What is happening out there?

Inman News readers report on markets
Thursday, January 11, 2007 By Matt CarterInman News

Real estate professionals would be lost without statistics. Records of sales volume and price in their local markets, the number of homes for sale, the sales price of individual properties -- all are all vital in helping sellers price their homes and buyers negotiate the best deal.

But statistics say more about the past than they do about the future. The numbers can lag behind weeks or even months, and the first indications of what many in the industry are hoping to see -- renewed buyer interest -- may not be captured by any statistic. Brokers and agents will see increased traffic to their Web sites and more phone calls, e-mails and pages long before the results of that activity show up in closely watched statistics.

To get a grass-roots feel for whether that's happening, last week Inman News Publisher Bradley Inman posed this question on the Inman News blog: "What is happening out there? The market is turning UP, we hear from our sources. Were the bears wrong, are buyers ringing you up, asking for listings and combing the Web probing your inventory? If so, we want to hear from you NOW!"

The post sparked dozens of comments, which can be read in their entirety (and commented on) here. To make it easier, we've rounded some of the best (non-anonymous) posts and organized them by region.

Although anecdotal, many of these responses show optimism about the potential for a turnaround. Some who wrote remind us that all markets are local, and that many areas have not seen a downturn.

In areas where times are tough, there's a familiar refrain: the reason homes aren't selling is because sellers haven't come to grips with the fact that price appreciation has slowed or reversed. If interest rates go up, expect that to be an even bigger issue as buyers find the same monthly mortgage payment buys less house

Many of the most pessimistic posts were left anonymously.

One observer in the Washington, D.C., area said, "You have got to be kidding me. Are things turning up? … We just came through the most spectacular and speculative real estate boom in the history of the world, prices went up 100 percent or more in most urban areas, and the market has given back maybe 5 percent in those areas, and you are asking if the market is done
correcting and things are turning up?"

Low interest rates encouraged speculation, the post continues. The media "helped people catch real estate fever; and it built on itself like a Ponzi scheme. The whole thing was without merit."
Now, the anonymous poster said, "We have a lot of inventory to work through, which is still growing and will continue to thanks to increasing foreclosures and speculators dumping more and more property on the market; and in most urban areas there is two to five years of new supply still coming on in the overbuilt condo market; and interest rates are expected to go up this year. That does not sound like a recipe for a real state recovery."

But most of those who identified themselves were optimistic, if not upbeat, about their local markets.

Andrew Waite, publisher of Personal Real Estate Investor Magazine, said advertising sales and contracts with real estate vendors can "predict a lot of forward behavior," as can subscription trends.

"We have broken records in both categories in (the fourth quarter of 2006) and into the first issues of '07. Life is good and getting better," Waite says. "The illusion is looking at a highly inefficient market and trying to apply economic metric that fit commodity markets. It does not work."

What others around the country are saying:

California

Catherine Myers, a certified residential specialist with Alain Pinel Realtors, in Walnut Creek, Calif., says things are looking up in Contra Costa County, east of San Francisco. "I've had more Web inquiries at my site www.diablovalley.net this week than I had in all of December," Myers says. "My listings are getting showings, a stale listing got an offer, and our office had one of the best Decembers on record. I think as the December numbers start to filter out to the public it may spur these reluctant buyers into action. No, the sky is not falling, and if we can sell off some of this stale inventory we'll be in great shape for spring. There are some great deals out there now."

In nearby Berkeley, Ira Serkes of REMAX Bay Area reports putting two homes on the market in December, which were "well presented, well marketed, (and) well priced. We received five offers on one, and nine offers on the other. So, I'd have to say that it is (and has always been) a normal market! Well-priced homes sell, others don't!"

South of San Francisco in the heart of Silicon Valley, San Jose-based Michelle C. Carr-Crowe, owner of Judy Carr & Associates Inc., says she has 35 pre-approved families who want homes in the neighborhood she specializes in, but there are only five homes available there.

"Unless truly motivated, potential sellers want to wait and see how someone else does rather than spend the time and effort to prepare to sell -- only to sit unsold," Carr-Crowe says.

"Roughly one-third of those are move-ups (meaning they'll sell when we find the right home), one-third will buy only a specialized property and neighborhood … (and) one-third are hoping for special bargain (prices from 2002), and the last tenth are still refining what they want/need.
Carr-Crowe said her buyers are pre-approved and can make significant down payments of $100,000 to $400,000, but "are conservative and concerned about the market and buying too much house/mortgage."

