Real Estate in the D.C.-Baltimore-Annapolis triangle, by Margaret Woda

Saturday, April 21, 2007

Don't shoot the messenger!



Do your sellers shoot the messenger when they don’t like the message? In other words, do they list with someone else who does not tell them the truth about their house?

How do you handle it when you walk into a home and your reaction is something like this:



  • I can't breathe... what is that odor?


  • This house looks like an annex to the city dump!


  • Has your bathtub ever been cleaned since you moved in (15 years ago)?


  • The price you want is about 20% higher than other similar homes in this area.


  • One, two, three, four, five, six, seven, eight, nine... how many cats do you have?

There really is no way to diplomatically handle situations like these. And I find that many sellers will acknowledge them without too much resistance, although they may not have any intention of correcting them. Frankly, if these sellers shoot the messenger – i.e. don’t list with you because of your candor – who cares? Any listing with extreme “issues” is going to be a tough sell anyway.

The truths I have trouble with are the ones that may offend very nice people who are very very proud of their homes. Handling these situations with kid gloves is important if I don’t want the seller to go searching for another agent who doesn’t tell them the truth. More important, I don't want to insult the homeowner who has a wonderful home for them. Yet I can't forget that the buyer won't be looking at the home through the seller's eyes. My message has to communicate the truth in a helpful way:

The truth: Yikes, this color reminds me of ___________!

Your message: Mr. and Mrs. Seller, this color is perfect with your things, but statistics prove that neutral homes sell more quickly and for more money. Let me give you the name and phone number of a painter who can help you neutralize your home before we put it on the market so buyers can imagine their own things in this home – and that’s our objective, right?

The truth: This furniture is way too big for this room.

Your message: Mr. and Mrs. Seller, that furniture will be perfect in your new home, but there’s too much of it for this home. Why don’t you move some of the pieces (be specific) to storage while your home is for sale so buyers can focus on how their own furniture might fit in this room. And the side benefit is that the room will look much larger to buyers with just one couch instead of two.

The truth: Pictures, pictures, pictures – not an inch of wall or furniture-top to spare.

Your message: Mr. and Mrs. Seller, you have a wonderful family. I’ll bet you really enjoy these pictures… why don’t you tell me about them. You know, I’m afraid that buyers will want to stop and look at your pictures when they walk through, and that may distract them from making a buying decision. Why don’t you get some neutral paint on these walls so the buyer can focus on the updates in your home.

Proud sellers want you to like their home and to realize that they've put a lot of time and effort into it. They need you to validate their choices in decorating, storage, landscaping,etc. Yet you can tell them the truth without it coming out of your mouth sounding like a personal opinion. These sellers are eager to please and eager to sell, and they will appreciate your telling them how buyers are likely to react. The buyer becomes the messenger...

Your sellers can’t afford to "shoot" any prospective buyers, so you’ll be safe. You will get the listing. And everyone will live happily ever after.


Feedback and Questions:


Related Articles:

Don't shoot the messenger!


Copyright 2007. All rights reserved. Margaret Woda.

Monday, April 16, 2007

March Real Estate Sales Statistics

MRIS, the regional multiple listing service for 25 local Associations/Boards of Realtors in Maryland, Virginia, Pennsylvania, D.C. and West Virginia, has just released sales statistics for March 2007. It's not surprising to anyone working in Anne Arundel County, Maryland, to see that everything is down EXCEPT days on market, when compared with last year. What is surprising is the fact that it's barely down - the sales figures are really almost stable. I'm certain that agents in other markets around the country would be very pleased to have numbers like these:
  • Total sold dollar volume is down 2.91% from March 2006 to $ 250,453,279
  • Average sold price is down 1.08% from March 2006 to $ 395,037
  • Median sold price is down 3.96% from March 2006 to $ 326,000
  • Total units sold is down .94% from March 2006 to 634
  • Average days on market are up 82.26% from March 2006 to 113

Here is some more information that some people will find interesting:

  • New listings taken in March 2007: 1316
  • New contracts taken in March 2007: 738, including 208 contingent contracts
  • Sold/settled units in March 2007: 634

Of the 634 homes settled, the majority (246) had been on the market over 120 days, while 178 sold within the first 30 days of listing. 544 of buyers for the 634 homes settled used Conventional financing and only 35 used VA or FHA loans.

In my specific marketplace, Crofton (zipcode 21114), sales statistics differ slightly from the county-wide numbers:

  • Total sold dollar volume is up 9.43% to $ 17,875,623
  • Average sold price is up 1/2% to $ 364,809
  • Median sold price is down 4.91% to $310,000
  • Total units sold is up 8.89% to 49
  • Average days on market are up 97.73% to 87

While average days on market in Crofton have increased since March of last year, they are exactly the same as February 2007 and down significantly from January (113). That's good news, in my opinion. Of the 49 homes that sold and settled, almost half (21) had been on the market less than 30 days, while 14 had been on the market for over 120 days.

Again, Conventional financing was the most popular, with 43 settlements, while only 2 buyers used VA or FHA loans. That is good news for home sellers, since sellers' closing costs tend to be lower for Conventional loans than any government loans. It's also somewhat surprising, given Crofton's proximity to Fort Meade, the U.S. Naval Academy and Andrews AFB.

Statistics are published monthly by the Metropolitan Regional Information Systems, Inc. (MRIS) at http://www.mris.com/reports/stats/ if anyone would like to check on another zipcode or obtain greater details. You don't have to be a MRIS member to access this information.

Sunday, April 08, 2007

Are these homebuyers for real?

Your home is on the market. It’s 9 a.m. The phone rings with a warning that prospective buyers are coming between 10 and 12. You rush the kids through their cereal and send them to perform their assigned chores. Mary makes all the beds; Jerry loads the dishwasher, takes out the trash, and wipes down the kitchen; you quickly check all the bathrooms to make sure no one left yesterday’s clothes on the floor and grab the Windex to polish the faucets and sinks.

Your spouse closes the closet doors, pulls open the drapes and blinds, turns on all the lights, turns off the TV, and changes the radio station from talk radio to soft rock. There is barely enough time for everyone to grab their sweaters and get out the door by 10. Oh, don't forget to confine the pets. Whew! You can only hope this buyer is the one who will make an offer so you won't have to go through this drill any more.

Determining whether prospective homebuyers are “real” or “fraud” is up to the agents. You assume they wouldn’t waste their time or yours. That’s one of the reasons you listed your home with a real estate agent and agreed to pay those “big bucks”. You KNOW that a FSBO (For Sale By Owner) has to let every caller in to see the house – including the people looking for decorating ideas, the people who can’t afford your home, and even criminals who are “casing the joint”. So how do agents separate legitimate buyers from the pretenders?

