Real Estate Debate: High Touch vs. High Tech

Real estate debate: High touch vs. high tech

Newcomer, veteran argue future role of Realtors

Tuesday, January 09, 2007 By Glenn Roberts Jr.Inman News

NEW YORK -- Some common labels land on various breeds of real estate companies -- such as "discount or "traditional" -- that seem to stick even though they don't quite fit, said panelists

Monday during a session at the Real Estate Connect NYC conference. The terms can result in adversarial connotations, including the perception of an uneven playing field that pits newcomers against a backlash from industry veterans.

While the labels may be misnomers, new low-cost business models can still feel friction from established companies and organizations, said Glenn Kelman, CEO for Redfin, a brokerage company that offers rebates to consumers while automating some aspects of the real estate transaction with Internet-based services.

Kelman, who debated Allan Dalton, president of real estate search company Move Inc., during a session at the real estate conference, said his company has experienced some pushback, including the threat of lawsuits and buyers who said they worry that other companies will ignore their offers made through Redfin.

"I don't think entirely we're imagining some kind of opposition here. I don't think we're inventing an enemy that doesn't exist," said Kelman, referring to a variety of "legal machinations" and letters from multiple listing services that the company has received since launching brokerage services last year. Any opposition to the company's business model is not warranted, he said.

"We just have no interest in screwing up the industry or hurting other people. But we do have an interest in protecting our consumers and protecting ourselves from legal attack."
Dalton, meanwhile, said that Redfin has announced savings over traditional real estate companies -- which implies that so-called traditional companies are charging a fixed rate. Commissions are, by law, negotiable. Dalton's Move Inc. operates several prominent property-search Web sites, including National Association of Realtors-affiliated Realtor.com.

"When you suggest to the consumer that they are saving something -- that implies that there's a standing rate -- and I'm concerned from an ethical, even legal standpoint that I don't think we should be implying to consumers that there's some type of commission-fixing cabal and that there's a set fee, and I think you're in danger of basically conveying that to consumers. I think you're on very slippery ground there," Dalton said.

Allan Dalton, left, president of Move Inc.'s Real Estate Division, and Glenn Kelman, center, CEO for Redfin, engage in a debate Monday moderated by Bradley Inman at the Real Estate Connect NYC conference.

Also, he said that Redfin's strategy appears to be "basically attacking what people are making as opposed to increasing the value," and that could lead to talk of overpriced stockbroker, doctor and lawyer fees. "We have to make sure that we make a distinction between serving consumers and trying to put consumers out of work. Nothing should ever be at the expense of consumers," he said, jokingly referring to a doomsday scenario such as that in the film "Escape From New York," with out-of-work people text-messaging and e-mailing from caves and "breadlines for bloggers."

The real estate industry should move beyond its perception as a service industry and be realized as a skilled profession, Dalton said. "We need to empower our industry to go beyond holding the (consumers') hand during the transaction -- the high touch, the high feel, the nurturing of consumers -- and empower them ... to a skilled Realtor who can help them plan their entire life as opposed to receiving calendars and refrigerator magnets," he also said.
Realtors, he said, offer skills such as negotiating, marketing, networking, merchandising and staging that can add to the sale price of a home. "That's a skill -- that's an acquired skill that has been developed -- it's not a service."

Kelman argued that real estate consumers may not be well-served by the long-standing commission structure that awards real estate agents with compensation that is typically based on a percentage of the sale price of a home. He criticized a system that rewards buyer agents more money when their buyer clients pay more, saying "there's no way that your advice can be objective" in that situation.

While skilled work is needed in real estate transactions, many processes can be automated. "We think we can combine real estate agents with Internet technology to make the process more efficient," he said, adding that most of the "traditional industry hasn't necessarily been interested in automating the business."

"So we're just trying to introduce a competitive force in the market such that we can use technology and let the agents focus on what they really want to be doing, which is negotiating the deal on the house," Kelman added.

Dalton questioned Kelman's view on the industry's standard compensation structure using an analogy: "I want my sports agent to have an incentive to have a greater outcome. You think it's not right that real estate agents don't want homes to sell for more?"

While agents may believe their most valuable service is in finding a "dream home" for their clients, Kelman said that consumers are capable of finding a home on their own and just want an agent to seal the deal for them.

"We do think that real estate can be more efficient. We think that most of the technology sites that have been developed in the real estate industry are really designed to benefit the real estate agents and not consumers," Kelman also said.

"People automatically assume that we have it out for real estate agents, and first of all we are real estate agents. We want to be good partners in the industry because we've got to work with all the other brokerages," Kelman said.

Consumers can potentially save thousands by working with a Redfin agent, he said, and the company's typical agent completes 10-20 real estate deals per month.

Dalton, who earlier referred to "some of the zeal that's been manifested here for this Redfin reformation in the country," said that consumer choice is a good thing, and he also said that consumers will ultimately decide which business models succeed.

"Sometimes we have people who ... get so venomous, and they shouldn't. It's great that the consumer finally has more choices ... and that's what it's all about. Let the consumer decide," he said.


Let us provide you with an alternative to the traditional real estate approach:

Vito Boscaino
Owner / Realtor / MBA

Help-U-Sell North High Realty
4485 North High Street
Columbus, Ohio 43214

Office: 614.447.3050

Web: http://northhighrealty.helpusell.com



Help-U-Sell North High Realty

Are Realtors becoming irrelevant in todays market?

Brad Inamn was soliciting perspective on his blog regarding how industry participants perceive the consumer perspective towards Realtors or agents, if you will. This was my response posted to the Inman Blog:

The better question to start with is what does the average consumer think of when the term Realtor is used? My guess is "Realtor" is synonymous with "agent". To that end I believe that agents who provide obvious value added services will not become obsolete. The 85% of "realtors" or agents who simply throw a listing in the mls and then pray that something happens are already obsolete, they just haven't checked their bank accounts recently enough to know it.I believe the historical broker/agent office model is fundamentally broken and effectively dead.

How many traditional realty firms are busy downsizing and consolidating offices to reduce overheads? As more information is made available to the general public through all sorts of websites, the traditional role of a broker/realtor/agent as a "funnel' of information is increasingly irrelevant. As well, the age old advertising techniques and methods are also becoming more and more irrelevant. Those who embrace change, stay on the leading-edge of not only technological change, but societal changes as well will grow and prosper. Those who continue to muddle along on auto-pilot are dead.

