft., 4 bedrooms, 2 and 1/2 baths and a 2 car garage for $152,000? That's $63/sq.ft. It sold for $197,500 in 2005.


3. And this is my favorite since the land and location are top notch for Rutherford County. This 4200 sq.ft. home has 5 bedrooms, 3 and 1/2 baths, a 2 car garage, a workshop and 12.5 acres all for $299,900! Wow!


Not only are there plenty of deals to choose from, the interest rate has been historically low for a number of months-- under 5%. Put it all together and it just makes buying now a "no brainer."

There's no reason to wait. Start looking, and I'll see you at the closing table!

List in December!

Now that the weather is cold (and snowy in many places!) sellers feel that it's useless to keep their home on the market. Afterall, sellers think, Christmas is just around the corner and then the New Year begins in slow motion, so buyers aren't really looking to buy NOW.

But they are! The quantity of buyers actively looking at homes may decrease around Thanksgiving and not pick up again until March, but the quality of buyers is better than ever. In other words, buyers that are taking time away from the holiday fun and brave cold weather just to look at homes are serious buyers. These buyers are not the "tire kickers" that we see the rest of the year.

There are a couple of things to keep in mind, however, if you do decide to list your home in December. Assuming your agent will take photos inside and out, those holiday decorations that look so lovely now will appear sad and depressing the day after Christmas. So, take new pictures as soon as it's feasible. Snow and ice are not only a hazard, but they make your home look neglected, so keep walkways and stoops clear. And make sure the inside of your home smells inviting-- fireplaces, animals, and lots of guests and family "trapped" inside will all leave some not-so-pleasant odors in a closed-up home.

So call your agent today, and get that home on the market!

"How long until we sell this place?"

That big "For Sale" sign is finally in your yard! You cleaned, painted, decluttered, spruced and perfected your home inside and out. You interviewed several agents, eventually deciding upon one that best fits your needs. After signing the listing agreement, your agent arranged for a home stager, virtual tour and professional photographs. And now your home is on the market and the sign is out front.

So how long does it take to sell a home? Of course, if any realtor could answer that question without it being an educated guess they would be the busiest (and wealthiest) realtor nationwide. But it is largely an educated guess, with the emphasis on "educated." By looking at comparable sales, market conditions (ex., absorption rate) and economic conditions (ex., financing types and availability) your agent should be able to give you a selling time frame.

However, the best sales barometer is your showing information. How often is your home being shown and what kind of feedback are you receiving from the potential buyer's agents? If you haven't had ANY showings in a month, then you have priced yourself out of the market. If your feedback routinely mentions the unsightly power lines, then you haven't priced your home appropriately to compensate for the negative feature.

But if you are getting consistent showings every 7 to 10 days, and your feedback are comments like "the floor plan didn't work" or "the home just didn't appeal to the buyers", then you are right where you need to be. You have to get the buyers in your home to sell. Having a home for sale without consistent showings is like having a store clerk ready to handle customers except the sign on the door says "closed." It usually takes quite a number of buyers viewing your home before the one shows up that falls in love with it.

Consistent showings (7 to 10 days) = reasonable selling time for your market. Pretty basic, and yet sellers (and their agents) will let weeks and months go by with no showings. How smart is that?

Must Read for All Americans

Whether you are a real estate agent or investor, politically conservative or liberal, economically savvy or ignorant of the rising cost of groceries, it is worth your time and effort to read "Aftershock" by Wiedemer, Wiedemer and Spitzer.

You don't have to be a financial genius to know our current economy is anything but robust. How did we get here and why? The authors of "Aftershock" answered those questions BEFORE there was any hint of trouble. In 2006, their first book, "America's Bubble Economy", predicted our current economic mess. If we had followed their advice back then, our investment portfolios would not have taken a beating but, instead, that money would have been reinvested (or cashed) before the stock and housing markets went down.

Great, right? A lot of good that does me now. Except, according to the authors, that was only Phase I. Phase II is on the horizon; the"aftershock" of that first crash.

For those who still have money to invest, "Aftershock" gives their assesment of the safest investments before our government debt and inflated dollar cause further damage to the economy. For those who live day to day and month to month, ignorance will not be bliss if the authors' gobal economic predictions come true.

