2013 Real Estate Market Starting Out with a Bang

2013 has been a busy year so far for real estate in Montgomery County.  Too determine how busy, I decided to dive into the MLS database to see how the residential market for single family homes has been performing.  I was not surprised to see that sales through mid-March in Montgomery County were up over 15% compared to the same 75 day period last year.  Additionally, the median price per square foot rose about 10% and homes sold about a month faster compared to last year.

Most folks believe that the new Exxon campus in north Harris County has had a large impact on the local market.  In digging a little deeper into the year to year comparison, I can see that most of the increase in sales is in the areas nearest the Harris County line.  In fact, of the 151 increase in home sales year to year, 117 occurred in the southwest part of the county.  This is also where the homes are selling the fastest, with home sellers securing a buyer an average of only 45 days after listing their home.  This is about a month faster when compared to last year.  In the last year, the data indicates that southwest Montgomery County has gone from a good sellers’ market to a strong sellers’ market.   

I was recently told by a client relocating from Exxon’s Virginia office that they have been advised to look for homes in The Woodlands,  Spring or Tomball area.  So it’s not surprising that The Woodlands is taking the lead in Montgomery County’s increased demand for housing.  But like my client relocating from Virginia, there are a number of families that prefer the charm of many of the older neighborhoods and the more tranquil areas found in the northern part of the county.  And what some are discovering is that the commuting time to some of these more northern neighborhoods is actually less than the time it takes to get to some of the neighborhoods situated deep into The Woodlands.

In checking into some of the stats for a few Conroe neighborhoods located close to I-45, I found out that 4 of the 5 homes sold in Rivershire so far this year were on the market less than 2 weeks.  Last year during the same time period, 2 of the 3 homes sold in Rivershire were on the market 6 months and more.   Granted, there were only a few homes sold during both time periods, but the rapid pace they sold this year could be an indication that the increased demand in housing is spreading north.  I noticed that River Plantation and Stewart’s Forest also showed substantial improvement.  So there is reason for optimism for home sellers throughout Montgomery County.

There are obviously still lots of concerns about the overall housing market and about the overall national economy in general.  But there are some systemic changes in Montgomery County that seem, at least to this humble Realtor, to have some staying power.  Time will tell, but for anyone that is considering buying a home in this area, you might not want to wait too long.  Increased demand typically increases prices, especially in the short term before new construction catches up with the demand. 

Home Inspections

I heard a story about the wife of a junior high school principal who bought her husband a tie for Christmas.  She selected one with a subdued pattern with colors that complemented his favorite suit.  She didn’t notice until after she started wrapping it that the pattern consisted of numerous silhouettes of shapely women.  Fortunately, it was noticed before the tie was worn to school, as I can just imagine all the young boys acting up in class hoping to get sent to the principal’s office!

I think most of us have purchased an item or two that turned out to be a little different than what we expected.  And often it is because we missed an important detail.  When it comes to real estate, there are so many details that it is next to impossible for the average homebuyer to examine and understand each and every one.  That is why home inspections are so important.  Missing an important detail on a home purchase can be a costly mistake.

Home inspectors are licensed by the Texas Real Estate Commission (TREC) and have completed education and training in home inspections.  A typical home inspection covers a home’s structure, electrical system, heating and air conditioning system, plumbing system, appliances, as well as certain other improvements in place such as lawn irrigation.  The minimum level inspection as defined by TREC is a “limited visual survey and basic operation of the systems and components of a building using normal controls and does not require the use of specialized tools or procedures”.  TREC further states that “the purpose of the inspection is to provide the client with information regarding the general condition of the residence at the time of inspection”. 

Of course, some inspections offer services above and beyond what is required by TREC.  But that additional level of service might come with a higher service fee.  Regardless, licensed inspectors methodically examine the exterior and interior of the home and almost always find some issues that the buyer should take into consideration.   Sometimes a report might recommend hiring a specialist, such as a licensed HVAC technician, to do a more detailed analysis on an area of specific concern.

A Realtor should always recommend to their client that they purchase an option period for a specific time period to “kick the tires”.   During the option period, a client can back out of the contract at any time for any reason.  It is during the option period that the home inspection is done as well as other due diligence such as a termite inspection.  Most times, the home inspection report does not reveal issues that cause a buyer to exercise their option to terminate.  Typically there is one of three outcomes; the seller agrees to address all requested items on the inspection, the buyer agrees to accept the property as is, or most commonly, the seller agrees to make some, but not all, requested repairs.

When I purchased my first home several decades ago, the inspection report consisted of three items scribbled on a half sheet of notebook paper.  Those days are long gone.  Nowadays, inspectors are licensed and required to issue an inspection report that provides assurance to a buyer that a trained professional has inspected the home according to state mandated procedures.  Of course there are no guarantees, but a home inspection is one of the most important tools to help prevent buyer’s remorse. 

The junior high school principal’s wife had an easy solution to her problem.  She just took the tie back and exchanged it.  But overlooking an important detail in a home can have much more foreboding consequences.  So be sure to always have an inspection done before purchasing a home.

Montgomery County Real Estate Sales on Track for Best Year Since 2007

Without a doubt, it’s been a good year so far in our local real estate market.  I don’t even have to look at the Houston Association of Realtors’ press releases and statistical reports.  I’ve heard plenty of positive remarks from my fellow realtors that match up with what I’ve observed in my own business.  But Montgomery County is a large market with hundreds and hundreds of Realtors.  So let’s take a look at some statistical information to get a more comprehensive view of the market as it now stands in 2012.

In reviewing the most recent info, the best news is that single family sales in Montgomery County have increased 16% this year compared to the same time period in 2011.  That reflects a substantial growth in the market.  The increase in demand has also resulted in homes selling more quickly, with the average time on the market decreasing 14%.  We haven’t had a corresponding increase in prices though, with the average price increasing only ½%.  We may be on the brink of some uplift in prices though since active listings have declined 17% versus this same time last year.  The bottom line is that Montgomery County, as a whole, is currently in a seller’s market.

But as most folks know, Montgomery County is comprised of 4 rather distinct markets; the Northwest, Northeast, Southwest, and the Southeast.   Each area has its own market characteristics and have all performed well.  Some encouraging news is that the Northwest, dominated by the many Lake Conroe communities, had the highest year to year percentage increase in sales and sales prices.  But with a significant backlog of homes for sale, it is still considered a buyer’s market.  The Northeast also did well and without as many listings is in a slight seller’s market.  The overall strongest performer as usual is the Southwest which remains a strong seller’s market.

Another way to look at the market is year to year changes by type of sale.  I like to look at three broad categories of single family sales; resales, new construction and distressed properties.  Sales of previously owned homes, or resales, make up 71% of the total single family housing market.  These sales have increased 22% over last year and are selling 15% faster.  But prices have remained relatively flat.  New construction comprises about 15% of the total market.  These sales have increased 8%, are selling 2% faster, but prices have declined about 5%.  The price decline is partially due to the average size home being slightly smaller, but the average price per square foot is also less.  Finally, distressed properties, i.e. foreclosures and short sales, make up the remaining 14% of the market.  This market has remained relatively unchanged in the number of sales and the average sales price.  But they are selling 23% faster which may be an indication that lenders have finally figured how to dispose of their distressed assets more quickly.