1. Come into the office

If a prospective buyer is not willing to come into the agent’s office, chances are they’re not serious buyers. I generally begin by asking buyers for photo identification and leaving it in my office before I get into a car with them. I figure that an axe-murderer, rapist or robber probably won’t be inclined to provide this identifying information. As far as I’m concerned, these folks will have to settle for open houses and FSBO properties – they’re not getting into a car with me! (P.S. – That’s one of the reasons I do not hold Open House.) Of course, I have a standard questionaire for all prospective buyers - Fair Housing Laws require that I treat each buyer the same, and this "standard procedure" is the best way for me to document that I do.

2. Loan pre-approval

If a prospective buyer has a loan pre-approval from one of the lenders I recommend, the loan officer who I know and trust has verified to the extent possible that this individual is who they say they are by verifying employment, assets, and cash on hand. If someone walks into the office with a loan pre-approval in hand, as far as I’m concerned, they might as well not even have one. This prospective buyer may or may not be pre-approved (anyone can "fake" a loan pre-approval), and may or may not be who they say they are. They could be frauds! And, assuming they are who they say they are, the agent should show them only homes for which they qualify financially.

3. Match properties to buyers

Having completed the first two steps – verifying the buyer’s identity and financial qualifications – the next step is to match the buyer's wants and needs to properties. Does this home purchase require something to happen before they can buy such as selling their current home, getting a new job, receiving an inheritance that is in probate? Is this move necessary, such as relocation for a new job, or optional, such as a move-up to a larger home? Do they want/need to settle in 30 days, a year, or somewhere in between? Does your home have the features they are looking for in a home? You rely upon agents to know these answers before they bring strangers into your home… don’t you agree?

While I can’t promise that all real estate agents take these same precautions before showing your home, many do. Frankly, these three steps are essential for any buyer’s agent for two reasons: 1) The safety of you, your family AND the agent; and 2) so you and the agent don’t waste time with prospective buyers who won’t or can’t buy your home.

Determining that homebuyers are real and not frauds BEFORE agents show your home is a reasonable expectation for you as a home seller when you list your home. You shouldn't have to ask yourself "Are these homebuyers for real?" Agents, if you’re reading this, take note.

More information:

www.MargaretWoda.com

mwoda@remax.net

Are these homebuyers for real?

Copyright 2007. Al rights reserved. Margaret Woda

Sunday, April 01, 2007

Real estate is NOT like it used to be -

We’ve been reading a lot lately about today’s market, how different it is now from last year. I thought it might be fun to look back a lot further – to the 70’s, when I started in the business. Some of you might not have been alive yet, and others were too young to be home buyers or sellers then, so maybe you will find this interesting:

  • A brand new 3 bedroom, 2 bath brick-front townhome was priced in the low $20’s. Today, that home in that community sells for about $300,000; and new townhomes sell for more than a half million dollars.
  • A real estate sales contract was 2 pages long, hand-written on legal-sized paper. Today’s real estate contracts are commonly about 45 pages long, computer-generated on letter-size paper. The half-page listing contract has been replaced with a dozen or more pages.
  • The multiple listing service was alive and well, but home information could only be found in a book published weekly. New listings usually did not have any photos – a black and white exterior photo appeared a week or two later. Today’s listings are published worldwide on the Internet within minutes of going on the market, often with a dozen or more color photos.
  • Real estate agents could show other company’s listings, but they had to go to the other company’s office to get the key. Then they had to return it before they could show another house, in case another agent needed that key. Today’s agents just aim their cell phones at an electronic key lockbox to obtain the key for a property.
  • Speaking of phones, when an agent was running late or got lost (no GPS systems in those days), he or she had to stop and find a pay phone to place a call. Today they can make a hands-free phone call from their car.
  • Telephone tag was the norm, with buyers and sellers having to leave a message with a receptionist and then wait for an agent to call them back with information about a property or anything else. Today, we not only have voice mail, we have text messaging and email; instant communication is the norm rather than the exception.
  • Real estate agents always represented the seller, even when they worked with the buyer… even if the buyer was a friend or relative. Today’s buyers have their own exclusive representation from a buyer’s agent who looks out for their best interests and has no fiduciary relationship with the seller.
  • The interest rate was about 7%… shot as high as 17% during the Carter Administration… and remained double-digits for most of my career. Who ever thought we’d see five or six percent in our lifetime? Yet we did, and the rate has hovered in the 6’s for over a year.
  • There were only three loan choices: VA, FHA and Conventional. All of them were 30-year fixed rate loans. If the buyer was not active duty military or a veteran , VA was not an option; the FHA loan limit was $33,000 so that was not an option for higher-priced properties; that left Conventional. Adjustable rate loans, buy-downs, wrap-around mortgages and other creative loans were the market’s answer to high double-digit interest rates… yes, 17%. And these programs remained available when rates went down.
  • Most contracts were written subject to loan approval, which required verification from employers, creditors and banks via "snail mail" (i.e. U. S. Post Office) - this often took about two months. Loan processing then took a few more weeks, so settlements did not occur until about 90-120 days after contract, in many cases. By contrast, today's buyers usually obtain loan approval within 24 hours, and only then do they go home shopping. After their contract is accepted, only an appraisal of the subject property stands in the way of settlement - and settlement usually occurs within 30 days of contract.

As you consider how different this year’s market is to last year’s, perhaps this little stroll down memory lane will help you to realize that it’s not as dramatically different as the media would have you believe. Okay, prices are down and sales are slower - slightly. But this is a “normal” market adjustment, and nothing to be afraid of.

If you want to buy or sell a home this spring, find yourself an experienced agent who has “seen it all” and is not intimidated – one who knows what steps to take to maximize YOUR profits in today’s market because they’ve lived and worked through similar situations (and worse!) in the past.

Feedback and questions:

www.MargaretWoda.com

mwoda@remax.net

Real estate is NOT like it used to be -

Copyright 2007. All rights reserved. Margaret Woda

Sunday, March 25, 2007

What I Won't Tell You

Why Agents Don't Answer Your Questions

This is the topic addressed in an article appearing on MSN’s homepage today, and I opened it with the expectation of reading yet another attack on professional real estate agents. As it turns out, the article gave a relatively fair and honest analysis:

“Fair-housing laws prevent agents from talking about neighborhood demographics, and they often don't want to discuss other details, such as crime stats. Luckily, the Web picks up where agents leave off.”

The fact is that your agent probably DOES know “who” lives in the neighborhood – the demographic mix, crime statistics, and the school’s reputation. Candidly answering the question, however, could get the agent and their broker in a lot of trouble, especially if the individual asking about these details happens to be a “tester” looking for fair housing violations. As the article indicates, agents are forbidden from giving information that could be interpreted as "steering," i.e. directing a client toward or away from a particular property in a discriminatory manner.

Ten years ago, I would have suggested to a customer or client that they return to the neighborhood after our appointment to talk with residents and visit local schools, shopping and recreation facilities. Today, with almost everyone having access to the Internet, I suggest they go online for answers to their questions.

