Monday, November 26, 2007
$180,000 -$199,999 1 47
$200,000 -$249,999 2 40
$250,000 -$299,999 2 65
$300,000 -$349,999 2 47
$350,000 -$399,999 2 82
$400,000 -$449,999 1 100
10 Homes have sold within the city limits. There are approx. 400 homes on the market to be sold which equates to 40 months of homes to be sold. Extremely tight market!!! I have never seen a market with over 3 years of inventoried homes to be sold.
What can I do to make my home sell? Click here for more details.
Monday, November 19, 2007
So there you have it! Make better decisions, with the knowledge that List does not equal Sale (Although in some cases they are the same number!). This will help you in pricing you home! Good Luck!
Tuesday, November 13, 2007
Click Here for the link to the table. I was not able to paste it here.
Months of Inventory signifies how many months of Inventory are on the market to be sold.
For example: 8.82 means almost 9 months of inventory to be sold.These numbers are staggering. If you want to sell a home in this market your best chance to sell in in the price range up to $300,000. In Utah, if you are priced in that range you have the best opportunity for a sale. Look at the daily Sold rate Utah is selling 42 homes a day priced in that range. There is no other price range remotely close to it. The next best is 5 times worse. This means your chances for a sale become 5 times harder just for pricing in the $300,000 range! These amazing swings make a real estate professional very valuable! Click here to find out why you should use a professional to sell your home!
Monday, November 12, 2007
Thursday, November 8, 2007
Number 7: Agents give you exposure to the entire market. As mentioned above, agents control the lions share of the market, and have access to market you home effectively outside your specific market. How would a FSBO market a home? Well they would use a sign in their yard and maybe run an ad in the local paper. There are a couple of Internet sites that they could use, but who really looks at them! If time is not an issue, you may want to look into some of these ways to sell, however remember that less than 25% of FSBO's sell their homes! These ways are very risky and reap next to nothing in the end. Remember the key to selling is to sell in the quickest time and for the highest price! If a professional can expose your property to your entire local market and effectively market your home on a national scale, who then will sell your home for the highest price in the least amount of time? You may want to consult your statistics professor from college to help give you the correct response.
Number 6: Peace of Mind. Sellers get frustrated with having to juggle selling their home, work, family, and all other aspects of their lives. Agents provide some much needed relief by handling the home sale aspect for them. One of the top reasons that sellers choose to have professional real estate agents sell their homes is because they do not want to deal with the buyers, making sure everything is going smoothly with the close, and showing their homes to complete strangers. There are a lot of people that are involved in the sale of your home. For a small list of this click here. This peace of mind is priceless. Often Sellers are not sure they are being treated right during the sales process and having an agent deal with it, provides the confidence they are looking for. This leads us to the next reason you should use professional help when selling your home.
Number 5: Real Estate Professionals will handle the Sales Process from A-Z. Agents provide many different services during the time they are selling your home. They will give you up-to-date information on the things Buyers are looking for in your home (For some ideas click here). They have good pointers for staging your home. Agents provide advice regarding curb appeal (the way your home looks from the outside). For Information on curb appeal and home staging click here. Real Estate Professionals will work with the buyers lender, appraiser, home inspectors, escrow agents and even other real estate agents during the course of the sale. Buyers will typically have an agent working hard for them, so it will be very beneficial to have an agent with your best interest working hard for you! Remember your agent works hard for you! Any questions you have about selling they will be there to give accurate and meaningful responses to you.
Number 4: Knows the market and how to be Competitive. It's can be very risky to try to sell your home without the use of professionals. These days it is increasingly harder and harder to price and sell real estate. Don't gamble on price. You could be giving away thousands, or you could be pricing too high to even get people to look at your property. Real Estate Agents will be able to give you a good idea where the market is and where you should be in pricing! For more information on pricing click here. Real Estate agents have a wealth of knowledge and the MLS (Multiple Listing Service) to help give them the unique perspective to aid them in giving good advice to homeowners. The MLS is a critical piece, but nothing can replace good advice from reputable sources. The Real Estate Market is a highly volatile market, and changes daily. It is essential to get good up-t0-date information from these individuals.
