It’s no secret that technology has become a major part of the real estate process. The number of buyers who begin their search online recently rose to 9 out of every 10 house hunters, according to The National Association of Realtors. With third-party data websites like Zillow and Trulia emerging, the temptation to not use a Realtor has never been greater. Although some might think that it’s an option that can save money, it can actually be incredibly risky.
These sites claim to be excellent sources for finding available homes on the market, most consumers don’t take into account the possibility of inaccuracy when they are falling in love with the home at 123 Main Street that they found on Zillow.com. Only when they call the broker’s office to set up a showing do they find out that 123 Main Street has been sold for over three months.
Quite a few homeowners think that not using a real estate professional will save them a ton of money. However, according to Realtor.com, statistics show that using a Realtor results in a higher sale price with enough money for the commission and some left over for the seller’s pocket. The 2013 Profile of Home Buyers and Sellers shows that those who listed with a licensed Realtor received an average of $46,000 more than those who sold their homes themselves.
By hiring a Realtor, the seller is placing their home in the hands of someone with access to market data, which can help price the home appropriately. An agent can also help by making suggestions on how to make a home more appealing to buyers and have distinctive insight when it comes to home staging.
Selling can home can be very stressful and not having a representative will only add to that. Having a home For Sale by Owner or “FSBO” can place a seller in a rather vulnerable spot while a Realtor can screen the visitors that enter the home and can make sure that they are qualified buyers and aren’t just checking the place out.
Another thing to keep in mind is that most buyers today end up working with a buyers’ agent. If you are selling your home yourself, you’ll be negotiating with a professional and it will be up to you to finalize the contract, leaving yourself open for potential legal issues.
Let’s just face it: a Realtor sells houses for a living; they’re experts at professionally marketing homes for sale. While a FSBO can be successful in certain cases, 90 percent of homeowners prefer working with a real estate professional instead of taking their chances by going at it alone.
Image Courtesy of Realtor.org
The internet as we know it is about to drastically change. After becoming accustomed to everything having its own .com, .net or .org, the online world is preparing for an expansion like we never imagined. Over 1,900 new domains are about to be unleashed; in fact, some are already able to be registered and others can be reserved.
On behalf of its members, The National Association of Realtors has not only reserved the .Realtor extension but is also providing free domain names for the first 500,000 Realtors who register. Registration will begin on Thursday, October 23rd, 2014 at 11:00am. For those who are unable to be within the 500,000 registrants, the annual cost to have your .Realtor name will be $32.
Of course, like anything else, there are some restrictions. For example, the word “realtor” cannot occur before the dot- so that means that something like JoeSchmoeRealtor.realtor will be prohibited. The main requirement is that there must be a full first OR full last name before the dot so something like TopSellerJoeSchmoe.realtor will be permitted. Even Joe.realtor would be allowed, if you can snag it before anyone else does.
According to recent research by NAR, 9 out of every 10 buyers begins their home search online, making maintaining an excellent online presence an essential for every Realtor. Even social media can be a great tool for resourceful agents. Even if you already have your own .com or .net, covering all of your bases as an agent couldn’t hurt, especially if you have a more common name.
So let’s embrace the change and be the first to do so; visit www.claim.realtor on October 23rd to take advantage of this opportunity! For more information about the domain name and a few more of the parameters, go to http://www.dotrealtor.org.
August 2014 brought with it the “Great Flood” in Metro Detroit and impacted the housing market for some of Southeastern Michigan’s markets.
Dan Elsea’s Market Video goes into detail about how things are looking in our area and what might be in-store for this coming fall.
Join us for a 5K run sponsored by Max Broock for our Real Estate One Charitable Foundation which supports The Leukemia & Lymphoma Society, The Special Olympics of Michigan, Forgotten Harvest Food Bank, The Alzheimer’s Association and The National Multiple Sclerosis Society. The run is a great way to support these great causes while getting some exercise. The 3-mile run will take place through some really great Birmingham neighborhoods with beautiful homes. Whether you run or walk it, it will be a great way to spend a beautiful Saturday morning. Register at http://www.runonthetown.com!
April sales took a nice jump, gaining back some of the delayed sales from January through March. Although spring sales are moving up, the combination of fewer homes to purchase and reduced buying power will keep sales from making up all of the decline we saw in the first quarter (compared to last year). We still see 2014 as a strong real estate year across all markets and price ranges, however about 5-7% down from last year in terms of total homes sold.
One of the biggest logs in the dam holding back a flood of new listings is the seller’s “Move Up Spiral.” With many homes selling quickly, sellers are afraid to put their home on the market until they find a home to buy to avoid an intermediate move. Imagine if all sellers held back for that reason, there would be very few, if any, homes to purchase. On the other hand, if all of those sellers let us know of their intent to sell (even if they did not specifically put their home on the market), our matchmaking skills would take over, creating additional sales and breaking up the log jam. We do see this now, with about 10% or more of our sales “creative,” meaning transactions where the properties were not specifically on the market.
We have successfully used sales contracts with extended closing and occupancy dates to give sellers more time to look for a home and many sellers are arranging for an interim move. Although not convenient, it does give sellers certainty. Our most successful strategy has been simply reaching out to homeowners in targeted areas via mail, social media or even door to door with messages about the new home needs of our sellers (aka hesitant buyers) to find that other reluctant seller whose home fits our clients’ needs.
One area to watch is some creeping overconfidence on the part of some sellers as a result of media and our own discussion of double-digit appreciation and bidding over asking price. Values are rising quickly and 68% of all home listings are selling in 90 days or less. However, homes are still selling on average at 96% of list price, so buyers are aggressive, but within a relatively narrow value range. Buyer activity is always the best gauge of whether a home is at the right price point. Under the current market conditions if the property is priced correctly, showing activity should be immediate and there should be at least one offer in the first 30 days (markets over $500,000 will have a slower activity pace).
Our monthly charts break down the markets by under and over $100,000 segments. If we move upstream a bit in price the differences in markets become even stronger. Here is a snapshot of the market change from April of 2013 using a $200,000 price point. Both are moving in the same general direction but at different paces: the inventory levels under $200,000 show dramatic declines, while the over $200,000 is more modest. A buyer looking in either segment will experience some inventory frustration.