Flat Fee MLS Blog

The November housing number’s report was not a big surprise.   The average sales price dropped 13 percent, year over year, to a low of $181,000.  The inventories of unsold homes remained at a stubborn high of an 11.2 months and sales of new homes are at low not seen last since 1997.  Interest rates are at their lowest level in decades.  Today, lender’s quoted 30 year fixed rates at 4.75 percent, which is dramatically lower than they were one year ago.  Rates last year hovered above 6 percent.

Do The Numbers Signal a Bottom in Housing??

Bullish Signs Abound:  With prices and interest rates at their lowest level in years, home affordability is well within the reach of many people that were previously priced out of the market.  In addition, the inventory glut and builder incentives make finding that special dream home a whole lot easier.

Why Are People Waiting to Buy?   Washington needs a firm plan with regard to buyer incentives and further downward pressure on rates, before buyer’s will jump in, in meaningful numbers.    With a clear government action, buyer’s and investor’s will begin bottom fishing, and many of those will make the deal of a lifetime.

Thank you for visiting Why 6 Percent and Season Greetings to all.   Call 1-800-381-9496 to find out more about our MLS listing packages for owners.  We can help you reach millions of home shoppers in one easy step, without listing commissions.

Now may be the best time to buy or sell a home.  If you are in the market, here are some facts and opinions to consider about the trends for real estate in 2009.

1. Loans will become more costly:  Economists concur that there will be an upward move in rates.  Rising interest rates make borrowing more expensive and qualifying more difficult.   “I don’t think there is any way we can avoid higher interest rates, especially higher mortgage rates,” said John Tuccillo, a highly regarded housing consultant and former NAR economist. “The federalization of Fannie and Freddie will shrink the secondary market and make it harder to get a mortgage.”
2. If the economy picks up, so will the number of listings.  Seller’s who have been waiting for better times, will put their homes on the market.  Ted Jones, chief economist for Stewart Title, said not only will rates rise but he is also concerned that “pent-up sellers” will re-enter the market once sales activity improves.  “There are a lot of people who would put their home on the market if they felt they could sell it,” Jones said. “We just don’t know exactly how many of them are out there. When they do plan to sell it will add to our inventories. So, we may run into a false bottom before we find the real one.”

If you believe that interest rates are likely to increase, and any improvement in the ecomony will release pent up seller demand, then NOW is the best time to buy or sell.   

Seller Tip:  Remember that PRICE is the single, largest factor that generates showings and offers. 

Buyer Tip:  Stop waiting.  Over the long run, you will make far more money from a low, 30 year interest rate, than you will from possible price reductions.

Thank you for visiting Why6Percent.  We are here to help you boost your web appeal, as well as your curb appeal.  Let us know if we can help you.

S&P/Case-Shiller 20-metro-area price index

Source: S&P/Case-Shiller.

Thank you for visiting Why 6 Percent, the flat fee MLS source.

What are the Average Number of Days a Home is on the Market in Your Town or City?   Just released numbers for October 2008 are below. 
CITY                   DOM

OAKLAND, CA 113
NEW ORLEANS, LA 157
DALLAS, TX 165
CINCINNATI, OH 192
CHARLOTTE, NC 70
HOLLYWOOD, CA 80
PHILADELPHIA, PA 76
LOS ANGELES, CA 84
PHOENIX, AZ 155
HOUSTON, TX 83
CHICAGO, IL 162
SAN DIEGO, CA 65
SAN JOSE, CA 92
DETROIT, MI 175
JACKSONVILLE, FL 197
MEMPHIS, TN 110
BALTIMORE, MD 115
BOSTON, MA 64
SEATTLE, WA 76
WASHINGTON DC 74
LAS VEGAS, NV 97
PORTLAND, ME 64
LOUISVILLE, KY 85
ATLANTA, GA 127
ALBUQUERQUE, NM 32  72
FRESNO, CA 111
NORFOLK/VA BEACH, VA 35
ASHEVILLE, NC 142
BELLEVUE, WA 123
VENTURA, CA 20
LAKE KEOWEE, SC 186
PORTLAND, ME 72
PANAMA CITY, FL 206
PHILADELPHIA, PA 102
LOUISA CO., VA 124
BULLHEAD CITY, AZ 126
WOODLANDS, TX 80
ASHLAND, MA 109
AUSTIN, TX 68
TWIN CITIES, MN 104
DES MOINES, IA 99
ST LOUIS, MO 102
NEW YORK CITY, NY 198
LOWER EAST SIDE 175
UPPER WEST SIDE 146
UPPER EAST SIDE 175
WEST VILLAGE 250

Are you patient or unrealistic?  If your home has been on the market for a lot longer than the average, is it your price, location, or market program?