As I write this article, 2012 YTD sales have already surpassed total year sales for each of the 4 preceding years.  One would have to go to the last pre-housing collapse year of 2007 to find more robust sales than 2012.  I’m not one to be bold enough to predict the future of our local real estate market as there are simply too many uncontrollable variables involved.  But the results so far this year make me one optimistic Realtor. 

A Memorable Real Estate Experience

It’s not unusual for us Realtors to get emotionally connected to our clients as we pass through their lives for a while.  After all, we’re usually brought in to help them navigate through a major life decision.  But every once in a while, a buying or selling experience stands out for some reason or other.  I had one of those earlier this year that I would like to share.

As I met my client for the first time at her recently acquired home, I noticed that the landscaping was quite overgrown.  The ligustrums hung over the front walkway making it difficult to fully appreciate the attractive Victorian architecture.  As we entered the home, there was an eerie stillness.  A heavy coat of dust had accumulated on every surface.  A large calendar on the wall hadn’t been turned in seven months.  Houseplants had long ago given up hope for a splash of water.   And random pictures of vacations and get-togethers from many years past were spread out on the large coffee table in the living room.  Most of them appeared to have been taken in the 60’s and 70’s and portrayed young folks being happy.  A more recent photo was of a cheerful man standing on the newly poured slab of this very house.  The photos were spread out in a manner that enabled someone to linger over the photos and reminisce about a time in which so much time lay ahead.  Alongside these happy memories was a hospice log detailing the last weeks of someone with very little time left.  

I was called by the new owner of this home to help her sell it.  She had just recently inherited the home from her brother and wanted to put it on the market.  That is one of the more challenging tasks for a Realtor.  Often we’re brought into to help someone transition through a difficult time.  The death of a close relative, divorce, financial hardship or poor health can sometimes force someone to sell a home.   In addition to one’s real estate expertise, these times call for an extra dose of compassion, patience and friendship. 

The one thing in common that most home sellers have in these circumstances is a desire for another family to enjoy the home as they or their loved one once did.  Especially for someone who has lived in the home for a long time.  A new family bringing energy and excitement into the home can be comforting to the seller.  And it can help relieve some of the heartache and help bring some closure to a difficult time.

Initially, my client was completely overwhelmed with the prospect of selling her brother’s home.  It had fallen into a state of disrepair and she felt that she lived too far away to deal with the numerous issues involved with the property.  At first, she was inclined to sell the property as-is, which would likely have required a heavy discount.   Sensing her anxiety, I offered to assist her through the process of fixing up the home.  After helping her get bids from some reputable contractors and being her “boots on the ground” in reviewing their work, my client was able to fix up the house and sell it for a fair price to a family that fell in love with the home.

There were numerous emotional moments during this process that made this one of my more memorable real estate experiences.  Along the way, I began to feel as if I had known my client’s brother and was working for him as much as I was for his sister.  As we left the closing table, my client was very relieved and satisfied with the outcome.  I think her brother would have been pleased as well.

Importance of HOA's in Purchasing Decisions

Several weeks ago, I spent a couple of days out of state in wonderful community. It had wide tree-lined avenues flanked by pristinely restored century old residences. There were sidewalks alongside each street on which we strolled each evening with a complete sense of safety. The surroundings were quiet, wildlife was in abundance, and everyone we encountered during our stay was friendly, polite and respectful.

OK, it was a highly secured military base, but nevertheless, we had a great couple of days visiting our newest grandson in this peaceful environment. Our kids had just sold their home and were temporarily living on base while in the process of being transferred to another facility. They secured us a room on base in a restored historic residence built in 1908 identified on the historical marker as “Bachelor Officer’s Quarters”.

I suppose you could view a military base as the ultimate gated community. With armed guards, guard dogs, and other security measures, access is highly controlled. And residents inside are greatly incentivized to follow base rules so everyone is on their best behavior. But while it is a nice place to visit, I suspect the many rules wear on folks after a while. That’s probably why many military personnel choose to live off base.

I dare say that not many of us would choose to live in a neighborhood with that level of control over our lives either. But there are local neighborhoods with some of the same features. There are neighborhoods with manned 24/7 security, private security patrols, and deed restrictions on what can be built, how it is built, how each property is maintained. Other restrictions are often included to protect property values and foster good neighbor relationships.

According to the Texas Realtors Association, 4.8 million Texans live in neighborhoods with HOAs. When looking for a home, chances are pretty good you will be looking at a property subject to deed restrictions and governance by a homeowner association. When buying a home, close attention should be given to any deed restrictions that apply to a property. All deed restrictions are legally recorded and are available for inspection by prospective buyers. Any restriction that a buyer can’t live with should be a deal killer. Conversely, buyers should investigate to see if restrictions that are important to them are in place and are being enforced. If enforcement is lax, inconsistent or non-existent, it should be taken into consideration before a contract is finalized. Getting information about the level of enforcement is not easy as its perception can vary from person to person. But speaking with several neighbors could possibly provide sufficient insights into how much importance the HOA puts on the subdivisions’ deed restrictions.

HOAs have on occasion been on the wrong side of public opinion due to controversial actions imposed on their residents. To address some of these concerns, the Texas Legislature passed several bills during the last session designed to better balance the interest of property owners and HOAs. Many of the provisions in the new statutes relate to increased HOA transparency, but other provisions prohibit an HOA from having outright bans on certain items like rain harvesting devices or national and state flags.

A home is a valuable asset and an HOA exists primarily to protect the value of homes within its boundaries. A little due diligence on existing deed restrictions and on the enforcement philosophy of an HOA could be valuable to buyers as they make a purchasing decision. These items could have an impact both on the buyers’ future quality of life as well as the value of the purchased home when it comes time to sell.

Beginner’s Guide to Real Estate Investing

Real estate investing has attracted a lot of interest in recent years. Low returns on CD’s and T-bills have caused some investors to take a hard look at real estate for
higher returns. But real estate investing is not for the faint of heart. It requires more upfront research and more ongoing attention as an owner compared to many other investments. But the rewards can be significant if handled correctly.

One of the principles that applies with real estate investing, as well as all investing, is to be just as concerned with the return of your money as the return on your money. In other words, should you need to sell the investment at some point in the future, you want to get your money out of it in a reasonable period of time. This requires some serious due diligence up front to get a home at the right price
in a stable neighborhood. It also requires a disciplined maintenance program after the purchase to keep it in a marketable condition.

