Indy Home Book » Real Estate Perspective

Open House Marketing

Richard — Tue, 24 Jan 2012 18:42:02 +0000

Marketing a property is sort of like fishing. One line in the water is good, but ten is even better. You increase the probability of success by the number and quality of ways that the public and their agents can encounter the property. A huge part is Internet exposure on multiple websites so people can find them with search engines. But also good ‘ol direct mail to areas where a likely move-up prospect resides now, or getting the word out to fellow agents within the company and other companies can work. Just the sign in the front yard or the brochure box there can sometimes lure in a prospect. Another facet of marketing is Open Houses. It’s not one of the most important parts, but it definitely can increase exposure which is always a good thing. Some homes lend themselves better to Open Houses than others. For instance, in a VERY expensive neighborhood, you might not get a lot of of real prospects there, just people who want to look at the cool house. Something not too much lower or too much higher than the average price in our market probably works the best, i.e. the deepest water if you are fishing. But that doesn’t mean it won’t work for other price points. For homes off the beaten path with very little drive-by exposure, the probability is lower for attendance. The best would be a home in a neighborhood with higher than average demand and sales activity historically. One with good drive-by exposure for your main Open House sign on a well-traveled street. A home that’s easy to navigate to from a main road is best vs. one all the way at the back of a subdivision with eight turns and eight signs to follow in order to find it. I always advertise the Open House up to a week in advance on our public website for people searching for Open Houses. More people are finding them that way than before, but still, the Open House sign is by far the most common way that people find it. I enjoy hosting open houses. It’s fun to talk to people, and you never know for sure what will happen unless you try.

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Setting the Table

Richard — Thu, 19 Jan 2012 04:40:49 +0000

The last few years the market has been in a word…slower. Not awful as the media driven consciousness seems to think, just slower than normal. In America, we’re used to everything being terrific, perfect, always improving. So when it’s not any of those, somehow that’s interpreted to mean it’s awful? I don’t think so, but it feels like there are a lot unfortunately who do. The media is a huge part of the problem. No actually it is most of the problem, driving home the message constantly, relentlessly until it becomes reality. But, that can only go on so long. There is always a consistent percentage of people that want to move or sell their home. But the market in the last few years has changed that. So, most people patiently wait for better days. Luckily the media has gotten tired of bashing the economy it seems…on to different stories. It’s no coincidence that the market and the economy then is improving. But in the meantime, the table has been set. The feast is getting ready to happen. All of the pent up demand from the last few years is getting ready to be released. It’s just a natural progression.

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Tracking 2011

Richard — Fri, 30 Dec 2011 06:00:00 +0000

If you’ve read the progression of Market Watch posts here this year, then what appears next won’t come as much of a surprise. But here’s the shocking news in case you haven’t. “Our local residential real estate market in 2011 was a good one”. What an astounding statement. It wasn’t a terrific market, the last being 2005-2006, but still a good market none-the-less.

Here’s the numbers according to our local Board of Realtors that tracks the activity for the nine-county, central Indiana area that makes up the greater metropolitan Indianapolis market. To put things in perspective, in 2009, there were 24,070 homes that closed/sold. In 2010, there were 21,581 which was 10.5% fewer than the previous year. But this year, in 2011, there were 21,240 homes that sold. Very close to last years number. And this year did not have any government incentives to boost sales like in 2010, so this year’s are honest numbers.

Predictions for 2012? I love the answer “We’ll see”, for any type of prediction because no one really knows for sure. But if one had to guess, there are a lot of indications that the slowdown has run out of steam, and we are on track for a stronger economy generally. Optimism and jobs are the key to it all. Less unemployment translates into a better real estate market. Stronger sales mean more stability for inventory and prices. It will be interesting to see what actually happens.

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Character and Emotion

Richard — Sat, 17 Dec 2011 02:03:06 +0000

It’s really the details that makes all the difference. That thought applies to a lot of things, but works especially well for real estate and homes. For instance this leaded-glass window inside a 1920′s era home in the cooridor between Meridian Street and Central Avenue, and between 38th and Kessler, is one of a number of other similar windows. There area wonderful exterior masonry details, wood trim, and fixtures built into every room. They all add up to character…character which you can’t find so prevalently in other areas of town as the homes in this area. There are some truly wonderful new homes being built now that arguably are much nicer in terms of quality and features. But the difference is, homes from this era, as they have aged, have taken on a charm that a new home can’t duplicate no matter how well it is built. The older homes speak to an emotional place inside you somewhere. That’s the main reason that the classic, traditional design homes stand up so well over time. Homes are made of brick and mortar, and that counts. But when you buy a home, it’s the emotion that you are buying more than anything.