The last home she sold "was aggressively priced," and she received 15 offers, selling as-is for nearly 10 percent over the $898,000 asking price. "I'm just looking for more sellers!" she says.
Elizabeth Weintraub, Lyon Real Estate

Elizabeth Weintraub reports "a buzz stirring" in the Sacramento housing market.
"It takes buyers a while to get moving, and often I see a lull between market changes and action, but buyers are beginning to venture forth," Weintraub says. "Interest rates are low, inventory isn't as high as it will be in April, and sellers who are willing to wheel and deal are making deals."

In the last two weeks, she's received three calls on two pending sales. "When was the last time that happened? Those buyers asked to be put on a waiting list for similar inventory. Guess I better get busy and take more listings! The holidays are over. It's time to get back to work," Weintraub says.

Weintraub says that while 2007 may be the Year of the Boar in China, she's calling it the "Year of the Buyer. I predict buyers will rule all year long."

If a home hasn't sold after a few weeks, it's priced too high, Serkes says.

Down in Southern California, Linda Slocum of Vintage Sotheby's International Realty in Valencia said the housing market in the north end of Los Angeles County seems to be stabilizing.

Many of the bigger price decreases in the area were due to unrealistic pricing in the first place, she said -- like homes with comparable sales at $775,000 priced at $950,000.

"Some builders are having trouble selling new construction, but most of these are not in the most popular sections of town," she said. "Lennar didn't have much trouble cashing in on $1.3 billion recently for the sale of their majority interest in the largest upcoming development in the region, Newhall Ranch. Much of the funds for this came from CalPERS," a retirement fund for government workers.

Also in Valencia, Bob Haas of Pacific Real Estate Network he doesn't see a recent trend other than "the typical end-of-year flurry."

"As I see it, we have the press still saying the sky is falling, most sellers still overpricing, buyers are still sitting waiting for the bottom without understanding that if (interest) rates go up 1 percent … their payments will increase dramatically" even if prices come down 10 percent.

Buyers base their purchase decisions on "monthly payment and the interest-rate terms, and conditions on home loans over the past two months have been fantastic and continue to be very good while the market allows the buyer to negotiate an extremely aggressive price," Haas writes. But "the press has done a terrible service to the public buy not informing them of these facts."

Haas predicts the next round of price reductions will be driven by higher interest rates, "which by all financial indicators (are) coming, it is just a matter of exactly when and by how much."
Charles Ritz of Tarbell Realtors in Rancho Cucamonga, Calif., says business is slow in the Inland Empire region east of Los Angeles.

There are fewer homes in escrow and more on the market than in resent history, Ritz says, and prices have been dropping in the past couple of months by 1 percent to 2 percent.
For prices at the lower end, Ritz recommends having the "seller offer at least 2.5 percent to buyer's agent and the home will sell quickly."

Florida

Sally Daley, broker-owner of Daley & Company Real Estate, says buyers still control the Vero Beach market, even after last year's 20 percent price correction. There's been wholesale investor pullout, Daley reports, "with a whopping two to three years of inventory on our barrier island, as many sellers continue to price their homes to pre-correction levels and buyers say 'no.' "
Slow market conditions in the Northeast United States -- a key feeder market for the barrier island's second-home-buyer segment -- "clog our market with buyers from equally slow areas ready and willing but unable to buy until they sell up North," Daley says.

But Daley reports a big uptick in buyer interest on the company's Web site as buyers "get off their proverbial fence of indecision." Prices have moderated up a bit from their low after last year's big correction, "but it is still a great time to be a buyer here!"
Spring is traditionally the strong season for sales, but a return to normal inventory levels could also depend on action by the state's new governor on "the insurance and property tax elephant in the living room," Daley says.

Realtor Kevin Orak of The Selby Group in Flagler County said the area is "surrounded by water on all sides and actually still affordable for those looking to live in the Sunshine State." The past few months "have been absolutely dismal," but Orak says his phone has begun to ring again.

"Buyers have plenty of inventory to choose from and we are waiting longer for buyers to make a decision," Orak says. "I am staying upbeat and this has been chance for those of us who want to work in this business full time to change our way of thinking regarding pricing, advertising, etc."