After finding a property with potential, one of the first steps is to calculate an estimated return on investment so you can compare it to other investment opportunities. The upfront investment should include all purchase costs, closing costs, and initial fix-up expenses. The return should include rent income netted against all expenses including real estate taxes, insurance, interest and maintenance. When the result is compared to the returns on other investment
opportunities, the differences must then be evaluated based on the investor’s
perception of the risk associated with each. Consulting a financial advisor would be recommended for the first-time real estate investor.

Once you’ve acquired a property, more due diligence is required to get a tenant who can demonstrate a responsible history in timely payment of their bills, in taking care of homes, and with sufficient income to pay the rent. This requires a credit report, references from past landlords, and payroll records. Patience is needed at his point, as there might be a tendency to get a tenant quickly in order to get some income flowing. But it usually pays off in the long run to be patient until the right tenant comes along.

After the tenant moves in, the investor now becomes a landlord. Many investors want to avoid this part so they hire an investment management company to deal with the
tenants. But that can be expensive and will lower the overall return on the investment. If the investor manages the property alone, having financial discipline will serve the landlord well. A separate bank account should be used to segregate income and expenses from the property. An amount should be reserved for yearly taxes, HOA fees and insurance premiums. And an amount should be set aside from each rent payment for ongoing and unexpected maintenance requirements. Writing out large checks is much less stressful if those expenditures are planned for and money is set aside.

A final bit of advice for landlords is to have reasonable expectations of tenants. There needs to be balance between protecting your investment and allowing the tenants to enjoy the home. Achieving that balance can enhance your overall return as tenants are more likely to stay longer and take more pride in taking care of the home. This will also increase the odds that the investor will maximize value on the property when it comes time to sell.

An experienced Realtor can help a real estate investor find the right property and can help with the search for tenants. Real estate investing is not for everyone, but for some, it can be a rewarding experience in more ways than one.

State of the Local Real Estate Market

Anyone paying attention to national politics these days is hearing a lot of discussion about the nation’s housing market. There’s a lot of finger pointing and a lot of solutions flying around amongst folks running for, or trying to stay in office. Fortunately, Montgomery County hasn’t had plummeting housing prices like many other parts of the country since the crisis began around 5 years ago. But then again, we never had the high run up in prices they enjoyed prior to that time. Prices around these parts have been relatively stable throughout the last five years. The main impact around here was a significant drop in real estate activity.

Looking back, 2006 was by most measures the peak year of the last housing cycle. The total number of all closed transactions reported in MLS that year, including single family residences, condos, lots, and rentals, was very robust. Transactions declined steadily after that, and bottomed out in 2009 with 24% fewer transactions than in ‘06. Since then, transactions have modestly increased but are still down 16% from ’06 levels. The last two years have been encouraging and with continuing low interest rates and a fairly good local economy, there’s reason to be hopeful that these numbers will continue to improve.

But Montgomery County has a diverse real estate market and while the county as a whole has an optimistic outlook, certain segments have not fared as well. For example, while total transactions are down 16% since ‘06, single family residential and condo sales are down by 28%. Rental transactions mostly make up for the difference with an astounding 64% increase since 2006. Unfortunately, this reflects the human toll of the housing crisis as the American dream of home ownership has slipped away from so many families as they lost their homes and subsequently moved to rental properties. It also reflects how much more difficult it is these days for prospective buyers to get home loans due to tightened credit standards.

Another segment that has not fared well is the sale of residential lots which are still down by 47% from ‘06. This is an indicator of the level of new construction by local builders. It is not so much an indicator of the level of new construction by large builders as much of their new construction is in planned communities where lot sales are sold directly by the developer and not through MLS.

The above discussion all relates to Montgomery County as a whole. But as we all know, various areas of the county have been affected differently and have had a different rate of recovery. The county wide recovery in single family residential sales, for example, is mostly being driven by increases in the southern part of the county. And the area with the highest growth rate is the southeastern part of the county which has actually grown to a level that exceeds 2006.
These statistics also tell the story of how the real estate business has changed for the typical realtor. The smaller number of transactions has caused some realtors to leave the industry to pursue other employment with a more reliable income stream. And many of us who remain now spend more time assisting landlords and prospective tenants than we did five years ago. While that line of business may not be as lucrative due to its lack of complexity, it is just as rewarding as it still involves finding homes for families to enjoy.

While these numbers are interesting, what does it tell us about the future? Unfortunately, past history isn’t always a reliable predictor of the future. There are simply too many uncontrollable variables for this humble Realtor to make a sound prediction. But it does give reason to be hopeful. Like most local residents, it’s easy to understand the attraction of Montgomery County to newcomers because of its geographic qualities, proximity to major employment areas, and recreational attractions. Those characteristics make our county an attractive draw to many demographic groups, from young families starting out to retirees entering a new phase of life.

So let’s raise a glass to hope and continued recovery.

Selling Real Estate Through Photography

My next door neighbors’ Maltese and Shit-Tzu dogs recently had a litter of pups. The hybrid pups, called Mal-Shi’s or Malti Tzu’s, were perhaps the cutest pups I had ever seen. Needless to say, I am now the proud owner of Brody, one of the cutest pups ever. Soon after he came home, we took a number of pictures and a video of him under the Christmas tree amidst a group of small stuffed animals titled “Where’s Brody?”. Because one of our daughters couldn’t open up the video file on her Mac laptop, I uploaded it to YouTube so she could view it. Imagine my surprise the next day when I received an email from the ABC affiliate in Phoenix requesting permission to broadcast the video on their news program. But then again, he is perhaps the cutest puppy ever.

At first I was somewhat surprised about this, but then I thought of the pictures, virtual tours and videos of homes that I upload onto the internet that are also seen all over the world immediately after I key them in. I have dealt directly with home buyers from all over the U.S., Mexico, Europe, the Mid East, South America, Canada and Australia, to name a few. Of course, it’s nothing unique to me, it’s just the nature of the real estate business today. Still, the power of the internet instantly transmitting video around the world still amazes me.

Of course, I didn’t have to do much to attract the Phoenix station to the YouTube video of Brody. Puppies pretty much sell themselves. But home photography requires a little more experience and care. To catch buyers’ interest, pictures have to depict a compelling story. Poor quality pictures or a lack of pictures can cause buyers to just pass a listing by and move on to others.

Although professional real estate photographers are available, most agents still do their own photography. Those that do should have good quality equipment along with the knowledge to effectively use it. It doesn’t take an investment of thousands of dollars in camera equipment to make good quality pictures these days. Basic equipment would include a digital camera, a wide-angle lens, external flash and tripod. All of those items can be purchased at a very reasonable cost. Training can be acquired rather easily too. There’s a plethora of books, on-line articles and classes that cover all the basics and more. And finally, expertise requires lots of experimentation and practice, practice and more practice.

A seller’s minimum expectation from a Realtor from a photography shoot is a set of pictures that are well framed, properly lit, and sharp. But the best real estate photographers go well beyond that if they possess some key attributes. First of all, a love of selling real estate is a huge advantage in being a good home photographer. The photographer needs to understand a home’s selling strengths, put together a story line and then capture that story with pictures. Patience is also a virtue as the photographer might have to wait a bit for the lighting to be right, or perhaps catch a boat sailing by. Creativity is also helpful. For example, capturing a rose bud in the foreground in a picture of a lit fireplace can make an ordinary picture appear extraordinary.

