Pricing within the real estate market

We've all spent a lot of time lately talking about the oversupply of properties in previously overheated markets, and about the difficulty of getting property sold in the current environment. But it's good to remember that there's one way to be certain of a sale no matter what's going on around you. Pricing within the market, “The price is right”.

To fully appreciate the significance of this, it's important to remember that sales in Southwest Florida have slowed to a crawl, as sellers tried to hold onto previous asking prices that buyers are unwilling to pay. It's hard to blame the sellers, some of whom overpaid for their homes, condos and land during the overheated "bubble" days of 2004 and 2005.

But the buyers are out there, just waiting for a signal that sellers would meet them at today's market prices, “The price is right”

In other words, you can always sell property if you're willing to accept the market price. Ultimately, everything sells "at the market," whether it's an auction or an ordinary listing.

FSBO sales increase by 20% in last 5 years

The increased resources available on the Internet resulted in more consumers having confidence in their ability to successfully sell or buy a home without a real estate agent. The figures are staggering as there will be savings of nearly $9 billion in real estate commission on 2007 alone. These results have lead to great developments of For Sale By Owner sites which are targeting home sellers to pay a small advertising fee and save on the 6% commission of the real estate agent.

Succesful Sellers Think like Buyers

The most succesful sellers are the ones that think and act like buyers.
This is what they do:

1. They search for homes that are for sale in their neighborhood in sites like http://www.homekeys.net/. This site provides listing details and free and unlimited access to comparables and most likely property market values. Maps are also included. These allow you to see the location of each property.
2. They drive around and identify those properties that appear to be comparable and assess the external condition and comparability of those properties. They also look around for FSBO properties. FSBO sellers are actively competing with properties listed in the MLS . Potential sellers can contact FSBO owners directly and inquiry about asking prices as well as other relevant factors.
3. They see their home thru the eyes of the buyers. We all believe what we have is better than what it actually is for others; thus, we need to be realistic. Value like beauty is in the eye of the beholder. Just because we like it does not mean the rest of the world will. How will a potential buyer react when visiting your home? Just think about your reaction when you are buying . And others will not be any different.!
4. They establish the asking price by incorporating all the information gathered during the fact finding process. What will I be competing against? What are my goals? Do I need to sale? If so, how quickly? Many of our clients decide to sell by owner and we assit them in the marketing of their property. The fact is that you can be effective selling on your own as long as you are realistic! There is not a need to sacrifice quality for service nor a need to pay a commission of 6%.
5. They are as factual and unbiased as they can be. They are good at removing the "emotional factor" from their decision. This is easier said than done but it must be done.

These are difficult times; be thoughful and honest in your process and you will be succesful.

When does it make sense to rent a home?

You may not have saved enough money to use as a down payment or to pay the other costs associated with buying a home. If that is the case, renting is most likely your best option. Renting makes sense for other reasons as well. One of the biggest reason to rent in Florida is you don’t have to pay property taxes and special assessments. Another major reason why Floridians rent is to enjoy the weekend and not have to spend time fixing the home!

How is For Sale By Owner working for sellers?

Why is it that everyday more and more people are selling their properties by themselves? New sellers ask themselves this question everyday. Can I really sell my property by doing most of the work myself even though I know so little about this business? The answer is YES. With so many new technologies available for people out there you don’t have to go looking for buyers for your property. They come to you! Why? Because over 80% of the buyers use the hundreds of websites such as www.homekeys.net that are available for sellers to advertise their properties online.

The concept For Sale By Owner is not new but is it is certainly getting more popular everyday. Sellers are getting tired of having to may as much as 6% in order to sell their property knowing that they could do most of the work saving thousands in commissions. And this is even becoming more important in a down market as we all are trying to preserve our equity.

Visit our For Sale By Owner site or contact us at 1.888.333.9004.

Sell Direct with FSBO and Protect your Equity

It is difficult if not impossible to accurately predict where the market is heading. We, homeowners, cannot control the market but we certainly can do a better job in understanding what is going on so we can make "more intelligent and less emotional" decisions.
Here are a few lessons we learned from succesful for sale by owners :

1. Be realistic--- whatever happened 8 months ago does not longer reflect what is happening now. Those happy days for sellers are gone for at least for now; and nobody knows when these days are coming back.
   
   
2. Be aggressive and price to sell--- the supply is the highest in decades; thus you have a lot of competition. You need to understand not only what was sold "yesterday" but what is for sale today that is comparable to your property. Buyers have options and they will compare what you have to offer with other comparable alternatives. Be competitive and price your home at 5% below comparable listings. www.homekeys.net gives you free and unlimited access to all the information you need to price it right in several Florida counties including Miami-Dade, Broward, Palm Beach, Orange and Hillsborough.
   
   
3. Sell direct and save commissions--- in addition to pricing ( the obvious!), you need to reach as many potential buyers as possible. Recent surveys show that over 85% of the buyers find their properties in the Internet. Yes, over 85% of the people and the number is growing! How to maximize the EXPOSURE is critical. Visit our For Sale By Owner site or contact us at 1.888.333.9004.

Demand for reverse mortgages on the rise

As recently as December 2007 the Senate committee on Aging spent time discussing the aggressive marketing and sales techniques being used by mortgage institutions to attract senior homeowners into purchasing reverse mortgages. As larger populations of seniors are turning 63 every year, the demand for reverse mortgage loans are on the rise. There was a 56% increase in these types of loan in 2006 from the prior year. The Federal government in December 2007 removed the restrictions to the number of outstanding reverse mortgage loans they would underwrite at any given time. Prior to the new legislation, the original limit was 275,000.

Many of the largest banking institutions are now getting involved including Bank of America who just recently acquired Reverse Mortgage of America, a division of Seattle Mortgage Co. This is one of many acquisitions occurring in the mortgage industry to capture a stronghold on the reverse mortgage loan market. It is this activity that has gained the attention of the Federal and State governments. Congress is exepcted in 2008 to put more laws into place that provide stronger protections and minimize the commissions and flat fees mortgage companies can charge per loan.