"How IS the market?"

Having been in the real estate business for nearly three decades I am very often questioned about the status of the real estate market. And it comes from all sorts of people for all sorts of reasons. Some are merely friends who are just asking me how I'm doing.... somethimes it's someone with an agenda (they are thinking about getting involved in a purchase or a sale)... sometimes it's a person thinking about a career change...

It's a tough question to answer sometimes because the answer truly is relative. Right now, buyers are seeing the most favorable terms , maybe ever! Sellers sometimes are seeing this an opportunity to get their real estate sold because there is less inventory and less competition. Many investors will tell you there are deals to be had out there and real estate is a great place to be while the money and stock markets settle down a bit.

So it's all relative to what you (the questioner) want to do.

Locally... in the Albany NY area our pending units are down 5.1% from last year... our inventory is down 3.1% and the sellers are seeing 91.1% of their asking price... down 1.3% from last year....

So those are a couple "stats". But my office in Loudonville has seen a 26.1% increase in volume and 13% increase in units sold.

Why? My agents are full time professionals that re ready when their clients need them to be ready. They are not sugar-coating any of their analysis when working with clients... They are giving honest straightforward counsel and their clients are listening.

So right now the best advice I can give any seller or buyer is to trust their Realtor and follow their lead. Don't try to apply recent years' appreciations or even deprecations to today's market.

Good luck!

Medicare Tax on Real Estate Sales????

There have been a lot of "rumors", "stories", "prognostications" regarding President Obama's plan to hit us all with yet another tax. The one I'm referring to here is the so called Medicare Tax. The talk is that every house that gets sold, starting in 2013 will be taxed at a rate of 3.8% of the sale price.

It is, as I understand it proposed to be an "investment income tax", which may or may not be real estate related or attached to the sale of a property.

From what I am reading, and I could be wrong, and if I am I would appreciate your enlightening me... If you sell your home for a profit of more than $250,000 as an individual, or a profit of more than $500,000 for a joint filing, then you would be required to pay a tax of 3.8% of any profit OVER that threshold. So, if a couple sold a house and made a profit of 501,000, they would owe a tax equal to 3.8% of $1,000. That'd be $38.00.

My personal view is that the majority of the persons we work with won't fall into that category.

Still, it rankles me that this proposal finds it's way in front of us. It's a typical "tax the rich" liberal left solution to solve our financial woes?

Thoughts?

The Good Old Days ? Maybe

It's snowy here in the great Northeast and I am sitting at my desk trying to resist going off on a rant and sounding like an crazy old man...

Too late! Can't stand it any more. It's Crazy Old Man time!

When I started in the real estate business in 1982 I am not going to say there weren't computers, but essentially there weren't computers. I mean they were out there, but first they were pretty difficult to operate (anyone remember MS DOS?) and they were not being used in the real estate business.

I'm not here to say that computers are bad, because honestly... I LOVE 'em! You should too... they're here to stay you know! They really have simplified our lives. Put incredible amounts of information (and misinformation) at our disposal. And communication?!!! Revolutionized how easily we can get our messages out. So for the most part ... good.

But let me zero in on a dynamic that you, outside the real estate business especially, may not be aware of. Like I said, I started as a Realtor in 1982. Our database for houses for sale was the Capital Region Multiple Listing Service (CRMLS). It came in the form of a BOOK. Published weekly, but every other week was only the "new" listings... the other week was the complete inventory. There was a thing called the "Hot Sheet" which was mailed weekly to every broker who was a member of the CRMLS. And if you were truly ambitious you could physically visit the CRMLS offices and check out the new listings that had just been submitted. (They had them on clipboards in the vestibule... one clipboard for each day). So if you had a buyer that you wanted to get the "hottest" info for you needed to go down to the offices. I can tell you that there were never many agents there when I went...

Oh, but I said I was going to zero in on something. And that something was how we presented our offers. I am not going to give you a historical lesson on the agency part of this because it's too lengthy. But here's what would happen.

After my buyers left my office, having signed a purchase offer I would call the agent who had the house listed. This was usually done on a "land line". So we would have to catch them at the office or their home. I would tell the agent that I have an offer and I would like to present it as soon as possible.

You know what happened next? They would ask me when I would like to present it. For example I would say, "How about tomorrow morning at 10 am?" They would tell me they'll get back to me. Usually within a few minutes the phone would ring and the agent would say something like this, "My sellers can meet you at their house at 11 am... Is that OK with you?" I, of course would say yes.