Since the real estate industry has invaded the internet, home photography has never been more important in selling real estate. Agents should acquire this skill or hire someone who is capable. I’m fortunate in that my husband has a passion for home photography. When I get a new listing, I love to see his eyes light up as he starts to envision a picture storyboard. Many agents have a similar passion or utilize someone who does.

Meanwhile, I think we’re going to try to get another video of Brody under the Christmas tree. He’s been uploading puppy chow so I had better finish his photo shoot before he executes a download.

A Thanksgiving Story

Some time back I listed a home for a couple who was going through a most difficult time. Because of some financial hardships, they had reluctantly decided to pull up stakes. They had a modest home on some great property, but it needed some cleanup and repairs that the owners just didn’t have the time or money to do. Not long after listing their property, they moved out of state and quit making mortgage payments. Before the bank started foreclosure proceedings, I helped them get approved for a short sale.

The condition of the home was a significant negative for most prospective buyers who viewed the home. But eventually a very nice couple contacted me about the property and fell in love with it. The husband was a do-it-yourself type of guy and wasn’t the least bit intimidated about the needed repairs. They said that the house and acreage was the perfect fit for them. And they loved the area as it was close to their family. This property had everything on their wish list and nothing else they had seen had come close. Even the sellers were overjoyed that someone would continue to appreciate the property as they once had.

It sounds like a nice ending to a sad story, but there was a hitch. After contacting their lender, the couple learned that they were some issues that had to be resolved that could take 6 months to a year to work out. The sellers’ bank would not wait that long for them and directed that the property stay on the market in search of another buyer. I felt their pain as this nice couple saw their dream home slip away.

But there just had to be another way. What if an investor purchased the home, leased it to this couple and then sold it to them when the time came that they were able to purchase it on their own? I ran this idea past several investors that I work with and one of them agreed. Working with the sellers, the seller’s bank, the buyers, the buyer’s lender, and the investor, an agreement was reached when all parties were able to get the terms and assurances needed to go forward with this plan.

My clients signed the lease moments after the investor closed on the property. They quickly moved in and immediately began sprucing the place up. It became very obvious that they were committed to doing whatever was possible to purchase the home from the investor as quickly as possible. They worked diligently with their lender and followed her suggestions to the tee. In seven short months, they were able to purchase the home from the investor.

I’m typing this article after leaving the closing table. The joy in the room was contagious. The buyers commented that someone should make a movie about how this all happened. They were still in awe how everyone worked together to help them realize their dream. Along with the lender and the investor, I was happy that I was able to play a part in this story. Hugs abounded and I think I saw a tear or two from some of the folks in the room.

There are so many sad stories these days stemming from the prolonged economic recession we’re suffering from. But there are still some heartwarming stories taking place. As I sit down and give thanks this Thanksgiving Day, I will be thinking of this wonderful couple celebrating their first Thanksgiving Day in their new home.

Dreams still come true. Happy Thanksgiving everyone.

Ever Changing Nature of the Real Estate Industry

I was watching a TV program the other night and saw something that actually made me stop and think for a minute. It was a story about the late Ruth Graham that was told by her husband Billy Graham. It seems that years earlier, they were driving home from an event and encountered a stretch of road that was under construction. When they finally worked their way past it, they saw a sign that said “End of construction. Thank you for your patience”. Mrs. Graham remarked to her husband what a marvelous epithet that would be and directed that it be put on her tombstone after she died. It was told with great admiration and was a great reminder that we should never quit our personal quest in becoming a better person as there’s always something to learn or to do.

OK, I’m a realtor and not a motivational speaker. But Reverend Graham’s story made me reflect not only on my own personal life, but also on my career choice. The real estate profession is continually under construction and has changed drastically in recent years. Like most professions, technology has advanced at breakneck speed and Realtors have had to stay abreast of the changes. This technology has enabled agents to produce a much better product, but at the same time, buyers and sellers of real estate expect much more than ever before. So Realtors have had to keep up or lag behind.

As an example, in just the past few years, smart phones and tablet computers have enabled agents to have a fully functional mobile office while on the go. They can conduct business in a parking lot and give their clients the same information that they could if they were in their office. Agents can respond to their clients more readily and don’t have to wait till they’re back in the office to address their concerns. Or they can be touring the county with clients and download information on properties of interest on the fly. Right outside of a home for sale, an agent can upload pictures and let their clients view them to determine if they want to make an impromptu appointment to tour the home. This makes the task of showing houses so much more productive for clients as well as agents.

Another recent advancement is the QR (Quick Response) code. I suspect many folks have seen the odd little square ink blots but didn’t know what they were. These QR codes have a unique imprint and serve several purposes, but most often represent a website address. Anyone with a QR reader (an app that is resident in many smart phones) can just point their phone at the QR code, and a designated website pops up on their viewer. I recently listed a home that had a number of very unique features. I simply created a QR code for each feature and incorporated it into a flyer placed next to each feature. The QR codes were linked to either a manufacturer’s website for the product, a video about the product, or a customer testimonial. It turned out to be a powerful sales tool.

So what is the next big breakthrough? Many of the things we routinely use today could not have been imagined by most of us just a few years ago. But as sure as the sun will come up tomorrow, I know there will soon be something that will make my profession more exciting and lead to a more satisfying experience for both buyers and sellers.

Obviously, Mrs. Graham was thinking in more grandiose terms that real estate when she chose her epithet and it is certainly more meaningful when thought about in a spiritual, moral, or humanitarian context. But I believe the meaning of the story is relevant in all important aspects of one’s life. Even real estate.

Separating Fact from Fiction

I have always preferred going into stores where the sales staff informs rather than persuades. Most times I encounter a blend of both styles. When I sense that the information is heavy on persuasion and short on facts, I’ll usually shop elsewhere. But it’s a welcomed relief when I sense that the information is heavy on facts. It starts my relationship with the store on a most positive note.

Establishing a relationship with a Realtor can have similar challenges. Before a home seller selects a Realtor to list their home, they may speak with one or more Realtors before making a decision. A Realtor should be prepared to provide some biographical information, data on the home’s value, home selling tips and a marketing strategy. Here is some factual information to expect:

• Biographical information should include years of experience, certifications, number of transactions, verifiable references and examples of the quality of their work.
• Data on your home’s value should include recent sales of comparable homes. Comparable homes should be in the same neighborhood, similar lot, and with similar amenities. For example, a waterfront home should not be compared to an identical home on an interior lot.
• Home selling tips should be objective, proven and reasonable. Decluttering, paint touchups, and replacing rotted trim can have a positive impact on the home’s impression to potential buyers and can be done without much time or money. A suggestion to remodel the kitchen would also have a big impact, but in most cases would neither be a reasonable suggestion nor a cost-effective selling tactic.
• The marketing strategy should describe how your home will be presented and how the Realtor will get the listing in front of as many buyers and Realtors as possible.