Carolyn Burns, RE/MAX Partners
Fort Lauderdale broker-associate Carolyn Burns, of RE/MAX Partners, offers a similar assessment.

"In south Florida, buyers have the luxury of being picky and choosing the best-looking house in the best condition and in the best location," Burns says. "They can ask for closing costs credits and get them. Sellers that have the luxury of getting an offer should thank their real estate agents for presenting their homes in the best light, and take the first offer they get."

Burns says Florida is experiencing "a crisis" of high property taxes and enormous increases in property insurance, "which is deterring buyers from getting properly qualified with their mortgage payments (PITI) to purchase the type home they want."

The homes that are selling are either priced very reasonably -- between $300,000 and $350,000 -- or newly constructed, high-end homes in the $700,000 to $1.5 million range built to withstand hurricanes. Houses priced in the middle, between $450,000 and $550,000, are taking six to nine months or longer to sell, Burns reports.

"Patience is needed to stick it out, and work with our sellers to be realistic in pricing -- even pricing back to 2005 prices, if necessary," Burns advises. "A seller in denial is not going to help matters. Agents need to work harder to hold open houses for maximum exposure. Houses on lockboxes don't sell like they used to."

Marcus Burke at CondoMetropolis in Orlando says central Florida has "much inventory and slow sales," but isn't worried about the long term. "With a thousand folk a week moving here and the baby boomers still to come, I think central Florida won't suffer for too long ... unless of course, we get a another Wilma."
South

Flynn Taylor of Keller Williams Lanier Partners does business in northeast Georgia's Habersham and White counties -- a bedroom community for Atlanta.

"(Home builders do) not seem to be concerned about the market," Taylor says. "New subdivisions are cropping up all around (with homes) in the $200,000 range. Buyers are anticipated from the Atlanta area and from Florida."

There was a "definite slowdown" in the third and fourth quarters of 2006, and the region always sees decreased activity from December through February, Taylor says, "but being a bedroom community of Atlanta will help our market carry on in 2007."

Dianne Dunn of Keller Williams Realty in New Bern, N.C., says eastern North Carolina had only "a minor setback last year," with prices continuing to appreciate. The area is a haven for retirees and second-home owners looking for a moderate climate and less hectic pace of living, she said.

Dunn said the market started tempering in the second quarter of 2006, "and the last three months were fairly slow. During the week between Christmas and New Year's, I had three listings sell, and we're experiencing great buyer activity, and numerous showings as we start 2007!"

Southwest

Linda DeVlieg, broker-associate at Albuquerque Real Estate, reports the "pitter patter of buyer feet are starting to be heard again."

Good homes priced well are still selling, DeVlieg says, and the ratio of new listings to pendings is "growing a smaller gap than it was a few months ago. I see things improving and looking up."

The only downside, DeVlieg says, is in new construction. "I believe that the builders are suffering from the over-sell to investors in the last 18 months, and buyers are reluctant to go as far out as it takes to get to the new developments; more infill building is moving buyers closer into town," she says.

Midwest

In the western suburbs of Chicago, Eric Rogers says single-family resales lost steam in December, but inventory continued to decrease from a high this fall. Rogers, a Realtor with Century 21 Pro-Team in Aurora, Ill., analyzes local market conditions on his Web site. He thinks the market is seeing "the beginning of the end of the downturn," with home values are about where they were in January '05.

Vito Boscaino, owner of Help-U-Sell North High Realty in Columbus, Ohio, says inquiries from sellers and buyers picked up after the holiday. An interesting trend is that many buyers making inquiries of late are not represented by an agent, he said.

Direct inquiries are "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," Boscaino reports. "This positions them to capture the maximum level of savings versus a standard 6 percent commission that a traditional agent would generally charge."

Matthew Benedict, RE/MAX Metropolitan
Matthew Benedict of RE/MAX Metropolitan in Utica, Mich., says the metro Detroit area " has an overload of inventory, including a ton of bank repos." That makes it "a good time to buy and take advantage of the market. Its funny, when the market is peaking and homes are overpriced everyone wants to buy. Yet when there are some tremendous values out there, buyers are on the fence. The time to buy is now! I have noticed an increase in buyer inquires and showings on our listings. The market is turning."