If you visit my website at
http://www.margaretwoda.com/, you will find over a hundred links to resources that include the Maryland Sex Offender Registry and School Matters, a snapshot of academic performance that allows you to compare your child’s current school with any prospective school. Other helpful links mentioned in the MSN article are:

Before you buy real estate, it is important to be familiar and comfortable with the neighborhood and broader community, as well as the home itself. So don’t hesitate to ask questions because your real estate agent may suggest additional helpful websites. Yet it’s still not a bad idea to do it the old-fashioned way: make a personal visit to the neighborhood to become better acquainted with your prospective neighbors, schools, shopping, and recreation facilities BEFORE you buy a home.

And please understand that your real estate agent is not trying to be coy when they don’t give you a straightforward answer to your questions. They are trying to follow the law.

Related Sites:

What I Won't Tell You

Copyright 2007. All rights reserved. Margaret Woda

Saturday, March 17, 2007

Loan pre-approvals falling through!

The following information was contained in an email I received this week from Chris Washburn, a branch manager for FNMC Mortgage. He was kind enough to give me permission to share it with you:


I've received a bunch of calls recently from REALTORS who heard or read alarming news concerning the sub-prime mortgage market troubles and how that might affect their business.

The sub-prime mortgage market
generates approximately 15-20% of the real estate business done in the Washington Metropolitan Area. As you are probably aware, the sub-prime mortgage market has gone through drastic changes and overhauls over the past thirty days. How does this affect you?

Loans available 30 days ago for buyers may be gone now. Pre-approved customers who qualified for a sub-prime loan in December may not qualify today. Don't worry though, we have many in-house programs that can approve your buyers or bail you out of a bad situation. With our community reinvestment loans, FHA and other aggressive in-house underwritten mortgage programs, we are #1 in this area for a reason
.
Long term, the tightening of sub-prime mortgage rules is a good thing as some loans really put people in a bad situation. The future foreclosures
that will happen because of this may put a drain on the economy as evidenced by the recent stock market jitters. The silver lining may be lower rates if the economy does slip as some suggest. Lower rates typically boost home sales….

In this fast changing mortgage world, stick with a lender who has everything in-house. We process, underwrite and close the loans here in my office. Your business is too important to let a rule change or uneducated underwriter kill your borrowers dreams. We understand the importance of each customer and don't take your business for granted.

Chris Washburn, FNMC Mortgage
301-220-1000


Related articles:
Sub-prime Market's Sinking Fortunes
Sub-prime Market Gets the Squeeze from Freddie Mac
A Subprime Market for Subprime Securities
What is a Sub-Prime Mortgage?
FHA Comes to the Rescue
A Full-Court Press on Bad Loans, But Who Will Referee?

Questions and comments:

Loan Pre-approvals Falling Through
Source: Chris Washburn

Tuesday, March 13, 2007

Crofton (21114) - February Sales Statistics

I consider it great news that last month's home sales (59) exceeded new listings (56) in the 21114 zipcode. This is important because the size of the housing inventory directly impacts the days on market and prices.

Here is some additional data from MRIS regarding the February market in Crofton:
  • Average "sold" price DOWN 4.45% to $359,269
  • Median "sold" price DOWN 6.3% to $325,500
  • Total homes sold UP 7.5% to 43
  • Average days on market UP 58.8% to 87

If you would like information about another zipcode, please contact me or leave a comment.

Other articles regarding market trends:

Questions and comments:

Crofton (21114) - February Sales Statistics

Copyright 2007. All rights reserved. Margaret Woda

Thursday, March 08, 2007

Sentinels of Freedom

There were many inspirational moments during my last week at the International RE/MAX Convention in Atlanta, Georgia. None touched me more than the introduction of Sentinels of Freedom - a grassroots effort initiated by a California RE/MAX associate to help severely wounded veterans transition to their new realities of lives without limbs, hearing, sight or with other serious handicaps. Dave Liniger, Founder of RE/MAX, has joined this effort as a national sponsor and invited interested RE/MAX associates to "make room at their table" for one of these American heroes. My husband Larry and I have made a commitment to do just that.

Let me share this article with you, and perhaps you will join us in our efforts to bring "Sentinels of Freedom" to Maryland:

'We Owe Them Our Support'
By Amanda Okker, RE/MAX Times Associate Editor

Mike Conklin knows something about the struggles disabled veterans face as they transition back into society after months of rehabilitation. He's personally helped four readjust to civilian life and their new physical challenges through a community program he founded: the Sentinels of Freedom Scholarship Foundation.

Recognizing its sound framework and meaningful mission, RE/MAX International has become the foundation's first national sponsor and aims to support Conklin in expanding the Sentinels of Freedom program to deserving and qualified service members across the United States.

"We have a unique opportunity to be part of something that's never been done on this scale before," says Dave Liniger (ABR, CRB), RE/MAX International Chairman and Co-Founder. "I know our Broker/Owners and Associates have the heart and drive to get behind the program, too, and we're ready to see just how far we can go."

The father of three Army Rangers, Conklin - most recently an agent with RE/MAX Accord in Danville, Calif. - was inspired to reach out to wounded veterans after one of his sons was injured in Iraq three years ago. "I was so impressed by the level of care my son received at the military hospitals that I decided I wanted to do something tangible to support our troops - aside from wearing a yellow ribbon," Conklin says. "I wanted to put my support into action. It didn't take long before I realized that my community could sponsor a disabled veteran."

News of one soldier's impending return to the San Ramon Valley area of Northern California caught Conklin's attention. Jake Brown was severely injured when he was run over by a tank while serving in Germany in 2003. Word that Brown had no family or friends to turn to for support upon his return home motivated Conklin to create a program that would keep Brown from slipping through the cracks.

Conklin created the Sentinels of Freedom Scholarship Foundation in 2003 just in time for Brown's return to the community just east of Oakland.

Criteria

The criteria for qualification are straightforward: Only service members who've suffered service-related amputations, blindness, paraplegia or severe burns on or after Sept. 11, 2001, are eligible for the program.

"The program applies to this war and all future wars," Conklin says. "Anyone with severe wounds directly connected to their military service are on my radar. They don't necessarily need to have served in Iraq or Afghanistan to qualify."

After enduring 26 surgeries and nearly a year of rehabilitation, Brown was welcomed back to San Ramon in 2004. He was introduced to the support system Conklin created by recruiting help from friends and business associates.

"We call the servicemen and women who join the program Sentinels, because that's just what they are," Conklin says. "They've guarded our country and protected our freedoms, and they deserve our thanks and support."

Today, Brown is on the dean's list at his college, has been promoted twice by his company, UPS, and is entirely independent.

Conklin saw potential for the program to extend across the United States and rally other communities looking to give back to men and women who've served the country.
"So many people want to help but don't know how," Conklin says. "Our program gives people a way to reach out."

