Posts Tagged ‘Consumer Choice’
What Fickle Home Buyers Want…Today
Homebuyers are a fickle bunch. Thousands recently weighed in on everything from the macro (such as access to nearby parks) to the micro (walk-in closets). Five things to know about what real estate consumers want — or want less than they used to:
1. The elaborate clubhouse that is a fixture in many subdivisions has lost its appeal, as have community association-run swimming pools, health clubs and golf courses, said Cardis, who reports that consumers think of these things as “tradable” items — they’re basically indifferent to whether these amenities come with the deal.
“I think that’s all economically driven,” he said. “If you were to do a survey of homeowner-association fee increases in the past 24 months, there would be a high percentage that have shortfalls and are raising their fees by significant amounts, sometimes doubling them.”
One neighborhood amenity, though, that scored high desirability in the study: walking paths.
2. Green is good — and getting better.
“I was very surprised,” Cardis said. “I had been hearing that green (home features) aren’t quite here yet, that people aren’t willing to pay for them. But frankly, I was stunned by the increase in demand. This is our fourth year (of this particular study), and we’re seeing an increase every year.
“The magnitude of desire (for environmentally friendly home features) is high, considered a must in some categories,” he said.
Among the consumer-described environmental “must haves”: energy-efficient windows, appliances and insulation. “Desirable” features included recycled building materials, “green” flooring, and tankless water heaters that consume less energy by heating water on demand.
3. Kitchens haven’t lost an iota of importance to buyers, Cardis said. In particular, consumers voiced a preference for “big” kitchens, though it’s not clear how big is “big.”
“I think that’s the biggest limitation of the study, that the perception of what is large or energy-efficient isn’t defined, and we’re planning to do more on that,” he said. “But they do want a sizeable kitchen, relative to the house, and that’s the important takeaway, rather than (consumers saying), ‘Not really, I don’t need that.’ ”
But within that kitchen, it had better have a freestanding island — 41 percent called it a “must” and 38 percent said they really wanted one.
4. Consumer tastes are changing on how they’d prefer to bathe, Cardis said.
“Whirlpool baths are something they’re definitely ready to let go of,” he said. “They put them in and (the tubs just) sit. People use them once every two years.”
Instead, plain old soaker tubs in the master bath got a warm response in the survey, though the greater preference now is for oversized showers with seating, he said.
5. Other “outs” or borderline interests: home theaters, traditional living rooms and dining rooms, mud rooms, hobby/game rooms.
“Musts” or at least, objects of strong desirability: granite countertops, home-office space, fireplace, two-car garage.
Article written by Dian Hymer of Inman News.
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Hamptons Real Estate Brokers Under Investigation for High Fee’s
May 19, 2010, 12:57 pm
Hamptons Listings Said to Be Under Investigation
If Wall Street denizens thought they could escape the specter of Justice Department inquiries by decamping to the Hamptons, it appears they’re wrong.
Real estate listings in the Hamptons are the subject of a Justice Department inquiry, The New York Times and Bloomberg News reported Wednesday, keying off an earlier article in The New York Post.
Several Hamptons real estate executives told The Times on Tuesday that they had been contacted by Justice Department officials seeking information about a listing service that has been criticized as an effort to keep smaller agencies from having access to the area’s best properties.
The service, known as Realnet, allows members to share their listings with other members. Last year, George Simpson, who runs his own real estate listing company, sued more than two dozen local brokerages and Realnet. Mr. Simpson said that because only larger brokerages could afford the annual fee, which he said ranged from $15,000 to $50,000, those brokerages ultimately controlled “80 percent to 90 percent of the exclusive real estate listings.”
The stakes for brokerages are big, and apparently getting bigger, according to Bloomberg:
Hamptons home sales more than doubled in the first quarter, the biggest annual increase in seven years of record keeping, according an April 22 report by New York-based appraiser Miller Samuel Inc. and broker Prudential Douglas Elliman Real Estate. A shift toward larger, more expensive homes pushed the median price up 35 percent to $908,500.
Three brokerages named in the lawsuit — the Corcoran Group, Brown Harris Stevens and Prudential Douglas Elliman — declined to comment or did not return calls, The Times said. Realnet did not return a call and an e-mail message seeking comment.