Northeast

Marabeth Gildersleeve of Coldwell Banker Residential Brokerage in Glastonbury, Conn., says inventory is down, but that's partly because of expired listings in the month of December. "Right now there is not much out there," Gildersleeve reports. It "will be interesting to see what happens in the next month or two with inventory, which will tell where the market is going." In the mean time, sales are off about 15 percent, but closing prices are up 1.5 percent, she says.

Geri Sonkin of RE/MAX Hearthstone in Merrick, N.Y., reports "a definite difference in the Long Island market." Sonkin said she began to notice the change in November, when buyers were out in greater numbers than they had been in many months. "When checking with my colleagues, their experience seemed to mirror mine. Inventory, growing at an alarming rate earlier in the year, has trimmed back as well. There is no doubt, however, that buyers are still in the driver's seat since their options are many."

Earni Young, who writes about real estate for the Philadelphia Daily News, says the market there is faring better than the rest of the East Coast, "primarily because our housing prices are far lower than in New York City or Washington, D.C."

"Our luxury condo and townhome market consists primarily of empty nesters moving in from the surrounding suburbs, a smattering of New Yorkers and Washingtonians willing to commute by Amtrak," Young says. Nevertheless, sales have slowed and there is currently a three-month inventory of unsold homes.

Several large condo projects either are on hold or are being revamped as rentals, but a number of new projects are in the pipeline.

"Despite the gloom of those who can't seem to remember what the real estate market was like pre-1998, our current market is not bad," Young says. "The difference is that homes that once sold in three days with multiple bids, now take three months to pull in the first offer."
West/Pacific Northwest

Craig Pattberg an investor and Realtor with AllPro Realty Group Inc. in Midvale, Utah, reports the region has been immune from the slowdown in the market, with prices on the rise and inventory low.

"Here in the Salt Lake Valley of Utah we experienced a 19.4 percent appreciation for the fourth quarter of 2006 over 2005. We are 43.2 percent over the fourth quarter of 2004."

It takes an average of 32 days for homes to sell, with a three- to four-month inventory, and an average sales price of $284,193.

"Hot!" Pattberg says of his market.

In Portland, Ore., Patrick Brown of Windermere Cronin & Caplan Realty Group says he's seeing a "big jump in activity" in the below-$300,000 market, but his $600,000-and-over listings "are getting no showings."

Brian Quilty, president of Online Land Sales LLC, says sales through the company's Web site, Landbidz.com, are "good," with "a steady increase in demand" for land in rural Nevada and Texas. Prices "seem to be rising," Quilty said.

In Sioux Falls, S.D., Harlan TenNapel of Ameri/Star Real Estate said there has been no downturn. Although there inventory is three, four months and more, that represents a balanced market, he said.

"We are seeing most price ranges still have a 3-4 months' supply of homes, with a few price ranges considerably out of that range," he said. "I was always taught in my 27 years (in the business) that if you have a 3-4 months' supply you have a balanced market. It is not a buyer's market, and it is no longer a seller's market, it is a balanced market as a whole."

*X*X*X*X*X*X*X*X*X*


If you need assistance with you real estate needs, please do not hesitate to contact me:

Vito Boscaino
Help-U-Sell North High Realty
4485 North High Street
Columbus, OH 43214

email: northhighrealty@helpusell.com

web: http://northhighrealty.helpusell.com

office: 614.447.3050

When is the Best Time to Find a Realtor?

Chris Ognek, Owner, Help-U-Sell Olde Dominion writes:

As a buyer, the answer is simple – as soon as you know you want to buy a home.
Briefly, your home buying process should unfold in four steps:

1. Define your goals! Many people decide they want to buy a home, find one they like, and then worry about the details. That can work but for such a large financial decision that you may only make a few times in your life, there is a much better way to do it - one that will leverage your home as a wealth building tool. Defining your professional, personal and financial goals will quickly reveal your “time horizon” which is how far into the future you can either plan or set goals. All financial decisions, especially buying a home, come from your time horizon.

2. Get your financing in order. After defining your goals, we will assist you in choosing a financing option that will help you achieve those goals. As part of step one, you should define how much you plan to spend on your new home and remember, the right answer isn’t the maximum amount you qualify for but what will help you reach your goals. For example, if one of your goals is to save or invest an additional $5,000 each year, you may have to purchase a home for less than you qualify for. That is a good thing! Living below your means is the key to building wealth. Another example of a financing decision is if you plan to move in five years, there is probably no reason to get a 30-year fixed rate mortgage. Whatever your circumstances, we can help you make the right decisions.