The program

Started as a grassroots effort, the program remains community-focused. The foundation calls on volunteers to set up and carry out the program in their areas. A core team of mentors forms to coordinate local efforts and to provide friendship and guidance to the Sentinels.

"There are hundreds of support groups for disabled veterans popping up, but there's no telling how long they'll be around," Conklin says. "The Sentinels of Freedom is designed to go beyond this war to future wars. We've built it plumb level and square so others can follow our design."

The Sentinels of Freedom Scholarship Foundation framework includes assistance with rent-free housing, household supplies, adaptive vehicle needs, career-placement assistance, tuition assistance and mentoring - all for up to four years.

Each service member's needs vary, so not all scholarship recipients will require every component. However, communities commit to meeting a Sentinels' unique needs.
"We're not talking about a community helping hundreds of individuals," Conklin says. "We're talking about one community, one wounded warrior at a time. It's as simple as that."

By mid-2006 the foundation and the San Ramon Valley had accepted three more severely wounded veterans into the program: Manuel Valencia, Joey Bozik and Ben Crowley. Valencia, like Brown, was from the Bay Area; Bozik and Crowley were invited to build new lives there.
Each Sentinel is welcomed home with a ceremony in his or her honor. Local military leaders, dignitaries, veterans and community groups, and area residents are invited to show support and gratitude.

Word spreads

Soon after forming, the Sentinels of Freedom Scholarship Foundation established solid partnerships with local builders and corporations who hired the Sentinels, as well as with military leaders at the Pentagon. The program also attracted a good deal of high-profile attention in the area, including extensive local newspaper coverage and meetings with California Gov. Arnold Schwarzenegger and other state leaders.

It certainly caught the attention of RE/MAX Accord Co-Broker/Owner Jerry Stadtler, a Vietnam veteran who saw potential for the program to grow. He invited Conklin to join his brokerage in early 2006.

"I was just in awe of what he was doing - the time, effort, heart and soul," Stadtler says. "It struck a chord in my heart. I don't always have time to do it all, but this was something to be involved in vicariously by supporting Mike through RE/MAX."

Conklin sees the Sentinels of Freedom extending to other communities across the country - and says RE/MAX Broker/Owners and Sales Associates are uniquely positioned to support that mission.

"My vision is that if I get a call from the Pentagon and there's a guy from Biloxi on his way home, I can pick up the phone and give an agent or broker in Biloxi the heads-up," Conklin says. "Whether they're directly involved and become part of a mentor team or not, who knows better than a RE/MAX agent or Broker/Owner where to go in town to find the support these soldiers need?"

First national sponsor

Liniger, also a Vietnam veteran, was drawn to the program's potential as well.
"When Mike presented the program to me, I knew RE/MAX could play an important part in helping it become a national scholarship," Liniger says. "Like our sponsorships with Children's Miracle Network and Komen, supporting Sentinels of Freedom adds to our goal of Premier Community Citizenship in a way that really hits home."

Lending marketing and advertising support along with other resources, RE/MAX International encourages Broker/Owners and Sales Associates to be aware of how they can help, too.
"We can put our referral network to great use to get the word out," Liniger says.

Affiliate involvement can range from donating money to volunteering on a community team to picking up the phone and contacting a local builder about donating housing. Other business associates and acquaintances may be willing to help out also, and perhaps serve as mentors to a scholarship recipient.

"No one has refused to lend support yet," Conklin says. "People of all ages have pitched in at the community level. And politics doesn't come into it. It doesn't matter who sent the soldiers to war or who our president is. None of that matters. These wounded veterans are our responsibility, and we owe them our support."



Copyright © 2007 RE/MAX International Inc. 3/5/07
If you are interested in helping Larry and me bring The Sentinels of Freedom to Maryland, please contact me at mwoda@remax.net

Saturday, March 03, 2007

Annapolis Sales Statistics - January

If you did not read last week's article - Top 7 Habits of People With Great Credit Scores - be sure to scroll down and check it out. This is GREAT information!

Now is a GREAT time to buy a home in Annapolis, based upon this snapshot of the market for Annapolis (21401) zipcode during January 2007 (comparing it with January 2006):
  • Total Sold Dollar Volume is down 26.27% to $16,035,510
  • Average Sold Price is down 12% to $ 517,275
  • Median Sold Price is down 6.59% to $425,000
  • Total Units Sold is down 16.22% to 31
  • Average Days on Market is up 80.33% to 110
  • Average List Price for Sold Properties is down 10.34% to $559,300

As I've mentioned before, two statistics that always grab my eye are New Listings and New Sales. I like to see both numbers about the same. In January, however, there were 81 new listings in the 21401 zipcode of Annapolis and only 49 new sales. As inventory grows, supply and demand get further off balance and prices are more vulnerable - NOT good news for home sellers, but GREAT news for home buyers!

To obtain learn about real estate activity in YOUR neighborhood, click on Market Snapshot.

Larry and I are headed out to the RE/MAX International Convention in Atlanta, Georgia, where we expect to meet other RE/MAX pros from around the world and attend education sessions from dawn 'til dusk. In the coming weeks, I promise to share some of the new and innovative real estate solutions that we learn, so be sure to check back. I try to post a new article each weekend.

Feedback and questions:

Annapolis Sales Statistics - January

Source of Data: MRIS

Copyright 2007. All rights reserved. Margaret Woda

Saturday, February 24, 2007

Top 7 Habits of People With Great Credit Scores

Eric Bramlett, of Austin, Texas, has some excellent suggestions regarding good credit habits that I want to share with my readers. The following article appeared in BrokerAgentNews on Feb. 24, 2007:

People with great credit scores have earned them for a reason - they have always borrowed money, and paid it back on time. There's really no trick to what they've done, and there is no one action that will help you get a great credit score. When someone asks me how to earn a good credit score, I tell them to look at the spending habits of those with great scores, and to develop the same habits. Here are the 7 habits of people with great credit scores.

1. Never Pay Cash

People with great credit scores want every purchase to count. And a purchase doesn't count unless the 3 bureaus know about it! The only way to make sure that the bureaus know how much money you're spending is to put everything on your card(s). Rather than deposit your paycheck and spend, think of your spending as a monetary cycle: Put your paycheck in the bank, spend with your credit cards, and pay off the cards with the funds you've already deposited. It's one extra step that pays off big with the added security and boost to your score that credit cards provide. Credit cards aren't just for larger purchases anymore. Using your credit cards for items like soft drinks and gum has become so common that credit card companies have given a name to them: "Micro-purchases."

2. Never Use a Debit Card

You won't find a debit card in the wallets of people with great credit scores. Debit cards provide you absolutely nothing that a credit card won't, and credit cards will build your credit score! Furthermore, if someone steals your credit card, you're protected against fraudulent purchases, while with a debit card, you're out of luck! People with great credit scores take every opportunity to build their credit - going to the grocery store, buying gas, or renting movies!

