Why Home Don't Sell - Part II
Posted at 8:13 AM, Jul. 31, 2007
Why Homes Don’t Sell – Part II
In my last article I went into the three most common reasons homes do not sell. They are Price, Product (Condition of the Home) and Promotion (Marketing of the Home).
In this article I will go into some miscellaneous items that can prevent a home from selling. This is not a complete list, however these are some of the ones that I have seen that are worth mentioning.
1. The Listing Agent does not answer the phone or does not call the buyer’s agents back in a timely fashion.
Buyers often call their agent and want to go see homes today, or they see a home that looks interesting while they are out seeing other homes. Their agent calls the listing agent, and if no answer or a slow callback, results in the home not being seen.
I personally have had agents call me back more than a week after I called them. They ask if I would still like to schedule a showing and I may say, unfortunately my buyer went back home to New Jersey last week, or they purchased another home. More than once, I never had my call returned.
2. The MLS listing says to call the seller to schedule showings.
When a listing says call seller to schedule showings, this often through experience means an inconvenient showing. There is usually no lock box, and the appointment must be set at the seller’s convenience, not the buyers. When there are a large number of homes available to show, these do not attract anyone’s attention.
3. Listing states that a 48 or 72 hour notice is required for all showings.
Again the homes most likely to be shown are the ones that are convenient for the buyer to see.
4. Listing agent or seller too restrictive for scheduling.
Buyer’s agents often show a buyer 6 – 10 homes in a day. The buyer’s agent tries to schedule the showings the best they can. However, it is impossible to always say we will be there at 1:00 PM or exact time. We often give a timeframe of 1:00 PM – 2:00 PM. Some listing agents will say I’m sorry but you will have to give me an exact time or a 15 minute cushion in time, not an hour.
The problem is let’s say there are six properties to be seen. You figure on travel time plus enough time to show each home. However let’s say you figure on 15 or 20 minutes per listing plus travel time. What happens if the buyer likes a certain home and spends 45 minutes or an hour? What if we drive up to another and the say they are not even interested in going in? Obviously, it can be impossible to stick to an accurate schedule.
5. Seller alienates real estate agents.
Example One: I was a listing agent, where I had a buyers agent call me and say they wanted to show my listing between the hours of 2:00 PM – 3:00 PM. My seller left the home before 2:00 PM and came back at 3:00 PM. At 3:10 PM the buyer’s agent came up and rang the doorbell and said sorry we are late, but unfortunately we got stuck in traffic. My seller yelled at the agent with the prospective buyer by their side.
The buyer’s agent said he was sorry. The seller then said they could look at the home. When the seller called me and told me about this, I discussed how I had already explained that sometimes this will happen. The buyer’s agent should have called me to let me know they were running late, however the seller wants to sell the home, and this does happen. The seller told me the buyer did not appear to like the home as they spent only a couple of minutes there. I told the seller that they may have not liked the home, or it could be after you yelled at them they were too afraid to even really look at the home. I also told the seller it is unlikely the buyer would even come back even if they loved the home, and likewise it is unlikely their agent will ever consider their home for another buyer. I called the agent to apologize, but the agent was not thrilled with what had happened. I would not be surprised if that agent told at least some of the approximately 150 agents he worked with about what happened. How many of these agents would want to show this listing?
Example Two: Recently a home in my neighborhood had been listed with another agent for six months. It did not sell and the listing expired. During the six months it was on the market I had showed the home to a couple of my buyers. They did not buy, but since I am an expert in the neighborhood I knew that the home was slightly overpriced but was not being marketed well. The owner lives in another state, so I sent them a letter saying if they decide to put their home back on the market, I would like to be considered for the job of their listing agent. I went through my successes in the neighborhood, and that I would like to discuss how I would market their home to sell.
A few days later I received an email from the owner of the home. In it he told me that he is sick of the spam he is getting in the mail from several real estate agents. He then mentioned that he is going to report us all for spamming him with junk mail and will have us arrested. Of course there is no law about sending a letter through the postal service. He then stated that he would be happy if we all would drop dead.
Now what do you think the chance of any of the real estate agents who received such hateful mail choosing this home to show to their buyers? Do you think that he may have hurt his chances of selling.
6. A few last items that prevent a home from selling. These are all from personal experience
- Terrible curb appeal – weeds, dead grass, messy looking, etc.
- Sloppy or dirty home
- Cluttered home
- Animal waste on carpets, beds or walls
- Animals running around loose – Many buyers are afraid of dogs or cats
- Dirty clothes all over floor
- Filthy carpet or worn carpet
- Offensive artwork or photos
- Sellers sleeping while showing is going on
- Empty wine and beer bottles all over floor
- Fist holes in wall and doors
Some of these seem absurd, but they are real and probably happen more often than we could imagine. There are of course many more that could be listed.
Why Homes Don't Sell
Posted at 6:01 AM, Jul. 17, 2007
Why Homes Don’t Sell
With so many homes on the market, and many not selling, I am often asked why some homes sell, while others do not.
Real estate agents and real estate schools often say the reason homes do not sell is price. Although there is always a price where any home will sell, saying that price is the reason is an oversimplification.