As we move forward, I think consumers will be far more self-educated regarding all aspects of real estate issues, practices and transactions and will have far more sophisticated demands of those professional practioners who will need to be able to respond to consumer needs with demonstrable skills, techniques, technological capabilites and overall business savvy.

MLS's (and by association, Realtor.com) will become increasingly less important, and in my mind far more quickly than many expect, as replacement mechanisms will quickly evolve to displace them. There is no rocket science involved in putting sellers and buyers together. Many other "trading" or "brokering" industries have already gone through this evolution. It will happen and will happen soon.

Just remember - Think outside of the box or you will end up being buried in the box.

Have a great and prosperous day!

Vito Boscaino
Owner / Realtor / MBA
Help-U-Sell North High Realty
4485 North High StreetColumbus, Ohio 43214
Web: http://northhighrealty.helpusell.com

Office: 614.447.3050

So these are my thoughts. What are yours? I would be interested in hearing from the general public about their views on the role of the traditional real estate agent and how important they perceive an agent to be in the process of buying or selling a home. Share your thoughts with us.....

Consumers Slam Wallets Shut for Christmas

An already disappointing holiday shopping season turned out to be even worse than expected for many of the nation's retailers, who Thursday reported tepid sales gains for December.
The downbeat results came from merchants in all retail categories, from Limited Brands Inc. to jewelry chain Zale Corp. But Wal-Mart Stores Inc. posted better-than-expected results for December following a dismal November, but the discounter's overall holiday season was the worst on record, analysts said.

Ken Perkins, president of RetailMetrics LLC, a research company in Swampscott, Mass., said retailers were forced to mark down heavily to bring in sales.
"Clearly, this was a promotional Christmas," he said. "Consumers clearly waited until the last minute."

Such aggressive discounting led a number of merchants including Zale, BJ's Wholesale Club Inc., Gap Inc. and AnnTaylor Stores Corp. to cut their profit outlooks.

After a solid start to the holiday season, many stores struggled with disappointing business in December, and a shopping surge in the days just before and after Christmas wasn't strong enough to make up for lost sales. Merchants tried to stick to their previously planned discounts, but at the season’s end they resorted to bigger-than-anticipated cuts to pull shoppers in.
Mild weather across much of the country meant consumers were in no hurry to buy cold weather wear such as coats and gloves, depressing sales at many apparel stores. Declining gasoline prices and a steady job market should have helped merchants, but Perkins believes the recent drop in home equity loans — a big source of buying power over the past few years — curtailed spending among middle-income shoppers.

Sales results were also hurt by two big shifts in the way consumers are shopping: the increasing popularity of gift cards and robust online buying, which is not included in same-store results. Gift card sales are only posted when they are redeemed rather than bought, helping to extend the holiday season into January.

Wal-Mart, which warned earlier in the season that its sales gain from stores open at least a year would be no better than 1 percent, posted a 1.6 percent for December. Retail industry analysts polled by Thomson Financial expected 1 percent gain.

Sales from stores open at least a year, known as same-store sales are sales, are considered the industry standard for measuring a retailer's health.

The results followed Wal-Mart's 0.1 percent decline in same-store sales in November, its first monthly same-store sales drop in a decade.

Last month's sales figure was the company's weakest December performance since 2000 when Wal-Mart posted a 0.3 percent gain, according to Thomson Financial. The slim 0.8 percent increase for November and December combined was the worst since Thomson Financial began tracking same-store sales data in 1995.

Wal-Mart has struggled with a mix of problems, including the fact that its lower-income customers were hurt by soaring gas prices. But the company's lackluster sales have persisted even as the cost of gas retreated — partly because its attempt to broaden its appeal to higher-income shoppers was poorly executed, particularly in apparel and home furnishings.
Wal-Mart reported Thursday that it had a strong performance in electronics and the grocery business in December.

Rival discounter Target Corp. had a 4.1 percent gain in same-store sales, below the 4.5 percent estimate.

Costco Wholesale Corp. posted a 9 percent gain in same-store sales, beating Wall Street's 5.7 percent estimate. BJ's Wholesale had a 0.6 percent gain in same-store sales, less than the 1.3 percent estimate.

Among department stores, Federated Department Stores Inc., which acquired May Department Stores Co. last year, had a 4.4 percent gain in same-store sales, below the 5.5 percent estimate from Wall Street. The same-store results include only the Macy's and Bloomingdale's stores that existed before September, when the company transformed most of the former May Co. stores to Macy's units.

Terry Lundgren, Federated's chairman, president and CEO, noted that that performance at the converted May stores improved in December.

"While December sales were somewhat softer than expected, we overcame unseasonably warm weather in most of the country and ended the month strong," said Lundgren in a statement.

© 2007 Associated Press.


Vito Boscaino
Owner / Realtor / MBA
Help-U-Sell North High Realty
4485 North High Street
Columbus, Ohio 43214

Web: http://northhighrealty.helpusell.com
Office: 614.447.3050

Contact Me: http://northhighrealty.helpusell.com/Consumer/Content/Forms/ContactMe.aspx

Inflation, Housing Worry Fed

The Federal Reserve is anticipating a battle on two fronts: rising inflation and a slowing economy. But right now, the Fed is sitting on the sidelines.

The minutes from the Fed’s December Open Market Committee meeting show a central bank torn between its duty to quell inflation and its obligation to help the economy grow: "Several members judged . . . the downside risks to economic growth in the near term had increased a little and become a bit more broadly based than previously thought."

The minutes continued, "Nonetheless, all members agreed that the risk that inflation would fail to moderate as desired remained the predominant concern."
But instead of tackling the risks head on, the Fed held rates at 5.25 percent. The Fed did add language to the Fed statement indicating that a rate increase to combat inflation is possible in the future.

Proof that the Fed is between a rock and a hard place is one member’s request for the statement to say that rates could go up or they could go down. That’s reassuring!
The Fed next meets at the end of January. Whether they’ve picked either battle to fight will be revealed then.