3. Pay Off Your Balance(s)

People with great credit scores don't typically carry high credit card balances. The easiest way to emulate this is to make sure that you don't carry ANY balances. You'll obtain the best credit score if you make sure that you're using the smallest portion of your potential limit - which means "Zero." People with great credit scores make sure to use their cards, but pay the balance off every month.

4. Put Yourself on a Bill Payment Schedule

In order for the credit bureaus to reward your good spending habits, you have to pay your bills on time. However, you have a little leeway. While it's not a good idea to pay your bills a few days late because your creditors will charge you late penalties, it won't affect your credit score negatively unless you pay them more than 30 days late. The easiest way to stay on top of your bills is to pick one day out of the month to take care of everything.

5. Consistently Request Higher Credit Card Limits

Because people with great credit scores habitually borrow money and immediately pay it off, the credit card companies are very comfortable consistently raising their spending limits. People with great credit scores consistently request higher limits because it allows them the freedom to borrow and keep a balance, if the need arises, without lowering their scores. You will have the best credit score if you keep the balances of your cards below roughly 35% of the spending limit of each card. People with great credit scores don't habitually spend over 35% of the limit of their cards. Furthermore, if you have high limits, you can take advantage of the promotional offers that the banks offer from time to time. A borrower I know with a great score recently transferred the second mortgage on his home to a 1.99% APR promotional rate on his credit card - the rate is good for the life of the loan!

6. Never Close a Credit Card Account

The credit bureaus take into account the age of your credit lines - and people with great credit scores know this, and exploit it. Many times, people with mediocre or low scores will pay off a card they've abused and close the account because they subconsciously think it was the card's fault they let the balance get as high as it did. This is NOT the correct thing to do in this situation. That card has a great history behind it! You've shown the bureaus that you're willing to borrow a large sum of money and then pay it down to zero. People with great credit scores NEVER close credit card accounts because they want to show that they have a long history of properly using credit.

7. Never Rent

Your home is probably the largest purchase you will ever make in your life, and is the one purchase that can make the biggest impact on your credit score. When you purchase a home, you're showing the bureaus that you can consistently budget yourself to pay a large portion of your income towards an account on a monthly basis. There are a number of reasons people with great credit scores refuse to rent, and the impact of paying a mortgage on their scores is one of them. When a first time homebuyer finally closes on their home and pays the mortgage on time for a few months, they will see their credit score jump around 50 points - and sometimes higher!
People with great credit scores haven't achieved anything too terribly difficult - they've merely adopted some fantastic spending habits. If you would like to earn a great credit score, borrow these habits and watch your score climb. Along with your score, your financial health should benefit, as well!

Feedback and Questions:

Top 7 Habits of People With Great Credit Scores

Sunday, February 18, 2007

Choosing your real estate agent – online

Professional Knowledge, Business Accomplishments, Community Involvement, Industry Leadership, and Integrity - These are the criteria used by Realtors themselves for honoring one agent annually in their local, state and national associations. Aren't these the same qualities you want in the agent YOU choose?

I've always felt that a sixth category is important: Philosophy and personal qualities. It is my feeling that you and your agent should be “on the same page” and like each other. Today, in 2007, I would add a seventh quality to my criteria for choosing a real estate agent: Tech-savvy.

If you are tech-savvy in your work and life, don’t you want an agent who is, too? Frankly, not many are. It is easier than ever for you to evaluate a prospective agent by simply going online to check out the web presence of any agent you consider hiring. You can effectively interview dozens of real estate agents through viewing their websites, if you like, before you every even speak to one.

What does the website say about the agent’s ability to use today’s technology in helping you achieve your goals?
  • Has the agent invested in today's technology to create a personal website? or...
  • Does the agent at least have a personal page on the company website - including a photo, contact information, and testimonials or references?
  • Is the agent's website or page static, or is does it appear to be updated periodically? (Look for a blog, news feed or other indication that information reflects current market conditions.)
  • Are there technology tools on the website for YOU to use? (Look for a link to the MLS, to recent real estate sales statistics and other calculators or tools.)
  • Is it easy to contact the agent or obtain personalized information with a simple “click”? (How about business address and phone number?)

What does the website say about the agent? Does it set this agent apart from average agents by communicating his or her qualifications, based upon the first six criteria?

  • Professional knowledge (Helpful real estate advice and tools to help you with your home sale or purchase)
  • Business accomplishments (Agent's resume indicating professional licenses or designations and awards earned)
  • Community involvement (Emphasis on the area and communities)
  • Industry leadership (Evidence of leadership roles in professional organizations)
  • Integrity (References or testimonials)
  • Philosophy and personal qualities (As reflected in the style and content of the agent’s website)

If the agent passes this scrutiny, contact him or her and ask more about his or her technology use in business. For example, if you communicate a lot using text messaging, is this something that he or she does also? Will he or she promptly receive inquiries on a PDA from prospective buyers for your house, or have to wait until returning to the office? Will your home be featured on his or her website as well as in the multiple listing service?

It is easier than ever for you to choose the "right" agent with the help of the Internet, but don't choose an agent based on website alone - be sure to look for those all-important first five criteria: Professional Knowledge, Business Accomplishments, Community Involvement, Industry Leadership and Integrity. They are the most important qualifications for choosing your real estate agent - online or in person.

More information:
Choosing your buyer’s agent
Choosing your listing agent

Questions and feedback:
mwoda@remax.net
www.MargaretWoda.com

Choosing your real estate agent – online

Copyright 2007. All rights reserved. Margaret Woda

Friday, February 09, 2007

21114 Sales Statistics for January 2007

The Metropolitan Regional Information Systems, Inc. (MRIS) released sales statistics for the first month of 2007 this week, and they are not pretty. The first thing I looked at was “Average Days on Market” in the 21114 zipcode, where my own home and office are located. Knowing that the figure for Average Days on Market in December was 86, I was stunned to see that it was 117 in January. Okay, here is the comparison of 21114 sales statistics for January 2007, compared with January 2006:

  • Total Sold Volume – DOWN 7% to $14,716,525
  • Average sold price – UP 10.13% to $387,277
  • Median sold price – UP 9.52% to $339,599
  • Total units sold – DOWN 15.56% to 38
  • Average Days on Market – UP 160% to 117
  • Average List Price for Solds – UP 14.73% to $414,050
  • *Average Sale Price as a Percentage of Average List Price – DOWN to 93.3%

*Does not take into account the original list price of properties, only their list price at the time of the sale.

As I mentioned in earlier posts, I like to keep track of whether sales are occurring at the same rate as new listings are coming on the market. Unfortunately, they were not in January: 61 new listings, and 47 properties sold (contingent and non-contingent combined). As the inventory of home grows, the supply and demand balance is getting further and further off kilter. When this happens, prices are driven downward – NOT good news for home sellers, but good for buyers.

I will be happy to post sales statistics for other zipcodes - Just let me know what zipcode you would like to see.