There are three main components to getting a home sold. These include the following;
- The asking price
- Product or the condition of the home, land and anything included in the sale
- Promotion or the marketing plan
These have to be in balance for a home sale to take place. Price is almost always blamed for the home not selling, but as we will see this is only partially true.
If the condition of the home is as good as, or better than any of the comparable homes on the market, then the asking price should be higher than if the home is in poor condition. In this sense it is true that price is important, but often the repairs or cleaning of a home to put it into selling condition can be minimal for the home to sell at top dollar. Often the required expenditure is much less than the increased value and desirability of the home.
The same is true with the marketing plan. If the home is properly marketed it should sell at a higher price, and/or in a quicker timeframe and with less aggravation. This is the major reason the For Sale by Owner homes usually sell for much less than Realtor listed homes. For Sale by Owner listings usually have poor marketing and only reach a very small portion of the buyer market. Without proper marketing, the sales price is reduced.
The same is true with real estate agent listed homes. One Realtor may put up a sign, place the listing on the MLS and on Realtor.com, but does little extra to market the home. Another Realtor may do the same as the other Realtor, however the listing may also go onto a company website, personal websites, and many other websites such as Trulia, Craigslist, Google, Yahoo, MSN, NY Times, etc. There will also be specialized relocation marketing, and marketing for the international market.
So although price is usually blamed for a home not selling, this is often not the true culprit, as it can also be the condition of the home, or the marketing of the home.
If you happen to have a home that has not sold, do not despair. Instead interview several Realtors and ask them lots of questions on how they would market your home. Ask for their recommendations on how to put your home in showing condition rather than living condition, and work with them on properly pricing your home to result in a sale.
Hire the Realtor that can answer your questions, back up what they say with facts and statistics and you should always insist on an easy to cancel listing agreement. If the Realtor is confident in their abilities, they should be confident enough to allow you out of the listing agreement with little or no cost should they not do what they promised.
In the Tampa area there are over 1,300 homes selling each month. Yes your home can be one of them.
Florida Going Green?
Posted at 11:32 AM, Jul. 16, 2007
Recently, our new Governor, Charlie Crist announced that Florida will be going green. He stated that although there are many that do not believe that global warming is real, he knows that it is.
Governor Crist also states that he knows many in his party will not be happy that he is signing executive orders requiring power plants to cut emissions to 2000 levels, reduced auto emissions, use of solar panels, and other proposals. Many came out against these proposals, while others applauded what he is trying to do. Environmentalists were thrilled also, until Governor Crist proposed more use of nuclear power plants.
Governor Arnold Schwarzeneger even appeared with Governor Crist.
As a Realtor, one of our main responsibilities is to negotiate the best deal for our clients. Part of negotiating is to always handle the negotiations so the other side feels they are getting a good deal. One thing we do not want to do is to create animosity.
With global warming I always wonder why our govenrment officials (state and federal) take such a hard line. They either aggresively take on the position that global warming exists or on the side that we do not have anything to worry about. Therefore, our public officials make one group happy and one angry.
I believe they could get much more support if they never used the words global warming when they take a legislative position. Instead if Governor Crist said since this is the sunshine state we should harness the power of the sun, and therefore we should promote solar energy, I think it would be hard to find anyone who would disagree.
The same is true of green building, or cleaner running vehicles. To cut pollution, or to save energy, people generally agree with that. But once the words global warming comes out that seems to change the entire tone of the conversation and cause argument.
What do you think?
First Half of 2007 Real Estate Statistics
Posted at 3:17 PM, Jul. 8, 2007
Following are statistics for the first half of 2007 for homes sales, with comparisons with the first half of 2006 and the first half of 2005. The first table is for all of Wesley Chapel, while the second is for the subdivision of Westbrook Estates in Wesley Chapel. These statistics are for single for single family homes, and do not include townhomes, condos or villas.
Please see the notes which appear below the tables with explanations of the statistics.
First Half of 2007 Wesley Chapel Real Estate Statistics
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Wesley Chapel 2007
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Wesley Chapel 2006
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Wesley Chapel 2005
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Active Listings
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1,131
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|
|
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Under Contract
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117
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|
|
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Sold
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570
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700
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724
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Median Sales Price
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$240,000
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$261,250
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$215,000
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Days on Market
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105 Days
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59 Days
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52 Days
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Absorption Rate
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12 Months
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|
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First Half of 2007 Westbrook Estates Real Estate Statistics
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Westbrook Estates 2007
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Westbrook Estates 2006
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Westbrook Estates 2005
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Active Listings
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26
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|
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Under Contract
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1
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|
|
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Sold
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7
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9
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22
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Median Sales Price
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$232,500
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$305,000
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$282,450
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|
Days on Market
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166 Days
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95 Days
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35 Days
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Absorption Rate
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22 Months
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|
|
The active listings are what is currently on the market, both in Wesley Chapel and in Westbrook Estates. The homes under contract are waiting until the closing date and then will become sold. It is important to note that not all homes under contract actually make it to closing, for various reasons, the primary one is financing issues.
The sold column is self-evident. These are the number of homes that have sold in the first six months of 2007, 2006 and 2005. The important thing to note is that there are still a lot of people buying homes, just not enough compared to the number of homes on the market. There are three main things necessary to get a home sold; the right price, the condition of the home, and the marketing plan. If all three are in balance, the home will still sell in a timely fashion.