Here's what I think has changed and not for the better. I would go to their house. I would be welcomed in by their agent and we would go into, say, the kitchen and sit down. The listing agent would introduce me and we would exchange pleasantries. I would tell them what a cool house they had... didn't your kid go to Guilderland High?... Wow can you believe how hot it's been.... Then we would settle in and start talking turkey.

But guess what was going on here? From my side of the table, I was gathering information, observing mannerism, looking into their eyes, FEELING the transaction. I was helping the listing agent to feel at ease. I was trying to project confidence so that the sellers would feel that this set of buyers and their agent could get this done.

And even before the paperwork got put on the table, I spent some time describing my buyers and their family. I painted a picture of this new owner lovingly caring for their home just like they did. I talked about where they came from and what they do for a living. I made the buyers real to them. In fact I usually got the sellers to like the buyers.

So now the rubber meets the road.

I present the offer as the listing agent listens in... all the while reading body language... facial expressions... looking into their eyes... gathering unwritten and intangible information. To help me better understand the sellers and to help me do a better job representing the buyers.

After I go through the presentation, I sit back and LISTEN... and observe. Sometimes a listing agent will ask me to give them a couple of moments so they can speak freely... but often the discussion takes place right away with me present.

If we have differences... prices... dates... chattle... whatever, I ask them to help me to understand the difference(s), so that I can communicate it properly to my buyers. I take notes... so they see that I am going to get it right and I am organized. Building confidence. But really what I am trying to do is to verify and overcome objections. "So if it weren't for the closing date being too soon, am I to understand that you would feel comfortable signing this agreement today?" or "If I could convince my buyers to move that date to accomodate your schedule, can we say we have a deal?"

9 times out of 10 we could come to an agreement right then and there. And the sellers would feel pretty good about who's buying their home and their agent that is overseeing the process.

What I'm talking about here is interpersonal relationships. Communication skills. Negotiating skills. Psychology.

You know what happens today? The listing agent tells us "Fax the offer over to me". I'd really like to present it in person. "No... just fax it and I'll present it."

You know what? I think, that if we would discuss more of these things in person... we'd sell a lot more houses. What do you think?

Like I said... I am not against computers and faxes and modern technology... I just think we could still utilize the human element to get it done.

How to market your real estate in a tough market

Our marketing efforts often vary from account to account. Certainly the most crucial, we feel is the presence in the MLS (Multiple Listing Service). This data base will engage the over 3000 real estate agents in the Capital Region. It’s where we all look first to find properties for our buyer clients.

Times have changed our approach in advertising with the advent of the internet… and more importantly the internet being so available to so many. While we do advertise in newspapers and some of the Homes magazines we are finding that the overwhelming majority of our buyers are surfing the web. We are very proud of our database www.realtyusa.com This site gets over 180,000 unique visitors a month according to our IT people. The way our site is set up, a procedure occurs every early morning whereas our site visits the MLS database and imports all the new entries and any changes that may have occurred. This constant updating has made our site a favorite with savvy buyers who check in regularly.

To supplement our efforts we of course engage direct mail marketing .. neighborhood announcement… open houses… virtual tours, etc.

The interesting phenomenon that we are watching take place is the fact that more and more people are visiting your house without visiting your house! Before this technology was available the only way we could know what a house looked like on the inside was to actually, physically, visit it! This new luxury of being able to look at still interior photos or virtual tours without leaving our desk chair or comfy apartment is good and bad. It’s good because we feel it saves us time. It’s bad because sometimes the pictures don’t do the subject property justice. Maybe the agent didn’t get as good a pic as they could have or maybe the property is just hard to get pics… whatever the reason is a web-surfer may glance at the pics and dismiss the idea of actually going in. I have had clients visit a property after having more or less pooh-poohed it on line and expressed amazement that it “looks way better in person!”. By the same token, we have looked at pics on line and decided to visit the property and we look at each other and say “Is the right house????”

Another resource a good Realtor uses is to do the research to see who in the real estate business is active in your area and make direct contact with them to promote the property.

The trick to marketing real estate these days is to have a well-rounded and open approach. One of my agents stopped in the office today and told me he sold a house in the far reaches of the Capital Region because he advertised in the local Pennysaver! He was amazed at the response he got from that little ad, but as it turns out EVERYone in that town reads the Pennysaver!