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Pending Sales Surge in October

Richard — Fri, 02 Dec 2011 16:08:22 +0000

While it’s critical to remember that the national real estate market is fragmented and that the dynamics of each area’s market are unique from any other, it’s still interesting to get some perspective on what is happening nationally and regionally. Those that track market activity across the country say that October 2011 pending sales of residential properties jumped nationally to an average of 10.4 % over September, which was 9.2% above levels seen in the same month in 2010. In the mid-west in particular, the gains were even more pronounced, with pending sales up more than 24% over September…and over 13% above October 2010. Buyers are taking advantage of the affordability of homes now. Pricing is still very competitive, and at the same time, extremely low interest rates make home payments very affordable.

Are there even better days ahead? Only time will tell. But the numbers over this last year and now recently have more than a few convinced that it’s headed in that direction.

Take a look at today’s rates… updated daily. Current Mortgage Rates

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Accepted Offer…Buyers Agent

Richard — Fri, 29 Jul 2011 00:00:38 +0000

It’s best to be very patient when searching for a home, waiting for just the right one that matches your vision, encountering properties online, in print, and on foot, waiting until just the right home appears in your sights. And then it’s best to pull the trigger quickly on submitting a written offer to purchase so it doesn’t get away to someone else. Usually after some brief negotiations, the offer is accepted by both Buyer and Seller. Upon acceptance of an offer, as a Buyers agent, I change hats from a market expert and search facilitator, to a transaction specialist and closing coordinator. As the home-search process began, I would have made sure you obtained a pre-approval for a loan by a lender you feel comfortable with…not a pre-qualification that isn’t worth the paper it’s printed on, but a pre-approval where the lender has analysed your credit report and scores, and you have submitted all your financial data, with the lender approving your loan subject only to finding a suitable property in your price range. I always include a Buyers pre-approval letter when submitting an offer to the Sellers agent as the Seller will feel more confident about accepting the offer and taking the home off the market. If the financing is ready to go, then a Buyer is already about half-done on their end when an offer is accepted. As a Buyers agent, I watch all the details of the Purchase Agreement (Offer to Purchase) and make sure the process goes according to plan for the Buyer within the terms of the Purchase Agreement which is the last word on what will happen in the transaction. The title policies are ordered from a title company who will also close the sale. I supply the title company with all the information and documentation necessary for the buyers side of the transaction and coordinate the closing with the Sellers agent. I also stay in touch with the lender and Buyer to make sure the loan commitment is finalized and that funding of the loan is on track with the closing. Also, a commitment must be obtained for the homeowners insurance policy, to be in force on the property at the time of closing.

Beside financing and title work, the other major piece of the sale is home inspections. This gives the Buyer the opportunity to understand exactly what they are buying and approve the condition of the home. Every sale can be different as each buyer has different concerns and every home has potentially different issues that warant an inspection. Typically though, most buyers get a whole-house and a wood-destroying insect inspection. They sometimes want an interior air quality report too to detect levels of radon gas, and probably less frequently a lead-base paint inspection if the home was built prior to 1978 before manufacturers stopped adding lead to house paint. Typically, if the whole-house inspection reveals the possibility of mold or lead-base paint, then an inspection from experts in those fields can also be ordered. All inspections are usually completed within a week or two after an accepted offer, so the Buyer can study the results and respond in writing to the Seller if there are any major defects in a home that they feel they just cannot live. Under Indiana law, “Defect” means a condition that would have a significant adverse effect on the value of the property, that would significantly impair the health or safety of future occupants of the Property, or that if not repaired, removed, or replaced would significantly shorten or adversely affect the expected normal life of the premises. If there is a major defect that the Buyer feels must be addressed and the Seller is unwilling or unable to repair, the Buyer can terminate the agreement or waive the defect and continue toward closing. Homes are very complex, and there are almost always things that are not in perfect condition, but inspection negotiations are usually worked out one way or another between Buyers and Sellers.