Looking at the median sales price note that all these figures are for the first half of the corresponding year. Note how the median price of the homes have changed from 2005 to 2006 and finally to 2007.
As can be seen the days on market have increased from year to year.
Finally the absorption rate merely means the amount of time it would take for all currently listed homes to sell if no other homes come on the market, and there is no increase or decrease in sales. As can be seen for Wesley Chapel there is 1 years worth of inventory on the market, whereas it would take 22 months, or just a couple of months shy of 2 years for all homes currently on the market in Westbrook Estates to sell.
The biggest problem in Westbrook Estates has to do with a name change several years ago. As some people are aware Westbrook Estates used to be called Saddlebrook Village West, but has not been known by that name since early 2003. When a Realtor or buyer searches for properties in Westbrook Estates only 2 of the 26 homes listed here come up. To find the other 24 you would have to enter Saddlebrook Village West as the subdivision name. Unfortunately, most Realtors or buyers would not know the name of Saddlebrook Village West, after all the sign in front of the subdivision says Westbrook Estates. Why do Realtors enter the name Saddlebrook Village West into the listing in the MLS? In the tax records the old name never got changed. The Multiple Listing Service (MLS) has a feature where when the listing agent enters the address of the listing, the system pulls in data from the tax records, thus pulling in the name Saddlebrook Village West. This can be changed by the Realtor, but most do not know the name was different at one time, so never change it.
So how do the Realtors and buyers finally find the homes in Westbrook Estates? It is when Realtors or buyers search for homes by zip code or by city name.
If you have questions or concerns, leave a comment here, or if you prefer give me a call at 813-469-3163.
Gov. Charlie Crist signs home inspector licensing bill
Posted at 4:26 PM, Jun. 28, 2007
Gov. Charlie Crist signed SB 2234 to license home inspectors. Virtually everyone in the real estate industry must be licensed but up until today, home inspectors did not.
Unfortunately, this bill does not take effect until July 1, 2010. This gives the Department of Business and Professional Regulation (DBPR) time to come up with a certification program along with licensing fees and to draft the rules.
Until the law takes effect it is caveat emptor or buyer beware. Until then it is best to get recommendations from your real estate professional and to make sure your home inspector is a member of the American Society of Home Inspectors (ASHI).
It is highly recommended for all buyers to get a professional home inspection.
For more information on home inspectors there is great information available on the ASHI website http://www.ashi.org/.
Wesley Chapel To Get Its Own Hospital
Posted at 6:48 AM, Jun. 18, 2007
Wesley Chapel To Get Its Own Hospital
A year ago three hospitals tried to get approval for a hospital in Wesley Chapel. State health care officials turned them all down.
This year University Community Hospital (UCH) and Adventist Health System which runs Florida Hospital Zephyrhills paired up while BayCare Health System paired up with USF Health.
The state approved UCH and Adventist and turned down BayCare, which has 21 days to file a petition appealing the decision.
If UCH and Adventist make it through any legal challenges they will build an 80-bed hospital on 45 acres, across from Saddlebrook Resort on SR-54.
Presently, the closest hospitals for Wesley Chapel residents can be a 30 minute drive, or even longer during rush hour.
With the population growth in this area it is great to see that the state agreed that a hospital will be necessary for this area.
Within the next few years we should have a hospital to call our own.
Property Tax Relief Approved
Posted at 6:18 PM, Jun. 17, 2007
Property Tax Relief Approved
Last week I wrote about how the House and Senate came to an agreement on Property Tax Relief.
Then over the weekend most of the Democrats and some Republicans decided they did not like the agreement anymore. This was after much lobbying over the weekend. Property Tax Relief looked dead.
Then just a couple days later Property Tax Relief passed. Politicians seem to change their minds daily.
There are two types of Property Tax Relief in this bill. The first (Statutory Changes) are a definite, while the second (Constitutional Amendment) has to be approved by a 60% majority in January of 2008. The following is an overview of each.
Immediate (this year) tax relief in the amount of $15.6 billion (Statutory Changes)
- All cities and counties must cut taxes for the 2007-2008 fiscal year back to 2006-2007 revenue levels.
- All local governments will also be required to cut an additional 3%, 5%, 7% or 9%, based on a formula of tax performance over the past five years, compared to state average.
- Future property tax revenues capped to the rate of personal income growth and new construction.
$16 billion in further property tax relief (Constitutional Amendment)
- An average savings with both the statutory and constitutional changes for homesteaded property of $1,300 or a 44% reduction
- “Save our Homes” to be replaced with a super exemption that will give a bigger benefit in approximately 73% of the cases. Where it does not the homeowners present Save our Homes will be grandfathered.
- For homesteaded properties there will be an exemption of 75% of the first $200,000 in value of the home. Therefore, on a $200,000 home the exemption would be $150,000 and the property tax would be based on a value of $50,000.
- On the next $300,000 of home value for homesteaded property, there will be an additional 15% exemption.
On January 29, 2008 the Constitutional Amendment will be placed on the Presidential primary election.
Expect much lobbying on both sides of the issue.
Those against the property tax relief believe that it will result in cuts to essential services, such as law enforcement and fire services, along with fewer parks, libraries and many other cuts.