Courtesy of: Moneynews.com

For more perspective on real estate conditions in the central ohio area, please contact:

Vito Boscaino
Owner / Realtor / MBA
Help-U-Sell North High Realty
4485 North High Street
Columbus, Ohio 43214

Web: http://northhighrealty.helpusell.com
Office: 614.447.3050

Contact Me: http://northhighrealty.helpusell.com/Consumer/Content/Forms/ContactMe.aspx

Interest Rate Trends in Ohio Remain Favorable

Well the Holidays are now behind us, and we have begun to see an increase in Listing inquiries from Sellers and almost an equal number of inquiries from Buyers. The interesting aspect of the Buyer activity is that it is direct (i.e., Buyers not represented by an agent), which is great for our Listing clients as it provides them with the opportunity to potentially sell their homes while paying a low-set fee with no co-op commission to be paid. This positions them to capture the maximum level of savings versus a standard 6% commission that a traditional agent would generally charge. Our Buyer leads appear to be generated equally across three channels: Yard signs; internet and newspaper advertising.




We can also see in the chart above that interest rates, though having risen slightly over the last two weeks, still remain favorable when viewed over the longer historical term. This positions Buyers to have the best of both worlds: plenty of inventory to choose from with affordable financing terms still available.

As we look towards the end of January and the end of our first full twelve months of operation, we are proud of our great success in our first year. Our transaction base was almost equally split between Sell side and Buy side transactions. We delivered over $100,000 in savings to our clients while providing complete transaction support to all of our clients. As we begin 2007, we look forward to working hard to achieve our goal of driving a 200% increase in transactions over 2006. As the market conditions have weakened and sellers have had more difficulty in selling their homes, our marketing system becomes even more valuable for those homeowners who are even more sensitive about protecting their shrinking equity. Clients truly appreciate being represented by a real estate marketing company that knows how to reach out to the buyer community regardless of where they start looking for a home, with a specific focus on advertising the product, "The Home".

If you are considering selling or buying a home in central Ohio, please contact us as we can help you save thousands. We can be reached at:

Vito Boscaino
Owner / Realtor / MBA

Sheila Dawson
Owner / Realtor


Help-U-Sell North High Realty
office: 614.447.3050
web: http://northhighrealty.helpusell.com

Sheila Dawson email: sheiladawson@helpusell.com
Vito Boscaino email: vitoboscaino@helpusell.com

Overpriced Listings

During a recent conversation with one of our clients, he asked “why do agents continue to take listings they know are overpriced?” I considered that a great question and worthy of comment.

There are several reasons why agents take “overpriced” listings. In default, with the simplest solution usually being the most correct, the agents may not actually know or believe the listing is overpriced. They may lack experience or expertise in a flat or declining market and not have the study habits or initiative to continually analyze the market conditions.

There are, however, some more complicated and sometimes intentional reasons for knowingly accepting a listing that is priced above what the market can bear; we are assuming, for this example, the seller is the driving force in the inflated price, not the agent.

Primarily, a listing is a venue for advertising and lead generation. Once an agent secures a listing, they advertise that home in any number of places- beginning with a sign in the lawn with their company or personal name and continuing through that agents choice of advertising media.

Experience shows that signage is among the very best sources for generating new leads, so an agent can even find some level of success with simply displaying yard signs and not spending any money on advertising. In traditional real estate, listings are generally considered the key to an agents success because of their capacity to generate new buyer leads.

Once a potential buyer calls on their listing, they now have an opportunity to convert them into a client and secure a buyer side sale. Some simple math shows if an agent takes an overpriced listing that does not sell, but converts 1 or more buyer calls into sales they are making a profit similar to or greater than the commission they would have earned on the sale of the listing. This is, of course, assuming they have refrained from spending large amounts on advertising.

There are some pitfalls in this system. First, it is unfair to the property owner as the agent is giving them an unfair expectation of selling as they are “overpriced.” Second, sellers expect advertising from the agent. If the agent is poor at converting buyer calls and securing buyer side sales, they will quickly deplete their capital by carrying undesirable listings and advertising expenses. Finally, agents rely heavily on referrals; unsold listings do not generate referrals.

The moral is, take a hard look at your price when listing. If you still feel it will sell for more than what the comps have sold for (which it most likely will not in the current market) and your agent is willing to list it without an agreement for price reduction, or a similar strategy, question why they would do that and also ask for the number of listings and sales they have had over the past 3-9 months. If the number of listings is high, but the sales are low- question that as well.

The bottom line is there are some phenomenal agents who are very adept at handling the current market, but there are also those who are not and for most Americans, selling a home is one of the biggest financial transactions they will encounter during their lifetime. It behooves them to research the process, the market, and the people they choose to represent them.

Article courtesy of Mike Ognek, Help-U-Sell Olde Dominion Real Estate.

For more information on listing your home, please contact:

Vito Boscaino
Owner / Realtor / MBA
Help-U-Sell North High Realty

email: northhighrealty@helpusell.com
web: http://northhighrealty.helpusell.com
blog: http://northhighrealtyhelpusell.blogspot.com
office: 614.447.3050

Are you ready for the Winter Season?

As the Winter months bring colder temperatures, make sure your home is properly insulated. Caulking windows and doors will help you save energy and money. If you have exposed pipes, be sure to insulate those to prevent them from bursting as temperatures drop below freezing.

Winter is also the prime time for illnesses such as colds and flu, so decrease indoor pollutants by cleaning and vacuuming dust from your vents. Maintaining your thermostat is another important step to efficiency. Keep it set at the lowest possible temperature that will keep everyone comfortable (usually in the 68 to 72 degree range). You may want to consider purchasing a programmable thermostat that will adjust your temps automatically.

Let us provide your family, friends, neighbors, and co-workers with the finest real estate information and services.

Vito Boscaino
Owner / Realtor / MBA
Help-U-Sell North High Realty

email: northhighrealty@helpusell.com
web: http://northhighrealty.helpusell.com
blog: http://northhighrealtyhelpusell.blogspot.com
office: 614.447.3050

Columbus Board of Realtors - November 2006 Residential Home Sale Statistics

Report alleges bullying of nontraditional brokers

Consumer group calls for more action by state regulators

Wednesday, December 27, 2006
By Glenn Roberts Jr.Inman News

State regulators should take a more active role to prevent discrimination and promote competition in the real estate industry, the Consumer Federation of America advocates in a report released this month.

"Traditional brokers, and often their trade associations, have used various strategies to limit or prevent the growth of nontraditional brokerage services," the consumer group charges in the report, "Nontraditional Real Estate Brokers: Growth and Challenges." State regulators, the report also states, "need to supplement the efforts of ... federal agencies to promote a free, nondiscriminatory residential real estate brokerage marketplace."