Number 3: Agents help negotiate price and options to make you real estate transaction work! All to often I hear comments about how people tried to sell on their own and ended up confused and taken advantage of. This can happen with frequency, unless you protect yourself with the strong support of a powerful professional. 99% of the time this happens, the seller will not divulge all the facts surrounding the deal, and often does not realize he/she lost big! This industry tends to frighten many and they do not speak up until it is too late. Do not let this happen to you! Professional Agents are hear and available to help. Granted not all agents are the same, therefore you'll want to interview with several to find the one you fell comfortable with. Experience is worth more than its weight in gold. I know everyone has a friend or family member in the biz, but can you really put future in the hands of someone inexperienced? They can lose thousands of dollars of your potential equity, during the negotiation process. So be sure to interview the right person for the job of selling your home! A professional agent will be able to help you see ways to make your negotiations more profitable for you. You do not have to accept what the buyer submits as an offer. You'll be able to structure the deal to your satisfaction and will not need to settle.
Number 2: Agents will attend your closing with you. This will be a great comfort to you. You'll have someone that knows what is going on, and how to handle any issues you may have. No questions about it. You'll have some anxiety when you go to the close, and you'll feel out of your element. The Real Estate Agent will help walk you through the process and be able to answer any questions you may have. Do not leave the closing table until you feel confident everything meets your expectations and all your questions have been answered to your satisfaction. Often sellers will leave the close table not sure what just transpired. They often blame the industry and if they did not have professional representation, they blame the other party every time! Get comfortable with the numbers and any other requirements the escrow agent may have for you. Ask your agent if you do not understand any point aspect of the documents that you'll be signing.
Number 1: Sellers net more money with Real Estate Agents! Despite all the drama and negative feedback, agents simply sell homes for more money! According to the 2003 NAR Profile of Home Buyers and Sellers, homes sold using a professional real estate agent sold on average 20% higher than those homes sold by owner exclusively! In 2006's Profile of Home Buyers and Sellers the numbers were shocking. The median FSBO (Fore Sale By Owners) selling price was: $187,000 compared to $247,000 for agent-assisted transactions. That's a 32% difference. Those were the numbers for 2006. Amazing!!! Now my personal experience has shown me that in the Utah market, agents are selling for approximately 15% higher than the FSBO's. To put it in perspective, assume that a FSBO sold a home for: $200,000. An agent-assisted home similar to the FSBO's would sell for: $230,000. After paying a commission of 6% to the agent the home buyer net's $216,200 compared to $200,000. Is it worth the additional $16,200 to have an agent help sell your home? Obviously the answer is YES!!!
Tuesday, November 6, 2007
#2 Curb Appeal & Showing Condition. Many many ask, "Why is this number 2?" Keep in mind that this is top three ways to sell your home in 30 Days! Curb Appeal is a shock and awe for potential buyers for a property! For more information on Curb Appeal click here . A lot of buyers will remember the Curb Appeal more than the actual home! For better or for worse Curb Appeal is Curb Appeal. At the very least make sure everything is picked up and manicured outside. The inside is also a critical piece to sell the home quickly. The home should be clean and picture perfect! "I know there are many of you out there that are saying WHAT!!!" Again remember these are suggestions to help you sell in 30 days. If you can wait 90 to 120 days then obviously these pointers do not have to carry as much weight! They will still be important, but not as important if you have time. I agree and empathize with those of you who are saying that keeping my home picture perfect is impossible. It can create a very stressful environment for those 30 days, but remember it is short-term and will soon be over! There are some ideas that you can employ to help make this time period pass with as little stress as possible. 1) You can plan to be away as much as possible (Perhaps plan a family vacation for 2 of the 4 weeks). 2) Plan to eat out often during this time. 3) Have the children pick up their rooms twice daily. 4) Dad can pitch in and do above and beyond the call of duty during this time. 5) Develop an organized system of checking each room each day (Assign family members specific rooms that they should check twice daily!). 6) Keep a positive attitude through this time. Remember it is temporary, and plan on it being difficult, but not impossible!