Those for property tax relief will argue that tax revenues have increased approximately 99% over the past five years, and the taxpayer should be able to get some relief. Yes some services may need to be cut, but with record revenues the local governments should be able to do with less.
What do you think?
Property Tax Relief Is On Its Way, Or Is It?
Posted at 6:26 PM, Jun. 12, 2007
Property Tax Relief Is On Its Way, Or Is It?
In my post of last week I went over the agreement the House and Senate came to in regard to property tax relief. Democrats and Republicans all were in agreement that this was a great package of tax cuts. Local governments even said they could live with it as it was not as bad as they had expected.
But what a difference a weekend can make.
Now Democrats and some Republicans are saying hold on a minute, maybe we cannot support this tax relief.
Local governments are now saying they are going to have cut essential programs, and various groups spent the weekend lobbying to keep cuts from hitting them.
The problem lies in the fact that over the past few years’ tax receipts have multiplied astronomically, and our governments have been eager to make everyone happy by spending all the money as fast as it came in.
Now we are hitting a crisis. As reported in the St. Petersburg Times we are starting to lose Florida residents to states such as Tennessee and Georgia, who have lower home prices, lower taxes and lower insurance bills.
Those thinking of moving to Florida are also deciding to move elsewhere. Why? Property taxes and homeowners insurance. As a Realtor, we often show buyers many homes, and when they see the home they love, they may see the taxes being paid are $3,000. But then we tell them that with Save Our Homes that is not the tax they will pay. They find out they will pay $7,000 or more and decide they will choose a cheaper location.
We of course have been promised lowered homeowners insurance and of course that is up in the air now too.
If we do not decrease the taxes and make them more fair, it seems likely we will end up with less tax money as our population decreases, and along with it our tax base.
Ultimately, the legislators and the public will have to weigh and balance the taxes we are willing to pay, and what spending we are willing to cut.
Hopefully, an agreement can still be reached.
Property Tax Relief Agreement Reached
Posted at 7:22 PM, Jun. 9, 2007
Property Tax Relief Agreement Reached
The House and Senate have come to an agreement to lower property tax by $31.6 billion over the next five years.
Immediate (this year) tax relief in the amount of $15.6 billion (Statutory Changes)
- All cities and counties must cut taxes for the 2007-2008 fiscal year back to 2006-2007 revenue levels.
- All local governments will also be required to cut an additional 3%, 5%, 7% or 9%, based on a formula of tax performance over the past five years, compared to state average.
- Future property tax revenues capped to the rate of personal income growth and new construction.
$16 billion in further property tax relief (Constitutional Amendment)
- An average savings with both the statutory and constitutional changes for homesteaded property of $1,300 or a 44% reduction
- “Save our Homes” to be replaced with a super exemption that will give a bigger benefit in approximately 73% of the cases. Where it does not the homeowners present Save our Homes will be grandfathered.
- For homesteaded properties there will be an exemption of 75% of the first $200,000 in value of the home. Therefore, on a $200,000 home the exemption would be $150,000 and the property tax would be based on a value of $50,000.
- On the next $300,000 of home value for homesteaded property, there will be an additional 15% exemption.
This should be a big boost to the real estate industry and to the overall economy.
April new home sales highest monthly gain in 14 years
Posted at 12:56 PM, May. 24, 2007
Economists were expecting a 0.2% increase in new home sales for the month of April 2007. However sales increased by 16.2% which is the largest amount in 14 years.
The median sales price however was 11.1% lower than the month before. This appears to be a successful effort by builders to sell its excess inventories.
Now is a great time to buy, as new home prices are very low, however the lower prices of the new homes, do have a negative impact on those selling pre-owned homes, those that can least afford to reduce their prices.
Lower Property Insurance Rates - Maybe Not
Posted at 5:48 PM, May. 10, 2007
While Governor Charlie Crist and many other politicians have been promising lower property insurance rates, a new twist has taken place.
When U.S. Senator Bill Nelson was the state insurance commissioner he initiated a public computer catastrophe model that was supposed to protect us against the private computer catastrophe models that the insurance companies use. These models predict the likelihood of a weather related catastrophe.
The public model was created by a team at Florida International University in Miami at a cost of $2.7 million of taxpayer money.
So what is the twist. The public model was supposed to provide checks and balances to the private models used by the insurance industry. Unfortunately, the public model predicted catastrophic losses almost twice as high as the private models. If the insurance industry sets their rates based on the public model instead of saving money, we could all be paying much higher property insurance rates, plus we will be paying for the system that all made this possible.
So What Happened to Property Tax Relief?
Posted at 6:03 AM, May. 5, 2007
Governor Charlie Crist had set as one of his priorities, Property Tax Relief. We were promised by him and members of the legislature that we would see it soon. Some were even saying if they did not pass anything during this session then they wasted their time. Well guess what? The session is over with no agreement.
The legislature suspended negotiations until a special 10-day session to be held June 12 - 22. They state they want to get it right, and this session they say will result in a deal. Let us pray!
Will Wesley Chapel Get A Hospital
Posted at 1:37 PM, May. 4, 2007
Will Wesley Chapel Get A Hospital?
June 2007 will be the magical date. That is when the state will decide whether Wesley Chapel will get a hospital of its own. Last year the state turned down Florida Hospital Zephyrhills, UCH and BayCare.