“The question I think the Justice Department is asking is: Are they putting their own profits ahead of what they should be doing for the clients?” Jonathan Lerner, a managing director at the Engel & Volker brokerage, told Bloomberg.
Gina Talamona, a spokeswoman for the Justice Department, also declined to comment about the inquiry to The Times and Bloomberg.
By August, Mr. Simpson had withdrawn his lawsuit and said that he planned to refile his case under “different circumstances” and continue “moving forward with the crusade.”
But the original case apparently caught the attention of Justice Department officials. Mr. Simpson told The Times that in the past month, he spoke for 90 minutes by telephone with several department employees about the structure of the real estate industry in the Hamptons and which firms dominated the market.
Members of a multiple listing service post their sales listings for other members to see; nonmembers could be at a disadvantage because sellers generally prefer to have their homes placed on listing services and exposed to as many potential buyers as possible.
John Nickles, a broker based in Southold and the chairman of the multiple listing service for the Hamptons and North Fork Realtors Association, told The Times that he was interviewed on May 5 by two Justice Department lawyers, an economist and a paralegal. Mr. Nickles said that his brokerage could not afford the more expensive system; he pays $160 a month for access to the local multiple listing service that he leads.
Joe Kazickas, owner of an East Hampton real estate company that runs a Web site called Hamptonsrentals.com, said he was scheduled to speak to Justice Department officials on May 24. He said that smaller brokerages that could not pay for the costlier listing database would find it “very difficult to compete.”
Source New York Times, Edited by Andrew Ross Sorkin
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3 Benefits of Buying a For Sale by Owner Home
Purchasing a For Sale by Owner property has a number of unique benefits that all buyers should be aware of. Too often, buyers don’t consider fsbo listings because they are working with a real estate agent. They are unaware that most builders and owners are willing to work with buyer’s agents and many advertise their homes on the local MLS. If you are in the market for a home and you are not considering “by owner” listings…you could be missing out on some great deals.
Save Thousands on Commissions and Fee’s
When purchasing a home listed by a traditional listing broker, a 6 percent commission is factored into the seller’s asking price. Buyers often think they aren’t paying the listing commission…but in fact…the agents $6000 cut is included in every $100,000 of the asking price. When a homeowner or builder sells their own property, they pay no commission or a much smaller 3 percent to the buyers agent. This substantial savings can be passed onto the buyer, who can now afford more home or get the same home for less money.
Easy Appointments to View
If you want to look a home listed by a full service broker, you have to schedule all appointments through the listing broker. The listing broker then contacts the owner and the buyer agent to schedule a time to look inside the home. This process can often be inconvenient, or sometimes aggravating, depending on the time lapse in getting everyone on board. When dealing directly with the seller, there is no need to go through a line of people to schedule a tour. The seller will look at his schedule and immediately give you the date and time, making the entire buying process much simplier.
Negotiating the Offer
When purchasing directly from the property owner, negotiating the offer can be much easier, too. Typically, the buyers agent presents all offers to the listing agent…then, the listing agent makes an appointment to relay the offer to the seller. If the seller makes a counteroffer, the whole procedure is reversed, making the whole process take much longer than it should. When making an offer directly with the seller, the middle men are eliminated, which increases the odds of putting together a deal that works for both parties in record time.
Why6Percent.com encourages all buyers to seriously consider the many benefits of fsbo properties, whether you are working with an agent or not. Dealing directly with the owner has many distinct advantages and benefits, with none of the drawbacks. Check out InfoTube.net The website has over 20,000 properties listed directly by owner or by builder, many offering fantastic deals!!!
Landscape Affects Buyer’s Moods and Home Sales
Most home buyers believe they should focus on the interior features of houses more than the landscape, but the truth is, that buyers will not get out of the car if the front landscape lacks interest and upkeep. The landscape and curb appeal should arouse the buyer’s interest and lure them inside to view the interior.
To get the highest return on your landscape dollar, utilize the principles found in Landscape Design Psychology. Landscape Psychology is based upon scientific research into the effects that the landscape has on home buyers. These proven idea’s will help your home sell faster, and for more money, by working on buyer emotions and senses.
The Power of Color
Coordinate the colors of your flowering foliage. Consider your selling season and plant flowers that perform well during that period. Use plants that support your atmosphere and climate. Also, use no more than 3 colors to give continuity and form to your landscape.
