Fruit Store Lessons About Real Estate

EXPENSIVE BANANAS DON'T SELL

It's amazing where you find life's little lessons. I caught on to one while at a local food store where I was, just the week before, noticing the high price of fruit and vegetables. The numbers were high and of course I didn't buy any that week, figuring that I can do without for a little while or just buy frozen vegetables and hold the line on fresh fruit (I was still able to make a smoothie with frozen fruit).

So, I travel back next week and lo and behold, I notice the price of bannanas, which were $1.19 per pound to $.99 per pound. Of course they had ripened a bit over the week to a bright yellow color from the green / yellow color the week before. Thinking to myself, it's not a bad price, but still a little high, (although I did consider buying) I passed. Maybe at 89 cents a pound I'll pick some up.

Well, when I go back, what do I see? $.49 per pound. Needless to say, I was able to buy at less than half the price from two weeks ago all because the bananas started to show a few dark spots and nobody was buying before.

So, guess who got a great deal on bananas?? ME! Because;

• I waited for the right price to buy
• The price was high, nobody bought
• Price adjusted, still no one bought
• Fruit started to turn, priced forced to low point in order to avoid losing the product
• Everything SOLD OUT!

     

Real Estate - Banana's? Here's the lesson. I can't say how many times I go on a listing appointment and bring with me data that's used to get a handle on the market value of a home and the owner decides to go above the recommended list price to "test the waters" looking for a price based on emotion rather than solid data and experience. 

The listing, like the high priced banana's, sits on the market with no showings for a month or more (in most cases more). So after 3 to 6 months on the market with no real interest, The owner decides to lower the price a little closer to the recommended list price from 6 months ago (although he should get a new market analysis). Guess what? It gets a few looks, but no offers, another 3 to 6 months have passed and still not sale. The house listing is going stale, the owner is disappointed and the only offers coming in are low ball offers from investors looking to steal the property, thinking that the owners have become desperate.

Had the owner priced the property right, it might have sold within the first 30 to 60 days. Seasoned real estate investors look for hard data when buying or selling a property and price (or offer) accordingly. No emotion, just the facts. Investors know that time on the market lowers their bottom line and stops them from moving on to the next deal (or in the case of a homeowner, settling into  their next home).

Summing it up.... 

High Priced Bananas don't sell, and neither will an Over Priced Home!

• Get good data
• Price it right
• Sell your home 
• Move on. 

Simple!

* Feel free to comment below or send an email to dominick.leone@gmail.com 

Top 5 Reasons You Should Not For Sale By Owner

Reprinted from KCM group 12/26/16

In today’s market, with home prices rising and a lack of inventory, some homeowners may consider trying to sell their home on their own, known in the industry as a For Sale by Owner (FSBO). There are several reasons why this might not be a good idea for the vast majority of sellers.

Here are the top five reasons:

1. Exposure to Prospective Buyers

Recent studies have shown that 94% of buyers search online for a home. That is in comparison to only 17% looking at print newspaper ads. Most real estate agents have an internet strategy to promote the sale of your home. Do you?

2. Results Come from the Internet

Where did buyers find the home they actually purchased?

• 51% on the internet
• 34% from a Real Estate Agent
• 9% from a yard sign
• 1% from newspapers

The days of selling your house by just putting up a sign and putting it in the paper are long gone. Having a strong internet strategy is crucial.

3. There Are Too Many People to Negotiate With

Here is a list of some of the people with whom you must be prepared to negotiate if you decide to For Sale By Owner:

• The buyer who wants the best deal possible
• The buyer’s agent who solely represents the best interest of the buyer
• The buyer’s attorney (in some parts of the country)
• The home inspection companies, which work for the buyer and will almost always find some problems with the house
• The appraiser if there is a question of value

4. FSBOing Has Become More And More Difficult

The paperwork involved in selling and buying a home has increased dramatically as industry disclosures and regulations have become mandatory. This is one of the reasons that the percentage of people FSBOing has dropped from 19% to 8% over the last 20+ years.

The 8% share represents the lowest recorded figure since NAR began collecting data in 1981.