With the loan on track, the agreement on inspections in the rear-view mirror, and me watching all the remaining details, there is nothing to do but coast into closing and get ready to enjoy your new home. Well, that is, after the packing and moving trucks are finished!

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Valuable Effort

Richard — Tue, 21 Jun 2011 16:41:27 +0000

One of the more interesting facets of being a Realtor is being able to get a close-up look at a number of different homes, inside and out. You’d think that would become routine after so many years, but it’s still really enjoyable. While some designs are similar, each home has a different tale to tell that makes it fun to encounter. The old homes especially have a great story line. The succession of owners have a huge impact obviously. Each owner differs in the amount of time and resources they devote to maintenance, updates, landscaping, etc. Each home is the sum total of everything that people have done. Even small things add up like decorating or furnishings. Value is affected by this too. Even if two homes were exactly alike except that more effort was put into cleanliness, decorating and furnishings, a buyer is probably more likely to purchase the one that exudes the most charm. Time equals money, so the effort put into that adds to the bottom line too. Usually the longer a home is for sale, the market will begin to question the asking price. Typically, the quicker a home sells, the closer it will bring to asking price.

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Encountering Memories

Richard — Sat, 28 May 2011 12:58:47 +0000

One of the perks of being a Realtor is I get to view a lot of different homes up close. After all this time, I’ve never gotten tired of that. Rather, my appreciation has increased more over time. No two are the same, and the variety of designs, features and decor is really diverse. Each one is interesting but my favorites are the really old homes. I love the architecture but they pull at my heart for some reason, mostly because of the story it speaks while exploring their grounds, exteriors, corridors and spaces. It’s fascinating because of the times and lives they have touched. Sometimes four, five or more different families have come and gone, each raising their families, creating memories and making their mark on the home along the way. There’s an essense, a residue of their presense left behind. Neighborhoods also evolve, from the top, then declining, hitting bottom, only to be reborn again eventually and appreciated more than ever.

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Future Memories

Sunday Best

Richard — Sun, 22 May 2011 18:17:21 +0000

I remember decades back when everything was closed on Sunday…well, except for churches in the morning. It was just understood by all to be a day of rest, relaxation and a sacred day for family. A lot of retail businesses, office buildings and factories weren’t even open on Saturdays either. It was the weekend. That gradually changed over the years as Saturdays became the accepted norm for retail businesses to be open…and then Sundays finally too for a large percentage of retail. Businesses want to be open when most people have more time on the weekends to shop, but they are also afraid they will miss a sale and their competitors will get it instead if they aren’t open. Now that the genie is out of the bottle, it will never go back to the slower pace of yesteryear. But I wonder sometimes if we weren’t better off then. A little more balance in our lives.

As this relates to real estate, for a lot of Buyers, the weekends are the only time they have to look at homes, especially in the winter months when it gets dark really early. So Saturdays and Sundays are fair game for showing homes, at least for me. Back maybe twenty years ago, the idea of having a public Open House was just getting started…but they were usually held on Saturdays back then. For most people though, Saturday is the day to do something fun or get a project done around their own home, and Realtors found that traffic was best on Sundays instead. Some Realtors like to do them, others don’t. I like them, but it’s only worthwhile if it’s at the right home. Some lend themselves to it more than others. Most Sundays I can be found somewhere hosting an Open House. It’s only for 2-3 hours and I have it down to science as far as preparation and presentation. So it’s fun actually. Most of the day before and after is still ”relaxing family day”, just a little adventure in the middle.

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Homeowners Insurance Credits

Richard — Mon, 02 May 2011 18:47:33 +0000

Is your homeowners insurance premium as low as it could be? It might be time to talk with your homeowners insurance agent to see if you qualify for any credits. Reviewing this occasionally is a good idea, but especially these days with rising costs on just about everything, it wouldn’t hurt to take a look. Credits vary company to company, but here are some of the things that some insurance companies give discounts for. 1-Alarm credits (central monitored burglar and fire systems, smoke alarms, dead bolts, fire extinguishers, in-home sprinklers and gated communities); 2-Loss-free discount (increases for more time gone by without a claim); 3-Age of home discount; 4-Mature homeowner discount; 5-Multi-policy credit (automobiles or other insurance with same company); 6-Raise deductible amount for lower premium; 7-First-time home buyer credit; 8-Financial stability (higher credit scores earn better rates).

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