Colors also have psychological power. Green suggests freshness, coolness and vitality. White shows up at night and conjures feelings of cleanliness. Yellow is the first color our eye processes, so a spot of yellow by the front door will draw the eye to your entrance. Red, yellow and Orange are all Hot colors, which excite and pick up the mood of any weary house hunter.
About.com: Landscape is a great website for the average homeowner. The site provides idea’s and advice from professionals including a plant selector, great photographs, color scheme screener, DIY tutorials and helpful tips about hedges, fences, sidewalks, lawns and more.
Another great resource for help in creating an outdoor paradise can be found at HGTV.
The Power of Smell
Realtors advise sellers to bake cookies or burn vanilla candles before showings or Open Houses because a comforting and pleasant aroma has the power to influence minds and moods.
In addition to color psychology, smart home owners give thought to the use of scents when planting a landscape. They take advantage of the power of smell, especially near pathways and entry doors, that provoke a desired emotional response.
A few inexpensive and easy to grow suggestions that add a touch of scent to any landscape include lemon scented geraniums, jasmine, rosemary, lavender, basil, roses, hostas, honeysuckle, gardenia or heliotrope. In addition to providing months of enjoyment, many of these plants perform in a vareity of places such window boxes, planters, planting beds, hanging baskets or pathways.
When it comes to selling homes, a smart psychology landscape design can give you a huge advantage over your competition. If buyers feel good while they look at your home, it is more likely to sell quickly and for top dollar.
Thank you for visiting Why6Percent.com. Our clients are receiving more buyer traffic and higher offers than we have seen in the last 2 years. If you aren’t listed on the MLS, Realtor.com and major real estate sites, you are missing 10 MILLION buyers who are searching for a home every month. Call us at 1-800-381-9496 for help in marketing your home!
Flat Fee MLS or Not? Separating Hype from Fact
What is the MLS?
The Multiple Listing Service is a database of homes for sale. Run by the local Board of Realtors®, the MLS is the traditional method agents use to find homes for their buyers or advertise their listings to other agents. MLS listings include detailed information about the property. Besides address and selling price, a listing generally includes the number and size of rooms, annual property taxes, local schools, selling agent and more. Most include photo’s of the home.
Facts about the MLS:
The Multiple Listing Service (MLS) is the fantastic way real estate brokers provide information to one another. MLS allows each agent to see all properties for sale in a given market, greatly expanding the sales force of all properties.
The Internet now provides MLS property information, in real-time, to brokers, agents, home sellers and homebuyers. The MLS is looked at by potentially thousands of real estate agents in your market that might have a prospective buyer for your home. And, it reaches 90 Percent of the Home Buyers who search on the Internet.
- Benefits of MLS Advertisement: There is one very significant benefit to having your home listed in the MLS listing…EXPOSURE! The fact that your home is for sale will now be known to the hundreds, if not thousands of real estate brokers and agents in your market. To maximize your benefit from this exposure, you will need to be willing to “co-op” a real estate agent, if they bring a buyer to purchase your home. Co-op means that you will cooperate in a commission incentive to the real estate agent. Typically buyer’s agents earn between 2 and 3 percent of the sale price of the home.
- Reach Buyers Searching on the Internet: Another key benefit to listing your home on the MLS is in most areas of the United States, the property appears on websites like MSN HomeAdvisor, Yahoo! Real Estate, Realtor.com, Google.com, Zillow.com, etc. and local state websites. Many of the multiple listing services send their inventory directly to these sites to enable even more exposure for homeowners. Millions of people from all over the U.S. use these various websites to search for homes daily. Recent data shows that the first thing homebuyers do is search the internet, often far in advance of their actual move.
- Global Reach: MLS also reaches the transferee’s moving to your town. In today’s transient society, people relocating from all over the U.S. first find the homes they would like to see on the internet. They supply their “must see” list to the buyer’s agent located in the area they are moving to. When relocating buyers are in town searching for a home, time is limited and every minute counts. Buyer’s agents quickly become critical to the transferee’s home search and relocating homebuyers rely heavily on assistance from a buyer’s agent. Therefore, the MLS can be key to exposing your home to relocating buyers.
Considerations: The MLS is a wonderful way to expand your advertising reach and certainly has value. If your goal is maximum exposure, then MLS is an answer. Contact Why6Percent.com and get started Today!
