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Daily Real Estate News | December 31, 2009 |
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document.write('  Share ');A Decade of Dramatic Developments
At the beginning of the 21st century, most home buyers had never viewed a home online; the three top home sale marketing methods were yard signs, newspaper ads, and open houses; and nearly nine out of 10 buyers financed their purchase with a fixed-rate, 30-year mortgage.
What a difference a decade makes.
“The real estate industry has seen tremendous change and evolution over the past decade,” said NATIONAL ASSOCIATION OF REALTORS® President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “As the first, best source for real estate information, REALTORS® have not only anticipated and adapted to the evolving needs of their clients and customers, but also have influenced industry trends and innovations that will carry us into the future.”
In 1999, buyers who went online in search for a home were in the minority – only 37 percent of buyers used the Internet in their home search, according to data from the NAR Profile of Home Buyers and Sellers. Today, 90 percent of buyers are searching online, and the real estate industry has responded. Sites like REALTOR.com, which attracts nearly 12 million total visits every month, have evolved to gives today’s buyers what they want – not just property listings, but multiple photos, online videos, mapping features, and comprehensive neighborhood information, as well.
Median home values over the past decade have increased more than 25 percent, from $137,600 in November 1999 to $172,600 in November 2009 (the most recent existing-home data available). Fewer people are buying detached, single family homes – 82 percent in 1999 compared to 78 percent in 2009 – but more people are buying homes in suburban neighborhoods – 46 percent in 1999 compared to 54 percent today.
Buyers themselves have also changed. A smaller proportion of married couples are buying homes these days; while married couples comprised 68 percent of all home purchases at the beginning of this century, they represent 60 percent of all buyers today. Single men and women have made up the difference – single men purchased 10 percent of all homes last year, compared to only 7 percent 10 years ago. Single women now represent more than one-fifth of all home buyers – 21 percent, up from 15 percent in 1999.
Other things haven’t changed. The median age for home buyers last year was 39, just as it was in 1999. Neighborhood quality, affordability, and convenience to work and school have consistently been top priorities for both past and present buyers. And eight out of 10 recently surveyed consumers believe that owning a home is an investment in their future.
“REALTORS® have been around for more than 100 years, but one constant during that time has been the persistence of homeownership as the American Dream,” said Golder. “As the first decade of this century comes to a close, NAR stands ready to meet the many challenges and opportunities that lie ahead by helping our REALTORS® members better serve their clients and communities and ensuring that those dreams of homeownership remain possible for all who want to achieve it.” Source: NRA
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When selling a home, two situations may occur which are red flag indicators of a lengthy sale time. Each requires the property owners' attention in cooperation with their sales agent, and involves either the price or condition of the home.
The first involves a home that has been on the market for 60-90 days, but has been shown only once or twice. More buyers are beginning to enter today's real estate market, and homes for sale should be attracting a number of prospects.
When buyers choose not to tour a home, the reason is often the price. Homes that are attractive, but not being shown, are often priced “above” the market. The key to increased showings, then, is to learn the market price of the home, then reset the price.
The second “red flag” occurs when a home is being shown often, but neither sells nor attracts offers. The home's condition is often the culprit in this situation. Buyers learn the price, then drive by, making a judgment that it is an attractive home. Once they see the home, however, their interest evaporates.
The solution can be a critical “walk-through” by the sellers' agent to identify needed repairs and cosmetic improvements. Until corrected, traffic is likely to remain high, while the chances of selling remain low. Remove these red flags and prepare for a sale! Call Debbie at 828-273-4887 to get started today!
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A "buyers' market" is just what it implies - a market in which buyers have the advantage and exploit it. It's not a market that rewards foot-dragging, hesitation or indecision.
Unfortunately, all the factors that created the buyers' market we have today have been reported so negatively and rampantly by various media outlets that buyers are themselves too spooked to even enter the fray. Strangely, people were buying like crazy during the previous sellers' market, when the advantage was actually all to the sellers.