It is the latest in a series of reports issued this year by the Washington, D.C.-based federation that criticize the real estate brokerage industry's treatment of nontraditional companies and calls upon state regulators to step up their efforts to protect real estate consumers. The advocacy group is supported by about 300 nonprofit organizations and has a mission to advance pro-consumer policy on a variety of issues.

In July the advocacy group called for the independent regulation of real estate brokers, citing its survey that found about 79 percent of all state real estate commissioners "earn a living through real estate transactions," with 70 percent working as real estate brokers or salespersons. Stephen Brobeck, executive director for the consumer group, encouraged governors and state legislators to pass measures that prohibit active real estate brokers from serving as real estate commissioners.

And in June, the consumer federation released a report that described the traditional real estate brokerage industry as a "real estate cartel" and called for "fuller and more timely consumer information, ending of discrimination against nontraditional brokers, and effective, independent regulation" in the industry. The National Association of Realtors rebuffed findings in this report, stating that the real estate industry "is one of the most competitive business environments in the world" and features about 80,000 brokerage companies and more than 2 million real estate licensees.

This latest report describes the various business models used by nontraditional brokerage companies and provides examples of industry practices that can restrict competition. Nontraditional brokers, as described in the report, "offer services, charge prices, or provide (or do not provide) representation in ways that differ from, and usually threaten, traditional brokers."

In response to this report, the National Association of Realtors stated that consumers can choose to work with "discount, limited-service or minimal-service brokerages," among others. "NAR's policies foster the interests of all Realtors and real estate consumers. We support all business models and favor none."

Debbie E. Campagnola, CEO for the Association of Real Estate License Law Officials, an international group that includes representatives for real estate regulatory agencies, did not respond today to Inman News requests for comment about the report.

There is "considerable evidence" that nontraditional brokers have grown in number and market share of real estate sales, the report states. The share of real estate sales involving nontraditional brokers rose from 2 percent in 2002 to 11 percent in 2005, according to statistics from real estate research company RealTrends cited in the report. And Wall Street Journal articles have stated that the proportion of home sellers using traditional brokers declined from 74 percent in 2002 to 70 percent in 2005.

In addition, a CFA examination of Yellow Pages directory listings of real estate agents in 10 cities found that "there has been a large increase in advertising by nontraditional brokers." For example, listings of discount, flat-fee and for-sale-by-owner business directory listings increased by 152 percent from 1995-2005 in 10 cities studied, while listings of exclusive buyer-agent businesses grew 20 percent in that time.

Also, "the prominent and pricey display advertising" for nontraditional real estate businesses grew 31 percent from 1995-2005 while the use of "boxed" directory listings grew by 73 percent, the report states. The 10 cities studied include: Akron, Austin, Boston, Columbia, Columbus, Des Moines, Miami, San Jose, Seattle and Washington, D.C.

Traditional brokers "did not passively accept changes in service, pricing and representation options," the report charges. Nontraditional brokers have at times faced an uneven playing field in participating in the real estate market, according to the 18-page report.
Some multiple listing services, for example, have placed some restrictions on the online display of a category of property listings that is more commonly used by nontraditional brokers, and the Federal Trade Commission has announced actions against several MLSs in an effort to stamp out this practice.

Also, the CFA report cited MLS rules that prevent homeowners from displaying for-sale-by-owner signs when working with an MLS-member company, and boycotts of companies that do not offer a high enough level of compensation to cooperating brokers.

"Because traditional brokers working with buyers are usually compensated with a 'split' of the commission paid by sellers, the level of that split can and has influenced their interest in showing homes. Specifically, there is much evidence that traditional brokers are reluctant, or refuse, to show homes with commission splits under 3 percent," the report states, and includes references to complaints filed with the CFA, news articles and communications from real estate industry professionals.

While the CFA commends the efforts of the U.S. Department of Justice and the Federal Trade Commission to stop potentially anticompetitive practices in the real estate industry, the report states that "discrimination is too varied and frequent for federal agencies ever to adequately block completely. It is up to more independent and vigorous state regulators to conscientiously and fairly address every grievance filed by nontraditional brokers. And they must be willing to meaningfully sanction all egregious violations."

The report encourages state regulators to: "intervene fairly" in cases of anticompetitive actions against nontraditional brokers, to prevent brokers' actions that "deter competition and poach clients" from nontraditional brokers, to "act in a timely and impartial manner in disputes," and to study state and local real estate marketplaces "for bias against nontraditional real estate brokers and models."

Regulators, the report suggests, should also "repeal or oppose anticompetitive laws or legislation such as minimum-service and anti-rebate laws that exist in more than one-fifth of states. And they should direct state regulators to regulate the policies and practices of all service providers equally." Several states have passed laws -- in some cases despite the objections of Justice Department and FTC officials -- that require all real estate brokers to perform a specific set of services for their clients (known as "minimum-service" measures), and the federal agencies have taken action against some states that prevent real estate companies from offering rebates to consumers in transactions.

The CFA report states that consumers, too, can play a role "in ensuring a more competitive, pro-consumer marketplace," by negotiating for prices and services with real estate companies, and the report encourages consumers to file complaints with state regulators when they "see any evidence of discrimination against nontraditional services."
***

For additional information, please contact:

Vito Boscaino
Help-U-Sell North High Realty

614.447.3050

email: northhighrealty@helpusell.com

web: http://northhighrealty.helpusell.com

Home buyer's still king in Central Ohio

Real Estate Articles from Inman News

Record inventory slows sales, slashes prices

Thursday, December 21, 2006 Inman News
Columbus, Ohio

The buyer's market continued in Central Ohio during November, as record-high inventory cut further into sales and prices, the Columbus Board of Realtors reported.

Realtors recorded 1,763 home sales last month, down 7.2 percent from 1,899 sales a year earlier. Year-to-date, the region's 24,498 sales are 4.2 percent behind last year's pace.

Although the average sales price crept up to $167,371 last month from $166,266 in October, it has fallen 3 percent below the year-ago price of $172,586.

Record numbers of homes have been listed for sale this year in Central Ohio, the board reported, although new listings sank in November from both month- and year-ago levels. There were 2,899 new listings added to the market last month, compared with 3,844 in October and 3,368 a year ago, bringing the total number of active listings at month end to 16,501, up 15.4 percent from inventory levels in November 2005.

