Daily Real Estate News  |  July 30, 2008

Top 10 City Renovations

Outside magazine has named 20 small cities that it calls “Stars of America’s 21st Century Renaissance." The magazine says these towns have withstood hard times and reinvented themselves, “riding a wave of civic reinvention and fresh ideas.”

All have different attributes, but factors in common include youthful demographics, short commutes, and low to moderate cost of housing. Here are the top 10:

1. Washington, D.C.
2. Chattanooga, Tenn.
3. Ogden, Utah (Bryan's and Sharnee's home town!)
4. Portsmouth, N.H.
5. Tacoma, Wash.
6. Ithaca, N.Y.
7. Louisville, Ky.
8. Eureka, Calif.
9. Crested Butte, Colo.
10. Columbia, Mo.

We spent a quiet weekend at the Primrose Campground on the south side of Kenai Lake at about milepost 17 of the Seward Highway.  Nice hiking trail, a little fishing, and the obligatory campfire with marshmallows.

1. Seattle, 5.82 percent
2. Dallas, 5.82 percent
3. Washington, D.C., 5.74 percent
4. Miami, 5.71 percent
5. Portland, Ore., 5.68 percent
6. San Jose, Calif., 5.61 percent
7. Milwaukee, Wisc., 5.61 percent
8. Tampa, 5.60 percent
9. Phoenix, 5.44 percent
10. Los Angeles, 5.41 percent

Hitwise, a subsidiary of Experian, has been collecting and analyzing data directly from Internet Service Providers (ISPs) since 1997.

The search terms in the latest results were ranked by volume of searches that successfully drove traffic to Web sites in the Hitwise Business and Finance - Real Estate category for the four weeks ending June 28, based on U.S. Internet usage.

This is an excerpt from a July 3 commentary written by the National Association of REALTORS Chief Economist, Lawrence Yun, regarding the results of a national REALTORS survey conducted concerning Buyers:

The most interesting results, from my point of view, were about clients postponing their purchase of a home. The question posed was "In thinking of your most recent potential buyer in 2008, did the client postpone their home buying decision?"

• 50 percent said no, and said the buyer bought in the end
• 23 percent said the potential buyer did not buy, preferring to wait for prices to fall further
• 6 percent said the potential buyer did not buy because of mortgage difficulties
• 4 percent said the potential buyer could not locate that 'perfect' home
• 7 percent said the potential buyer needed to first sell the current home
• 9 percent said the potential buyer changed their mind due to various personal reasons

What is striking is the second bullet point. There are a measurable number of potential buyers who have the financial capacity and mortgage qualifications, yet are refusing to jump into the market because of price decline fears. These hesitant buyers far outnumber the people who are unable to secure a mortgage.

The implication is that once there are signs of market stabilization then we may see a rush of buyers returning to the market. The recovery could be robust rather than tame. It also implies that the homebuyer tax-credit being discussed in Congress right now as part of the housing stimulus bill could make a big impact in drawing buyers to the closing tables.

Interesting, but keep in mind that the real estate market is LOCAL.

We have welcomed a new member to our family!  Thank you for all the great puppy training Nate and Cary!

The table below, per Alaska M. L. S. data, depicts the SOLD properties in Girdwood and Turnagain Arm from Jan 1 through June 30 of this year by Property Type.  Across the board prices are relatively stable; however, Market Time has incensed and the amount of money a Seller receives relative to List Price has dropped.  The market also sees about 30 - 40 transactions by this time of the year; although there have been fewer transactions so far this year the market may finish close to average.

Well priced properties in the right location and in the right condition still sell quickly, but Sellers really have to be careful because Buyers have choices.  Pricing, positioning, and proper and effective marketing, like our marketing campaign, is paramount.

From Max Perryman (ABR, ABRM, CRB, CRS), of RE/MAX House of Brokers, Springfield, Mo.:
Cleanliness is number one! Nothing is more important, even if the home is older, outdated and maintenance has been deferred - it must be clean! It must look clean and smell clean. (It's often harder to get buyers interested in a home that smells bad - smoke, pets, and teenage boys - than one that looks bad.) Most sellers are reluctant to spend money on improvements to a home they are about to sell. If they lived with a badly worn carpet, they aren't likely to replace it for someone else. However, they must fix those items that will be viewed as potentially bigger problems: for example, a stained ceiling may mean a major problem with the roof.

From Tupper Briggs (CRB, CRS, SRES), of RE/MAX Alliance Evergreen in Evergreen, Colo.:
Generally, we look at how the market is probably going to respond to the home and then ask ourselves which projects would yield at least $2 in a higher selling price for each $1 spent. This helps us to prioritize in our own minds, and it helps us justify the projects to our clients. Having a home clean and having everything working (doors opening smoothly, light switches actually turning lights on, stairway handrails secure, etc.) are the most important and least costly things our clients can do to enhance their homes' presentation. After that, we may suggest more expensive projects - but don't make these recommendations lightly.

From David Indermill, of RE/MAX Coastal Properties in San Diego, Calif.:
There are many factors to consider when advising sellers about improvements. The biggest concern is whether or not the sellers can recoup their expenses. If the seller decides to do improvements, I recommend only certain things. Most important are improvements that will enhance the curb appeal. Spend the extra money for a nice lawn and landscaping. Be sure to use neutral colors for carpets. Sellers should paint the interior and exterior if need be - also sticking to neutral colors. Make it look like a model home as much as possible and also very homey. The home should also be deep cleaned by a cleaning company.