That's when buyers didn't fear paying too much, and now that prices are so low and inventories so high, suddenly buyers DO fear paying too much! However, it's impossible to purposefully time the market to buy at the bottom and sell at the top.
Once the market begins to settle and subsequently improve (and it will), the amazing buying opportunities we've been seeing will begin to disappear. With decreased buying activity now, pent up demand for homes will explode when the market recovers, and buyers will once again be competing for the best homes.
Don't rely on luck in the marketplace - rely on planning. Make a careful decision with a predictable outcome. Has the market dropped enough, right now, to make such a purchase? Absolutely! Forget about the top and the bottom and enter your "safe zone" with confidence.
Call us or visit our website with any of your questions that you may have about buying or selling in today market
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There are some desperate sellers out there, but perhaps none so desperate as banks. That's right - banks that own foreclosed properties are anxious to get them off their hands. After all, their business is lending, not property management. If you are pondering the purchase of such an "REO," or Real Estate Owned property, how do you find one, and then determine if it's the right buy for you? Banks work almost exclusively with real estate professionals, so your best bet is to begin your search by calling me. Chances are I will have access to a list of REOs to suit your needs and budget. While banks don't usually price these properties much above what they're willing to finally accept, lower offers on these listings stand an excellent chance for consideration. I will look for houses that have been listed for more than 90 days, and offer somewhere between ten to twenty percent below the asking price. However, do be aware of potential hidden costs associated with foreclosed properties. Owners who vacate a foreclosed home may have left plenty behind in need of repair. So you want to be sure to perform a thorough inspection - with electrical and gas systems operating - and factor repair costs into your offer. If you're smart, it's a real buyer's market, but only if you buy!
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A real estate professional recently coined the term "Price Denial Syndrome," a troublesome condition that afflicts sellers having a hard time facing the realities of today's markets. Of course it’s difficult to make a pricing concession, but an overpriced home simply will not sell. Perhaps the sellers argue that they really need the money, but then they have to ask themselves what they'll do for money if the home doesn't sell. Maybe they figure that they can shoot for the moon now and reduce the price later if they must. However, the longer a property remains unsold, the more likely it is that even more price reductions will follow. Then it’s taken even longer to get a sale at a lower price. Some sellers might suggest trying a higher price just for the first two weeks, but that's when the interest of serious buyers is always greatest. Those buyers usually look within a certain range, and won't even make an offer at all on an overpriced property. Most importantly, if the sellers need to buy another home, time is of the essence. If the sale takes too long, they'll be buying at a time when prices and interest rates may begin climbing again. If you're suffering from PDS, pay attention to the news, review your home's Competitive Market Analysis, and call me in the morning!
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PRESS RELEASE Immediate release Contact: Debbie Leon, dleon@charter.net, 828-273-4887 Russian billionaire’s purchase of French villa sets new world record for most expensive home -- $750 million! Most expensive single home on the market in the Asheville Area -- $10,000,000.00 August 11, 2008 -- The market for the average priced U.S. residence may be soft, but the über rich (especially the Russians) continue to drive prices up at the very top of the world’s luxury market. Case in point -- Villa Léopolda, one of the most historic estates on the French Côte d'Azur, is now under contract by an anonymous Russian billionaire for $750 million (€500m). This three-quarters-of-a-billion dollar sales price sets a new record for the most expensive home sale in the world. The previous record was set earlier this year by Indian billionaire Lakshmi Mittal, with the reported purchase of a London home for his son for an estimated $236 million. “While the French Villa is a fabulous property, this sale does put into perspective the value U.S. properties represent,” said Debbie Leon, a luxury home expert with Red Slipper Homes in Asheville. “The most expensive residence on the market locally is listed for just $ 10,000,000.00. A magnificent mountain manor with views of area lakes. Villa Léopolda, a cream-colored, turreted mansion with two guest houses, is midway between Monaco and Nice overlooking Cap Ferrat, near