Thursday, October 13, 2011

Forget my Single Digit Commission - Take a 28% Hit Instead!

Recently a REALTOR® emailed NAR Research, asking about the advertising site ForSaleByOwner.com. “ForSaleByOwner” states that with a FSBO, “Sellers save big by not paying a hefty 6% commission. They go on to state: “According to the National Association of Realtors (NAR), for sale by owner sellers not only sell faster, but they usually get closer to their asking price.”

We thanked the REALTOR® for alerting us to the website’s statements. This advertisement is an example of the old phrase, “We gave them the facts, just not all the facts.” Here are more facts to take into consideration:

In 2010 for an arms-length sale (this means you didn’t sell it to your sister or business partner), the median sale price through a Realtor® was $200,000 for new and existing homes combined, according to NAR’s Profile of Home Buyers and Sellers 2010. The comparable FSBO price was $ 155,700. Avoiding the commission results in a sales price that is 28 percent lower—not a very smart idea.
“ForSaleByOwner” is correct that FSBO’s sell faster—but they neglect to mention that the faster sale is caused by significant under-pricing of the property, something a Realtor® knows to avoid. Of course it sold faster…it was priced 28% less. Every buyer is looking for deal.
And of course FSBO’s do actually sell closer to asking price—because the asking price is set significantly below market. If it’s a deal, jump on it!

The information on the website is extremely misleading – and wrong! Their final comment may be their worst: “Despite what an agent might tell you, selling your home isn’t difficult with ForSaleByOwner.com there to help you along the way.” Remember the recent article where the founder of ForSaleByOwner.com used a REALTOR to sell his home?!

In fact, many FSBO properties are eventually listed with REALTORS® (about 90% of all FSBO properties are listed with a REALTOR within 90 days) in order to get them sold. Unfortunately, by that time, the properties are “shopworn” and stale. Typically a REALTOR® can get a better price than a FSBO, but the price is generally less than what could have been obtained if the seller had initially listed with a REALTOR®.

On October 7, 2011, in Economist Commentaries, by Jed Smith, Managing Director, Quantitative Research

Posted via email from Scott Deaton's Blog

Fall Lawn Care: 4 Ways to Say G'Night For The Winter

Fall Lawn Care: 4 Ways to Say G’Night For The Winter

Labor Day through Halloween is your window for preparing lawns for a lush spring.

“I’m already thinking about next year,” says John Dillon, who takes care of New York City’s Central Park, which features 200 acres of lawn in the middle of Manhattan. “The grass I grow this fall is what will be there next spring.”

Fall lawn care is no walk in the park. It’s hard work, and Dillon guides you through the four basic steps.

1. Aeration

Aeration gives your lawn a breather in autumn and provides room for new grass to spread without competition from spring weeds. Aeration tools pull up plugs of grass and soil, breaking up compacted turf. That allows water, oxygen, and nutrients to reach roots, and gives seeds room to sprout.

If kids frequently play on your lawn, plan to aerate twice a year — fall and spring. If your lawn is just for show, then aerate once a year — and maybe even once every other year.

A hand-aerating tool ($20), which looks like a pitchfork with hollow tines, is labor-intensive and meant for unplugging small sections of grass. Gas-powered aerating machines (rental, $20/hour) are about the size of a big lawn mower, and are good for working entire lawns. Bring some muscle when you pick up your rental: Aerating machines are heavy and can be hard to lift into your truck or SUV.

Depending on the size of your property, professional aeration costs about $150.

2. Seeding

Fall, when the soil temperature is about 55 degrees, is the best time to seed your lawn because turf roots grow vigorously in fall and winter. If you want a lush lawn, don’t cheap out on the seed.

Bags of inexpensive seed ($35 for 15 pounds) often contain hollow husks, weed seed, and annual rye grass seed, which grows until the first frost then drops dead. Splurge on the good stuff ($55 for 15 pounds of Kentucky Bluegrass seed), which resists drought, disease, and insects.

Water your new seed every day for 10 to 20 days until it germinates.

3. Fertilizing

A late fall fertilization — before the first frost — helps your grass survive a harsh winter and encourages it to grow green and lush in spring. Make your last fertilization of the year count by choosing a product high (10% to 15%) in phosphorous, which is critical for root growth, Dillon says.

Note: Some states are banning phosphorous-rich fertilizers, which are harmful to the watershed. In those places, look for nitrogen-rich fertilizers, which promote shoot and root growth. Check with your local extension service to see what regulations apply in your area.

4. Mulching

Instead of raking leaves, run over them a couple of times with your mower to grind them into mulch. The shredded leaves protect grass from winter wind and desiccation. An added bonus — shredded leaves decompose into yummy organic matter to feed grass roots.

A mulching blade ($10) that attaches to your mower will grind the leaves even finer.

By: Lisa Kaplan Gordon

Published: September 16, 2011

Posted via email from Scott Deaton's Blog

Wednesday, October 12, 2011

Beauty Contest and Price War

Buyers want a ‘Beauty Contest’ and a ‘Price War’

Buyers are still looking for homes, but they won’t settle for anything less than a great deal, and it must be in move in ready condition, and look spectacular. This means sellers are in a beauty contest and price war at the same time. A few years ago, buyers were willing to take a great deal, even if it wasn’t in perfect condition. Not anymore.

"All the buyers across the board want everything in a house,” says Karin Batterton, a Coldwell Banker real estate agent in Baltimore. "They want it completely done. They want all the newest, trendy materials, and they want it for 2005 prices."

Regardless of buyers’ high desires these days, the homes that are selling tend to be the ones where sellers price their homes the most competitively. "When you have realistic sellers, then we have competitive bidding on houses and you might even see that price go up," Batterton told WBAL-TV. "When you have an unrealistic seller, then you have a house on the market for a long time, and it just depends."

Posted via email from Scott Deaton's Blog

Friday, October 7, 2011

For the first time ever - 30-Year Mortgage Rates Drop Below 4%

30-Year Mortgage Rates Drop Below 4%

For the first time ever, 30-year fixed-rate mortgages fell below 4 percent. In the last month mortgage rates have continued to set new weekly record lows, but the 30-year mortgages’ latest drop to 3.94% may be an important threshold for potential buyers. The 30-year mortgage is the most popular financing option of buyers. 15-year fixed averaged 3.26%, another all time low.

Home buyers taking out loans for purchase is expected to more than double in the next two years.

By Melissa Dittmann Tracey, REALTOR® Magazine Daily News

Posted via email from Scott Deaton's Blog

Luxury and Privacy at 5297 Pear Orchard Little Rock AR 72206

via myhzm.com

Check out details at www.5297pearorchard.info

Posted via email from Scott Deaton's Blog

Tuesday, October 4, 2011

Biggest Hurdles to buying?

Biggest Hurdles to buying a home?

There are solutions available for everyone in overcoming these hurdles, and take advantage of lowering prices and EXCEPTIONAL interest rates in today’s market. Down payment assistance, alternative lending solutions, etc. Let me know. I’m here to help.