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.
Sunday, November 7, 2010
Sunday, October 3, 2010
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.
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.
Sunday, August 29, 2010
Reflections on the Housing Market
As I’m cleaning up the mess in the kitchen that my husband’s left for me after one of his cooking endeavors, I’m wondering why he isn’t more careful while preparing meals. I’m very grateful that he has taken over much of the cooking chores over the last few years and I truly enjoy his tasty meals, but he just isn’t focused on minimizing the aftermath. Then it dawns on me that since we have an agreement that I will clean up after he cooks, he simply has no incentive to be less messy. And that brings my thoughts to our protracted recovery from the housing collapse of several years ago. Homebuyer friendly government policies combined with a mortgage lending process that increasingly disconnected loan underwriting from loan risk, many mortgage loans were approved in a manner like my husband cooks. Loan originators and underwriters did a very good job at getting loans approved but became more and more removed from the consequences of those loans defaulting since the financial risks were offloaded to someone else.
But what’s done is done. Our government has taken actions to tighten up the mortgage lending process and to increase regulation in the financial markets. Attempts have been made to ensure that appraisals are more objectively prepared and credit hurdles have been raised. While these new regulations may prevent a future housing crisis, only time will tell what the impact will be on future growth in the housing market. At the same time our government has also tried, with limited success, to ease the housing market’s transition to these new standards by providing distressed homeowners assistance in keeping their homes, 1st time buyers’ tax credits on the purchase of a home, and long time existing homeowners tax credits in buying a different home.
All of this has come at a significant cost. Bailouts of financial institutions and subsidizing the housing industry through tax credits have been very costly and have increased our national debt. At the same time, loss of confidence in our economic future has eroded the wealth of our fellow citizens as interest on savings is at an all time low and the stock market has yet to come close to regaining lost ground.
As I review my own business over the last couple of years, I’m reminded how the above events have affected the nature of my work. For example, more of my buyers have been investors in rental properties, and I’ve had an increase in clients either trying to lease out their properties or looking for properties to lease. I suppose it is only logical that massive foreclosures combined with tightened lending practices would result in a number of owner occupied properties turning into lessee occupied properties.
Analysis of historic HAR MLS statistical data for Montgomery County tells me that my experience is echoed throughout our market. As I look over the statistics, I notice that 4 years ago, about 1 in 5 closed real estate transactions on single family residences and condos was a lease contract while 4 in 5 were sales contracts. Most currently, about 1 in 3 closed transactions are leases. The significant change is due to lease transactions increasing almost 20% and sale transactions decreasing over 25%.
Of course, everyone wonders when the real estate market will recover, if ever. Unfortunately no one knows, as there are just too many moving parts. But we do know that in Montgomery County, we have a fairly good economic environment and a great quality of life, so I remain cautiously optimistic. Meanwhile, if anyone can think of a way to make my husband a tidier chef, please let me know. Perhaps more regulation?
But what’s done is done. Our government has taken actions to tighten up the mortgage lending process and to increase regulation in the financial markets. Attempts have been made to ensure that appraisals are more objectively prepared and credit hurdles have been raised. While these new regulations may prevent a future housing crisis, only time will tell what the impact will be on future growth in the housing market. At the same time our government has also tried, with limited success, to ease the housing market’s transition to these new standards by providing distressed homeowners assistance in keeping their homes, 1st time buyers’ tax credits on the purchase of a home, and long time existing homeowners tax credits in buying a different home.
All of this has come at a significant cost. Bailouts of financial institutions and subsidizing the housing industry through tax credits have been very costly and have increased our national debt. At the same time, loss of confidence in our economic future has eroded the wealth of our fellow citizens as interest on savings is at an all time low and the stock market has yet to come close to regaining lost ground.
As I review my own business over the last couple of years, I’m reminded how the above events have affected the nature of my work. For example, more of my buyers have been investors in rental properties, and I’ve had an increase in clients either trying to lease out their properties or looking for properties to lease. I suppose it is only logical that massive foreclosures combined with tightened lending practices would result in a number of owner occupied properties turning into lessee occupied properties.
Analysis of historic HAR MLS statistical data for Montgomery County tells me that my experience is echoed throughout our market. As I look over the statistics, I notice that 4 years ago, about 1 in 5 closed real estate transactions on single family residences and condos was a lease contract while 4 in 5 were sales contracts. Most currently, about 1 in 3 closed transactions are leases. The significant change is due to lease transactions increasing almost 20% and sale transactions decreasing over 25%.