Feedback or Questions:

21114 Sales Statistics for January
Source: MRIS and Margaret Woda

Copyright 2007. All rights reserved. Margaret Woda

Tuesday, February 06, 2007

Have you heard of buySAFE.com?



Okay, I admit it - this has nothing to do with real estate. There are plenty of posts for you to scroll down and read about a variety of real estate topics (and I hope you do). For a moment, though, I'd like to be just a proud mom and quote the article that appeared in yesterday's Washington Times about my son, Steve.

http://washingtontimes.com/business/20070204-101331-6529r.htm

BuySafe founder guarantees delivery
February 5, 2007

Steve Woda knows what it's like to get burned buying products online. In 1999, he bought a hand-held computer on EBay, or so he thought.

"I thought I had done all my homework; I thought I was safe, but the product never arrived," said Mr. Woda. "I was upset. As a starving grad student, I didn't have $400 to lose." Today, as founder of BuySafe Inc., an online shopping security firm in Arlington, Mr. Woda hopes to end online shopping fraud.

Mr. Woda, a former portfolio manager of USF&G Insurance Co., a surety bond company based in Fairfield, Calif., saw how surety bonds could bring accountability to online shopping and decided to change the way consumers make purchases online.

Mr. Woda refined his business plan for BuySafe at the Wharton School of the University of Pennsylvania, where he earned his master's degree in business administration in 2001.

Mr. Woda founded BuySafe in 2000 with the idea that he could guarantee online transactions with bonds that would reimburse buyers if they don't receive their goods.

"Basically, we vouch for [sellers] and put our money where our mouth is," Mr. Woda said. Online sellers can apply to become BuySafe bonded merchants. BuySafe uses its data analysis software to determine the trustworthiness of merchants by evaluating their selling history and buyer feedback.

If approved, an online merchant then pays 1 percent of the sales price of every transaction to display the BuySafe seal on the items it sells. In return, BuySafe guarantees the transaction up to $25,000 and will reimburse a buyer if the seller fails to deliver a product. "This is the perfect solution to the EBay problem," Mr. Woda said. "Buyers no longer have to worry about who they are buying from, whether the product will arrive broken or not arrive at all."

BuySafe has 40 employees and has authorized more than $10 billion in online transactions. The percentage of bonds it has had to reimburse is in the single digits, Mr. Woda said.

Starting an Internet company in 2000, at the bottom of the dot-com collapse, was no easy feat. "Times like that sort the good businesses from the bad," said Mr. Woda, who managed to raise $21 million in venture capital in a difficult environment.

"Steve is a guy who can learn from [his] mistakes. He builds aggressively and largely for the future," said Jonathan Silver, a managing director with Core Capital, a venture capital firm in the District. "I think what he and his company are working on is very big and very important," said Mr. Silver, who is an investor in BuySafe and serves on the company's board of directors.

In the future, Mr. Woda said, he plans to expand BuySafe's services to small- and medium-sized businesses and begin working with larger sellers and search engines.

He lives in Arlington with his wife, Sharon.

-- Bryce Baschuk
The Washington Times
MORE INFORMATION ABOUT buySAFE:



Feedback or request real estate information:
Email: mwoda@remax.net
Website: http://www.margaretwoda.com/
Crofton Real Estate






Monday, February 05, 2007

Annapolis Sales Statistics

December is the most recent month for which MRIS sales statistics are available for the Annapolis, MD real estate market, comparing 2006 to December 2005:

  • Total Sold Dollar Volume is DOWN 22.39% to $28,934,980
  • Average Sold price is UP 15.59% to $615,638
  • Median Sold Price is DOWN 5.11% to $390,000
  • Total Units Sold is DOWN 32.86% to 47
  • Average Days on Market UP 130.91% to 127
  • Average List Price for Sold UP 22.82% to $684,140
    Properties

In December there were 39 new listings and 38 that received contracts (contingent and non-contingent). In the final analysis, I think this is one of the most important factors to consider: The inventory did not grow markedly – i.e., properties listed and sold at about the same pace.

It is interesting to note that buyers for 39 of the 47 sold properties used Conventional financing. Only 11 of the 47 sold properties were listed for less than 30 days before the sale, and 15 properties were listed for more than 120 days before the sale.

Please note that MRIS statistics do not currently take into account the “original” list price of properties, only the list price at the time of sale. MRIS is currently working towards release of an update that will track both “original price” and “list price at time of sale”. Since I am on the MRIS Subscriber’s Advisory Council, you may hear it from me first when this is available. Keep watching this blog for January sales figures and year-end sales figures when they are released.

If you would like market statistics for another zipcode in the area served by MRIS, please just ask.

Feedback or more information:

Annapolis Sales Statistics

Source: Margaret Woda and MRIS

Saturday, January 27, 2007

New Home Fever

As spring approaches, so does the annual rush to new home communities with their professionally-decorated model homes that impress, attractive landscaping that gives new meaning to the term “curb appeal”, and deals that seem too good to overlook. It is so easy to buy a new home, that you will wonder why you ever considered resale.

Before you go down this path, let me share my seven rules for buying a new home:


1. Never step foot into a new home model without your own licensed buyer’s agent.

Reputable builders who offer to co-op with brokers, and most of them do, have already included this expense in their pricing. In other words, you’re paying for a buyer’s agent in the price of the home whether you have the benefit of an agent’s representation or not. You will not get a “break” in your home price when you buy new construction without an agent.


2. Never step foot into a new home with a lender’s pre-approval in hand.

Builders do tend to have their own in-house lenders whose job it is to enable you to buy the new home. And you may decide to work with this lender, rather than the one who pre-approves you. But the pre-approval assures you an independent assessment of your home-buying qualifications from a mortgage professional with no affiliation to the builder.


3. Don’t agree to use the builder’s lender without comparison-shopping.

Some lenders recommended by builders provide a kickback or finder’s fee to the builder and they pass on that cost to borrowers in the form of a higher interest rate or closing costs. When a builder offers you incentives (free finished basement, closing cost help, upgrades) for using their recommended lender, realize that you probably are paying for those items in the higher costs of your loan. Otherwise, why would the builder care where you borrow your money?

4. Before you sign a contract, research the builder.

The best way to do this is to knock on the door of homeowners that previously purchased from this builder in the same or other nearby communities. Don’t stop with one or two if you run into unhappy homeowners, because any community will have a certain number of people who are impossible to please. Walk away from the builder and new home if a substantial number of current homeowners report bad experiences with the purchase or after-closing service.

5. Before you sign a contract, research the area.

This is particularly important if there is vacant land nearby, because you want to know what the zoning is currently as well as any proposed changes. But don’t stop there – be sure to check with the Department of Transportation to identify any possible road construction that could interfere with your property or the traffic patterns you expect to encounter.


6. Include a home inspection contingency in your sales contract.

A new home is not automatically “okay”. Most people do this for re-sale homes today, but few make the small investment to do so for new construction. The local building inspector only looks for compliance with building code, not for best practices. Even if a home inspector finds no major issues, that peace of mind is worth every penny spent on the home inspection.