Chris Reese, president of the Columbus Board of Realtors, said the decline in new listings "is an indication that the market is headed in the direction of a more balanced playing field. Right now, the market clearly favors the buyer."

Reinforcing the current buyer's market is the markedly longer time houses are spending on the market. Homes that sold in November were listed for an average of 104 days, up 20.9 percent from a year ago when homes sold in 86 days.

The Columbus Board of Realtors Multiple Listing Service serves all of Franklin, Delaware, Fayette, Madison, Morrow and Union counties and parts of Champagne, Clark, Licking, Fairfield, Knox, Logan, Marion and Pickaway counties.

For additional information on buying or selling a home in Central Ohio, please contact me:

Vito Boscaino
Help-U-Sell North High Realty

614.447.3050

email: northhighrealty@helpusell.com

web: http://northhighrealty.helpusell.com
***

To FSBO or Not To FSBO

That is the question, at least for an estimated 20%-40% of homeowners. And the reason is universal - no one wants to pay 6% to sell their home. I was once a FSBO. I did it for the same reason and it taught me four invaluable lessons. First, traditional real estate is inefficient which is one reason why the cost is so high. The majority of agents have between zero and two homes listed and are probably only getting a sale once every three to four months, even longer in this market. After expenses, advertising and broker fees, they wouldn’t make any money if they didn’t charge 6%.

Second, most traditional agents have limited means and limited advertising to generate traffic to a home, which ironically is the main reason you hire them. And the MLS is not advertising. It’s a database, albeit a very useful one, but it is not advertising.

Third, signs sell homes. The small direction signs that say "for sale" and "open house" get people to your home. Why? Two reasons. One, people are attracted by neighborhoods and if they are in a neighborhood they like, will be attracted to homes in that neighborhood. And two, people like to shop.

Consumers want to know what they can get for their money and are willing to take the time to shop around. They want to see all the opportunities before making a decision. Put the two together and signs sell homes.

The final and most important reason is there is too much at stake both personally and financially to not have professional consultancy. One mistake in pricing or a contract item could cost you thousands and possibly much more than you saved by going it alone.

So how do you get expert, professional assistance, the best advertising and still save money on the sale of your home? The answer is Help-U-Sell. We provide complete real estate services for a low set fee paid at closing which saves our buyers and sellers thousands. We have an exclusive relationship with Realtor.com, the number one real estate website, so all of our homes are "enhanced" which means they are viewed, on average, 300% more than other listings. We also produce our own newspaper, the Real Estate News, which contains informative articles as well as showcase advertising for all our homes. And, we provide all your signs!

(Article courtesy of Chris Ognek, Owner, Help-U-Sell Olde Dominion http://oldedominion.helpusell.com)

For further information, please contact;

Vito Boscaino
Help-U-Sell North High Realty
email: northhighrealty@helpusell.com

Phone: 614.447.3050

web: http://northhighrealty.helpusell.com

Five tips to negotiate a home purchase in today's market

Savvy buyers can still bag right home at the right price
Friday, December 15, 2006
By Robert J. Bruss
Inman News

According to statistics from Realtor, home builder and government sources, the volume of new and resale home transactions is down but the actual sales prices of individual residences hasn't changed much in recent months.

To gain the attention of home buyers, many sellers (especially home builders) are offering special incentives such as no closing costs, commission bonus for the buyer's real estate agent, mortgage-interest-rate buy-downs, and even a free vacation or plasma TV for the buyer or buyer's agent.

During this slowest home sales season of the year between Thanksgiving Day and New Year's Day, extending to Super Bowl Sunday in many communities, motivated home sellers and builders are especially anxious to sell.

Consider yourself fortunate if you are in the market to buy a home now. Mortgage interest rates are still quite affordable at around 6 percent interest. Anyone with a new or resale house or condo on the market to sell at this time of the year is probably very eager to negotiate.

NEGOTIATE WITH SERIOUS HOME SELLERS. With a few local exceptions, in most home sales markets there is an oversupply of new and resale residences available. Just ask any real estate agent for the "number of days on market" and you will discover home listings languish much longer than a year ago.

Typical answers will be 90 to 120 days. However, it is not unusual for a correctly priced home in good condition to sell within a week or two.

The supply inventory of unsold homes is higher than buyer demand. The result is "the buyer is king."

To successfully negotiate a home purchase in the current buyer's market in most cities, here are the five top negotiation tips for today's home buyers:

1. DISCOVER WHY THE SELLER IS SELLING. Having bought and sold many houses, I've learned it's critical for smart buyers to know the seller's true motivation for selling. If the seller asks, "Why do you want to know why I'm selling?" the best answer is "Because I want to make you a purchase offer that will meet your needs."

In other words, negotiate with sellers who really want to sell. Signals of serious motivation to sell include job transfer, unemployment, pending foreclosure, divorce, birth or death in the family, financial problems, purchase of another home, and retirement.

Although home listing agents and buyer agents usually try to keep the buyer and seller from meeting each other, whenever possible it is to the buyer's advantage to meet the seller before making a purchase offer.

A good question for a buyer to ask the seller (and/or the neighbors) is, "What do you like best and least about this home?" Then keep quiet and let the other party talk. Listen carefully to discover if that home is right or wrong for you.

When a seller has the attitude, "If I can get my price, I'll sell; if not, I won't sell," it's usually a waste of the buyer's and agent's time to negotiate with that seller unless the asking price is very reasonable.

However, just to be sure, if you want to buy a particular house, make a realistic written purchase offer anyway and see what happens. Some sellers act like they don't really care, but they do. When the seller makes a counteroffer (as all sellers should do in today's slow buyer's market), that indicates at least some sales motivation.

2. FIND OUT THE SELLER'S PURCHASE PRICE. But before making a purchase offer, savvy buyers ask how much the seller paid for the home and when it was purchased. If it was bought last year at the top of the market, there is probably zero room for negotiation unless the seller has a very high motivation to sell.

However, if the home was bought more than 10 years ago, there is probably lots of seller equity with which to negotiate.

If the purchase price can't be determined from the public records, and the seller refuses to tell you their purchase price, an experienced real estate agent can usually make a reasonably accurate estimate based on the purchase date. For this reason, it is important for home buyers to always work with a buyer's agent who knows the community.

