An interesting discussion was started this morning on Twitter between REALTORS® in Michigan and North Carolina, concerning how many homes should be shown to a client before they buy. This started after a tweet from Diane Rish with a link to an article about an uber picky home buyer that saw 298 homes over a 2. 5 year period.
I don’t believe many people would think that it should take that many homes or even a third of that to make a good decision. How many homes should a buyer see before buying? Is there a number that is to many? Can a buyer see to few homes?
Personally, I have had buyers see 1 home and buy it, and I knew they made a good decision. I’ve had others see dozens of homes and make what I was sure was a bad decision.
Diane got it right this morning; “It depends on the buyer.” Some buyers feel they need to see a lot of homes to make sure they are getting a good deal, others find a real estate agent and place their trust in them.
I used to pride myself in being able to show on average just 3 homes before we would write a contract. These days that is harder as more of the purchase decisions are motivated by finding “a deal.” In our market “deals” normally have issues and buyers need to make apples to oranges comparisons. Nevertheless, I still feel that if my buyers haven’t seen the right house after a dozen, I’m not doing my job correctly.
How about you, as a buyer how many homes do you want to see? As an agent how many do you think should be shown at a minimum? How many need to be shown before you feel like you have missed what the buyer wants?
Tuesday, December 29, 2009
Thursday, December 3, 2009
Builders & REALTORS® like Oil & Vinegar
The relationship between builders and real estate agents is always a little strained. Like oil and vinegar, left alone, they would stay separate. Having been on both sides of the fence I can certainly understand why. When a real estate agent brings a client to a builder, they feel as if they lose control of the transaction, and may have to wait an additional 5, 6 or more months to get paid.
The builder on the other hand, feels that they are being questioned by an amateur, at least in regards to building, and that there is little to no value added. In many cases the builder is paying for advertising directly and writing the contract, so why pay the commission? In some cases, the well intentioned real estate agent makes claims that the builder either has to honor or at a minimum address, costing money, time and goodwill.
In order for this economy to improve we need real estate in general and new construction specifically to have better sales. So how do we put these two groups together to harmoniously and beneficially increase value for the consumer? One suggestion would be to reach out to each other. While sales are slowed with seasonal declines, take the time for some outreach and educate real estate agents, about the process and difficulties with building. Educate them about how you price and why. I guarantee real estate agents are taking more courses and learning more than ever. Add your information to the knowledge base.
REALTORS® need to do likewise. How many new homes communities have you been in recently? Do you know their price points? Do you know what drives them? Do you understand the difference in quality between builders A & B? Do you understand construction well enough to not make claims as to potential changes? Do you understand that some builders should not be asked to make changes?
Just as important, have you taken the time to talk to site reps and builders about what is going on in the market. They want to hear from you.
If you have a question, whether you’re a buyer, builder, or a REALTOR® feel free to ask. If I don’t know the answer, I probably will know someone who does. Let’s maximize these opportunities so everyone gets what they want. We can mix the two and leave a better taste for everyone.
Be great! As always comment are welcome.
The builder on the other hand, feels that they are being questioned by an amateur, at least in regards to building, and that there is little to no value added. In many cases the builder is paying for advertising directly and writing the contract, so why pay the commission? In some cases, the well intentioned real estate agent makes claims that the builder either has to honor or at a minimum address, costing money, time and goodwill.
In order for this economy to improve we need real estate in general and new construction specifically to have better sales. So how do we put these two groups together to harmoniously and beneficially increase value for the consumer? One suggestion would be to reach out to each other. While sales are slowed with seasonal declines, take the time for some outreach and educate real estate agents, about the process and difficulties with building. Educate them about how you price and why. I guarantee real estate agents are taking more courses and learning more than ever. Add your information to the knowledge base.
REALTORS® need to do likewise. How many new homes communities have you been in recently? Do you know their price points? Do you know what drives them? Do you understand the difference in quality between builders A & B? Do you understand construction well enough to not make claims as to potential changes? Do you understand that some builders should not be asked to make changes?
Just as important, have you taken the time to talk to site reps and builders about what is going on in the market. They want to hear from you.
If you have a question, whether you’re a buyer, builder, or a REALTOR® feel free to ask. If I don’t know the answer, I probably will know someone who does. Let’s maximize these opportunities so everyone gets what they want. We can mix the two and leave a better taste for everyone.
Be great! As always comment are welcome.
Wednesday, December 2, 2009
Will changes to FHA backed loans hurt housing sales?
One of the most important tools allowing buyers to take housing inventory off the market is easily accessible money, low cost, low down payment loans. Now it appears that concerns about FHA reserves may derail a lot of plans to purchase by increasing the minimum amount required as a down payment, the mortgage insurance premiums, minimizing the seller paid contributions and possibly increasing credit score minimums.
Each of these steps that are being considered by HUD Secretary Shaun Donavan would “increase the skin in the game” and theoretically lead to less risk in the loans insured by FHA. The difficulty to any potential borrowers is that the money coming out of their pocket at closing and during the life of the loan will be greater, thereby reducing their buying power.