Of course, everyone wonders when the real estate market will recover, if ever. Unfortunately no one knows, as there are just too many moving parts. But we do know that in Montgomery County, we have a fairly good economic environment and a great quality of life, so I remain cautiously optimistic. Meanwhile, if anyone can think of a way to make my husband a tidier chef, please let me know. Perhaps more regulation?
Sunday, August 1, 2010
Temporary Leases Can Help Sync Up a Real Estate Transaction
If only buying a home could be as seamless as buying a car. A car buyer can walk into a dealership, trade-in an old car for a new car and never be concerned about being without transportation at any point during the process. The home buying process, however, has a few more moving parts. And syncing up a buyer’s move-in date with a seller’s move-out date can be one of the more challenging aspects of the process.
It is not unusual for a home buyer to be required to move out of their existing home before the transaction on their new home is finalized. This situation should be avoided if at all possible by extending a lease on a rent home, or delaying a closing on an existing home. But what happens if a buyer has a firm move-out date and their new home simply can’t close on time? One alternative would be for the buyer to place most of their belongings in storage and then rent temporary housing until their new home closes. Of course that adds to the costs of moving and can be inconvenient, to say the least. A more desirable alternative, if available, would be for the buyer to negotiate a short-term lease with the home seller to bridge the gap. That would eliminate the need to store belongings, and enables the buyers to promptly move into the home they are planning to move into anyway.
The Texas Real Estate Commission offers a contract form for these situations that is titled a Buyer’s Temporary Residential Lease. This contract addresses rent, pets, utilities, maintenance and deposits much like any other residential lease. This alternative can be a win-win for the buyer and seller. However, this typically will work only when the seller’s home is already vacant. And even then, some sellers’ are not willing to use this tool because of concern that the buyer loses incentive to keep pushing for a timely closing of their loan and resolution of any other issues related to the closing. The sellers may also be concerned that something could happen to prevent the buyer from closing at all or that they may change their mind about buying the home. Then the sellers may be faced with going through the eviction process and then get the property ready to sell again. But when the sellers are comfortable with the buyers, a Buyer’s Temporary Residential Lease is something that may be considered.
Another situation that occurs from time to time is when the seller does not wish to move until after their home closes. For example, a seller may be nervous about a buyer’s ability to close, and prefers not to take the risk involved with moving out of their home before the transaction is finalized. They simply want to have a done deal, and then vacate after all the risk is removed. Again, the Texas Real Estate Commission has a contract form for this situation. It is titled a Seller’s Temporary Residential Lease. Its substance is very much the same as the Buyer’s Temporary Residential Lease. This arrangement is very friendly to the seller, but the buyer may be less enthusiastic due to a concern about the property’s condition when they finally get the keys. Just prior to a home’s closing, there is usually a walk-through by the buyer to determine that the property is in the agreed upon condition. With a seller’s temporary lease in place, the buyer is doing their walk-through before the property is vacated. And obviously, a visual inspection is less effective when the house still contains furniture, wall decorations and rugs.
In most cases, experienced Realtors can avoid the need for temporary leases through their efforts in coordinating the buying and selling process. But on those occasions when the buyer’s and seller’s timing just can’t be synced up, Realtors have these tools to ensure the process keeps moving forward. At the end of the day, the real estate buying and selling process can have the appearance of being seamless, as long as experienced Realtors are in the sewing room.
If you are thinking about buying or selling a home, give me a call. I have the experience and knowledge to get the job done to your satisfaction.
It is not unusual for a home buyer to be required to move out of their existing home before the transaction on their new home is finalized. This situation should be avoided if at all possible by extending a lease on a rent home, or delaying a closing on an existing home. But what happens if a buyer has a firm move-out date and their new home simply can’t close on time? One alternative would be for the buyer to place most of their belongings in storage and then rent temporary housing until their new home closes. Of course that adds to the costs of moving and can be inconvenient, to say the least. A more desirable alternative, if available, would be for the buyer to negotiate a short-term lease with the home seller to bridge the gap. That would eliminate the need to store belongings, and enables the buyers to promptly move into the home they are planning to move into anyway.