This year Florida Hospital Zephyrhills and UCH have formed a partnership and propose to build an 80-bed hospital near Saddlebrook Resort on SR-54. The University of South Florida's Medical School and BayCare formed a cooperative effort to create a 120-bed teaching hospital in Seven Oaks on Bruce B. Downs Blvd.
If there is an approval, which is not a sure thing, there will likely only be an approval for one or the other, and we can expect an appeal by the losing party. The soonest we would see a hospital would likely be in 2011.
Last year the state used census data from 2000. This year they will be using updated information, and they should take into consideration what the anticipated population will be in 2011. Hopefully, the state will take into account that the nearest hospitals are a good 30 minutes away, and even longer with rush hour traffic.
Open Houses
Posted at 1:48 PM, Apr. 30, 2007
Should we Hold an Open House
When you are selling your home as a For Sale by Owner (FSBO) you will almost certainly hold open houses. However, there is much controversy amongst sellers and even real estate agents on whether to hold open houses or not. Here are a few things to consider;
1. Where is the home located -- Is your home located on a main road where lots of road traffic passes by each day. Then an open house may be worth it. However, if your home is in a gated community or located on a dead-end it may not command enough drive-by activity to make it worthwhile. An open house on a road where 35,000 cars pass by each day will be more successful than one where the only cars that pass by are the neighbors.
2. Security -- Beside the looky-loos, neighbors, and those interested in getting decorating tips, one group that likes open houses are thieves. Although not all that common, crime and assaults do occur from time to time. The crime is often the stealing of jewelry or prescription drugs. Whether you are a FSBO or Realtor an open house is an open invitation for everyone to come in, and you cannot control whether they are potential buyers or those that may be planning something more nefarious.
3. Cost -- Anyone can put out a sign, but properly advertising an open house can run $80 to $200 or more for each open house. These costs can add up quickly.
4. Housing Market -- In a sellers market the chance of selling is high as buyers are desperate to find a home. They often go to a Realtor, look for open houses and FSBO homes. In a normal market about less buyers look for open houses, and in a buyers market, most buyers go through a Realtor as there are too many homes available. Therefore, there is little benefit to an open house in a buyers market, limited benefit in a normal market, and good benefit in a sellers market.
5. Is your home the best priced, or in the best condition -- Sometimes those looking at open houses are not yet serious buyers, however if the home is so much better than others and the price is great, the looker can turn into a serious buyer. This requires a home in perfect condition or priced lower than the competition.
6. Success Rates -- Open Houses are successful approximately 1% of the time. On average for every 100 people that go through an open house 1 person will purchase. In a sellers market, 100 buyers may go through an open house in a few weeks. In a buyers market it could take many months or even years of weekly open houses to sell the home.
The decision on whether to hold open houses should be thought through carefully and discussed with a real estate professional. For a well-priced home in a high-traffic area they can be a great idea. For other homes they can be costly and of little benefit.
Selling Your Home In Any Market
Posted at 1:00 PM, Apr. 22, 2007
Selling Your Home in Any Market
I am often asked by sellers "what do we need to do to get our home sold." The answer is the same whether it is a sellers market, normal market or buyers market. The timeframes may change and the approaches may change, but in all markets there are three main factors involved in getting your home sold.
These three factors include Price, Product and Promotion. I will briefly cover each of these, however if you would like more information, please email me at Info@SweetHomeTampa.com or even better; call me anytime at 813-469-3163.
Price: Price in many peoples thinking is the most important, in that if the price is right, there will be a buyer. However, selling your home goes much more smoothly and gets the highest price when all three factors are in balance.
In a sellers market such as the one we had in 2005 pricing is not quite as important. If a seller overpriced their home the prices caught up within a couple of months and sometimes much less. However in the buyers market we had in 2006 and continue to have in 2007 overpricing by even $10,000 can be disastrous. A quick example will help.
Joe and Sally seller are ready to put their home on the market. The Market Analysis or Appraisal shows a value of $280,000 so Joe and Sally seller decide to ask $290,000 to allow room for negotiation. The problem is that there are seven other comparable homes for sale in the same subdivision and three of them have asking prices below yours. The lowest is priced at $282,000. You decide you will try for $290,000 for 30 days anyway. At the end of 30 days after few or no showings you decide that you will now drop the price to $280,000. The problem now is that some of the other comparable homes have dropped their price already. One is priced at $270,000. So now you are overpriced again. Many sellers are facing this problem today, and are always running one price reduction away from selling their home. Unfortunately, each time they lower their price, they are always playing catch-up and always one price reduction away from selling.
There are many homes on the market today that have been on the market for a year or more that if they priced the home correctly at the beginning would have sold their home for say $50,000 more than what their asking price is today.
Product: The product is the home, land, and everything included in the sale. That is to say it is the condition of the home and how the home looks to potential buyers. All else being equal the home in the best condition will sell first.
There is often a debate on whether it is better to repaint or install new carpet if necessary or to give an allowance or just to lower the price. My advice is always to do the repairs that are needed. Buyers almost always overestimate the cost of carpet or painting. For example the cost or repainting may be $2,000 but the buyer thinks it will cost $5,000 or more and takes that amount off their offer. Also many buyers truly want move-in condition. They do not want to delay their move just to have the home repainted or to get new carpet installed. Therefore, they will often look for a home that does not require repairs. They will not even make an offer on the one that requires work.