So count on us to take an approach to marketing your real estate in an account by account way. Each and every account will warrant a unique approach... count on it!

Buy A House That's NOT for sale!

So, you've looked and you've looked, and you've looked. Your agent is great. Stays in touch and keeps feeding you leads. But nothing seems to do the trick.

If your agent hasn't already done it let's start thinking about buying a house that ISN'T for sale.

That's right. ISN'T for sale.

What is the harm with approaching the owners of a house that is not on the market and suggesting that if they ever gave any thought to selling their home maybe we have a buyer? I tell you I've done it. And more often than not I have gotten no response. And on occasion I've been more or less told to take a hike.

That's probably why you don't want to "cold call" homeowners and it's also why you should put this project in the lap of your agent... But if you can I.D. a couple of houses that you think you might be interested, your agent can "go to work" !

Your agent will know the way to put together a pitch that will illicit a response... say and explain the right things, so as to pique their interest, and hopefully describe your dilemma and situation to get you an opportunity.

You know what's good about this? You aren't in competition with other buyers. It's a quiet and less stressful sequence of discussions and meetings.

It will never be a "slam dunk". Who knows if it will work. But, hey.... you'll never know unless you try.

What Do You Want ?

What is it you REALLY want from your agent ? You want them to sell the house, right? Or find you the best deal there is around, as the case may be! Right?

Now, if you think for one moment your agent is not all about that, then switch. But, who do you switch to? Let's face it, we all have good days and bad days! There are days when I feel like my clients have really gotten EVERYthing from me. And there are days when I maybe could've done more...

So I'm not suggesting that your agent get fired because one day he or she didn't call you back in less than ten minutes.

But, here is what I think you should expect. Your agent should use all the resources available to them. RealtyUSA agents have fantastic marketing department that can design and publish top notch pieces and campaigns. The Internet and web offer countless opportunities to get your property promoted, not to mention there is an incredible database of homes for you as a buyer! Automatic emailing should be the norm when you're looking for a home. How about single property websites... try this one: www.31keeler.info

How about Facebook? How about Linkedin ? Is your agent utilizing all the servers such as Trulia, Yahoo!, MSN.com ,etc.

Here's a sample of some work done by one of my agents here in Loudonville, New York :

http://video214.com/play/DXUdHcf5wVChQnGaArIUdA/s/dark

He's putting this up in places like YouTube.. Facebook, Google, etc. Your agent can do this sort of thing, but the next step is understanding how to use keywords and methods that will garner the most views possible!


There are many services available to assist real estate agents in helping to promote their listings (read: YOUR house)... These opportunities also are there to help agents find properties for their clients!

So what do you want from your agent? You want them to understand today's technology and resources... to increase your chances of a satisfactory outcome in your real estate endeavors.

That's what you want! Demand it!

Move the date!

Aren't you glad you didn't hit the panic button?

I'm talking to you folks who bought a house this spring before April 30th and were told you could get the government's tax credit AS LONG AS YOU CLOSED BEFORE JUNE 30th! So what did you do? You kinda rushed and thank God! You got an offer accepted by April 30th!

Whew! But wait... a new stress thing! You need to close by June 30th! OK, sez you. But it wasn't really up to you was it? Your bank had to get their stuff done in order for you to close. Really almost had NOTHING to do with you at all.

So you kept in touch with the bank.... "are we OK ?"... "did we get the committment yet?"... "are we 'cleared to close'?"... "hey that June 30th date is getting close! We are depending on that $8,000 credit you know!"...

There were many out there who were sweating bullets! Yup, they didn't think the bank was going to get the file closed in time! Oh no!!!! In fact there were a few that were threatening to cancel ther contract because of this.

What's going on ???? Well, any time a deadline is imposed, everyone and their brother is "pushing" toward that date! The banks were "overwhelmed"! So the powerful banking world lobbied our fearless leaders and asked for a NEW date.

So guess what? Here's what your government is saying now, " As long as you really did have a contract by April 30th... we are going to extend the deadline... Your bank will have until September 30th!"

Well, it's not totally OK yet... the House has to approve this measure... but the Senate already did... Keep your eyes and ears open! Your government is all over it!

Good luck my friends!