The vast majority of Realtors are professional and stick to the facts. But Realtors are human and every agent wants listings. So here are a few tidbits of information that might be more designed to persuade than to inform:

• Stating that they already have a buyer for your home. Realistically, the odds of a buyer just waiting in the wings for you to list your home at the price you want is not very likely.
• Stating how quickly they sell homes. In 2010 in Montgomery County, the average time on the market was 132 days. A great listing presentation and marketing strategy help move a home faster, but keep in mind that some homes sell quickly simply because they are undervalued.
• Stating that they have buyers from foreign countries. That may sound impressive but in reality all MLS listings are easily accessible by anyone with an internet connection anywhere in the world. It is very common these days for Realtors to work with interested buyers from all parts of the globe.
• Stating that their website attracts more buyers than other Realtor websites. Bear in mind that once a listing is entered into MLS, it finds its way onto a vast array of both national and local real estate websites. The quality of the pictures and narrative are infinitely more important than the power of the website itself.

Montgomery County has a large number of professional, experienced Realtors with the confidence to compete for your listing with factual information and do not feel it necessary to puff up their presentation with vague claims and exaggerations. And it always pays to be a wise consumer, especially in a matter as important as selling your home.

The Sunday Drive

One of the outings I enjoyed as a youngster was the Sunday drive. After church we would go home, have the customary pot roast and if there was nothing else on the agenda, we would sometimes pile in the ’59 Chevy for a drive around the county. I always enjoyed those outings as my dad would usually venture into areas we had never seen before. That made it adventurous and made me more knowledgeable about the area we lived in.

As a Realtor, outings around Montgomery County are a daily occurrence. After being in this business for over 10 years, you would think that I would have seen every nook and cranny. But on occasion, I still venture into an area I’ve never seen before. And I get those same feelings of adventurousness that I felt as a kid. And that is just another part of being a Realtor that I love.

Recently, my web master incorporated a new header to my website’s homepage that features a slide show of pictures. They asked me to provide 20 pictures to display. I already had a number of nice pictures of homes that I’ve listed over the years. But in addition to property photos, I wanted to incorporate a few photos that represented the diverse real estate market in Montgomery County. I seized on this task as an opportunity for a Sunday drive. But to avoid crowds, I chose a Wednesday instead.

So I recruited my photographer / husband and embarked on a road trip around Montgomery County. We left our home off McCaleb Road about 9AM and headed south across the new FM 2854 overpass. Taking pictures along the way, we headed toward The Woodlands. We went to the Cynthia Woods Mitchell Pavilion and strolled along the walkways and took pictures of some of the architecture and sculptures. We then went to Market Square and took a few pictures of the shops and green spaces. About this time, we realized that covering Montgomery County in a day was going to be a challenge.

We headed back north on I-45 toward Historic Downtown Conroe. We took pictures of the Crighton Theatre along with other historic buildings. It was about noon by then, so we grabbed a deli sandwich at our favorite sandwich shop and ate in their dining room situated in one of the historic buildings on the square. After lunch, we headed east on Hwy 105 and took some photos in Cut ‘n Shoot, at the airport and fairgrounds, the Lone Star Convention Center and the new Lone Star College campus. We then headed out to the treasure trove of landscape photos, Lake Conroe.

No slide show about Montgomery County would be complete without a picture of the lighthouse at Seven Coves. The Southern Empress was in dock, so we managed to get a picture of the paddleboat with the lighthouse in the background. We headed toward FM 1097 and went across the bridge to Playa Vista on Lake Conroe. We get a great photo of Playa Vista with the FM 1097 bridge in the background.

We then went to Montgomery, took a few photos downtown and then went to Memory Park in Buffalo Springs. What a relaxing and scenic park. A great place to reflect on what had become a great, enjoyable day. It was now getting late, so we headed back home down FM 2854. But we stopped several times along the way to take pictures of some of the ranches along this scenic drive.

Back home, we found that we had taken several hundred pictures. I soon found out the more difficult part of this assignment is narrowing down the photos to only 20.
With the economy still struggling and gasoline prices still high, it might be a good time for stay local and rediscover the Sunday (or any day) drive. There’s lots to do and see right in our own backyard.

Making Money the Old Fashioned Way

Very seldom do I get a tidbit of wisdom from a TV commercial, especially something that is still sticking in my head several decades later. It was from a Smith Barney commercial in which the eminent actor John Houseman said of the brokerage firm “They make money the old fashioned way … they earn it.” He gave extra emphasis to the word “earn” in his distinguished accent. Those words rang true to me as the fruits of one’s labor taste so much sweeter when they have been earned through hard work.

In the real estate industry, I feel that it’s especially important to make money the old fashioned way, if you want to have some staying power. Every commission needs to be earned, not just received. So when can a Realtor walk away from the closing table, with a commission check in hand, and feel like they have “earned” their money? Here are a few items that should be on the checklist:

1. The Realtor has kept their client’s best interest in mind at all times by providing them with thorough and relevant information in a fair and objective manner.
2. The Realtor has minimized their client’s stress by being capable, responsive, communicative and proactive.
3. The Realtor has treated all parties involved with respect and professionalism.
4. The Client’s objectives have been met.

With these items checked, the Realtor should feel that the commission has been earned and should have a satisfied client that will provide future business through additional transactions and referrals.

Unfortunately, not everyone has the same concept of “earning” their commission. For example, I represented a client recently that needed to sell their home quickly in order to relocate for their job. It was a great property and after just a few days on the market a prospective buyer expressed interest. Since she hadn’t yet been pre-qualified for a loan, I gave her the names of several local lenders to get pre-qualified. After chatting a while about the property, she said she would call back after getting pre-qualified to set up an appointment to view the property. About a week later, I got a call from a Realtor in Galveston requesting information on this property for their client. Turns out he was calling on behalf of the same prospective buyer that had earlier contacted me. Instead of calling a local lender like I suggested, she contacted an internet lender based in Austin. The lender then directed her to the Galveston agent that he had an alliance with.

As it played out, I learned that the Galveston agent only handled referrals from this mortgage lender, had another full-time job, was inexperienced , and basically had very little time or ability to handle their client’s transaction. Additionally, neither the Realtor nor the lender understood or was willing to learn anything about our local market. In other words, they mostly wanted to “receive” their commission, not “earn” their commission. Unfortunately, the client’s advisors simply couldn’t get it together and were unable to close the deal. So the contract fell apart and the home was sold to the next person in line.

Unfortunately, this scenario is being played out with more and more frequency. Alliances are being formed between the various individuals in the real estate industry. Knowing that they are unlikely to ever get a referral or repeat business, they have to rely on the internet to cast a wide net to get new business. So they invest heavily in an internet website making grand promises to capture clients. But in reality are more focused on generating commissions than helping their clients successfully navigate through a major life decision.