To look the best to buyers, you should make the yard and the outside of the home look great (curb appeal), and the inside of the home should look clean, neat and without clutter. Kitchens and bathrooms should be especially clean.
Promotion: Promotion is also known by the name marketing or advertising. The thing to realize is that there are various ways to market a home, and these marketing methods must be individualized to the particular property. Some marketing methods follow.
For Sale Sign: Is used to attract the buyer that might be driving by. Most effective where there is much traffic going by. Least effective is on dead-end streets and in gated communities.
MLS: The multiple listing service is probably the most effective marketing technique and the least understood. It is not just being on the MLS that is important, it is using it effectively. The MLS is used to market to both Realtors and Buyers. Used effectively it makes Realtors want to show your home first, and makes buyers want to see your home most. Effective use includes the use of the maximum number of photos, virtual tours, excellent property descriptions, and the use of incentives.
Realtor.com: 82% of buyers start their search online. The majority of these start that search at Realtor.com. When you think of Realtor.com it is best to think of a magazine. If you were to advertise in a magazine you would probably like you ad to be on the cover if possible. If not then within the first several pages, and as you can imagine the further back in the magazine then the less your ad would be seen. The same is true on Realtor.com. When a Realtor joins the National Association of Realtors included in their membership is their listings appear on Realtor.com. However, you only get a standard listing on Realtor.com. 85% of Realtors use standard listings as there is no additional charge. However this is like having your home advertised in the back of a magazine. On Realtor.com this puts your listing last, only shows one photo and only has the Real Estate offices contact number. There are then several levels of enhancements which the Realtor must pay for, sometimes with a cost of several thousand dollars per year.
Open Houses: Results in sales approximately 1% of the time. Most effective on busy streets, least effective the further into a subdivision, dead-end streets, or in gated communities.
Newspaper Ads: The least effective marketing method and the most costly. Ads can run $80 per weekend for local papers and as much as $280 per day in the New York Times. Serious buyers go to Realtors or shop online.
Home Magazines: Costly, but effective in certain market conditions. As high as $500 per month or more. Not very effective in a buyers market. Again serious buyers go to Realtors.
In closing, when selling a home, it is important to have the three P’s in balance. Again these are the Price, Product (condition of the home), and Promotion (marketing). If one factor is out of balance another factor must compensate. For example, if the condition of the home is inferior, then the price might need to be lowered. If there is not enough marketing, the price may need to be lowered or the curb appeal might need to be raised. Sometimes if one is too far out of balance, the others cannot be made to balance the other. For example, if the asking price is way too high, making the home even nicer, or all the marketing in the world will not sell the home.
Westbrook Estates Market Report for the First Quarter of 2007
Posted at 11:27 AM, Apr. 8, 2007
Westbrook Estates Market Report
Please click the link below to open the first quarter market report for Westbrook Estates in Wesley Chapel, Florida. It lists all the homes currently listed, under contract, sold or expired during the period of January 1, 2007 through April 8, 2007. It is in PDF format so you can print it out or save it to your computer.
Westbrook Estates First Quarter 2007 Market Report
Wesley Chapel to Get Pasco National Tennis Center
Posted at 3:19 PM, Apr. 4, 2007
Pasco County Commissioners have agreed to a price increase to build the new Pasco National Tennis Center to be located next to Saddlebrook Resort in Wesley Chapel.
Originally when approved the price was $5.7 million, but has now increased to $7.9 million which will come from the tourist tax revenue.
One last item is holding up the tennis center and that is getting the deed to the land. The Porter family has agreed to donate the land, but until the Wiregrass Ranch development gets approved by the County, the family is reluctant to give the land. The Porter family owns the 5,500 acres that will be used for Wiregrass Ranch.
The Pasco National Tennis Center when complete will have a 5,000 seat stadium, 15 practice courts and ball fields along with plenty of parking for tournaments.
Tom Dempsey, the owner of Saddlebrook Resort will pay the $250,000 per year required to operate the Tennis Center.
Old Pasco Road to Close Soon
Posted at 12:48 PM, Apr. 4, 2007
Old Pasco Road at the intersection of CR-54 should be closing soon for grading and paving. The construction will raise the road level by approximately three feet. Nelson Construction had asked County Commissioners to approve closing the road starting March 29th; however that date has already passed. However, do not be surprised if you suddenly see a detour.
The road closure will require a detour of traffic onto Oakley Blvd. The road closure is expected to last approximately three to four weeks.
Road Work and Progress Parkway Entrance
Posted at 12:39 PM, Apr. 4, 2007
According to the road crew doing the construction of Wesley Chapel Blvd the entrance to Progress Parkway should be reopened within one to two weeks.
I'm sure we are all looking forward to that!
The road work to follow will be to install a grass median along with two westbound lanes. Until then the newly paved road will be one lane in each direction. It will be a nice treat when we have four lanes on Wesley Chapel Boulevard.
They state there will also be room left for an additional two lanes to accomodate future growth.