It's not a fun read, but then this is not a "fun" economy. Do yourself a favor and read it anyway.

We're Not Out of the Woods Yet!

For those who believe the real estate market is a good barometer of the economy, then we're not out of the woods yet, at least as far as the Nashville area market is concerned.

Most markets will see a rise in the number of transactions during the summer months. However, this summer we had a mere blip up in the number of pendings for the last two weeks in August. The rest of the summer showed only half the number of transactions when compared to those months during which the tax credit was available.

Here are the hard facts:
-April - 309 closed properties; September - 146
-April - average Days on the Market- 77; September - 85
-April - average Sale Price per Square Foot - $89; September - $86.
-Average sale price for both months did not reflect much difference, approximately $177,000.

The trend for both the number of sales and the price per square foot seems to be headed downward. We may be headed for some lean winter months, unless the November election results brighten the mood (and loosen the pocket books) of all of us.

First-Time Homebuyers are Leaving the Market

This was just released by the Tennessee Association of Realtors:

First-Time Homebuyers In Retreat

*** BEGIN QUOTE ***
First-time home buyers are retreating from the housing market, accounting for only 39% of home purchases in July, down from 48% in March, according to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions, released this week.

The percentage of first-time buyers last month was at the lowest level in at least a year. "The end of the tax credit has clearly had an effect," said Thomas Popik, research director for Campbell Surveys, in a news release. "First-time home-buyer participation is continuing to drop. We expect a further decline in first-time home-buyer activity, perhaps reaching as low as 30% to 35% of the market by the fall months."

...First-time home buyers are crucial to the health of the housing market because they soak up excess inventory; repeat buyers don't have the same effect because they're selling a home at the same time they're buying another.

Having fewer first-timers buying a home will likely put downward pressure on home prices in the late summer and fall, according to the Campbell/Inside Mortgage Finance survey. *** END QUOTE ***

To read the entire article, click here: http://www.marketwatch.com/story/first-time-home-buyers-retreat-from-housing-market-2010-08-27

Great Price per Sq Ft!

This listing is a great example of an enticing price per square foot ratio. The home is beautiful inside, with hardwood floors all on the first level and tile floors in the bathrooms and laundry room. There is a see-through gas fireplace that can be enjoyed from both the family room and sun room. There are four large bedrooms with the master suite on the main floor, 3 full baths and another powder room for guests.

Additional living space is provided in the bonus room above the garage. For those large gatherings, the enormous kitchen has ample space for more than one chef. In short, there's room for everyone in this 3100 square foot home.

In a market where most sharp homes like this one sell for $90 to $95 per sq. ft., we have this listed at $74/sqft. Why? It has one feature most buyers do not want-- a very steep driveway. Now, we are in the south and we rarely get snow or ice, and I mean rarely, but buyers still hesitate to consider a home with a steep driveway. Therefore, we have to adjust the price enough to overcome that single objection. In the 5 years since the home was built there have been 2 owners, so not everyone takes issue with a steep driveway. And for the right price, homeowner number 3 will fall in love with this home, too.

Price per Square Foot Rules

I was just chatting with a potential seller explaining the importance of Price per Square Foot. In his case, his tax record showed approximately 200 square feet less than what he understood his home was when he bought it. That's too big of a variable to leave in the dark.

He said wanted to list his home close to $100 per square foot. Now suddenly we're talking about a $20,000 difference in price. As a buyer, he paid for the extra 200 square feet. It makes sense that he would want to include that in the sale of his home, too. But if that higher figure isn't documented somewhere, like the purchase appraisal or on the builder's blueprints, then we're left to remeasure and take what we get.

For a fee, a professional can measure a home, which is very tricky to do. That's why no two people will come up with the same number. If the new measurement is less than what the homeowner expected, without other documentation he has no choice but to use the lesser amount for listing purposes.

No one wants to pay for something and not get what they expect from the transaction. However, the liability as a seller is not worth not knowing the facts or not being honest about them. The lesson in this for the buyer is to make sure you're getting what you're paying for.

This beautiful home is a great example of my Sales Formula. Let's take each variable separately and see what I mean:

1. Listing agent - The listing agent (me!) is using all available means of marketing, including blogging, and has done her homework on comparable properties and pricing, and has encouraged the sellers to package the property. The stager has completed her magic, and the virtual tour is posted for all to see.