Fortunately, there are many fine local Realtors who still feel that a successful business is built through satisfied clients. And as long as satisfied clients are the mission and the commission is not the mission, everything else will fall into place.

If you are looking for a home, I would love to have an opportunity to earn you business. I can be reached at 936-537-1656 or Claudia@ClaudiaHohlt.com.

Demystifying Short Sales

There has been an increased interest in “short sales” over the past several years. In 2010, about 2% of all single family homes sold in Montgomery County was identified as short sales. But the number has been growing each year. A short sale is essentially a pre-foreclosure arrangement where a lender agrees to accept a sale’s net proceeds as full payment of the homeowner’s outstanding debt. It is a viable option when a homeowner can no longer make their mortgage payments, their home is worth less than the amount owed, and efforts in acquiring a loan modification have been exhausted.

So how is a short sale different from a foreclosure? To a lender, a short sale prevents the legal costs associated with a foreclosure, eliminates the holding costs associated with owning the foreclosed home, and minimizes the risk associated with an unoccupied dwelling. To a home seller, a short sale has the potential to be less damaging to their credit score and could indicate to future creditors that they were proactive in mitigating their lender’s losses. It is also a less traumatic process for the home seller as it allows a more orderly transfer of the home and enables the seller to make a more graceful exit. Under certain circumstances, the home seller can even qualify for relocation assistance under the Home Affordable Foreclosure Alternatives (HAFA) program administered by the U.S. government. Details of this program can be found at www.makinghomeaffordable.gov.

For someone interested in a short sale, an experienced Realtor can be helpful in navigating through the process. One of the first steps for the homeowner is to contact their lender’s loss mitigation department to discuss their situation and give permission for their Realtor to communicate with them. The bank will expect evidence from the homeowner that a hardship has been incurred, there is an inability to make ongoing mortgage payments, they are unable to qualify for a loan modification, and there are no other assets to pay all or part of the debt. After the bank is on board, a short sale is handled much the same as a traditional sale, but with the bank negotiating offers, not the homeowner. And although there are a few more steps involved, most experienced agents can easily handle a short sale.

There are some things that homeowners should be aware of when considering a short sale. A second mortgage, for example, can make a short sale more challenging. The difference between the lender’s proceeds from the sale and the amount of the outstanding mortgage may or may not be forgiven by the bank, although the merits of pursuing the remainder through a judicial action would appear fruitless considering the documented hardship of the seller. If the debt is forgiven by the lender, the amount forgiven is taxable, unless the home is a principal residence. In that case, the amount is not currently taxable under the Mortgage Forgiveness Debt Relief Act of 2007.

In recent years, short sale negotiation companies have attempted to insert themselves into the process. Their claimed expertise is to handle the negotiation with the bank on behalf of the listing agent. To compensate them for their involvement, the homeowner is typically required to sign a contract requiring any future buyer of their home to pay the negotiation firm a fee. This fee can be significant and along with its unusual nature can sometimes be offensive to potential buyers. Because of this, home buyers looking at short sales should always inquire upfront about any fees that they would have to pay to a short sale negotiation firm, so that it can be factored into their offer.

Fear of losing one’s home is something none of us ever want to experience. But unexpected hardships can happen to any of us. If you are a distressed homeowner in fear of losing your home, be sure to discuss your options with trusted advisors who have your best interest at heart. And if you conclude that you can no longer afford your home and are upside down on your mortgage, be sure to consult with an experienced Realtor who understands and has direct experience with short sales.

Girls Scout Cookies and Real Estate

love the onset of spring. Birds are chirping, trees are budding, and Girl Scouts are selling cookies. Ok, I’ll be the first to admit it. I have an addiction to Thin Mints. My family has even tried an intervention, but I can’t seem to kick the habit. I think that even the Girl Scout Organization is trying to help Thin Mint addicts such as myself, as they have downsized the number of cookies in each box. Well, they can’t fool me, I’ll just buy more boxes!

All kidding aside, the marketing strategy of shrinking product sizes has been going on for years. A package of coffee now makes fewer lattes. A container of ice cream makes fewer root beer floats. A bar of soap washes fewer hands. I understand this trend is due to marketing research that has determined that consumers are less sensitive to shrinking package sizes than to increasing prices. But what is the end game? Downsizing can only be used so many times until it becomes ridiculous.

My age may show when I make this observation, but it seems that years ago manufacturers had more respect for the consumer and tried to differentiate their product through quality rather than gimmicks. Real estate is not that much different. I’ve seen developers shrink lot sizes to sell more lots per acre. I’ve seen builders use top of the line granite and bottom of the line lumber, to maximize visual appeal while minimizing cost per square foot. And I’ve seen realtors put more emphasis on production volume than quality of service delivered.

But as consumers, we can all make a difference. We have to be more discriminating in our purchases of goods and services and call out companies when they use gimmicks to capture our business. Perhaps we need to get outraged like Peter Finch in the 1976 movie “Network” when he repeatedly shouted “I’m as mad as &%$#, and I’m not going to take this anymore!”

In shopping for a realtor, I encourage everyone to be a discriminating consumer. When looking for a listing agent, review the quality of their work on other listings that appear online. Foremost, check to see if the pictures are vivid, well framed and clearly described. Additionally, see if the narrative is compelling and presents the property in a favorable light. Most people start their search for a home online and view each home just a few seconds unless the pictures or narrative interest them. So the importance of those aspects cannot be taken too lightly.

And whether you’re looking for someone to help you sell or buy a home, check out agents’ references. Every agent can provide them and most even present them on their website. You can also check out agents’ Client Experience Ratings on HAR.com. Finally, I encourage everyone to select someone who is experienced, full-time, and local.

Discriminating consumers not only make a difference in the quality of their own purchases, but they can make a difference for others. As more and more consumers become informed and use that information in their purchases, sellers of goods and services will respond accordingly.

Well, I’m still going to buy the Thin Mints. After all, it’s for a good cause so the number of cookies really isn’t a factor in my buying decision. In fact, I have only two factors that enter into my Thin Mint buying strategy … how good they taste and the size of my pantry.

A Realtor’s Trip Down Memory Lane

The other day I was checking on a home for a client who had moved out of state. As I was leaving, I noticed a yellowed newspaper that had been left behind. I was very intrigued when I saw it was a complete December 2, 1954 edition of The Conroe Courier. I’ve always enjoyed learning about our local history. I find it interesting and I feel it makes me a better ambassador for Montgomery County during my real estate activities. So I just had to read through it before I put it into a safe place for my client.

It was fascinating contrasting the news and ads of 1954 with today’s news. A front page article about women soon being allowed to serve on juries in Texas highlighted how much things have changed. Other front page articles were not that different from current articles, e.g. a road expansion, school bond election, and a shooting. But much of the paper was filled with personal information such as hospital admissions, births, vehicle transfers, and lots of tidbits about local residents’ comings and goings. I suppose to some extent, that level of personal info is still published today, but instead of calling the newspaper, folks just send a Tweet!