Home Down Payment Gift
Posted at 12:33 PM, Apr. 4, 2007
U.S. Rep. Dave Weldon Republican of Florida is going to introduce legislation that if passed would allow relatives to give a gift equal to 20% of the down payment of a home, as long as the price of the home is no more than 110% of the local median price.
This would be a big boost especially to the first-time homebuyer market. Although the real estate market is slowly beginning to rebound, this would be a nice incentive to help increase homeownership.
Gate Or Not To Gate
Posted at 3:05 PM, Apr. 1, 2007
Many residents here at Westbrook Estates have in the past brought up the idea of having a gated community only to hear that it is not feasible. Lennar Homes for almost 12 years has sold homes in Grand Oaks, which is about a mile away as a gated community. Last year they installed the gates and a guard’s station. They felt that the residents would love to live in a gated community. However, only 42% of the residents voted for a gated community. It would take a vote of 80% of the residents to allow the county to convert the roads from public to private.
Why would the residents not want to live in a gated community? It has to do with finances. Many residents like the idea of a gated community, but just do not want to pay for it. Once the roads become private the community is responsible for maintenance of the roads and gates, along with being responsible for accidents and injuries. Therefore it takes much of the cost of road maintenance and other costs away from the county and puts it on the community.
The board in Grand Oaks has even gone so far as to insist that Lennar Homes remove the guard house and the gates, and restore the entrance to its original look. The board felt that the issue has been extremely divisive. Although not specified, another likely reason could be the fact that even though they would not be allowed to use the gates or guard station they would still have to maintain them.
New Home Search
Posted at 3:26 AM, Mar. 23, 2007
New Construction/New Home Search
Are you looking for a brand new home. You can now search available new construction in the Tampa area. Pricing is given along with the city in which the homes are located.
You will see a community number, which if you would like more information regarding the community, please contact Jeff Launiere, P.A. at 813-469-3163 with the community number and we can give you the full community information.
My service is FREE to you! Broker commissions are not added on the price of any given property. Our commission is paid by the builder!
Contact me at 813-469-3163 for more information!
If you are interested in new homes in other cities throughout the country you can search for them here. We can always refer you to top real estate professionals anywhere in the country. Just call us and tell us where you want to move, and we will get you the names of the top agents at no cost to you.
Click the image below to start your search. 
Salvation Army Thrift Store Approved for Westbrook Estates
Posted at 4:10 AM, Mar. 21, 2007
Pasco County officials approved the initial plans for the Salvation Army thrift store which will be built in front of Westbrook Estates and across from the entrance to Lexington Oaks. Residents of Lexington Oaks are concerned that the Salvation Army thrift store will hire those from its rehabilitation centers, especially since an elementary school is supposed to be coming to the neighborhood. Other concerns are the building appearance which will have a stucco facade on the front with the three other sides being corrugated metal, autos being sold on the property, items being dumped in the parking lot, and trucks bringing in deliveries. There is also a concern that if the store could not make a go of it, then the store could become a drug rehabilitation center.
Salvation Army officials have stated that they will not hire those from the rehabilitation centers until they are finished with the program. They also will not sell autos, and the building will only be used as a store. They state they wish to be good neighbors.
Several members of the Lexington Oaks subdivision were present at the public hearing. They also had over 1,000 signatures on a petition. It was reported that there was only one resident of Westbrook Estates at the public hearing.
Progress Parkway Closed
Posted at 4:32 PM, Mar. 4, 2007
Westbrook Estates main entrance of Progress Parkway will be closed from Monday March 5, 2007 to approximately Friday March 9, 2007 for road construction. Use the Gateway Blvd entrance.
Westbrook Estates Real Estate Activity Year to Date
Posted at 3:45 AM, Mar. 4, 2007
As of right now there are 33 homes currently listed on the Multiple Listing Service (MLS) in Westbrook Estates.
There are three homes that are currently under contract. This is a big pick up in the market compared to what we were seeing over the past year. There seems to be much more buyer activity so far this year. Hopefully this will continue and grow for the entire year.
Seven listings have been taken off the market so far this year after not selling.
One home has been sold this year. It is at 4733 Mapletree Loop. It has 1,610 square feet, with 3 beds and 2 baths. It was on the market for 175 days and sold for $225,000, while the original asking price was $249,900.
Salvation Army Store in Front of Westbrook Estates/Lexington Oaks
Posted at 3:05 AM, Feb. 22, 2007
As many have heard, there will be a new Salvation Army store in front of Westbrook Estates, across from the entrance to Lexington Oaks. There is now a campaign to try to stop it. The concern of course is that some of the people from their programs will work there and bring the crime levels up. There is also a concern that there will be junk left out front when it is dropped off. And finally, many are saying that the Salvation Army store will cause our home values to go down. The campaigns to stop organizations from opening rarely work since they are fitting in with the zoning laws. Where there is some success, it is usually to get some concesssions from the organization to make strict rules. If there are enough people against the store from opening, the Salvation Army could always decide not to open, but this rarely happens. The Salvation Army has said that they will not hire anyone from their program, with one caveat and that is once they complete the program, then they would consider hiring them.
So let's hear from you. Are you concerened about the Salvation Army store opening in front of Westbrook Estates? If you are concerned, what do you believe can be done, and if you are not concerened, why not? Finally, do you believe that the Salvation Army store would affect home values in Westbrook Estate or Lexington Oaks?