The Texas Real Estate Commission offers a contract form for these situations that is titled a Buyer’s Temporary Residential Lease. This contract addresses rent, pets, utilities, maintenance and deposits much like any other residential lease. This alternative can be a win-win for the buyer and seller. However, this typically will work only when the seller’s home is already vacant. And even then, some sellers’ are not willing to use this tool because of concern that the buyer loses incentive to keep pushing for a timely closing of their loan and resolution of any other issues related to the closing. The sellers may also be concerned that something could happen to prevent the buyer from closing at all or that they may change their mind about buying the home. Then the sellers may be faced with going through the eviction process and then get the property ready to sell again. But when the sellers are comfortable with the buyers, a Buyer’s Temporary Residential Lease is something that may be considered.
Another situation that occurs from time to time is when the seller does not wish to move until after their home closes. For example, a seller may be nervous about a buyer’s ability to close, and prefers not to take the risk involved with moving out of their home before the transaction is finalized. They simply want to have a done deal, and then vacate after all the risk is removed. Again, the Texas Real Estate Commission has a contract form for this situation. It is titled a Seller’s Temporary Residential Lease. Its substance is very much the same as the Buyer’s Temporary Residential Lease. This arrangement is very friendly to the seller, but the buyer may be less enthusiastic due to a concern about the property’s condition when they finally get the keys. Just prior to a home’s closing, there is usually a walk-through by the buyer to determine that the property is in the agreed upon condition. With a seller’s temporary lease in place, the buyer is doing their walk-through before the property is vacated. And obviously, a visual inspection is less effective when the house still contains furniture, wall decorations and rugs.
In most cases, experienced Realtors can avoid the need for temporary leases through their efforts in coordinating the buying and selling process. But on those occasions when the buyer’s and seller’s timing just can’t be synced up, Realtors have these tools to ensure the process keeps moving forward. At the end of the day, the real estate buying and selling process can have the appearance of being seamless, as long as experienced Realtors are in the sewing room.
If you are thinking about buying or selling a home, give me a call. I have the experience and knowledge to get the job done to your satisfaction.
Sunday, July 4, 2010
A Self-Sufficient Lifestyle Can Be A Rewarding Experience
Last year, my husband was given his grandfather’s financial journal from the 1930’s. At that time, his grandfather had a small farm near Brenham and owned a few cows, sheep, hogs, and chickens, grew cotton and tended to a vegetable garden. The journal was a heart breaking account of how difficult life was during our nation’s worst economic times. Work was hard, money was scarce and possessions were few. What is surprising though is that my mother-in-law has very fond memories of growing up during these times. But with life centered around church, family and friends, the most important building blocks of a happy childhood were intact.
As hard as life was for my husband’s grandparents, they still fared much better than many non-farming folks during that era. That was primarily because of their self-sufficient lifestyle. They may have been poor, but they always had food on the table. A self-sufficient lifestyle is a way of life that is still around today. In fact, I recently listed a property whose owners have embraced this concept. With a barn, chicken coops, multiple fruit trees, a small vineyard, smoke house and cold storage, this property has many of the elements needed for a self-sufficient lifestyle.
A self sufficient lifestyle can describe many different aspects. From planting a small garden to living off the electrical grid, the concept of self-sufficiency has many variations. It seems that more and more people these days are interested in having property that will allow them to pursue one or more elements of a self-sufficient lifestyle. Some are interested in water conservation techniques such as cisterns and drought tolerant landscaping. Some are interested in reducing their carbon footprint through power conservation equipment like solar panels and wind mills. Some are interested in producing their own food thru organic gardening or raising poultry and livestock. And some are interested in all of the above.
But before you purchase a home with the vision of gathering free range eggs in the backyard, you better do some homework. When shopping for a property that will allow various elements of self sufficient living, the first thing to check out is if the property has any deed restrictions against the desired activity. Of course if the property is unrestricted, most anything goes. But if it is restricted, a buyer should read the deed restrictions carefully to determine what is allowed.
Once you’ve determined that you are not prohibited from a certain activity, then check out the property’s physical characteristics. For example, if you’re interested in gardening, make sure you have sufficient sun exposure in the areas that are available for the garden. If you’re interested in solar panels, make sure the desired location of the panels has adequate sun exposure. If you’re interested in power conservation, make sure existing living spaces have good insulation, windows are double paned and appliances are energy star rated. If you’re interested in water conservation, steer away from properties with thirsty landscaping.