And the Number 1 way to sell a Home in 30 Days! Drum roll please!! It's all about the PRICE. If your priced right you'll sell your home regardless of any other factor: (Location, Marketing, Curb Appeal, Bells and Whistles, etc.) The question then to ask is: "What is the right price?" Often times a person will try to sell their home on their own, but they do not know where they should price their homes. The For Sale By Owner (FSBO for short) will look at homes listed in their area with real estate professionals and run with it. This is not the way to price a home. Homes differ drastically in each subdivision (No two homes are identical even though the floor plan may be similar). Homes in each subdivision can differ in price by $10,000's or even by $100,000's depending on the subdivision. The best way to price your home correctly, is to get with a real estate professional who can advise on where you should price your home. There are many professionals out there who provide this service at no cost. Check with you local real estate professionals. Interview two or three to make sure your comfortable with him/her. For more information on pricing click here. Remember Pricing your home correctly, and mean the difference of selling you home in 10 days or 100 days. Be smart, and do not take chances. Get help when you need it.
Monday, November 5, 2007
Well, Halloween is over and November moving fast. We are already on the 5th day of November. Time passed so quickly these days, I wanted to give you an updated on the General Real Estate Market in your area. These areas include Utah counties: Salt Lake, Utah, Davis, Weber, and Tooele.
As of late, this market has seen incredible increases of homes for sale. There are approx. 17,645 homes for sale (These numbers reflect Homes that are listed on the Multiple Listing Service or MLS). There are also approx 1,300 For Sale By Owners (These numbers are getting fewer and fewer due to the difficulty of the market right now). So the Grand total of homes for sale in our area is approaching 20,000.
There was less than 1,300 homes sold in the last month (Again this information comes from the MLS), which translates to 14 months of homes to be sold in the Wasatch Front! If you are a seller this means you need to ask the question, "What am I doing different to sell my home?". Another great question to ask is: "Do I have 14 months to sell?". These are great questions to ask right now, given the drastic change in the current market.
The average days on market (Time a home sits on the market before being sold) is looking pretty good for the area. It is 50 days on market. Homes priced above $500,000 are looking at 80 Days on Market (DOM). Homes priced in the $400,000 range are looking at 57 DOM. 55 DOM for homes priced in the $300,000 range. And finally 47 DOM for homes priced in the $200,000 range. The average days to sell a home is dependant on several factors:
First and foremost is PRICE. As a professional real estate agent I am seeing that sellers are reluctant to price their homes where the market is telling them to. The real estate market is an interesting animal. The Seller does not determine the market. The agent does not determine the market. The buyer is the one who will determine and control the lions share of the market. The remainder will be determined by the supply and demand of the market (economic factors).
Second will be general needs of the buyer. This means: Total Beds, Total Baths, Square Footage etc. These are the basics that a buyer is looking for. Lot size and swimming pool may be included in this second factor. If you do not have the right combo of basics this could equate to more time spent on the market.
Third is Location. I put this one third on factors that determine Days on Market. I have seen people change decisions about location due to price and general basics such as an additional bedroom for no additional cost, just located in slightly different location! Buyers always like additions.
Fourth is Amenities & Additions. What is an amenity? Click Here to find out! So Amenities include: Lake/Mountain/Valley Views, Parks, Exercise Club/Restaurant etc. Additions would include: 3rd Car Garage, Jetted Tub, Two-Tone Paint, Upgraded Flooring, Fire Place, Extra Laundry Room or Kitchen. These would all contribute to the 4Th factor effecting DOM.
Finally curb appeal/showing will effect DOM. If your place has expensive landscaping both front and back, it is possible that that alone will be the selling point for a lot of buyers. Conversely, if your property looks like the next redneck joke, there's a good bet your property will be sitting on the market for much longer than the average! Never underestimate the power of curb appeal! The way the home shows inside will be a huge factor for most buyers. As agents, we understand that junk will be gone or hideous carpet or furniture will be out when a buyer moves in, but the fact remains that those items do influence a lot of buyers. So make sure the house shows well.
