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

1. The asking price
2. Product or the condition of the home, land and anything included in the sale
3. Promotion or the marketing plan

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.

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

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.

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.   

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.

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.

Florida Homeowners Insurance Rates to Go Down

Posted at 2:05 PM, Jan. 23, 2007

On the night of January 22, 2007, the Florida Legislature passed a 167-page bill that is expected to lower homeowner insurance premiums from 5% to 40%. Governor Charlie Crist is expected to sign the legislation on January 23, 2007. This will not result in instant rate reductions, but instead could take several months.

Florida homeowners are having trouble with the high homeowner’s insurance rates, and homebuyers have been reluctant to purchase homes because of the insurance rates. This one bill could help revitalize the housing market. Once the state tackles the property tax issue, Florida residents and those looking to move here should breathe a sigh of relief.

This is a great start for the Florida Legislature and newly elected Governor Charlie Crist.

Florida Foreclosures Rise

Posted at 5:19 AM, Jan. 19, 2007

Westbrook Estates: 2006 Real Estate Activity

Posted at 5:16 AM, Jan. 19, 2007

New Home Search

Posted at 3:18 AM, Jan. 18, 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!

Purchase a home using Jeff Launiere, P.A. as your real estate professional and you will receive 1% of the purchase price back at closing on virtually all homes. 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.  

Florida Population Growth Falls to Number Two

Posted at 3:01 AM, Dec. 26, 2006

Home and Condo Sales Fall

Posted at 6:09 AM, Nov. 23, 2006

Tampa Area Home & Condo Sales Fall in Third Quarter

The Florida Association of Realtors reports that home sales in the third quarter fell 43% from the same time last year and condo sales fell a whopping 46%,  Even with these statistics we are on course for the third best year of sales in history.

How can this be? The biggest problem is that so many investors bought up much of the new home supply in the last few years. Builders last year put a stop to much of the investor sales. Now the investors are all trying to sell at the same time, along with the normal sellers. The inventory of homes is more than four times higher than this time last year. Until the inventory gets absorbed it is likely that we will continue to have a buyers market. Lots of homes are selling. In fact this year there have been 16,934 residential sales year to date whereas last year at this time there were 21,993. Lower yes, but not terrible.

Sellers are often trying to get top dollar, while buyers are looking for bargains. The buyers we work with are now sitting and waiting until prices drop significantly. Unfortunately, know one knows if they will go lower or how low. This is a hard time to sell and a great time to buy.

How to Sell in This Market

When you truly want to sell your home, the market we are in requires a couple of items to get your home sold. These include;

1. Price - Pricing a home properly is 90% of getting a home sold. An overpriced home will not sell. For example in the 1,800 - 2,100 square foot range there are presently 347 homes for sale in the Wesley Chapel and New Tampa area. If your asking price is even a small amount above your competition, you may end up with no showings and no offers. Correct pricing is the most important thing a seller can do. Your Realtor can assist you in choosing the right price. Your home price must appeal to the buyers who comparison shop and quickly learn the right price.
2. Marketing - In 2005 there were often offers before a sign even went up in the yard. In 2006 a sign, a listing on the MLS and on Realtor.com are not enough. Top Realtors use much more to get homes sold now. This can include marketing the home on multiple websites, high quality flyers, mailings, networking, address specific websites, virtual tours, multiple photos online, home magazines, newspapers, and showcase enhanced listings and Featured Homes on Realtor.com. They also offer incentives to the 7,500 other Realtors in the Tampa area to show your home first. Realtors must spend money to get your home marketed properly. Top Realtors also realize that they must market to the 70% of Tampa buyers who come from out of the area, rather than just to the local market. The more potential buyers see your home, the more likely it is the home will sell. Find out how much marketing your Realtor provides. Interview at least two or three Realtors and compare their marketing plan.
3. Make your home easy to show - In the Multiple Listing Service (MLS) we sometimes see a listing our buyer likes, but in the remarks it says something like requires 48 hour notice to show or showings only on Saturday or Sunday. If the buyer is here from another state and leaves tomorrow, you may have just lost a sale. Often when a owner shows their own home, they work during the day and cannot show until the evening, however that may not be convenient to the buyer. Again lost sale. The easier to show the better and if the home can be shown on short notice or with no notice as in a vacant home this creates more buyer traffic.
4. Make your home a pleasure to show - The home should be appealing inside and out. If there is no curb appeal the buyer may never make it in the door.

Buying in This Market

Last year sellers held the upper hand but now in 2006 buyers feel in control. When buying go see several homes and pick out the ones you like and have your Realtor prepare a Comparative Market Analysis on the ones you are thinking of making an offer on. Realize that many homes are overpriced, yet there are many sellers that have their home priced right. Base your offer price on the approximate market value shown in the Comparative Market Analysis rather than just discounting the offer price by a certain amount. Buyers lose out on homes regularly when they offer way below market value. A properly priced home with great marketing will still sell quickly, but it is a great time to be a buyer!

Current Mortgage Rates

Posted at 2:02 PM, Nov. 20, 2006

Westbrook Estates Listing Activity

Posted at 5:31 AM, Nov. 20, 2006

*Why the difference between the MLS Days on Market and Actual Days on Market? When sellers list a home they sometimes list with one company then go to another and another.  Realtors also sometimes take a listing off the market and then put it back on the market under the impression that it makes the listing look new. Therefore the MLS Days on Market shows only the days of the current listing whereas the Actual Days on Market shows the number of days since the home was first put on the market. The Actual Days on Market gives a more accurate picture.