3. FIND OUT THE SELLER'S DEADLINE TO SELL. When a seller is motivated by a deadline, such as a job transfer date or the scheduled closing date on another home, such a deadline can be powerful motivator.

In addition, buyers should inquire of their buyer's agent when the listing expires. If the listing expires in the next few weeks, the listing agent will usually be extremely cooperative and motivated to get the home sold fast.

However, if the seller has no specific deadline to sell, negotiation with that unmotivated seller can be very difficult.

4. ASK WHAT INSPECTIONS THE SELLER HAS COMPLETED. The best listing agents suggest their sellers, before officially listing the home in the local MLS (multiple listing service), have the customary local inspections completed.

There are two primary advantages of pre-listing inspections for sellers: (a) unexpected problems, such as a leaky roof or termite damage, can be repaired by the seller, and (b) costly surprises are avoided for sellers when the buyer's inspections must reveal unexpected serious damage.

Based on the inspections, the seller can then provide a written disclosure report listing any defects of which the seller is aware but the seller has not had repaired.

Depending on local custom and statutes, pre-listing inspections might include pest control (termite), radon, energy efficiency, building-code compliance, and a professional home inspection. It is very impressive for buyers to be shown the customary inspection reports revealing a home without major problems.

Some buyers will accept the seller's reports without hiring their own inspectors. However, the smartest buyers include a contingency clause in their purchase offer making the offer contingent on the their approval of their own inspectors' reports.

After the buyer's purchase offer is accepted by the seller, if the buyer's inspections reveal undisclosed defects, the buyer then can (a) disapprove the reports and obtain a full refund of the good faith deposit, (b) re-open negotiations on price and terms, or (c) ask for repair credits as part of the closing settlement.

5. BEFORE MAKING A PURCHASE OFFER, ASK YOUR BUYER'S AGENT TO PREPARE A COMPARATIVE MARKET ANALYSIS (CMA). The most important reason home buyers need their own buyer's agent is, before a purchase offer is made, the buyer's agent should prepare a CMA.

This CMA form shows (a) recent sales prices of comparable nearby homes, (b) asking prices of similar neighborhood homes currently listed for sale, and (c) even asking prices of recently expired competitive listings (usually overpriced).

Using the pros and cons of each home shown on the CMA, with the agent's help the buyer can then arrive at a fair purchase offer price. The buyer's agent will then show that CMA to the seller when the buyer's purchase offer is presented.

Although the seller's agent probably prepared a CMA for the seller at the time of listing, the local home sales market might have shifted in the several months since then so the buyer's up-to-date CMA is a very important negotiation tool. It shows why the buyer's purchase offer is reasonable and should be accepted (or at least counteroffered) by the seller.

SUMMARY: By following the five negotiation tips above, smart home buyers can take advantage of the current buyer's market in most cities. Although it's a great time to be a home buyer, to avoid overpaying or buying the wrong home, savvy buyers who implement these five buyer tips will be on their way to a wise home purchase.

(For more information on Bob Bruss publications, visit his
Real Estate Center).

For additional information, please contact:

Vito Boscaino
Help-U-Sell North High Realty

northhighrealty@helpusell.com
http://northhighrealty.helpusell.com

Overpricing a home could lead to no sale

Sellers need to stay on top of rapidly changing markets
Monday, December 11, 2006
By Dian HymerInman News

Overpriced home listings usually don't sell in any market. In today's market, there's no margin for error when selecting a list price. If your price is too high, the market can literally pass you by.

Many sellers ask: What's the harm in pricing high initially? You can always come down. While this is true enough, you may end up with a lower selling price if you start too high to begin with, particularly if the market is declining.

Today's real estate market is generally balanced, although there have been modest declines in median sales price in some areas. Prices are still going up in areas with low inventory and high demand, but the appreciation rate in these areas is slower than it has been in recent years.

Given today's market conditions, buyers are more cautious about home purchases than they were last year. They are looking for value. A high price sends a message that you are out of touch with the market. Making an offer takes a lot of time and energy. Most buyers aren't willing to do this if they think that the seller is unreasonable.

Another factor that can keep buyers from making offers on overpriced listings is that they don't want to offend the sellers. Buyers feel that a low offer might jeopardize their chances of buying the property. They'd rather wait to see if the sellers lower their price before making an offer.

There is more emotion involved in a home purchase than in most other business negotiations. Home buyers usually need to feel passionate about a property before they'll make an offer.

Today's buyers are concerned about overpaying in a soft market. It's hard for them be enthusiastic enough to make an offer if a listing is priced too high. A listing that might look great to them at the right price might not even be appealing at an above-market price.

So, one risk of overpricing is that you don't receive any offers at all. Another related risk is that your home might not even be shown to buyers if it's priced too high. There usually is a direct correlation between the amount of showings a listing receives and the time it takes to sell.

HOME SELLER TIP: Sellers who live in areas where prices are declining need to be particularly careful not to overprice their homes. Before your home goes on the market, ask your agent to update the market evaluation of your home that was done before you listed to make sure that the recommended price range still holds. If not, readjust the price before you hit the market. Your home is most marketable when it's new on the market. So capitalize on this enthusiasm by presenting a good product at the right price.

Since the market is always changing, you may find that your list price could be too high soon after your home is on the market. Many sellers object to lowering their price too quickly.

They're afraid they'll leave money on the table.

However, the best time to lower your price is as soon as you discover that the price is high. This way you quickly rekindle interest in your property. Leaving your home on the market too long at a high price can cost you money if prices decline.

After your home is on the market, keep an eye on your competition. Ask your agent to keep you informed about listing activity in your area. Find out which listings are selling and which aren't.

How does your home stack up in comparison?

THE CLOSING: Pricing lower than your competitors can often bring about the desired result.

For further inofrmation on properly pricing your home, please call:

Vito Boscaino
Owner / Realtor / MBA
Help-U-Sell North High Realty

614.447.3050

web: http://northhighrealty.helpusell.com
email: northhighrealty@helpusell.com

A LOW SET FEE - NOT A HIGH COST COMMISSION

If you've owned your home for awhile, you've probably enjoyed increased equity and appreciation. So the idea of making money when you sell is familiar. The idea of saving money probably isn't.