7. Get everything in writing.

Buying a home is always an emotional experience, especially if it is a brand new home with other prospective buyers walking through the model as you’re sitting in the sales office contemplating a decision. Most reputable builders will accept a deposit on the home and lot you’re considering for at least a few days so you have time to preview their standard sales contract and do a little planning without the house selling out from under you. Be sure to ask for this.

During that time, sit down and make a list of every detail including your choice of lender, payment by the builder to your buyer’s agent, options, guarantees, the home inspection contingency, timing for completion and anything else you have discussed with the sales person, your agent, and your spouse. Make sure that everything YOU want is included in the sales contract, not just the builder’s standard wording. In fact, challenge any of the contract provisions if you do not fully understand and agree to without hesitation.

Buying a new home can be a wonderful experience, and living there can be even better. If you have new home fever, contact me for some additional hints to assure a smooth and pleasant experience.

Related links:

Feedback or more information:

Email: mwoda@remax.net
Website:
www.MargaretWoda.com

Crofton Real Estate

New Home Fever

Copyright 2007. All Rights Reserved. Margaret Woda

Saturday, January 20, 2007

Military Transfer to Maryland?

This dreaded word has haunted military families since the frontier days: “Orders.” (Army Wives on the American Frontier by Anne Bruner Eales)

That little bitty paper called “orders” can have a big impact on many lives (that’s a polite way of saying your life and that of your family is about to turn upside down). Goodbye, friends. Goodbye, familiar schools. Goodbye, familiar doctors. Goodbye, scout troop. Goodbye, favorite restaurant with the world’s best Rueben sandwich. Goodbye, soccer team. Goodbye, routine. Daddy or Mommy is going to ______ and you’ll be “fine” in the new location. It will be an adventure. You’ll make new friends.

Ahhhhhh… I remember those days. I’ll always remember the year that my husband drove to Maryland from Rhode Island to pick me up on Thursday night (about 8 hours), and we drove to Charleston, South Carolina to look for a home (about 10 hours). Our two children stayed behind with grandparents – thank goodness! We arrived on Good Friday afternoon, when many of the real estate offices were closed for the Easter weekend, and we had to look at houses and neighborhoods, select a place to buy, write an offer, and get a loan by dinner time on Saturday so we could drive back to Maryland on Sunday in time for my husband to continue back to Rhode Island and try to get a little rest before the next morning. I wouldn’t wish that experience on anyone, yet I know it is not unusual for military families, even today.

If you’re expecting orders to any of the many military facilities in the D.C. – Baltimore area, you will face enough upheaval that you cannot control – so take charge of at least one factor that is within your control: work with a real estate agent and lender who “get” what you’re facing… who understand the whole military pay thing, and the fact that some portion of it will be different in this area than it is in your current duty station and some of your income is not taxable.

Yes, the Internet is great, and you can sit at a computer in Germany and look for homes in Maryland. The truth is that your relocation will be much easier if you put this job in the hands of an experienced real estate agent who is familiar with the area AND has specific experience in working with the military. Even with all those fancy websites you can visit to learn about an area, there’s still nothing like a relocation package prepared especially for you that is filled with home listings and brochures about area sites and businesses. There is something about holding this information in your hand that makes you feel more in control.

And wouldn't it be nice to have someone waiting and ready to show you homes when you arrive - someone with whom you've been communicating for several weeks or months, so they know your expectations and concerns?

If you have orders, contact me today for a FREE Maryland Relocation Package or for help in finding a military-friendly real estate agent in one of the 63 countries around the world that is served by RE/MAX offices and agents.

Related links:

Feedback or questions:

Military Transfer to Maryland?
Copyright 2007. All rights reserved. Margaret Woda

Saturday, January 13, 2007

CHANGING MARKET - It's not as bad as you imagine!

One of my website visitors recently commented that “homes just aren’t selling now”, and I assured him that they are selling in his zipcode – at a slightly lower sale price and longer timeframe than a year ago, but they definitely ARE selling.

It occurs to me that the pace of home sales could be a concern for many of you, so let me share with you the statistics for December (the most recent month for which they are available):

December 2006 vs. December 2005 in Crofton, MD (21114)

Contact me for statistics in any other zipcode served by the Metropolitan Regional Information Systems, Inc., the regional multiple listing service for parts of Maryland, Virginia, Delaware, Pennsylvania and Washington , D.C.

  • The average “sold” price is UP 1.32% – $363,155
  • The median “sold” price is DOWN 4.32% – $330,000
  • Total units sold is up 18.38 % – 38
  • Average days on market more than doubled – 86
  • Total new listings – 27
  • Total new sales – 38

I think it’s a very good thing to see that there were more sales than new listings in December. “Days on market” is still less than the 4-6 months that has often been the norm in Crofton over the years. And prices in Crofton are not nearly as low as the media would have you believe. So take heart!

And make your plans accordingly, if you're thinking of selling. First, sell your home BEFORE you contract to buy a new one in order to decrease your stress and increase your negotiating power for the next home. Second, start trying to sell about four-six months BEFORE you want to move. By the time your home is on the market for about 90 days and it gets to settlement, you could be looking at that much lead-time. Be prepared, however, to make a two-step move because you will want to accept any strong offer you receive – even if it comes in the first week. A quick sale like that may not fit your schedule if you list six months before you plan to move, and you may have to make temporary arrangements for a few weeks or months.

In a buyer’s market, it is critical that you find an experienced real estate professional who has worked in a buyer’s market before and knows how to handle it. Don’t underestimate the importance of this advice. This choice will impact whether your home sells, for how much, and how long it takes.

Again, if you would like to see similar statistics for any other zip code served by the MRIS, please contact me directly for the information.

Feedback or more information:

CHANGING MARKET – It’s not as bad as you imagine!
Source: Margaret Woda and MRIS

Sunday, January 07, 2007

New real estate investors, this is for you.

Is “Invest in Real Estate” one of your New Years Resolutions?

I’m not referring to experienced investors who already have several transactions under their belts, who recognize that they are still learning, and who soak up all the information they can from experienced real estate agents and other experts. These real estate investors are probably already on the right track, although it never hurts to go back to the basics.

I am addressing this to folks who have decided to purchase a property for investment yet never done so, who do not comprehend the difficulties they face, and who consider themselves expert because they attended a seminar or read an article or two. If this describes you, be sure to continue reading...

1. Walk before you run.

You probably wouldn’t run a marathon without training because you want to minimize the risk of injury and you don’t want to collapse before the finish line. Well, you shouldn’t start investing in real estate without training either.

Start by talking to the real estate pros and considering every word of advice from experienced investors and real estate professionals alike. Keep notes, and keep track of who suggested what so you can follow up with these advisors later if you run into a situation they’ve faced in their own situation. Then, start small. You can minimize your risk with that first investment property – and there are many risks – by controlling your variable costs.