2. Marketing - Again, this home can be viewed--inside and out-- here, on BobParks.com, Oodle.com, Zillow.com, HomeFinder.com, GoogleBase.com, Trulia.com, etc. It is on my website and on my Facebook page. And, for those who like paper, it is in print locally.

3. Location - The location of this home is in beautiful rural Rutherford County Tennessee. It sits on 7 plus acres, with a wet-weather creek, some pasture, some trees. And yet, it is within a 10 minute drive to a major interstate. For those who want privacy yet town convenience, it is in a perfect location.

4. Condition - The sellers have made the improvements suggested not only by the stager, but also those suggested by the caravan of agents from my office. The condition is as close to perfect as it comes. Words just can not describe the elegance, the tranquility and the inviting mood of this home and its setting.

5. Price - How much would you pay for a 4000+ sq foot custom home with amenities galore in perfect condition on 7 plus acres 45 minutes from Nashville, TN? How about $399,000?

Now, let's see how quickly it sells.....

Tax Credit Deadline!!!

If you listen quietly, I'm sure you can hear a faint murmuring from all the agents in the country reminding buyers everywhere that the Tax Credit is near an end! Whether you are a first time home buyer (or you haven't owned a home in the past 3 years) or a current homeowner(you must have owned your home 5 years), the deadline to be UNDER CONTRACT to purchase a new home is the end of April. That's 2 weeks! You could miss out on up to $8000, so why wait till May or June?? Call your agent---now!

Price is Critical

The final variable in our Sales Formula is Price. You knew that was coming, didn't you? It all comes down to price.

Look back over our formula's 4 other variables-- Location, Listing Agent, Marketing and Condition. If you have perfected every aspect of those variables, and your home STILL hasn't sold in a reasonable time, the only thing left is price. You are priced too high. For some reason, you feel your home is worth more than what buyers are willing to pay. Let me remind you of what the market value of your home IS NOT:

What you have in it.
What you need out of it.
What you owe against it.
What you want.
What it appraised for.
What your neighbor's house sold for.
Your memories and treasures.
The price of homes where you are moving.

Your home IS worth what a buyer is willing to pay for it based on:

Today's market conditions.
Today's competition and the buyer's other choices.
Today's interest rates and financing terms.
Today's economic condition.
The buyer's perception of the physical condition.
The location.

In today's buyer's market, you'll need to be realistic about your location, hire a top-notch agent, have a sound marketing strategy, perfect your home's condition inside and out, and price your home to lure the current pool of buyers. If you do all those things, I guarantee you your home will sell at it's highest value in a reasonable amount of time. And isn't that the whole point of putting a "For Sale" sign in your yard in the first place?

What's Your Home Saying?

We talked last about the importance of your home's outside appearance in order to lure those buyers inside. Now, let's see if your home can "hook 'em."

Pretending that you are a buyer, walk through your front door and pause a minute. What do you see, hear, smell and feel? Are there spots on the carpet? Is the dog barking wildly in his cage? Can you smell last night's dinner, the kitty box, or stale smoke from cigarettes or a wood burning fireplace? Are you leaning slightly because of an uneven floor? If you answered "yes" to any one of those questions, you've just lost a sale.

Getting your home "buyer ready" is probably the hardest thing you'll do in the whole process of selling your home (unless you are Martha Stewart) but it is the most important. You need to make each room look like it belongs in the pages of Southern Living or Better Homes and Gardens.

Where to begin? Clean. Clean from the ceiling fans and light fixtures to the baseboards and floors in each and every room. Windows and walls need to be spotless. Clear off table tops, desks, mantles and that kitchen counter. Better to have nothing on top than a bunch of knick-knacks that clutter and collect dust. You're moving, right? So pack it up! Store the boxes either off the property or in the garage. Take the pictures off the wall, spackle and paint. Buy room deodorizers and replace them as soon as they run out. Scrub, scrub and scrub some more.

All your hard work will definitely pay off. A home that shows well top to bottom says the owners care enough about where they live to combat normal wear and tear. And if they are willing to maintain what buyers can see, then buyers assume the owner has been willing to maintain those important items they can't see, like the plumbing, the roof and the heating/cooling unit.

And the best part-- you'll sell your home at higher price!

Condition, Condition, Condition!