It's simple math. Most brokers charge a sales commission; so on a home that sells for $200,000, a 6% commission* is $12,000. On a $500,000 sale, it is $30,000.
At Help-U-Sell® Real Estate, our licensed brokers offer the same real estate services but, instead of a commission, we work for a low, set fee. As a result, our clients can save thousands of dollars.

How Do We Do That?

Two important reasons that allow us to pass along savings to you:

1.Our neighborhood offices located around the country are owned and operated by experienced licensed brokers with a staff of salaried professionals, instead of commissioned agents.

2.Because our marketing system works so well, a broker and his or her staff can use their time more productively and manage more transactions efficiently and professionally with less overhead.

Looking for a New Home?

Help-U-Sell® listings are a good place to start. When a seller doesn't have to account for a commission in their sales price, they are more open to competitive pricing. Through Help-U-Sell® Real Estate, you also have access to For Sale by Owner homes which are typically priced lower. And that creates savings opportunities for you.

List Your Home "For Sale With Owner" and Save!

Get all the professional services you need - and savings -- from a licensed real estate broker. Your expert next door!

Vito Boscaino
Help-U-Sell North High Realty

northhighrealty@helpusell.com

http://northhighrealty.helpusell.com

(614) 447-3050

Does Anyone Ever Over-Plan a Move?

Most closings take 30 or more days. Decide if that will give you and your family enough time to focus on the task of moving. It's better to start too soon than too late.

1. Make a Checklist. Itemize all the steps leading up to your move. Make assignments to family members and put the list where everyone can see it and check off their accomplishments!

2. Maintain Your Property. Before you can receive the proceeds from the sale, your home must past the buyer's final walk-through. Be sure to leave the house "broom clean" and the yard in the agreed-to condition. Otherwise, you will be spending your time weeding when you should be packing.

3. Have a Yard Sale. Many people pack up things they don't want because they ran out of time to sort through closets, drawers, sheds and garages. Take it a room at a time. Set aside an area for sale items. And schedule your sale at least one month before your move date.

4. Get Relocation Assistance. If you need to more information about the schools, neighborhoods, or services where you're moving, you can rely on one of our Help-U-Sell® offices to get it for you. Just ask.

5. Move Before You Close. You don't need to wait until your actual close date to move. If you schedule your move a few days early, you won't feel rushed at the end.

Looking for Immediate Help?

The Help-U-Sell® Rewards Program provides a gateway to name brand moving services at a discount. Find out about trucks, moving companies and special credit card savings.

Get all the professional services you need - and savings -- from a licensed real estate broker. Your expert next door!

Vito Boscaino NorthHighRealty@helpusell.com

614.447.3050

http://northhighrealty.helpusell.com

Putting Your Money Where it Counts . . .

If you're thinking about selling, it's easy to add up all the things you were going to fix and never did. But now isn't the time. Instead look at your house as an investment. Here are 10 ways to improve your return on investment (ROI):

1.Repair, replace and repaint only what you need to.

2.Catch up on deferred maintenance and put the basics in good working order.

3.Patch and paint any cracks or other damage to exterior and interior surfaces.

4.Make sure doors and windows operate smoothly and replace broken glass.

5.Make sure all electrical fixtures work like lighting and ceiling fans.

6.Fix plumbing leaks and faucet drips.

7.Check toilets to make sure they flush properly.

8.Some construction projects offer a better ROI than others, like kitchen and bath remodels or adding a new deck. But resist the temptation to finish building your "dream home."

For more specific ideas for your home, contact a Help-U-Sell® broker today.

Looking for a New Home?

Trying to find the "perfect" home is fun but also challenging. That's why we offer so many ways for you to search our database of more than 1,100,000 homes for sale. You can search 24/7 on our website. Or you can fill out a Buyer's Profile document and your neighborhood Help-U-Sell® office will get to work searching for you.

Get all the professional services you need - and savings -- from a licensed real estate broker. Your expert next door!

Vito Boscaino NorthHighRealty@helpusell.com (614) 447-3050

http://northhighrealty.helpusell.com

Is this the right time to Sell?

With so much recent real estate activity, home owners across the country are asking the same question. Asking the question is easy. Answering it is harder. But one of the key deciding factors is whether your home has appreciated or increased enough in value to justify selling.

Finding the Market Value of Your Home

Instant Online Comps The easiest way to find out your home's value is to use the Home Value Search tool on our website. Just enter your home address and, in seconds, you'll receive data on three recent home sales near you - free.

Complete Market Comps Your Help-U-Sell broker can prepare a more detailed comparison of recent sales in your area. This, along with his or her analysis and recommendations, should be adequate to helping you decide whether the time is right to sell.

Full Property Appraisal You can contract a professional appraiser to evaluate your home against recent sales in the neighborhood. This is the most accurate way to determine your home's worth. And it may be the only way, especially if your home is greatly different in size or amenities from the homes around it. Your local Help-U-Sell® office can help you find an appraiser.

Looking for a New Home?

If you expect the proceeds from your sale to be substantial, it's more important than ever to have a Real Estate Plan and clear objectives. Do you want or need a larger home? Would you rather use those funds for college tuition? Are you looking to invest? Your Help-U-Sell broker can help you decide your priorities and goals. We're glad to help. Just ask us!

Vito Boscaino mailto:NorthHighRealty@helpusell.com

614.447.3050

http://northhighrealty.helpusell.com

October - Residential Home Sales Activity

Trendsetters in the Real Estate Market

FOR IMMEDIATE RELEASE

Contact:
Vito Boscaino
Help-U-Sell North High Realty of Columbus
(614) 447-3050
NorthHighRealty@helpusell.com

Trendsetters in the Real Estate Market
Help-U-Sell North High Realty in Columbus gives insight on the latest trends in the industry

Columbus, OH (Grassroots Newswire) November 28, 2006 -- When putting your property on the market, it is important to stay abreast of real estate trends that are taking place in the country, according to Vito Boscaino of Help-U-Sell North High Realty of Columbus the country’s leading fee-for-service real estate company. He offers several current trendsetters that property owners should keep in mind when trying to sell a house.

“First of all, the homebuyers of the 21st century are setting new standards for the way Realtors do business,” said Boscaino. “Young Americans that make up Generations X and Y are purchasing homes in ways that would never be dreamed of 50, even 20, years ago.”

Recent studies from the U.S. Census and the National Association of Realtors (NAR) show that Generation X and Y households account for 55 percent of all home purchases. And, about 64 percent of them intend on buying a home in the next two years.