Home Seller Tip:  Boost buyer traffic to your home for sale listing by 8 million shoppers a month with an MLS listing.   

Freebie of the Day:  Increase your odds of finding that buyer for FREE with a home for sale listing on InfoTube.net.   What’s the risk?  You have to lose but time and money?

During slow housing markets in the past, many seller’s have made money and gained equity by remodeling or renovating their homes, while they waited out the downturn.

Things have changed in 2008.  Homeowner’s in this market should carefully run the numbers and focus only on a rate of return, before deciding to put more money into their homes. 

Today’s steep price declines and the record number of vacant foreclosed property mean that it may take years to recoop further investment in your home.  

If you are considering a renovation, check out the Cost versus Value Report, just published by Remodeling magazine.   You can read about the average costs to complete a variety of jobs and the expected payoff, after the work is completed.

Thank you for visiting Why6Percent.com.  Have a great weekend and happy home selling!!

Listing a home with obvious, even if small, problems are one of the biggest mistakes sellers make. Buyers prefer problem-free houses and as a seller, your top priority must be to overcome any obstacles between you and the sale. Fixing stuff that’s broken and selling a home that appears to have been well maintained will often overcome any real or imagined problems a buyer will have. Conversely, not fixing problems sends a loud message that you don’t care enough about your home. And, don’t forget, the home inspector will not miss problems, even if the buyer didn’t see them.In today’s slow housing market, seller’s should fix anything that a home buyer would expect to be working on the day of the sale, including:

1. Odors and Smells: Obviously, a big turn off for buyer’s in any market, and often poses health concerns. Stinky houses don’t sell. Find the source of of your problem and remove it.

 2. Appliances: All appliances advertised as a part of the sale should be clean and in working order, before your first showing.

3. Plumbing: If it leaks, drips or runs, fix it or replace it.

4. Windows/Doors: Repair or replace cracked panes or fogging windows.  If windows are painted shut, fix them. Put WD 40 on any squeaks and creaks. Replace torn or missing screens.

5. Cabinets:  Doors should open and close smoothly and quietly. Buy some sitck on pads at the hardward store to make your cabinets sound more solid, when the door is closed.  Knobs or pulls should be tightened or replaced with updated hardware.  Remember that Buyers will be opening every drawer, make sure they glide smoothly. Wipe all surfaces clean.  Remove and replace old, dirty shelf paper and liners.

6. Paint:  Is the biggest improvement you can make for the money.  If paint is dingy, chipped or cracked, repaint.  If your rooms or hallways look dark or uninviting, repaint in white or off white.

7. Wallpaper: If it’s peeling up in places along the seams or corners, use wallpaper glue and press it to the wall. Be sure to remove all bubbles. If your wallpaper is old, dated or unappealing, remove it and paint the walls white or off white.

8. Carpet:  If the carpet is in good condition, clean it.  If it is pulled up in places, tack it back down.  If it is old, dated, or worse, it stinks, replace it with a nice neutral color.   If replacing the carpet, also replace the padding. Use a thick padding to make the carpet feel more luxurious.  If pet smells or odors are on the tack strips, replace those at the same time.  If you have hardword floors covered by old carpeting, remove the carpet and show off those floors.

9. Lighting: Replace all burned-out light bulbs with the brightest wattage the fixture allows.   If your fixtures are dated or don’t work properly, replace them.

10. Exterior:  Clean and touch up the front entry and sidewalk.   Add a splash of color with some inexpensive plants or a pumpkin at this time of year.  Remove or trim over grown tree’s and shrubs, especially those that block the front of the house or sidewalk.   Weed landscape beds, mow and edge the lawn.   Repair missing or damaged fencing. Replace missing shingles. Clean out gutters and downspouts. If puddles or a wet basement is a problem, correct the drainage.

As you walk around your home, remember that savvy buyers will check every nook and cranny.  How well things work and look says a lot about how you’ve taken care of the property.   Make a good impression and it will go a long way toward getting your home sold quickly —and for more money.

Thank you for visiting Why 6 Percent.  Please feel free to submit any questions or comments in the space below.

The first thing buyer’s ask is “How much is your asking price?”   If the price is too high, the buyer will quickly lose interest.  If the price is too low, you will quickly lose money.

In order to price a home correctly, you must understand your local real estate market and your competition.   The goal is to set an asking price that successfully competes with homes that are comparable to yours.   Setting the correct price is easy to do, if you follow these 6 simple steps.