There were lots of ads in this issue. Let’s see, Ipana toothpaste is on sale for $.53 at Thompson Food Market, Flaxman’s has a 16 oz. jar of Foreman’s Picallilli for $.33, and Penney’s has 60 gauge sheer nylon hose with slim dark seams for $.50 a pair. For entertainment we have Julius Caesar playing at the Crighton and at the Hi-Y Drive-in Theater, Ronald Reagan stars in Prisoner of War.

But being a Realtor, the most interesting to me were the real estate ads. There were 4 real estate firms with ads, none of which are still in business today. Many of the homes were described by number of rooms rather than by square footage. Some of the features mentioned in the ads were venetian blinds, in-laid linoleum, a chicken coup and a hog proof fence. But the most unusual ad by today’s standards was for an 8 room rustic log and asbestos house adjoining the Country Club.

Yes, things really have changed in the last 57 years. And I would guess that few communities have changed as much as Montgomery County because of its explosive growth. We’re almost 20 times as large as we were in 1954. The construction of I-45 and Lake Conroe probably had the most impact. I-45 made Houston much more accessible and made Conroe attractive as a commuter town. The Woodlands along with other communities along I-45 sprouted up to meet the increased demand for housing. And Lake Conroe provided another alternative for those who enjoy the many amenities of lakeside living.

All of this growth has caused the local real estate industry to change as well. First of all, there are a lot more than a handful of Realtors these days, so it has become a much more competitive market. And with so many options available, Realtors have had to become well versed in the variety of housing options, including golf course homes, waterfront homes, estate communities, planned communities, condominium complexes, to name just a few. We also have to be adept in working with the many different types of buyers, including second home buyers, retirees, investors, first-time home buyers, up-sizers and down-sizers. In my own practice, I have had increased requests from current and soon-to-be retirees from all over, wanting to live in Montgomery County because of its natural beauty, temperate climate, proximity to great health care, affordability, and its many amenities.

Montgomery County has a great history and a great future. Much credit is deserved by those involved in the preservation of that history. Our beautiful downtown Conroe and the recent restoration of the Conroe Country Club are just a few examples of how history has been honored while meeting today’s needs. It is truly a joy and privilege to be a Realtor in Montgomery County. Now if my ancestors would have had the foresight in 1954 to purchase the advertised “43 acres near Hwy 105, 12 miles west of Conroe, nice home and lake site, ½ minerals for $3,800”, I would feel even more privileged!

Profile of the 2010 Montgomery County Housing Market

Many years ago George Bernard Shaw said “If all economists were laid end to end, they would not reach a conclusion”. In today’s much more complex world, his statement is more relevant than ever. While it appears that economists have differing outlooks on 2011, they seem to be slightly more upbeat than the last couple of years. And although I share cautious optimism with many of my fellow Realtors, I’ll refrain from making any of my own predictions for 2011. Instead, I’ll look back on 2010 and share a few insights. That’s a much easier task

As Montgomery County’s housing stats for 2010 are being finalized, results are shaping up to be a mixed bag. For Montgomery County as a whole, sales of single family residences were relatively flat with last year, but still around 30% below the peak year of 2006. The good news though is that the median home price rose about $3,000 in 2010 as a result of slightly larger homes sold and a slight increase in the average price per square foot.

In taking a closer look at the results, it appears that prices had to resist some heavy downward pressure from foreclosures. Foreclosures were very high as they have been for a number of years and still represent about 20% of all homes sold. The median sales price of foreclosed homes was down significantly in 2010 as banks appeared to more aggressively dispose of their inventories. The average price reduction from 2009 on foreclosures was approximately $9,000. The contrast in the average profile of a non-foreclosed home and foreclosed home in 2010 was remarkable. The average non-foreclosed home was 2,430 SF in size and sold for $89.76 / SF. The average foreclosed home was about 20% smaller and had a 35% less cost per square foot. Of course, many foreclosed homes are not in tip-top shape, but most of these foreclosed homes were great buys.

Without these large numbers of low priced foreclosures, our market would have fared much better in 2010. Since many of the systemic weaknesses in mortgage lending practices have been eliminated, I suspect that far fewer high risk mortgage loans are making their way into the banking system. And as foreclosures get back to the lower levels existing before the housing crisis, housing prices should improve. But I wasn’t going to get into any predictions, so I will let you come to your own conclusions.

Finally, from a geographic perspective, results indicate that southeast Montgomery County was the hottest housing market in 2010 with a 12% increase in sales and a 7% increase in prices. I should also note that new construction represented a third of all sales in this area compared to about a sixth of all sales in the rest of the county. With easier access to major employment centers and with The Woodlands approaching maturity, it makes sense that developers and builders are targeting this area.

In summary, I would conclude that 2010 showed slight improvement. Overall prices have picked up slightly while sales volumes have remained steady with last year. And with Montgomery County having so much to offer, I feel that the future of our local housing markets is bright.

But having said all of the above, most of my clients are not affected by housing trends and predictions. Their decisions to buy or sell property are based on personal reasons, such as a growing family, an impending empty nest, a big promotion, or wanting a change of scenery, to name just a few. But be assured that whatever is driving your decision to buy or sell, you will get maximum value when you contact an experienced Realtor.

Real Estate Marketing 101

To my delight, I was recently requested to take care of my six year old granddaughter for a couple of days. Realizing that she probably wasn’t going to enjoy one of my high fiber breakfast options, our first outing was to purchase a more kid-friendly breakfast cereal. So we went to the grocery store and headed down the cereal aisle. That was probably my quickest trip ever to the grocery store, as she focused like a laser beam on a box of Cocoa Puffs. That particular cereal would not have been my first choice as a mom, but I’m the grandma. I’m here to please. So in the basket it went.

This outing reminded me that cereal marketing and real estate marketing have a lot of similarities. Eye catching packaging and optimum product placement made my granddaughter’s choice stand out among the others. In marketing real estate, we strive for the same thing. We want to “package” the listing well and place it where potential buyers can easily find it. When a Realtor enters a listing into the local multiple listing service (MLS), these two basic marketing principles should be a top priority.

Packaging a listing involves writing a compelling narrative and taking great photographs. The MLS description field allows only 500 characters, so the product description must be concise, yet comprehensive. MLS allows 32 pictures; one picture on the main page and 31 additional pictures on a secondary page. The primary picture is what most people see first when reviewing their searches on-line. A realtor typically dedicates this picture to capture a home’s curb appeal and entice the viewer to spend more time exploring the listing. If successful, there is a good possibility that the viewer will look at the other 31 photos to see the interior and other exterior views. Pictures should always be well framed, properly exposed and staged to the extent possible to portray the home at its best and to allow potential buyers to envision themselves living in the home. The narrative and number of pictures can be expanded as needed through the use of virtual tour and slide show programs as well as individual Realtor websites.