Whether you’re interested in saving money, enjoying the outdoors or establishing a hedge against uncertain economic times, a self-sufficient lifestyle can be a rewarding experience for individuals and their families. If you’re interested in making this type of lifestyle change, give me a call. I can help find a property that will work for you.
As hard as life was for my husband’s grandparents, they still fared much better than many non-farming folks during that era. That was primarily because of their self-sufficient lifestyle. They may have been poor, but they always had food on the table. A self-sufficient lifestyle is a way of life that is still around today. In fact, I recently listed a property whose owners have embraced this concept. With a barn, chicken coops, multiple fruit trees, a small vineyard, smoke house and cold storage, this property has many of the elements needed for a self-sufficient lifestyle.
A self sufficient lifestyle can describe many different aspects. From planting a small garden to living off the electrical grid, the concept of self-sufficiency has many variations. It seems that more and more people these days are interested in having property that will allow them to pursue one or more elements of a self-sufficient lifestyle. Some are interested in water conservation techniques such as cisterns and drought tolerant landscaping. Some are interested in reducing their carbon footprint through power conservation equipment like solar panels and wind mills. Some are interested in producing their own food thru organic gardening or raising poultry and livestock. And some are interested in all of the above.
But before you purchase a home with the vision of gathering free range eggs in the backyard, you better do some homework. When shopping for a property that will allow various elements of self sufficient living, the first thing to check out is if the property has any deed restrictions against the desired activity. Of course if the property is unrestricted, most anything goes. But if it is restricted, a buyer should read the deed restrictions carefully to determine what is allowed.
Once you’ve determined that you are not prohibited from a certain activity, then check out the property’s physical characteristics. For example, if you’re interested in gardening, make sure you have sufficient sun exposure in the areas that are available for the garden. If you’re interested in solar panels, make sure the desired location of the panels has adequate sun exposure. If you’re interested in power conservation, make sure existing living spaces have good insulation, windows are double paned and appliances are energy star rated. If you’re interested in water conservation, steer away from properties with thirsty landscaping.
Whether you’re interested in saving money, enjoying the outdoors or establishing a hedge against uncertain economic times, a self-sufficient lifestyle can be a rewarding experience for individuals and their families. If you’re interested in making this type of lifestyle change, give me a call. I can help find a property that will work for you.
Sunday, May 30, 2010
Timing the Sale of a Home
Late last year, I was contacted by a client who wanted to sell their home. Since they wished to synchronize the sale of their home with the end of the school year, they were wondering when the best time to put their home on the market was. They were rightly concerned about setting the optimum time to introduce their home onto the market as a quick sale would force them out of their home too early and a sluggish sale would disrupt their relocation plans. In many cases, the seller’s personal circumstances necessitates an immediate listing. But when a specific relocation time frame is known well in advance, certain factors should be considered when selecting the right time to list a home. Here are some of the factors that I look at when working with my clients:
Historical Days on Market (DOM) – We all know that historical data is not always an accurate predictor of future results. But it can help define some general expectations. Since January, 2007 the median time from a home’s initial listing date to its closing date in Montgomery County has been 71 days. But within this group of over 20,000 homes sold, DOM’s have ranged from 1 day to several years. The DOM can vary significantly according to market conditions, season, price point, and location. For example, the median DOM for Montgomery County in 2007 was 61 days, but due to deteriorating market conditions, the median DOM had increased by almost 50% to 90 days in 2009. Results in 2010 indicate a slight improvement over 2009, but not yet to 2007 levels. Seasonality also affects the length of time a home stays on the market. Historically, the largest number of closings occur in May through August and, as expected, many of the homes closed during these months have been on the market the least amount of time. Price point is another factor as more expensive homes typically take longer. Finally, location is an important factor. While the impact of location varies considerably among neighborhoods, homes sold in the southwestern part of the county generally have the shortest DOM’s.
Pricing of the Home – Perhaps the most important factor affecting the length of time on the market is the pricing of the home. Setting a realistic price cannot be stressed enough. If priced too low, a home will sell the quickest, but the seller could be leaving money on the table. If priced too high, a home sells the slowest and could even eventually sell for a lower amount than if originally priced more reasonably. Local market conditions, features of a property and condition of home should all be taken into consideration when pricing a home. Unlike a commodity where the fair market value is readily assessed, all homes are unique and should be carefully analyzed to maximize its value.