If you’re buying an income property, for example, choose one that’s already rented, preferably to long-term tenants. This will enable you to realistically anticipate the cash flow for your new investment without likelihood of immediate vacancy factor or rental costs. If you’re buying a property to "flip” – i.e. rehab and sell for profit – remember that it comes with carrying costs as well as hidden construction costs that are difficult to anticipate. “Flip This House” is fun to watch on TV but, as Eric Bramlett says, that’s about as realistic for the average investor as “Sponge Bob Square Pants.” (Bramlett is the broker and owner of One Source Realty in Austin, Texas.)

2. Remember that real estate investing is a marathon, not a sprint.

Quick profit in real estate is more of a myth than a reality. Buying houses to rehab and flip may seem like the best and fastest route to profit, but it is hard work and requires skill, foresight, market knowledge and financial resources. It’s hardly a good first step into real estate investing. Again, the best advice is to start small.
Choose a property that you can purchase at a price significantly below market; one that is structurally sound and needs only cosmetic touches or clean-up to sell at top dollar.

And don’t forget to use a 1031 Starker Exchange, or you will have a hefty tax bill eating into your profits. Income-producing property will appreciate and add to your wealth with minimal risk and without significant effort on your part. With the help of an experienced real estate agent, purchase a property that is structurally sound and likely to appreciate, hire a property management company to deal with the day-to-day hassles, and go about your life – with the bonus of a small rental income check in your mailbox every month. A few years later you can re-finance the property to pull out cash for other investments or sell it for a profit. Again, don’t forget your friend, the 1031 Starker Exchange.

3. Make and follow a business plan.

After you learn everything you can and build a team of real estate professionals – an accountant or tax advisor, experienced real estate agent, property management company, and home-improvement contractor – it’s time for you to sit down and develop your short-term and long-term business plan.

You want to know how much money you have to spend up-front, how much reserve you can set aside for unexpected expenses, how much monthly expense you can handle, how much time you can devote to this. You want to know how much income you hope to generate and whether you want to focus on rehabbing and flipping or income-producing properties. Be sure to include the cost of real estate professionals in your budget, and remember that you get what you pay for. It is likely that experienced and knowledgeable professionals may charge you more – but your end profits, with the benefit of good professional advice, are likely to be optimized. Decide upon an area, a type of property, and an approach to purchasing… Ask yourself if you plan to “rent with an option” or use some other deferred settlement strategy, buy foreclosure properties, or search for hidden gems in the marketplace. Do you plan to use the equity in your home to pay cash for the purchase or do you have a pre-approved loan in place for investing?

Make a plan, execute it – and stick to it! ‘Chances are that other investors are looking for similar properties, and the best ones get snapped up quickly. For example, I recently listed a property for a distressed seller, and the price was very, very low for a quick sale. Numerous agents and investors contacted me within hours of the property going on the market, but one investor wrote a full-price non-contingent cash contract within an hour of its going into the computer – sight unseen! He had a plan, kept his eye on the multiple listing service, and knew this property met his guidelines; he didn’t have to give a second thought to purchasing the property before anyone could even look at the property.

A word of caution: Like any investment, whether it is the stock market or real estate, income potential is real but not guaranteed. You should never invest money that is not discretionary, i.e. money that you can’t afford to lose. Minimize your risk of loss by working with experienced real estate professionals.

Feedback or more information:

New real estate investors, this is for you
Copyright 2007. All rights reserved. Margaret Woda

Friday, December 29, 2006

On-line home searches

It's no secret that today's home buyers begin their home search online. But it's not just anecdotal -

According to the latest release from the Pew Internet & American Life Project, 51% of all Internet users had taken an online home tour as of August of 2006. This is an increase from 45% just two years ago, in November 2004. With growth like this, it's no wonder that real estate brokers and agents are going online to promote themselves and their listed properties.

Pew found that age, not income, is the best indicator of who will go online to search for a home: 27% of Internet users age 50-64 have looked at homes online, while 43% of users age 30-49, and 51% of users age 18-29. This suggests that perhaps brokers and agents should target their websites to tech-savvy young adults rather than more mature homebuyers - even though it may be more likely that mature homebuyers will have the resources to buy the expensive properties. (Perhaps I knew that instinctively, and that's why my new website - coming soon! - will have a flash slideshow, a do-it-yourself mortgage calculator and home search tools.)

Education is another indicator of likely online homesearchers: 46% of Internet users who are college graduates have looked at homes online; 38% of those who have some college, and just 34% of high school graduates. Online experience also factors into the decision to look online for a home: Those with 6 or more years of online experience are 50% more likely (45%) than those with 4-5 years experience (30%), and nearly double those with less than 3 years experience (23%).

There are many more facts and figures in the full Pew Report published earlier this month by Senior Research Fellow Deborah Fallows. But this is not the last, or only, word on this topic.

Market Research finds buying power is hiding in empty nests, according to an article released on December 6 in Houston by The Media Audit. Among other things, the article reports that the Internet, along with newspapers, dominates the media interest of this group. So perhaps there is an online target market for real estate brokers and agents, after all, for more mature Internet users. As Tim O'Keefe says, in his real estate marketing blog, it's a little like "eggs are bad, then they are good for you type of thing."

The National Association of Realtors surveyed actual home buyers in 2003, rather than Internet users in general (as Pew did), and found that 71% began their home searches online. Given the growth in Internet use over the past 3 years, one can reasonably surmise that the number would be greater in a similar study today.

The bottom line, of course, is that online home searches are here to stay. It is my goal to make the most of this phenomena by developing a truly effectivce real estate website. I'd be very interested in hearing YOUR input about what you'd like to see in a broker or agent's website, so that I can incorporate it into my new and revised website which is now in development.

Other links:

Feedback or more information:

On-line home searches

Copyright 2006. All rights reserved. Margaret Woda

Thursday, December 21, 2006

December Update - New real estate newsletter

If it seems to you like all the real estate economists are forecasting doom for the market, take a look at REAL TRENDS - DEC. 2006, which I'm sharing with you today. It may help you separate fact from fiction; it will, at least, provide some interesting reading for anyone who may be interested in real estate, whether you are a real estate professional, homeowner, investor or potential buyer.

I had intended to piggyback on some of these articles and insert my own 2 cents, but it's fairly lengthy. Why don't you take a look, send me your comments, and I'll decide from there which elements of the report to expand upon in future blogs.

This update is published by the Metropolitan Regional Information System (MRIS), a regional multiple listing service owner by local associations of REALTORS in the Middle Atlantic states.

REAL TRENDS - DEC. 2006

For feedback or more information:

December Update - New real estate newsletter

About Me

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Crofton, Maryland, United States
Helping home sellers, buyers and military personnel in the Annapolis/Baltimore/D.C. triangle is still my passion after thirty years in real estate. How can I help you?

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