My last three blogs have explained the importance of location, listing agent and marketing in order to sell your home in a reasonable time. In our current market, Condition ranks right up there with location, and it is the fourth variable of our Sales Formula. However, unlike location, which you can't change, the condition of your home you most likely can improve upon.

In fact, there are so many areas to improve the condition of a home that I'm going to separate them into "Inside" and "Outside." And since spring is a great time for outside chores, let's begin at your street.

Take a walk to look at your home from the neighbors' point of view. Are your shrubs and trees trimmed to appear their best? Are all the leaves gone from the yard and gardens? Have you put out new mulch yet? Or maybe you don't have any landscaping to speak of? Trees, shrubs, grass, flowers-- they all contribute to your home's first impression before the buyers even get out of the car.

How does your home look as you approach the front door? Are the shutters all attached with a fresh coat of paint? Old pots, broken chairs or torn cushions on the front porch? Get rid of them. Windows clean? Cobwebs removed? Front door and railing looking clean and fresh? Door mat for rainy day showings? Even your mailbox should stand straight and be presentable.

Make it sharp! When buyers look in person, that first impression tells them whether the home has been well taken care of. When the first impression is not stellar, buyers assume that if a homeowner is too lazy to care for the obvious needs of his home, he is also very likely to ignore the important maintenance items that are part of owning a home.

Unless you want a buyer to cross off your home before they ever step inside, take the next weekend or two to invest in your home's outside appearance. And don't forget your backyard and patio!

Marketing Your Home

In previous blogs I have explained the importance of my Sales Formula and its five variables. The third variable in the formula is Marketing. Obviously, marketing is important or else there wouldn't be commercials, billboards, or those folks swinging signs on busy street corners. How, where, and to whom you market all contribute to a reasonable sale time.

Is your home on the Multiple Listing Service for agents to find? Are there good photos of the inside and yard to show online shoppers and agents? Is your home easy to show for buyer's agents? Are you offering incentives to show and sell your home? Is your home available to view on realtor.com, trulia.com, homefinder.com, zillow.com along with at least a dozen other websites?

You, as the homeowner, can do most of these yourself, however I would not recommend it. Our market nationwide over the last two years justifies using a professional agent. Your agent will be able to present your home in as many places, to as many agents, and in the best light as possible.

Homeowners also need to remember that we, as agents, network and market to each other. Recently an agent in another company sent an email out pleading for a 4 bedroom home under $210,000 that was not on the market yet. His clients had just sold their house and they needed to find another home quickly. My sellers, who had a 4 bedroom home, were able to get a jump on the sale of their home without even being officially on the market.

My advice about marketing-- get a good agent and leave the marketing to them!

Hire a Savvy Agent

The next variable in our Sales Formula is your "Listing Agent." You may choose not to use a real estate agent, but bear in mind it is a variable that will affect the ultimate result. It may take you longer to sell your home, or you may sell at a lower price, or you may end up with no deal at all if the buyers have not been qualified.

Your full time listing agent should be an expert in the her market, have great communication skills and excellent negotiating skills. She should be reliable, trustworthy, friendly (we're in sales!), and have your best interests at heart. Selling your home is a team effort, but she is definitely the team leader.

Studies show that a real estate agent earns her pay-- homes sell at a higher price with a listing agent involved and transactions are much less likely to fall apart before closing. You wouldn't think of fixing your own broken arm or filling your own tooth, so why not have a trained professional sell your home, especially since it is probably your largest financial investment.

Location, Location, Location

In my previous blog I explained the formula that can help you sell your home. The first variable in the equation is "location." You've heard it a dozen times, and, yes, it is important. The perfect location depends on the buyer-- some like cul-de-sacs while others prefer a larger corner lot. Near a school? That's great for some, but I've had buyers who didn't want to hear the yelling of school children at play even though they liked children.

However, many buyers can agree on where they don't want to live-- close to airports, trains, commercial businesses, and landfills, to name a few. Not that homes near these types of infrastructure don't sell. They do sell, but at a lower price than a similar home in a more preferred location.

Be honest about the location of your home. That interstate noise may not bother you, but realize not all buyers will be as accepting as you of the roar of five o'clock traffic. And since you can't pick up and move your home, the only adjustment you can make to balance the equation is price. Your price has to be lower to put your home in the running with other similar properties not near a major highway.