Thank you for visiting Why6Percent.com. Remember, you can sell your home! You have the ability and there is a buyer for your home. Stay optimistic and remember, the money you save will justify the time, energy and emotion that you will expend!
New Program Pays Homeowners and Banks for Short Sale
With more than 5 million households currently behind on their mortgages, the Obama adminstration is rolling out a new program to encourage lenders to accept a short sale. A short sale is one in which a property is sold for less than the outstanding mortgage owed to the lender. The administration hopes the program will prevent more foreclosures, which further depress property values and harm good neighborhoods.
The program, which takes effect April 5, 2010, pays lenders and borrowers to complete a short sale. Key points of the program are as follows.
- 1. The program compels lenders to accept a short sale offer and forgive the difference they are owed between the market value and the outstanding mortgage balance.
- 2. The lender will receive $1000 for every short sale they participate in.
- 3. The program encourages millions of borrowers to get serious about getting rid of their homes. It pays homeowners $1500 in walking away cash for finding buyer for their property and closing the sale.
- 4. The lender will utilize real estate agents to determine the present market value for a home. That value will set the minimum acceptable price. The estimated value will not be shared with the homeowner. If an offer is submitted that is equal to or higher than the estimated value, the lender MUST take it.
Pro’s and Con’s
- 1. For the investment pools which own most of the home loans, there is the hope of getting more money from a short sale than a foreclosure proceeding.
- 2. For the lender, $1000 will help offset the labor intensive short sale process.
- 3. For the borrower, their credit will suffer less damage. They have the lenders assurance that they won’t be sued down the line for their unpaid balance. And, they get $15oo to assist with their relocation.
- 4. For the community, short sales mean fewer empty houses sitting around waiting for the bank sale. It is estimated as many as half of all vacant properties are ransacked, neglected, vandalized and depress the value of neighboring homes.
- The downside is that short sales are “tailor made” for fraud. House values are inherently subjective, which providing a wide latitude of potential conflicts.
- Another problem is that bankers hate the very idea of accepting an offer short of what they are owed. By nature, they don’t want to sell anything at a discount. If they loan $200,000 …they expect to be repaid $200,000, not $150,000.
Thank you for visiting Why6Percent.com We have helped thousands of people sell their homes and save a ton of money in fee’s and commissions. We can Help You, too!!
10 Towns for Real Estate Steals and Deals
It’s our job at Why6Percent.com to have our finger on the pulse of real estate from coast-to-coast. Recently, we have been telling you to get ready for a big home selling season this spring.
Why? Interest rates are rising. Job losses have slowed to a trickle. Factory and Industrial output is up for the first time in years. And, we feel that the Fed is holding back information, for now, on the job creation that is happening as we speak.
So, where are the best real estate deals in the country?? We have identified 10 cities that are offering up Trump-type deals of a lifetime. CLICK HERE to see where the action will start first.
If you haven’t placed your property listing on the MLS, Realtor.com, Zillow, Google, MSN, Military.com and all the other major real estate websites…you are missing buyers. Go to the Why6Percent.com website and sign up NOW!!Don’t wait a minute longer. Tax Credits, Rising Rates and Gutted Home Prices are creating a stir among buyers early this spring. You snooze…you lose… And, we certainly don’t want that.
Share Your Property Information and Idea’s
InfoTube.net announced some recent updates to it’s website that make it easier for homeowners to share information and property details on the internet.
Share Your Property Information with One Click
InfoTube.net has provided a direct “Share” link on every home listing. The “Share” link automatically feeds your property listing to all major sharing websites such as Facebook, Twitter, MySpace, etc. If you use social networking or RSS feed websites, simply select where you want your property listing posted and click. It’s that easy. (The Share Link can be located under the “Email Seller” link on every home listing.)
Sellers and Buyers Communicate, Learn and Get Advise
InfoTube.net for Real Estate has an Offical Facebook and Twitter page where you can post pictures, questions, idea’s or funny real estate stuff you want to share. Become a Fan and Contributor Today.
Thank you for visiting Why6Percent.com!! If you haven’t placed a FREE property listing on InfoTube.net, please do so Today. Without InfoTube.net you miss buyers, exposure and the free assistance that is available to you. InfoTube.net, combined with the MLS, provides a one-two punch for a knock out home sale!!!