Step 1.   Get to Know Your Competition:  Drive through your neighborhood, and other area’s that compete with yours.  Identify the homes on the market that are similar to the one you are selling, with approximately the same size and age as yours, with the same number of bedrooms, baths and lot size.   Visit local real estate websites, infotube.net, realtor.com, zillow and trulia to verify property details, square footages, asking prices, etc.  These website can also help you find a complete listing of all homes that you may not have found on your drive by search.

Step 2:   Tour Open Houses:  Visit as many open houses as you can to see for yourself how your home compares.  Learn as much as you can about the condition of these homes, such as upgrades done to the kitchens, baths and bedrooms.

Step 3:   Find Recently Sold Properties:   To correctly price your home, you need to know what others like it have actually sold for.   To find out this information, you can visit your local tax assessors office, as housing data is public information.  The internet can also cut down on your homework.  Many tax assessor offices provide housing data online.  You can also educate yourself by reviewing the “Recently Sold” feature at Zillow and Trulia.  While these technology websites don’t have data for every location, they do cover most of the country.

Step 4:  Add and Subtract:  You now have information about property currently on the market and data for recently sold homes.   Evaluate the asking and sales prices, property details, neighborhood ammenities and ask yourself how your home measures up?

Step 5:  Be Honest and Impartial:   This is the hardest step for anyone attempting to value their own property.   Even Realtors, who price homes for a living, are notorious for overpricing their own homes.  Forget about what houses sold for in the past.  In most area’s, prices have decreased 15-20 percent in the past year alone.   Price your property inline with your competition or it will simply sit on the market.   Only competitively priced homes are selling in this market and buyers will only purchase what they perceive to be a good deal.

Step 6:  Set Your Price:   You have a complete picture of all the homes that compete with yours in the marketplace.   Price your property aggressively from Day One on the Market.   Pay attention to the effect subliminal pricing has on buyers and play to it.  If your competition is priced at $250,000, price your home at $249,000, for example.   Use your knowledge to to set a price that buyer’s can’t afford to pass up.

Congratulate yourself on a job well done!!!  Not only have you determined an asking price for your property, you’ve become an experienced expert in your local scene.  With your knowledge and sense of the competition, you will be able to honestly communicate about your homes’ advantages and disadvantages, when comparing it to other houses in the area.

Thank you for visiting Why 6 Percent.   Please feel free to comment or post a question about the sale of your home.

                                                  Now is the time to buy! You have the luxury of waiting to capture the better deals and negotiate your terms. If you drive around your area, you’ll see that there is six to eight times the inventory on the market right now as there was a year ago and homes are taking longer to sell.

Here are some tips for buyers:

1. Check out pre-foreclosures, foreclosures properties and distressed home sales, it’s time to take advantage of the  “creative financing” that many buyers abused.

2. If  you’re an investor, you will be able to buy distressed properties at low prices and properties with tremendous appreciation potential at the same time.

3. Target markets where speculation has run rampant over the past few years while also focusing on markets that are likely to boom in the next few years.

Take your time, make smart offers and stay cool!

thanks for visiting www.why6percent.com

                     The “bursting of the real estate bubble” appears to have become a soft landing for the real estate market.  In most     markets around the country, prices are dropping but they’re not plummeting. Homeowners with years’ worth    of equity will still hold onto much of that equity and buyers are finding that they have a chance to buy a home again. In the business, we call this a “correction.” It’s normal and even desirable.

However,  a cooling market demands some different strategies for both buyers and sellers. Sellers have to avoid the pricing “hangover” from the boom market, when they could throw a  For Sale sign in the yard, slap any outrageous price they liked on their house and get twenty offers in as many hours. And buyers must lose their desperation, understand that they are more in control and realize that the current market is one of shopping for a deal, not throwing money in panic to avoid “losing the house.”

Here are some tips for sellers in a cooling market:

1. If you must sell, focus your money and effort into creating curb appeal. Curb appeal alone can sell a house. The number one feature of a home in terms of cost versus effect on salability is front yard landscaping. Lay down sod, plant flowers, paint and put in a flagstone path.

2. Be realistic with your goals for price and timeline to sell. Houses in much of the country are NOT selling at asking price and are staying on the market longer than in recent years. Many sellers have not yet come to grips with this new reality.

3. Don’t set yourself up to fail, set your price aggressively compared to your competition and come up with creative incentives to attract a buyer, such as sharing some closing costs or including some high-quality furnishings in the sale.

In general, the common sense rules apply whether you’re buying or selling and whether the market is hot or cool: Educate yourself about the market, have specific goals in mind, understand what  your financial resources are,  and don’t make any deal for the short term. In the long term, real estate is always the best investment around.

thanks for visiting www.why6percent.com