From Barbara Hibnick, of RE/MAX Experts in Buffalo Grove, Ill.:
I always tell my sellers that the home should look as close to a model home as possible. I suggest they paint rooms that need it - usually a soft white shade. Clean all carpet and deodorize. Recaulking can improve the look of a bathroom enormously, and spending about $260 to have a bathtub repainted is important if it is a really distracting color. Look at the home from across the street and decide how it looks as a homebuyer looking at its curb appeal. Trimming bushes and shrubs is a good idea around any driveways, walkways, or decks. A professional cleaning crew is an incredible return on the dollars spent. And most importantly, declutter!

From Wayne "Shorty" Short (ABR, CRP, CRS), of RE/MAX Realty Professionals in Wichita, Kan.:
I tell sellers that in the first 18 seconds that a buyer drives up to, and walks into, the house, they have made up their mind whether or not the home is a "keeper" or not. They will either really look it over, or they will walk through hurriedly and move on to the next one. I explain to all my sellers how they live in the home and the condition in which they sell it are two different things. I will not list the home until it is in its best "SHOW" condition. You would be surprised how many of my homes get new carpet and paint.

From Jeff Bowers (ABR, CRS), of RE/MAX Professional Realty in Charleston, S.C.:
The kitchen is often the most important room in the house. A major overhaul usually won't make sense, but sellers should do all they can to make the kitchen look its best. Painting is an easy, inexpensive way to revive any room - but be sure to stick to neutral colors. If your countertop tile is old, grungy or outdated, think about some new tile. Get rid of old stainless steel faucets and update with a stylish replacement. Suggest replacing old knobs and pulls with new hardware. Get rid of the clutter, make sure blinds are open and that the room is well-lit - and be sure the kitchen is odor-free (other than the smell of cookies, of course).

A recent post from Wetzel and Valentine, both Sales Associates with RE/MAX Realty Affiliates in Gardnerville, Nev., featured tips for sellers who've had their home on the market longer than they planned and are trying to "stay sane" while keeping the home ready for showings. They suggest you recommend your clients start "tub living."

So just what is tub living? Here are some excerpts from the post to explain:

When the call comes for a showing, most sellers immediate reaction is to "pick up." Many will pick up every day in anticipation of a showing, and still worry about things being picked up. This anxiety can take its toll. Here's a simple solution: buy a big plastic tub for each room. When you have a showing, remove the clutter by throwing unattractive essentials in the tub, i.e. - toys, magazines, clothes, etc. This tub system will work especially well for your teen's room - put the games, clothes, all the loose "teen gear," in a big tub. Put the tub in the garage and leave it there.

 

We understand that if you take numerous medications it is convenient to have them on the kitchen table, but it is not good for a buyer to know your medical condition. Put your medicine in a small tub and stow it away in a kitchen cabinet. Smaller tubs work well for bathroom counters, cleaning your bills off the desk, etc. Everything is still organized, but out of sight for a buyer.

Our Advice: Every showing is much more important these days. There is a lot of competition and there aren't ten more buyers behind the one bad or missed showing you have like there was two years ago. Don's fret over getting everything perfect - a less than perfect showing is better than not showing your home. If they are ready to buy and can't see your home they will buy someone else's. Keep you home market ready, but don't worry about it being "sterile." Some homes are so incredibly clean and uncluttered that buyers will ask "Does anybody live here?" Most don't relate to a home like that as they will to one that is clean and tidy, but lived in.

Extended marketing periods are a reality - make the best of it, however "Tub Living" can be tiresome too after awhile. Tubbing will help your home show better - pricing will help it sell better.

Daily Real Estate News  |  July 2, 2008

Hard-Won Lessons from a Home Owner

Minneapolis home owner Lucie Amundsen’s husband was transferred north to Duluth, Minn. She stayed behind to sell the house. Here's what she learned about selling a home in a tough market:

• Make the commitment to sell. “This market eats wishy-washy sellers alive. Sellers should be prepared to let go.”

• Steer clear of useless feedback. “I should have had the real estate professional who listed my home turn off the electronic feedback feature. He could have passed along any helpful information, while filtering out the more hurtful and pointed comments.”

• Be prepared for the long haul. “Because I adore my house, I just assumed other people would, too. “

• Respond to the market. “Long before the 40th showing, we should have dropped the price or taken the property off the market.”

I was able to enjoy sea kayaking and camping trip with the Hatch family, the Malecha family (and their friend Gary from Minnesota), and the York family this weekend.  Unfortunately, both of my boys got sick and stayed home along with Sharnee.  The Hatch's had never been in Prince William Sound, the Malecha's accompanied us to Blackstone Bay last year, and the York's went on a trip in Derickson Bay on the south side of Nellie Juan two summers ago.  Clark York and I used to work together and he now has the sales manager portion of my former position.  We camped on Culross Island itself at the very southern tip directly across from Applegate Island.  Since we had six kids, we base camped and day paddled throughout Culross Passage.  It was a pretty leisurely routine as we covered about 16 miles in three partial days of paddling.  In true Prince William Sound fashion we had just about every weather condition, outside of snow and hail, and both flat seas and choppy seas.  Our last night consisted of about 10 hours of driving rain, but the sun came out and we were able to dry out most of our gear prior to our departure late on Sunday.