The initial implications are obvious; if you are planning to buy a home in the next few months, don’t wait or risk an increase in your overall costs. On the other hand this may lead to another temporary setback in housing marketability, so if you are a seller, make sure your house is priced right to draw a quick sale.
Some articles that explain what is going on:
CNN asks Should FHA home loans be more expensive?
Bloomberg claims FHA to Require Homebuyers to Put Up More Cash
From the LA Times Home buyers will have to lay out more cash for an FHA mortgage
Each of these steps that are being considered by HUD Secretary Shaun Donavan would “increase the skin in the game” and theoretically lead to less risk in the loans insured by FHA. The difficulty to any potential borrowers is that the money coming out of their pocket at closing and during the life of the loan will be greater, thereby reducing their buying power.
The initial implications are obvious; if you are planning to buy a home in the next few months, don’t wait or risk an increase in your overall costs. On the other hand this may lead to another temporary setback in housing marketability, so if you are a seller, make sure your house is priced right to draw a quick sale.
Some articles that explain what is going on:
CNN asks Should FHA home loans be more expensive?
Bloomberg claims FHA to Require Homebuyers to Put Up More Cash
From the LA Times Home buyers will have to lay out more cash for an FHA mortgage
Tuesday, December 1, 2009
Why do you do what you do?
I’m a REALTOR® but the real question is why.
For me it has always been about helping other people be or do better. Sometimes that has been totally misunderstood, like the time Mr. Worley in 7th grade science class asked me if he could help and I responded no, could I help him. He understandably thought I was a smart ass.
In college, I wasn’t a great student, but I concluded those years trying to help a half a dozen others become better debaters. I know they learned from many, but I would like to think that I contributed.
When I was showing convenience stores how to essentially become restaurateurs, I know I helped create profits, jobs and some happy customers by improving the food and service.
So why did I get involved in residential real estate? Initially, because it was an opportunity to quit being on the road constantly, and from my observations of looking at homes in 4 states, a business that could use help. Working in the business for almost 14 years as an agent and as a marketing and sales manager for a builder, I have helped many people get the security, financial benefits, fulfillment, and shelter that works best for them. In the process, I know that I helped to create dozens of jobs, add value to land, and give back to the community.
Sometime in the last few years, I lost my way. You see, I do believe that there is never a bad time for some real estate to be bought or sold. However, for the last +/-5 years, that has not been true for most. I watched as prices went up too fast and many times questioned the appropriateness of decisions, particularly for buyers, in an unstable market. I watched as prices have come back down and entertained the same thoughts. Often I wondered whether I was questioning hard enough.
Which brings me to this; Today, December 1, 2009 I recommit myself to real estate. I make this commitment, because I know that there are opportunities for many folks that will enrich their lives if they make GOOD decisions. I make this commitment because somebody needs to be willing to ask the questions, even when it results in a non-sale. I make this commitment, because there are too many vacant houses dragging down the values of all and filling them will lead to improvements, jobs, and an improved community. I make this commitment, because too many people put their homes on the market and are inconvenienced when their house won’t possibly sell.
For the rest of this year, I will be writing about some of the tools that may help us fill or replace these homes and take advantage of the opportunities that exist, not just for a select few, but a large number of people. I would appreciate your comments and suggestions for tools to discuss.
Thanks,
John
For me it has always been about helping other people be or do better. Sometimes that has been totally misunderstood, like the time Mr. Worley in 7th grade science class asked me if he could help and I responded no, could I help him. He understandably thought I was a smart ass.
In college, I wasn’t a great student, but I concluded those years trying to help a half a dozen others become better debaters. I know they learned from many, but I would like to think that I contributed.
When I was showing convenience stores how to essentially become restaurateurs, I know I helped create profits, jobs and some happy customers by improving the food and service.
So why did I get involved in residential real estate? Initially, because it was an opportunity to quit being on the road constantly, and from my observations of looking at homes in 4 states, a business that could use help. Working in the business for almost 14 years as an agent and as a marketing and sales manager for a builder, I have helped many people get the security, financial benefits, fulfillment, and shelter that works best for them. In the process, I know that I helped to create dozens of jobs, add value to land, and give back to the community.
Sometime in the last few years, I lost my way. You see, I do believe that there is never a bad time for some real estate to be bought or sold. However, for the last +/-5 years, that has not been true for most. I watched as prices went up too fast and many times questioned the appropriateness of decisions, particularly for buyers, in an unstable market. I watched as prices have come back down and entertained the same thoughts. Often I wondered whether I was questioning hard enough.
Which brings me to this; Today, December 1, 2009 I recommit myself to real estate. I make this commitment, because I know that there are opportunities for many folks that will enrich their lives if they make GOOD decisions. I make this commitment because somebody needs to be willing to ask the questions, even when it results in a non-sale. I make this commitment, because there are too many vacant houses dragging down the values of all and filling them will lead to improvements, jobs, and an improved community. I make this commitment, because too many people put their homes on the market and are inconvenienced when their house won’t possibly sell.
For the rest of this year, I will be writing about some of the tools that may help us fill or replace these homes and take advantage of the opportunities that exist, not just for a select few, but a large number of people. I would appreciate your comments and suggestions for tools to discuss.
Thanks,
John
Subscribe to:
Posts (Atom)