Listing Product – A home’s listing should be entered into MLS and a Realtor’s personal website. It should be comprised of accurate quantitative data along with a descriptive narrative of the virtues of the home. Accompanying pictures should be well framed and vivid. Print advertising and signage should be well placed and have a professional appearance.
Listing Process – An effective listing is a process, not an event. Once a listing is initiated, data continues to develop that might warrant a change in pricing, home presentation or marketing strategy. Feedback from showings, changes in competitive listings and general economic data can dictate a change in course. Realtors should continually monitor a listing’s pulse and keep the seller well informed at all times. A listing should never be viewed by the Realtor solely as a tool to attract buyers for their business. Its overriding focus should always be to attract a buyer for the listing.
When a specific closing date is targeted, work closely with your Realtor in timing the introduction of your home onto the market. There are many factors that determine how long it will take to sell a home, but having a full-time, local, experienced Realtor will maximize your chances of meeting your objectives.
I have been a local Realtor in Montgomery County since 2000 and am the owner of HomesPlus Real Estate Services. My office is located between Conroe and Montgomery at 19755 Hwy 105W. I can be reached at 936-537-1656 or emailed at Claudia@ClaudiaHohlt.com.
Historical Days on Market (DOM) – We all know that historical data is not always an accurate predictor of future results. But it can help define some general expectations. Since January, 2007 the median time from a home’s initial listing date to its closing date in Montgomery County has been 71 days. But within this group of over 20,000 homes sold, DOM’s have ranged from 1 day to several years. The DOM can vary significantly according to market conditions, season, price point, and location. For example, the median DOM for Montgomery County in 2007 was 61 days, but due to deteriorating market conditions, the median DOM had increased by almost 50% to 90 days in 2009. Results in 2010 indicate a slight improvement over 2009, but not yet to 2007 levels. Seasonality also affects the length of time a home stays on the market. Historically, the largest number of closings occur in May through August and, as expected, many of the homes closed during these months have been on the market the least amount of time. Price point is another factor as more expensive homes typically take longer. Finally, location is an important factor. While the impact of location varies considerably among neighborhoods, homes sold in the southwestern part of the county generally have the shortest DOM’s.
Pricing of the Home – Perhaps the most important factor affecting the length of time on the market is the pricing of the home. Setting a realistic price cannot be stressed enough. If priced too low, a home will sell the quickest, but the seller could be leaving money on the table. If priced too high, a home sells the slowest and could even eventually sell for a lower amount than if originally priced more reasonably. Local market conditions, features of a property and condition of home should all be taken into consideration when pricing a home. Unlike a commodity where the fair market value is readily assessed, all homes are unique and should be carefully analyzed to maximize its value.
Listing Product – A home’s listing should be entered into MLS and a Realtor’s personal website. It should be comprised of accurate quantitative data along with a descriptive narrative of the virtues of the home. Accompanying pictures should be well framed and vivid. Print advertising and signage should be well placed and have a professional appearance.
Listing Process – An effective listing is a process, not an event. Once a listing is initiated, data continues to develop that might warrant a change in pricing, home presentation or marketing strategy. Feedback from showings, changes in competitive listings and general economic data can dictate a change in course. Realtors should continually monitor a listing’s pulse and keep the seller well informed at all times. A listing should never be viewed by the Realtor solely as a tool to attract buyers for their business. Its overriding focus should always be to attract a buyer for the listing.
When a specific closing date is targeted, work closely with your Realtor in timing the introduction of your home onto the market. There are many factors that determine how long it will take to sell a home, but having a full-time, local, experienced Realtor will maximize your chances of meeting your objectives.
I have been a local Realtor in Montgomery County since 2000 and am the owner of HomesPlus Real Estate Services. My office is located between Conroe and Montgomery at 19755 Hwy 105W. I can be reached at 936-537-1656 or emailed at Claudia@ClaudiaHohlt.com.
Sunday, April 25, 2010
Exactly Who is Your Realtor Working For?
Recently I was contacted by someone from out of state who was in the process of relocating to Montgomery County. After spending some time understanding their objectives, I explained to them how real estate agency works in Texas and e-mailed them an “Information About Brokerage Services” pamphlet and a “Buyer’s Representation Agreement” for their review and signature. After a couple of days, they replied that they appreciated the information but would proceed with their home search without formal representation. So we amicably parted ways. Such is the nature of being a Realtor.