Remember your goal is to sell your home. It is best to be realistic and make that price adjustment before another month or two or three goes by without any offers. Isn't it time to move on with your life?

Why Hasn't my Home Sold YET??!!

You've had that "For Sale" sign in your front yard for how long now? "Too long," you say! You keep straightening up every morning, hoping someone will come to look, praying just one of those lookers will bring you an offer, but nothing yet. Getting tired of this game?

Then let's figure out why your home hasn't sold. Selling a home is like a math formula. Each variable in the formula can, and will, equal a sale. The key is in understanding each one of those variables. And here they are: location, listing agent, marketing, condition and price. Understanding how each variable fits in with today's market and capitalizing on that knowledge will result in the sale of your home at it's maximum value.

Of course, you could sell your house tonight, guaranteed! Just put out the word that you're now willing to sell your home for 50% less than it's original list price. You'll have several offers before you know it. I'm assuming, though, that you would rather sell your home at it's maximum value.

That's where market knowledge and the formula come in. In the next blog we'll discuss the first variable: location.

It's Spring, so List your Home NOW!

Have you been kicking around the idea of putting your home on the market, maybe to upgrade to a larger home or even downsize before yard work becomes a must? Homes do sell all year long, but some months are routinely better for sales than others, and we are entering the high volume season.

It just makes sense that families are beginning to look as school ends for the year, so they can make that big move during the summer. Companies also know that it's easier on their employees to transfer during the summer. And don't forget the weather-- warmer days, sunshine, blooming flowers, green grass, and shady trees all make a home more attractive than during the bleak winter months.

But it's not summer, you say? No, but those buyers intending to move in the summer are already house hunting. It may take a month to find the perfect home, then a month to close the transaction, and, boom, we're into summer. If you wait until July or August, you've missed a large pool of buyers who are already moving into their new home.

So call your trusted realtor now to preview your home. Follow her advice on sprucing, decluttering, painting and staging. Then put that "For Sale" sign in your yard and start packing!

Tax Credit Deadline!

As a Real Estate agent in Murfreesboro, TN, I've had several clients call me in the last few weeks ready to buy a home. They have heard about the $8,000 tax credit for first time homebuyers and the great deals on the market. With their tax return check in hand, they are excited and ready to start looking at some of those deals. "Fantastic," I say, "Let's go house hunting!"

The only problem is we can't look at some of those bargains because they are "Short Sales." A short sale is like a pre-foreclosure-- still owned by a person, not yet returned to the bank for non-payment. The homeowner can no longer pay their mortgage, but they are not in foreclosure-- yet.

These homes are, indeed, priced below market value and often in better condition than foreclosures. The catch is that the time from contract to closing can take up to 6 months or longer. Even "fast" short sale transactions take 2 months, and these are few and far between.

In order to be eligible for the tax credit the buyer must be under contract by April 30th, and CLOSE BY JULY 1st. We might easily find the perfect home by April 30th, but to close a Short Sale by July 1st is definitely "iffy."

So, if you're still planning to take advantage of the tax credit, either as a first time homebuyer or a homeowner of more than 5 years, you better contact your trusted Real Estate agent-- fast.

DNJ Article

In Murfreesboro, TN "property values (are) up 10 to 15%", according to the local newspaper, The Daily News Journal. That's what the headline said anyway. If you take the time to read the article, it goes on to say that the increase is a prediction made by the Property Assessor, Bill Boner.

As a real estate agent, it's misleading headlines like that one which make my task difficult in an already tough market. When it comes to selling a home, I am honest and realistic with homeowners. I bring many facts and statistics about current market sales to my listing appointments so the seller can make the best decision possible for him regarding the sale of and pricing of his home. When he sees it printed in the paper that "property values are up", he wonders what I've been showing and telling him. I had a seller email me today excited that she had read that property values were up, and I had to explain to her that, indeed, property values are not up from that last 4 or 5 years. To say that a $300,000 home built in 2006 has increased to $345,000 in value is just not true. It's not even close to the truth. In reality, that homeowner would be lucky to sell his home today for what he bought it for.

I guess my point is, don't believe everything you read. And it would certainly help if the DNJ would check the facts before they print, particularly if it's going to be on the front page.