Webster’s Defines curb appeal as: the visual attractiveness of a house as seen from the street. My definition includes: visual attractiveness from the front, and back! The back yard can play a very important role, especially if the buyers have children. Even without children you can see by the photo to the right how important curb appeal can be from the back yard.
Obviously the answer to the question above is a resounding yes! Curb appeal, both in the front and back and even the sides can at times make or break a sale. I’ve seen both good and bad in the industry and what I’ve noticed, is at the very least curb appeal will make a home sell a lot faster. It may not draw a higher price (Although don’t be surprised if an offer comes in higher due largely to the fact of beautiful curb appeal), but it will sell faster and that is a fact!
Another Interesting observation relating to curb appeal is the mindset created as buyers first see the property. As a property owner you’ll need to be keenly aware of that fact that the buyer will be making decisions about your property even before they are inside of your home. WOW!!! “You mean I need to be worried even before the potential buyer sees the inside of my house?” You guessed it! Buyers in today’s high paced environment and especially with large inventories of homes on the market are more and more sophisticated.
To improve your chances you need to ask yourself: “How does my home look from the outside?” It is extremely critical to have at the very least all the clutter and debris removed and the landscaping groomed and manicured. I am not suggesting you go out and spend $$$ thousands of dollars to upgrade your landscaping. You’d be surprised, how picking up all the clutter and making sure the landscaping is manicured, will increase the amount of activity on your home. I’ll always recommend spending maybe a couple of hundred dollars to improve curb appeal if needed. The couple of hundred you spend will come back to you if done correctly (get help if needed!).
Finally it is important you do all this before taking pictures of your home. You want to put your best foot forward. If pictures say a 1,000 words, then do not get lost in the wording. Keep it simple and have lots of pictures. If you are using an agent, make sure they take a lot of pictures. Pictures are great! Buyers theses days have so many options that you want to provide the best opportunity you can! Good Luck Sellers! For additional tips on how to sell your home click here
Saturday, November 3, 2007
No this is not a Dr. Seuss Book! I think it would be appropriate to share with you those who make home ownership possible. You may be asking yourself: “Hey, I’m the one that makes it possible”, right? You are correct, but there are others involved who help you reach the status of home ownership. Who are they? The list will be an eye opener for some.
First and foremost we’d like to thank the many many Investors out there who have been instrumental in the purchase of mortgage back securities (Known as MBS’s). These are just like stock certificates that investors can purchase. By purchasing MBS’s these investors bring more and more $’s into the real estate industry. Thus more and more people are able to purchase more and more homes and receive reasonable interest rates (Supply and Demand and all those economic factors that contribute to the low mortgage interest rates! But that’s another subject for another day.). So the investors help us purchase a home that we would not have the funds to purchase.
Next is the Lender. He/she will qualify us for the home to purchase. It is important to start with the Lender before finding a home. You may fall in love with a home and then try to get financing for that home, only to find out you do not qualify. So find a reputable lender. I recommend brokers over banks because of the flexibility the brokers have. Banks often have 3-6 programs that a person can qualify for. Brokers have hundreds of products and programs for the borrower (that’s you!)
After the lender comes the professional Real Estate Agent. This person can give you exposure to 100% of the homes for sale in your area. Don’t worry the fees paid to the professional real estate agent are paid by the seller. If the agent can’t find you a home, typically you do not pay anything at all. So go out and interview a great agent to help you. Remember you are in control so pick the very best one for your needs and someone you can work with.
Other key people include:
General Contractor (If you are looking for new construction).
Appraiser is critical to make sure your home will appraise at the purchase price. If it does not, the Lender will not lend the entire amount.
The Seller if you are looking at the re-sell market. At times the seller can be difficult to work with. This is where the professional real estate agent comes in. He/she can work with the seller so you do not have too!
Finally we can not forget the Taxman. Your local tax assessor will always have his hand on your property. Don’t pay him and you’ll find out real quick to whom that property really belongs! Never, never underestimate the power of your taxing authority.
There you have it. Good luck and good shopping!!!
Friday, November 2, 2007
For Great Updates on the Real Estate Market, check out my website at: http://www.jasonsellsutah.com/