5. You Net More Money When Using an Agent

Many homeowners believe that they will save the real estate commission by selling on their own. Realize that the main reason buyers look at FSBOs is because they also believe they can save the real estate agent’s commission. The seller and buyer can’t both save the commission.

Studies have shown that the typical house sold by the homeowner sells for $185,000, while the typical house sold by an agent sells for $245,000. This doesn’t mean that an agent can get $60,000 more for your home, as studies have shown that people are more likely to FSBO in markets with lower price points. However, it does show that selling on your own might not make sense.

Bottom Line

Before you decide to take on the challenges of selling your house on your own, sit with a real estate professional in your marketplace and see what they have to offer.

Drop a comment below, I always like to hear back from all of you.

I Can't Believe This Happened to Me!

A True Story

(I can't believe this guy is still in the business)

It All Started Out Good

It's a simple formula. Buyer calls with a particular property need, the real estate agent runs a search and finds properties that meet the buyers needs. Appointments are made and we're off to see the properties. Simple, Right?

Well, we found a property that had been reduced by $50,000 and fell right into the buyers price range This was on a Thursday, so I make a call and going back and forth, we have an appointment for Monday. 

I arrive on site and the listing agent meets me on site to discuss some of the particulars about the property before my clients arrive. He is an older man in his 80's, tells me he's been doing this since the 1950's and hands me a folder from his agency for me to hand my clients (Really?), which was a poor example of a property information binder to begin with.

Everyone arrives on site to see the property

My clients arrive on site and after introductions, we continue to discuss the property, we turned to him to confirm the listing price and low and behold the price was increased by $50,000. He even has the gall to say to me, "didn't you look at the price?" I showed my listing paper which was updated with the reduced price only 29 days ago and printed on Friday. The listing agent shows me his paper with the increased price and it was updated TODAY for an additional $50,000. 

Of course, shock was an understatement to my reaction. Now, I'm told that the owner  had made a whole bunch of improvements and he wanted to put the price back to where it was originally. All the listing agent could say was "I'm sorry, I guess I should have discussed this with you before you came here" Well DUH! My emotions ranged between Embarrassed to Pissed in record time. 

Needless to say, my clients are looking to move on to another property and by no means will they reconsider this one. Not even for free!

This is where Real Estate Agents get a bad rap

Public opinion has it that real estate agents are as trustworthy as used car salesmen! Wow that hurts, considering how much ethics training, continuing education, expensive fines and penalty's we face, today's real estate agent makes every effort to avoid bad press. Now, along comes an agent who blows all of this positive effort out of the water and acts like an old used car salesman who was only missing his cigar and wide rim fedora (at least when I met him)

Who's paying the price?

The Seller just lost an opportunity to move his property to the closing table and stop paying carrying costs, which are digging a hole in his bottom line and is stuck in limbo, with a property that remains on the market. Just as a side note, if he doesn't get rid of his agent, chances are it will be there a LONG TIME. Way to go "Old Timer".

The Buyer is feeling totally abused by this Bait and Switch tactic presented to him by the sellers agent. Here was a perfect property that suited the buyer to a tee and priced right that they will not even give a second look to. (before the switch).

With all that today's real estate agent has to do to maintain professional standards, there will always be one bad apple here and there, who makes up the rules as they go along. We can only hope that they somehow choose other professions or just retire and give the rest of us a break.

Choosing a real estate agent is not a task to be taken lightly. This seller made a big mistake that cost him carrying costs for the property and a chance to sell the property at a fair market price.  Select an agent who will be looking out for your interests and will represent you in the best possible way to get your property sold. 

Drop a comment below and give me your opinion. - Thanks

5 Common Credit Score Killers

Re-posted from CBS Money Watch

By Christine DiGangi/Credit.com

Having a good credit score can help you save a lot of money over your lifetime, but many people find themselves with scores lower than they'd like because they don't know how much everyday things can hurt their scores.

Of course, once you know what those things are, you're better equipped to improve your credit.

Here are five common things that can hurt your credit.

1. High credit card balances

One of the most influential factors in credit scoring are your revolving credit balances relative to your credit limit. You may be able to afford to spend much or all of your available credit and pay the bills in full, but that doesn't mean you should.