Realtors are often called Real Estate Agents. As you probably know, an agent is someone who is representing someone else in a particular activity or event. There are all kinds of agents; insurance agents, talent agents, press agents and secret agents to name just a few. The one thing all agents have in common is that they are acting on behalf of someone else, i.e. the principal. This relationship creates a fiduciary responsibility on the realtor. In other words, the interests of the principal come before the interests of the realtor, or any other person.
So is your Realtor always your agent? Not necessarily. In Texas real estate law, there is a concept called sub-agency. That means, unless an agreement is in place between the realtor and potential buyer, an agent showing a home is, by default, a sub-agent of the listing agent. In other words, the Realtor helping you find a home could technically be working for the seller, even if they are not the listing agent.
So how do you get someone to work on your behalf when you are the buyer? That is very easy to do. You enter into an agreement, typically a Buyer’s Representation Agreement, with your Realtor. This agreement enables the Realtor to put your interests first, not the seller’s. If you do not want to obligate yourself long-term to a certain agent, the Buyer’s Representation Agreement can be set for any time period, for specific houses, or for a specific area.
I should note that the Buyer’s Representation Agreement protects the agent as well. There are few experienced agents who have not been taken advantage of by a buyer with a hidden agenda. It is not unusual to spend an inordinate amount of time and travel with an unrepresented buyer, only to find out that they intend Aunt Suzy from Amarillo to write the contract and collect the commission once the right home is found. Once a Realtor has spent some time as a volunteer chauffeur and tour guide, the mutual benefit of a Buyer’s Rep Agreements becomes apparent.
What if you approach a listing agent to show you a home that they have listed? Agents can work for both parties as an intermediary. With written consent by all parties involved, an agent can essentially be the listing agent and the buyer’s agent. The agent cannot disclose confidential information of either party and must treat all parties honestly and fairly.
For anyone looking for additional information, this is all spelled out in a publication of the Texas Real Estate Commission titled Information About Brokerage Services (IABS). The IABS pamphlet should be presented to both buyers and sellers as soon as a relationship exists to ensure that there is no confusion about who’s working for whom.
Realtors are often called Real Estate Agents. As you probably know, an agent is someone who is representing someone else in a particular activity or event. There are all kinds of agents; insurance agents, talent agents, press agents and secret agents to name just a few. The one thing all agents have in common is that they are acting on behalf of someone else, i.e. the principal. This relationship creates a fiduciary responsibility on the realtor. In other words, the interests of the principal come before the interests of the realtor, or any other person.
So is your Realtor always your agent? Not necessarily. In Texas real estate law, there is a concept called sub-agency. That means, unless an agreement is in place between the realtor and potential buyer, an agent showing a home is, by default, a sub-agent of the listing agent. In other words, the Realtor helping you find a home could technically be working for the seller, even if they are not the listing agent.
So how do you get someone to work on your behalf when you are the buyer? That is very easy to do. You enter into an agreement, typically a Buyer’s Representation Agreement, with your Realtor. This agreement enables the Realtor to put your interests first, not the seller’s. If you do not want to obligate yourself long-term to a certain agent, the Buyer’s Representation Agreement can be set for any time period, for specific houses, or for a specific area.
I should note that the Buyer’s Representation Agreement protects the agent as well. There are few experienced agents who have not been taken advantage of by a buyer with a hidden agenda. It is not unusual to spend an inordinate amount of time and travel with an unrepresented buyer, only to find out that they intend Aunt Suzy from Amarillo to write the contract and collect the commission once the right home is found. Once a Realtor has spent some time as a volunteer chauffeur and tour guide, the mutual benefit of a Buyer’s Rep Agreements becomes apparent.
What if you approach a listing agent to show you a home that they have listed? Agents can work for both parties as an intermediary. With written consent by all parties involved, an agent can essentially be the listing agent and the buyer’s agent. The agent cannot disclose confidential information of either party and must treat all parties honestly and fairly.
For anyone looking for additional information, this is all spelled out in a publication of the Texas Real Estate Commission titled Information About Brokerage Services (IABS). The IABS pamphlet should be presented to both buyers and sellers as soon as a relationship exists to ensure that there is no confusion about who’s working for whom.
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