These homebuyers are the fastest trendsetters, having a desire for greater space and more sophisticated amenities such as automated lighting controls, built-in security systems, pools, home offices, libraries, gyms, sound systems and even home theaters. Other studies indicate that they prefer a four or more bedroom home and want a home 50 percent larger than their current residence.

“Bigger and better seems to be their motto -- and, this is good news for consumers,” Boscaino said. “As these homebuyers enter the real estate market as first-time buyers, they will look for homes in the higher price ranges. That will be a vital factor in keeping markets strong around the country.”

On the same note, second-time homebuyers, mostly the baby boomers, are also setting trends in the industry. Baby boomers have a higher rate of homeownership than the national average; one out of four own more than one property. From the very wealthy to the ranks of the economically comfortable, there are 44 million second homes in the country. Baby boomers, who are in peak earning years, are at an age that vacation homes may also double as retirement homes in the future.

Baby boomers are spending more money to have more free time and enjoy a better quality of life. And, they are propelling the second-home market beyond worries of market slow-downs.

A recent NAR survey says 35 percent of investment property owners plan to buy one or more properties in the next two years and one in ten vacation homeowners plan to sell a vacation home in the next two years.

Realtors today have to watch many homeowner statistics to stay on top of their market and one last trend that is gaining in importance is the rise in minority homeownership, particularly Hispanic and Asian homeowners. Many Realtors are now hiring agents who are fluent in multiple languages to meet the needs of their newest and fastest growing customer base.

Recent real estate data shows that the Hispanic and Asian populations have doubled in the past 10 years and tripled since 1970.

“They are changing the face of the American homeowner,” Boscaino said. “Upwardly mobile, entrepreneurial, focused on family, education and faith -- they are the new American homeowners living the American dream.”

For more information, please contact Vito Boscaino at (614) 447-3050.

About Help-U-Sell
Help-U-Sell Real Estate is the country’s leading provider of fee-based brokerage services in the real estate market. Help-U-Sell provides consumers access to information and choice, and offers a set-fee alternative to paying the traditional commission. Help-U-Sell differs from traditional brokers, not in the level of services provided by its licensed brokers throughout the country, but in the dollar amount that the consumer pays for those services. With approximately 1,000 offices throughout the United States, Entrepreneur magazine ranked Help-U-Sell Real Estate as the fastest growing real estate franchise for 2005. For the sixth consecutive year, the company was ranked in the Top 50 across all industries in the magazine’s 26th Annual Franchise 500. For more information, please visit http://northhighrealty.helpusell.com.

Mortgage Rates forecast to remain stable. . . .

Near future perspective on interest rates looks very stable for the next two years. This is great news for Buyers as current rates are still very low by historical standards. As well, Sellers should benefit as Buyers will have minimal incentive to "wait" for lower rates, thereby postponing purchase activities, instead they should be motivated to move more quickly to take advantage of the current high inventory levels, which has caused prices to soften. Net/net the picture looks reasonably bright, assuming there are no negative "shocks" to the economy.

Vito Boscaino
Help-U-Sell North High Realty



Fixed mortgage rates should stay grounded
Good news for those with looming resets: 30-year loan at 6.7% in 2007
MarketWatch Last Update: 6:59 PM ET Oct 24, 2006


CHICAGO (MarketWatch) -- Those who anticipate getting a mortgage or refinancing one anytime soon listen up: Fixed mortgage rates aren't expected to spike dramatically in the next few years, according to a forecast released Tuesday.
Fixed-rate mortgages should remain at about 6.3% to 6.4% through the rest of the year, according to the most recent Mortgage Bankers Association forecast. Rates are expected to rise to about 6.7% by the end of 2007 and to about 6.8% by the end of 2008.

"We expect long-term rates to remain low this year, helping to cushion the slowing in residential housing activity that has been underway for more than a year," said Doug Duncan, MBA chief economist. Interest rates are expected to stay "quite low by historical standards," he said. The group released the forecast at its annual convention in Chicago.

In a question-and-answer session with reporters, Duncan also estimated that between $1.1 trillion and $1.5 trillion in adjustable-rate mortgages will be eligible for reset in 2007.

The MBA predicts that $600 billion to $700 billion of those loans will be refinanced and between $500 billion and $800 billion will actually reset with new interest rates. Economists are concerned about the impact that added mortgage spending will have on consumer behavior and economic growth. So the lower mortgage rates stay, the better off consumers will be as they face those higher payments.

The MBA forecast also painted a picture of a "normalizing" home market.
Existing-home sales should decrease by 9% in 2006 and go down another 8% in 2007, Duncan said. The number of new-home sales should decrease by 18% and also decline another 8% in 2007.

But after that, the decline is expected to reverse: The number of new- and existing-home sales should increase modestly in 2008, the forecast showed.

Median price gains in existing homes are estimated to reach 2.5% in 2006, while median new-home price gains are expected to be about 1%, according to the MBA, down sharply from their recent double-digit pace. Appreciation rates should be similar in 2007 and could even strengthen in 2008.

Big picture
MBA statistics and estimates regarding the mortgage industry also showed evidence of a softening housing market.
Residential mortgage production is forecast to reach $2.46 trillion in 2006, down 19% from an estimated $3.03 trillion in 2005, but still the fifth-highest level on record.

Next year, mortgage production is expected to slip a little more, down to $2.12 trillion, according to the forecast. In 2008, mortgage production should hold at the same level.

Regarding the national economy, the group predicts that economic growth will continue to slow through the rest of 2006 but should return to near normal in 2007 and 2008. Real GDP growth will average about 3.1% in 2006; it should average about 3.0% in 2007 and 3.2% in 2008, the MBA said.

"Despite sluggish growth, largely due to declining residential investment and auto production in the second half of this year, we are optimistic about a rebound in 2007," Duncan said. "Long-term interest rates have remained low in the face of rising short-term rates, equity prices have risen nearly 20%, capital expenditures remain strong, the trade sector has turned from a big drag on growth to a modest stimulus, and energy prices have dropped sharply."

The MBA expects that the Federal Reserve will keep the Fed funds rate steady at 5.25% through 2008, Duncan said.

"Although we expect core inflation to moderate going forward, we believe that the currently elevated rate will keep the Fed from lowering interest rates despite signs of slowing economic activity," he said.