The ratio of your credit card balance to the card's limit is called credit utilization -- it's calculated for each revolving credit account you have, as well as your total balances relative to your total amount of available credit. (Installment loans factor into credit utilization, too, but revolving credit has a greater impact.)

On average, Americans use 24 percent of their available credit, which isn't a bad place to be, but the lower you can get that credit utilization rate, the better. If you have low credit card limits and want to use your cards for a lot of purchases, consider paying your bill more frequently so the balance doesn't creep up.

2. Late payments

This is even more important than keeping your debt levels low. In fact, the most important thing you can do for your credit is make your credit card and loan payments on time. (Missing other bills, like for utilities, generally isn't reported to the credit bureaus, but unpaid accounts could be sent to a debt collector, and collection accounts hurt your credit.)

A single missed payment could knock dozens of points -- even 100 points -- off your score, so pay close attention to due dates.

3. Applying for a bunch of credit  cards at once

When you apply for a credit card or a loan, the potential creditor will want to see what your credit looks like. Credit checks for the purpose of extending credit are considered hard inquiries (a soft inquiry occurs during something like an account review, employer credit check or when you check your own credit), and hard inquiries will knock a few points off your score. If you apply for many credit cards in a short period of time, those little dings add up to a big dent in your score, but applying for loans is a bit different, since scoring models group those inquiries together so as not to penalize you for shopping around.

(You can read here about how applying for loans affects your credit scores here.)

4. Closing credit cards

It may seem strange to keep open an account you don't use, but it can make sense from a credit score perspective. Even if you don't use a credit card anymore, keeping it open can help improve your credit utilization rate. As soon as that account is closed, you lose that available credit, so you would need to reduce the amount of spending you do on credit cards to keep your utilization from increasing.

If a credit card is one of your older credit accounts, you would want to keep it open for the sake of keeping up your average age of credit, because that's something that takes a long time to build up. Having an average credit age lower than seven years can suppress your score.

5. Identity theft

You may not be able to prevent it, but the longer identity theft goes unchecked, the higher the chances it will hurt your credit score. A fraudster may open up accounts in your name or run up a huge balance on a stolen credit card, and if you don't stop it before the activity is shared with the credit bureaus, you'll also have to deal with getting that information off your credit reports. Identity theft is extremely common, so the best thing you can do is monitor your financial accounts closely and act quickly to cut off a fraudster as soon as you notice anything suspicious.

You can see the factors affecting your credit, plus create an action plan to improve your scores by checking your credit scores for free on Credit.com, which also shows a summary of your credit history so you can tell if you're dealing with any of the typical credit-score killers.

5 Ways to Pick the Perfect Time to Sell

By Tara-Nicholle Nelson  (reprinted)

Choosing the right time to list your home can make all the difference.

There’s a season for everything — including real estate.

If you’re gearing up to list your home for sale, you should connect with your agent to discuss your home sale action plan. But there are also a number of calendar-based factors you should be just as thoughtful about as you put together your plan for selling.

Here are five calendars that should be on every home seller’s radar.

1. The academic calendar

Families with school-age children often find it less disruptive to house-hunt in late spring/early summer with the aim of moving in before school starts. Of course, we all know what they say about the best-laid plans, so by no means should you let this stop you from listing your home at another time of year.

Demand for homes with convenient proximity to strong schools can increase during the summer school break and around other times of year when kids are not in school.

2. The tax calendar

I cannot count the number of relatively unmotivated looky-loo buyers I’ve worked with over the years who became suddenly motivated from a massive, looming tax bill. For instance, many new professionals will seek to close escrow on homes between the time they graduate and the end of that same year, in an effort to deduct their closing costs and mortgage interest from their new large incomes and avoid a big tax bill the following April. Similarly, just after tax time in April, a flood of newly motivated buyers come into the market, advised by their CPAs that the mortgage interest deduction is their best bet for not having to write as big a check to the IRS next year.

Fortunately for sellers, more buyers and more motivation means more demand and can translate into a faster sale at a higher price than at other times of the year.