3. Find a home. This is the fun part! The Internet now gives buyers access to nearly every home on the market, all from the comfort of their own home. Let your agent know which homes are of interest to you and we’ll schedule the showings and bring you to the properties, offering our expert advice and answering all of your questions along the way. We’ll also introduce you to properties we know of that might be of interest to you. Consider us your personal home buying consultants.

4. Make an offer. When you choose a home, we will do a complete market analysis of the property to determine an appropriate offer to get you the best possible price. We’ll compose an offer that meets your needs and protects your interests and continue to act as your representative and personal consultant through the home inspection and closing process.
Buying a new home is fun and exciting but it’s not without pitfalls. Help-U-Sell Olde Dominion’s professional guidance will help you find a home, protect your interests and save you THOUSANDS!

Expert Help-U-Sell buyer agents consult prospective homebuyers through the entire home buying process everyday. From finding and choosing financing options and searching for a home to making an offer and coordinating your move, our professional guidance will save you both time and money. And the best part is our buyer services are free! There is absolutely no charge to you as a buyer for using our services. We will actually rebate a portion of our commission, paid for by the seller, back to you at closing!

Courtesy of: Help-U-Sell Olde Dominion, email: OldeDominion@HelpUSell.com. Mike Ognek- HUS Owner


For a local central ohio perspective please contact:

Vito Boscaino
Owner / Realtor / MBA

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

Our office:
http://northhighrealty.helpusell.com/ or call 614.447.3050

If you have any other questions please click on this link to contact me:

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

U.S. Home Prices Unaffordable for Many Workers: Study

U.S. home prices unaffordable for many workers: study
By Andrew Stern Wed Jan 10, 8:02 AM ET

CHICAGO (Reuters) - U.S. home prices may have dipped over the past year, but many American workers would still struggle to afford a median-priced home in major cities, a new study said on Wednesday.

"American workers are really not gaining ground and they're so far behind in the first place," said Barbara Lipman, research director for the nonprofit Center for Housing Policy, which conducted the study.

While the median home price in the 202 largest metropolitan areas declined 2 percent from a year ago to $248,000 in the third quarter of 2006, mortgage rates rose enough over the year that homes actually became less affordable as pay did not keep pace.

"The real story is what happened to salaries," Lipman said. "Lower-paid occupations -- such as in retail, or home health workers -- their salaries went up only about 3 percent."
The study found an annual income of nearly $85,000 was needed to afford the median-priced U.S. home.

In the New York metropolitan area, a $500,000 median-priced home required a $171,000 annual salary. The median-priced home in San Francisco, the most expensive U.S. market, was $759,000, requiring income of $260,000. In less-expensive Chicago, the median-priced home cost $254,000, requiring an $87,000 salary.

On the opposite end of the spectrum, Mansfield, Ohio, homes cost a median $85,000, requiring $29,118 in income.

The study assumed home buyers needed a 10 percent down payment and could afford to pay 28 percent of their income on mortgage payments, property taxes and home insurance.
In reality, many households expend a much higher percentage of their incomes on mortgage payments, Lipman said. To afford that, consumers cut other expenses such as for health care and transportation, she said, citing research showing unaffordable housing is the major reason families lack health insurance.

Other ways families cope with high housing expenses is to work longer hours or extra jobs, or by crowding in more income producers, she said. An October 2006 survey by the group found families who seek to buy less-expensive homes in further-out suburbs -- adding to urban sprawl -- pay so much more for transit that it eliminates the savings.

While home prices range widely across the country, wages for low-wage jobs -- from teachers to janitors -- are about the same no matter where they are located, Lipman said.

The report cited housing aid programs offered by some big-city hospitals that have plenty of modestly-paid workers.

"For the low- to moderate-income individuals that we're talking about, they're not going to be helped by marginal declines in home prices," Lipman said. "The only way to address the problem is to create more affordable units (homes) -- which may mean higher density units, townhouses and condos."


We can help Sellers SAVE Thousands and we also have a program for Buyers that can provide them with a credit of up to 20% of the commission that we receive, for properties listed in the MLS that are not listings of Help-U-Sell North High Realty.

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

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