Optimum product placement involves placing the listing where potential buyers can easily find it. That means entering the listing into MLS, which is the listing’s passageway onto the internet where 90% of potential home buyers begin their search. And properly entering listing information into MLS is of upmost importance as online searches are data driven. All data must be 100% accurate. Price, number of bedrooms, and school district are just a few of the many pieces of information entered into MLS. Inaccurate information could prevent your home from being included in potential buyers’ online searches. It should also be noted that entering a listing into MLS provides a broad internet presence as the MLS data feeds into the most popular real estate websites, such as HAR.com, Realtor.com and Homes.com. And for those few buyers that do not rely on the internet for home searches, print advertising can be useful.

Yes, listing agents and cereal manufacturers have some things in common. But while cereal manufacturers have the resources of large marketing departments to help with product placement and packaging, Realtors go about their business with little or no oversight. So it is most important for home sellers to select competent Realtors that have the experience and attention to detail to get their home presented in the best light and in front of every potential buyer.

Thanksgiving, Real Estate, and the Internet

Thanksgiving Day is right around the corner and I’m almost ready. I’ve purchased a nice Butterball, some yams, and all the ingredients for the expected green bean casserole. Everything seemed to be on track until I realized I was short 4 forks from my set of flatware. This was quite a disappointment as I’ve had this set since I was a teenager building my hope chest. So what should I do now? Buy a whole new set? Try to find matching forks? Or perhaps I should just serve turkey soup. Like my approach with many dilemmas these days, I enlisted the help of Google. After a minute or so of browsing, I found out that the pattern was still available from the manufacturer. A couple of keystrokes later and the forks were ordered, paid for and in the shipping department. Looks like I’m back on track for Thanksgiving dinner.

Anyone who has an internet connection probably has had similar experiences. The internet has simplified so many tasks. And searching for real estate is no exception. The real estate industry has embraced the internet for many years in order to facilitate and enhance the buying and selling experience for both Realtors and consumers. The local multiple listing service (MLS), which contains details and photos for all homes listed by Realtors, has been online since the early years of the internet, courtesy of the Houston Association of Realtors (HAR). HAR offers a free website, aptly called HAR.COM, that has the MLS detail on every listed home in a user friendly searchable format.

While many Realtors and real estate companies have their own websites, HAR.COM is the local workhorse and is the original source for most of the local real estate information seen online. In addition to over 500,000 visits a month, HAR allows its Realtor members to extract and utilize MLS data for their own personal websites. It also provides daily transmission of MLS data to other national websites like Realtor.com and Homes.com. Everyone who accesses HAR.COM soon appreciates its power. Prospective buyers can perform searches on listed homes by location, price, size of home and a number of other parameters. Real estate agents who are members of HAR have access to an even more powerful search tool to help their clients quickly hone in on their dream home.

HAR.COM has another feature that is very helpful for both prospective buyers and sellers. It’s a relatively new feature called the Client Experience Rating. After every real estate closing, the buyer and seller involved are sent a questionnaire by HAR concerning their experience with their Realtor. They are asked to rate their Realtor on a scale of 1 to 5 in several categories including competency, market knowledge and communication. Individual Realtors can elect to not participate in this program. But for those of us that do, it is a great opportunity to make our reputation more transparent to existing and potential clients.

Much like the development of the printing press, radio and TV, the internet is a major advancement in our ability to access information. And while it doesn’t come close to replacing the knowledge and experience of seasoned real estate agents, it does provide the consumer with information on both homes and Realtors to help them make better real estate decisions.

Getting back to my preparations for Thanksgiving, I should remind everyone that missing forks are the least of worries of many of our less fortunate neighbors. Having been a board member of the Montgomery County Food Bank for many years, I’m profoundly aware of the struggle that many have to feed themselves and their families. As part of your Thanksgiving preparations, please make a donation to the Montgomery County Food Bank, or a hunger-relief charity of your choice.

The Envelope Please

I enjoy watching award shows for the entertainment industry, especially the Academy Awards. I must admit though that I often don’t understand how the voters distinguish between the different performances. I suppose you have to really be into movies to appreciate the subtle differences. Awards handed to Realtors on the other hand are much simpler as they are usually based on production volume statistics such as most sales. Just imagine if the Academy Awards were based on production volumes. John Wayne would have won the majority of Best Actor awards during his heyday as he was one of the most productive actors in movie history with 142 leading roles. But alas, the Academy Awards criteria for recognizing excellence is somewhat more complicated, so the Duke ended up with only one Oscar toward the end of his career. If Realtors’ work was as transparent for all to see as actors’ work is, the results might be interesting. And it certainly would be helpful to future buyers and sellers of real estate.

Well, I’ve really strayed from what I wanted to write about in this column. I actually did want to talk about awards, but not Realtor awards. I thought it would be interesting to give some awards to some of our local neighborhoods. So I asked my broker (who is also my husband) to do some statistical analysis on sales of single family residences in various neighborhoods in and around the Conroe and Lake Conroe area. I should note that this is not a complete list as the number of neighborhoods are simply too many and my broker has limited patience to satisfy my curiosity. But he did try to pick up many of the more popular neighborhoods and a mix of older and newer neighborhoods. And to get a meaningful sample, he selected data over the last 24 months and only included neighborhoods with at least 10 sales during that period.

There’s no opening song and dance number, so let’s get right to the awards. First up is the Mayflower Moving Van Award for the neighborhood with the most sales. By a landslide, it was Walden with 377 sales. April Sound and Bentwater get an honorable mention with around 200 sales each. Closer to Conroe, River Plantation and Graystone Hills came in neck and neck with 95 and 93 sales, respectively.

The Lamborghini Award is for the neighborhood in which homes sold the quickest. Pass the envelope please. The award goes to Panorama whose 58 sales had a median time on the market of only 52 days, a far cry from the worst in this category at 248 days. It shall go unnamed, but I will hand out the Yugo Award in a private ceremony.

The Porcelain Award is for the neighborhood whose sales reflect the highest median number of bathrooms. And we have a 4 way tie. Graystone Hills, Crighton Woods, Crighton Ridge and Bentwater all tied with 3 ½ baths. Now that’s a lot of porcelain.
The Yao Ming Award is for the largest home in our sample and goes to Crighton Ridge whose median sold home was 3,940 SF. It just barely overshadowed its cousin Crighton Woods by 36 SF. And as no surprise, it also won the Donald Trump Award for most expensive median home.

Finally, the Horizon Award is for the newest median home sold and is awarded to both Graystone Hills and Crighton Woods where the median home sold was built in 2008. The Heritage Award is for the oldest home sold and goes to Tanglewood whose median home sold was built in 1965.

This was all sort of silly and isn’t very meaningful. But with an abundance of real estate articles about market conditions, I just felt a need to do something different and perhaps get a chuckle or two. But what I personally gained from all this is that the Conroe and Lake Conroe area has a wide diversity of homes for sale. And like actors and Realtors, neighborhoods are all unique and have their own personality. We truly are very fortunate to live in such a wonderful and diverse area.