3. The weather calendar

Many sellers who live in cold-weather climates are aware that wintry conditions can dramatically cut down the numbers of buyers who are out viewing properties. This is why buyer searches for homes on Trulia peak in January in warm-weather states like Hawaii and Florida — and not until after the spring thaw in the Midwest, the South, the Northeast, and most of the West.

The combination of what’s happening with the weather and the specific features of your home can interact to impact your home’s prospects for sale — and its ultimate sale price. Behavioral economics researchers have found that homes with swimming pools (and water slides, perhaps?) sell for more in the summertime than they do in winter.

“When it is sweltering outside, a swimming pool just looks attractive. There’s an emotional connection because it reminds us of fun times we have in the summer,” says Jaren Pope, assistant professor of economics at Brigham Young University.

So if it’s summer and you’re selling a home with ski slope access, you might want to paint the picture of a cozy, fun-filled winter by staging the place with ski gear and other items that help prospective buyers visualize how much fun they’ll have when winter comes. And vice versa: If it’s winter and you’re selling a house with a pool, consider making sure it is steamy and heated, if it has those features. Stage it with lounges, towels, lights — anything that showcases the pool to offset a cold-weather buyer’s psychological tendency to discount the appeal of a pool in the winter.

4. The holiday calendar

During the holidays, many buyers simply prefer to spend their downtime celebrating with family and friends versus. house hunting, especially in locales where the winters are wet or cold. Nationwide, December is the slowest month of the year for home searches, and November is the second-slowest.

Does this mean the holidays are a bad time to have your house on the market? Not necessarily. Some homes show beautifully when all lit up and tastefully dressed up for the holidays. And the truth is that there is a hardy contingent of buyers motivated to close by year’s end for tax purposes, every year in every market. While buyers might be fewer in number, those who will brave rain, sleet, and snow and forgo holiday parties to house-hunt can be some of the most motivated buyers of all.

5. The Gregorian calendar

We’re talking about the regular old January-through-December calendar here.

Home buying tends to be a popular resolution among those with money on their minds at the beginning of the year — and also among people looking forward to career promotions, developing their love and family relationships, or relocating to a new hometown. Make sure your home is well-represented on sites like Trulia at the beginning of the year, when these life- and financial-change visionaries start searching for their next nests.

Do you feel like the seasons or calendar had or would have an impact on your home purchase or sale? Share your comments,  

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Home Photography - How Does Your listing Show?

What's in Your Listing?

Most home buyers run through sites like Realtor.com, Trulia.com, Zillow.com and many others to find that perfect home that suits their needs. Having your home properly displayed in pictures will make all the difference in whether your house will be a candidate to be shown or not. 

First Impressions are Lasting Ones.

A home's first impression is created with the initial listing photo, which also appears as the primary photo for all of the real estate web sites as well. Once the search engine criteria is met and homes are displayed, the buyer runs through the photos first and then the details. Homes listed without photos usually go to the bottom of the buyers preference list. The first photo should be the most appealing part of the home. Most cases, real estate agents just take a photo of the outside and set it as the primary photo, when the inside of the home has some exceptional details that may be instant eye catchers and are hidden in the background photos. 

Prepare your home for the photo shoot.

• Remove the Clutter: One of the most common issues in home sales and photography is that over the years, people tend to accumulate a lot of items which personalize the home and sometimes overwhelms it. If possible, remove extra furniture, wall accents, family photos, etc. to a storage facility for later on when you move. Clean and simple is the rule.

• Home Staging: Just like when you might go to a portrait studio for a resume photo or head shot, you want to look your best. You get into a good looking suit or dress, hair in place, bright smile, etc. Your home should be staged to portray its best qualities and functionality. Not everyone can afford a home staging service to rent furniture and accessories and set up the rooms for magazine quality effect. In most cases, it may be that some of your existing furniture and effects need to be re-arranged and you can still have some great photos.  

• Grounds Maintenance: The outside of your home is as important as the inside. It's the first thing a buyer sees and can set the expectations for what they will be expecting inside. That first look has to say WOW!!! As a seller, don't loose this opportunity

Your homes listing photos are the main attraction, when it comes to getting prospective buyers to see your home. Make sure their the best they can be.