Do you know what the BIGGEST stumbling block is?

One word: Appraisal.

Yup. That's the big stumbling block. We get a buyer that wants to buy. We have a seller that is agreeable to the price proposed by the buyer. We do all the inspections. We apply to the lending institution The bank sends out the appraiser. The appraiser reports that they can't "find any suitable comps".

Now what? The bank sends a letter to the buyer and tells them that the mortgage application is denied because the house is not worth what the buyer and seller (and presumably two real estate agents) thought.

Rules and regulations tightly monitor and restrict what the real estate agents can do with the appraiser in the lines of saving the transaction. One of the most frustrating factors is that the appraisers are told they can't go any further back than 3 months. In many areas this means they really DON'T have any similar sales to use.

About the only solution is that the seller agrees to take the lower appraised price. If they can. Often they can't. Often they owe too much money. they'll end up upside down as they say in the business!

This recent re-occurrence is pretty difficult to avoid and predict.

So what can be done to safeguard against it ? My sources at 1stPriority Mortgage suggest that we avoid seller concessions whenever possible. Seller concessions as a general rule skew the actual fair market value, by adding thousands of dollars to the sale of the property.

I am counseling my agents to "think like the banks/appraisers" when obtaining a listing. That means doing an appraisal when speaking with a potential home seller that is more like what we can expect when the house goes under contract. This procedure is referred to in our profession as a CMA... comparative or competitive market analysis.

So, you as a home seller, need to make sure that the real estate agent who is pitching to get your listing is aware of these conditions. They need to be savvy and realistic in detailing their perception of where to list your property and what is the most likely sales price.

Appraisals. A tough pill to swallow right now, but it's real and it's here... right now. Be advised!

-Your friend in Real Estate... Steve

I MIGHT be talking to you....

This is a "stab in the dark". I am never real certain as to why people do or do not read a blog. But nevermind. You're reading this one so I'll get right to it.

Today I want to throw an invitation out to someone... maybe you... who knows?

The invitation is this: Call me and talk about a career in real estate.

Here's the deal. I'm not going to tell you it's easy. I'm not even going to call it fun. I'm here to tell you that it's a great profession that like anything else in life has it's pluses and minuses. But I am also here to tell you that you can make a pretty nice living being a Realtor. I'm also here to tell you that it does not happen over night. So if you're the kind of dreamer that wants to get their license and immediately start raking in the dough... well, don't bother calling me.

I'm on a new hunt. I want sincere enthusiasm. I want an agent that is going to be hurt, when they hear about a person who bought a house and had a horrible ordeal with their agent. I want people who don't like it when they hear detrimental things about their profession. I want agents who are going to take the job of representing clients seriously. I want agents who are looking at the big picture. I want people who are willing to work at improving our image. I want people with vocational pride.

And if you're lazy... and prone to taking the easy way out... and persuaded to cut corners... don't bother. And I think people who are like that really know they are like that. So be real honest with yourself. In fact I would ask you, if you are like that, to not only skip contacting me to help you get started, but to stay out of our profession all together. We don't need that.

If you want to make up your mind that you are going to treat it like a business... you are going to dedicate yourself to be the best you can possibly be... you are planning on putting in the time.... you are planning on making every day productive and gratifying, not only for you, but for your clients and everyone around you... then call me. I want to help you. I want to invest in you.

But just remember... this real estate business is not for everyone. And as far as the people who can't or shouldn't be in... it doesn't mean they are bad people... I just happen to know, it takes a few special attributes to do this and do it right.

Want to know more: email me a note: sstaples@realtyusa.com I'll shake it down straight for ya!

Congress enacts Home Buyer Tax Credit

Here's what I have:

Credit of $8,000 to first time home buyers. Actually 10% of purchase price UP to 8K.

Must purchase between January 1 and December 1, 2009.

Must be principal residence.

Single taxpayers with incomes up to $75,000.

Married couples with incomes up to $150,000.

If your income exceeds these amounts, you MAY be eligible for a "partial" credit.

Home buyers must use the residence as a principal residence for at least 3 years or face recapture of the tax credit amount. Certain exceptions apply.

What is a "First Time Home Buyer"? Anyone who has not owned a home in the last three years!

So congratulations you first time home buyers! If you have other questions you can check out this site: www.federalhousingtaxcredit.com

Stay strong!

Steve