For more information you can send an email to nosalvationarmy4wc@yahoo.com
If you believe your home is an important investment, if you believe in maintaining a quality of life with peace, security, and the dream of a nice quiet community, I encourage you to take five minutes of your time and write a letter to
John Gallagher, Pasco County Administrator
West Pasco Government Center
7530 Little Road, Suite 340
New port Richey , FL 34654
Or e-mail him at Jgallagher@pascocountyfl.net telling him of your opposition. Then send a copy of that letter Pat Mulieri at commissioners@pascocountyfl.net. The case number is DRO 07-782; you must refer to this number when corresponding.
You can also contact the Salvation Army with your concerns. The contact information is;
Salvation Army:
Major Don Smith
The Salvation Army Tampa ARC
(C) 813 477-4439
Donald_Smith@uss.salvationarmy.org
Florida attorney general warns consumers about mortgage fraud scams
Posted at 3:07 AM, Feb. 13, 2007
Mortgage fraud scams were among the top ten complaints filed with the Florida Attorney General last year. To read more information and tips to avoid mortgage fraud scam click here.
Governor Crist Proposes Property Tax Cut
Posted at 4:18 AM, Feb. 1, 2007
Governor Charlie Crist on Tuesday proposed a constitutional amendment that would cut property taxes as much as $4.7 billion a year.
For homeowners the savings would result from allowing counties to double the homestead exemption from $25,000 to $50,000. Homeowners would also be allowed to take their Save Our Homes property tax savings with them when they move anywhere inside of Florida. This would be a great boon to real estate sales.
For those who do not know about Save Our Homes, this is an amendment that passed several years ago and caps the value of a primary residence for property taxes to 3% per year or the Consumer Price Index (CPI), whichever is less. This is especially helpful when the property values were going up 20% or 30% per year. Those that live in one house for many years have an artificially low property tax bill. However when the property is sold the new owner pays property taxes based on the appraised value often paying thousands more than the previous owner. However, the original seller would purchase a new home and would have to pay taxes not at their old tax rate, but instead at the full-appraised value. This prevented many people from moving. For example, take a family that has a home that is 3,500 square feet. They live there many years. Their children finish high school, go to college and then move out of the home. Now instead of having four people in the home there are now only two. This couple may now be ready to downsize, however by moving they lose their Save Our Homes tax savings. They may want a home that is 2,000 square feet, but by moving, they may pay thousands more in property taxes than if they stay in their too large home. By making the tax savings portable, it will allow people to downsize or upsize their home, or just move to another area. This should help families and really boost the real estate market.
Also proposed is a provision allowing owners of rental properties, commercial properties, and non-homestead properties to have the same 3% cap on property taxes. These three groups never received the Save Our Home benefits. Providing the same benefits to these groups should help boost activity in these areas. By providing this to non-homestead properties, sales of homes to snowbirds that live in Florida for part of the year should increase.
Let us hope that this tax relief will be approved.
Single-Story Homes Back in Style
Posted at 4:07 AM, Jan. 30, 2007
One-Story Homes Make Comeback
Over the past several years, ranch-style homes (single-story) have been making a comeback. After falling out of favor, last year over 50% of all homes sold were single-story homes. The population is getting older, and the over 55 market wants everything on one floor. Many homebuilders are now offering two-story homes with a master bedroom on the first floor. This can keep their costs down, while still drawing those that like two-story homes, but want the convenience of a master bedroom on the main level.
For buyers interested in selling the home in the future, this could be a sign that it would be smart to buy a single-story home for the greatest future resale value.
Vacant Homes for Sale
Posted at 4:01 AM, Jan. 25, 2007
The U.S. Census Bureau reports that 1.9 million homes for sale in the United States are vacant. This equals approximately half of all single-family homes that are for sale. Many of the owners are investors who bought the homes in the hot sellers market of 2005, planning to flip the homes. There are also many sellers who have purchased a new home and are having trouble selling the old one.
The biggest problem now is that many of these sellers have two or more mortgages. Many have reduced the asking prices drastically to try to get the homes sold, and for some to prevent foreclosure. Declining home prices are also causing foreclosure rates to increase since many cannot sell their homes for enough to cover the balance of their mortgage. This is especially true since so many of these homes were purchased using sub-prime loans.
So what can a seller do? If you own a vacant property, make sure your real estate professional (or you if selling as a For Sale by Owner) is creative with the marketing plan. Offer a larger than average incentive to make Realtors want to show your home first, and think about having your home staged. Proper home staging can decrease the amount of time on the market and can result in a higher price. To see firsthand the advantages of home staging view a vacant home, then go to a model home center and see what a few furnishings and simple items can make the home look warm and inviting. In the Tampa area, a great staging company is Tampa Bay Home Stagers. Their website is www.TampaBayHomeStagers.com.
For buyers it is a great time to buy a home as there are some great deals and on top of that some great incentives being offered. Many builders are decreasing the amount of incentives they are offering which is good sign that the bottom may have been reached. I am also offering all buyers an additional incentive. Purchase a new or resale home using me as your Real Estate Professional and I will give you 1% of the purchase price back at closing on virtually all homes. For details call Jeff Launiere, P.A. at 813-469-3163.
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