Trying to figure out where buyers come from?

By Monika McGillicuddy

It can be frustrating selling a home in this market and wondering just where all the buyers are...so if you're a  home seller this information will be helpful to you.

That National Association of REALTORS® publishes a yearly report on Home Buyers and Sellers, they also break this report down to reflect the individual states.

This typically reveals some very interesting facts about today's New Hampshire home buyers, and since Jay and I sell real estate right here in Hampstead NH this type of information is fascinating to us and we thought to you as well.  Southern NH is typically a hot market due to it's proximity to Boston but like the rest of New Hampshire this market has cooled.

Some of the details from this report:

For example did you know that the average buyer purchases a home 15 miles from their previous residence... I didn't know that!  That means that people really don't move very far and that the potential new owner of your house could be living in the same town as you do.  All the more important is that yard sign of yours. Make sure especially as snow approaches that your sign is clearly visible from all angles. Please...please keep shrubbery trimmed around the sign...nothing is as frustrating for the REALTOR® professionals and potential home buyers as a hidden for sale sign! You want your house to Pop...don't hide the sign!  While I'm on my rant about signs make sure yours is in good condition and clean...nothing irks me more than a dirty faded yard sign or one that is falling down. If your home is on the market currently take a good look at your yard sign...does it need some sprucing up? Call your REALTOR® Professional and have them come take care of it.

Did you know that 89% of New Hampshire's home buyers purchased their home through a REALTOR® Professional? 89% now that's a huge percentage if you ask me...of course I'm probably a little prejudiced since I am a REALTOR® Professional..but I still think that's a huge percentage! Hey don't get me wrong, I'm not saying don't try to sell on your own if that's what you want to do but consider the facts...89% that means that 11% came from some other source...maybe from your For Sale By Owner sign or maybe not?? Oh by the way out of that 11% something like 4% are people you already know.

So now think about this...28% of the home buyers learned about the home they purchased through a REALTOR® Professional and 47% learned about it through the Internet...that means that you need to be sure your REALTOR® Professional has a strong company website...47% of your buyers found their home on the net and then contacted an agent! Wow!

Folks you need to check out your real estate companies website...don't let anyone fool you about this one. Yes the personal touch is still needed..Thank goodness for us...remember 89% bought their home through a REALTOR® Professional BUT 47% found their home on the Net! You betcha...a solid web presence is crucial to your success!!!

Lets look at the rest of the story.
We know that:
28% of the buyers found the home they bought from a REALTOR® Professional.
47% found the home they bought from the Internet.
12% found the home they bought from a yard sign.
AND get this 2% from print newspaper advertisement.
6% from a friend, relative or neighbor.
3% directly from the sellers.
1% from the home builder or their agent.
1% from a home book or magazine.

So where do you think your buyers are? I bet their surfing the web, watching and waiting but I do think that while this market has been very slow here in New Hampshire...2007 will  be a good year in real estate.

Prices will be much more affordable and that means that maybe your children will be able to afford to buy a home in the town/area they grew up in and that I think is a very good thing! 

Need more information about New Hampshire's real estate market e-mail me or search homes available.

Monika and Jay McGillicuddy

603-548-7728

copyright Monika McGillicuddy 2006

Dirty Little Secrets of Contract Confidentiality

By Monika McGillicuddy

Do you think that the purchase agreement /offer to purchase that you just wrote on your buyers behalf for their dream home is being kept confidential…   

If you answer Yes…think again because in New Hampshire it MIGHT not be.

REALTORS® have an obligation Ethically to disclose to their  buyer clients the fact that their offer may not be kept confidential and yes I am talking about the terms…i.e. offering price and or conditions…financing, deposit ,closing date all of which  MAY be released by the seller to competing buyers in hopes of getting a better /higher offer.

This is sometimes called “shopping offers” and is being done fairly routinely but secretively in New Hampshire and other states.  No one will talk about it because they feel uncomfortable about it…

I wrote about Article 1 SOP 1-13 in detail a while back in my blog  but the summary of the Code of Ethics involving this reads as follows….

 Standard of Practice 1-13

When entering into buyer/tenant agreements, Realtors^® must advise potential clients of:

5) the possibility that sellers or sellers’ representatives may not treat the existence, terms, or conditions of offers as confidential unless confidentiality is required by law, regulation, or by any confidentiality agreement between the parties.

I am curious as to how you all are handling this required disclosure if your state does not a have a law or regulation regarding contract confidentiality?  

Is it a routine procedure in your state/area to disclose the terms?  If so do the buyers you work with know this?

Does a prior (before purchase offer is released) confidentiality agreement work for you?

Every time I try to use one I get laughed at by the other REALTORS®…I mean who in their right mind would have their seller sign this type of stipulation.

Is this a problem in your area?  Many REALTORS® I’ve spoken with tell me they just ignore the whole thing because everyone knows that listing agents have an unfair advantage in a co-brokerage situation anyway.  

I think it’s interesting that our code of ethics removed the word fair a few years back and replaced it with the word honesty…

Your thoughts…