Villefranche-sur-Mer. The villa was originally built about 1902 by King Leopold II of Belgium. The grounds are regarded as among the most spectacular on the Côte d'Azur. Fifty full-time gardeners look after 20 acres of gardens and terraces, planted with 1,200 olive, orange, lemon and cypress trees. The property’s new owner is said to be a Russian oil oligarch but not despite initial rumors Roman Abramovich, the highly visible owner of Chelsea Football Club, who already owns a €100m mansion near Antibes. According to the Nice-Matin newspaper, a contract was signed last week to transfer ownership of the villa from Lily Safra, the widow of Edmond Safra, a murdered banking billionaire. Rumor has it that Mrs. Safra held out for months as the persistent mystery buyer kept raising his offering price. The paper also reported that 60 villas or mansions on Cap Ferrat are now owned by wealthy Russians. The property has a unique history. In 1916, King Leopold’s nephew and heir, King Albert I, turned the villa into a hospital for officers wounded during the First World War. It later passed into the hands of the Agnelli family Fiat automotive tycoons -- and became the scene in the 1960s for legendary jet-set parties attended by Frank Sinatra, Ronald Reagan (in his acting days) and other celebrities. “This sale raises the bar and makes the half dozen or so $100 million U.S. properties on the market seem like bargains,” said Laurie Moore-Moore, Founder of The Institute for Luxury Home Marketing (www.LuxuryHomeMarketing.com), a US-based organization which trains real estate agents who work in the luxury market and awards the international Certified Luxury Home Marketing Specialist designation. “Today’s affluent are citizens of the world and the successful luxury agent must know how to reach them and what lifestyles they are seeking. It’s an exciting and active market for agents at the top.” Debbie Leon is a member of The Institute for Luxury Home Marketing and has received special training in assisting upper-tier buyers and sellers.
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Real Estate appraisals are totally subjective and often are not an accurate way to determine the value of a property in some markets. Since the recent sharp decline of property values and the new loan guidelines by lenders, not even the most professional appraiser can any longer say with absolute certainty what a property is worth. Real estate appraisers can and will give a subjective value for what a property should be worth, but even these numbers are open to scrutiny.
Because of infrequent sales, the offering prices of homes in some areas of the country are sinking faster than homes are selling. So anyone looking at comparable sales is seeing sales from months before that traded well above what a similar home can be bought for currently. This phenomenon occurs when home sellers become desperate to sell and believe that only the price of the home matters to a buyer. Unfortunately, for other homeowners, this panic to sell brings down values throughout the neighborhood.
An appraiser will readily admit that his price estimate or appraised value of a home is an educated, but always subjective guess. In the final analysis, his strongest parameter for pricing a single family residence is a comparable sale in the same neighborhood. Unfortunately, these comparable sales can be skewed by a number of factors including distressed sales, seller concessions at closing that are not part of the public record, transfers for estate or tax purposes, realtor commissions included in the sales price, long periods between sales, and property exchanges that use a factious market value as a basis for the transfer.
I know an individual who recently sold his home for $405,000, which was well above fair market value of $340,000 for his neighborhood. At closing he paid a $24,300 realtor's commission, gave the buyer a $15,000 seller's concession at closing, included his new furniture which he just paid $16,700, and paid closing costs for the buyer of $5,800. His net on this transaction was $343,200. However, an appraiser will see $405,000 on the public record and if he used this value to determine the cost per square foot as a guideline, his appraisal would be too high for the next property. The appraiser will see that the property was sold through a realtor®, but he will not know about the seller concession or furniture which overvalue the sale by $31,700. Similar homes in this area were listed at the same time for $310,000 to $330,000 but hadn't sold, so how much value should be placed in the $405,000 sale?
I recently received a call from an excited investor about a seller who was asking $200,000 for her property which, according to ten comparable sales, was worth $280,000. The investor had used a ½ mile radius and six months previous sales as his parameters. By simply adjusting the comparables to a ¼ mile radius and two months back, the comparables showed $212,000 as a fair market value. What a difference a ¼ mile and a few months make to the expected sales price or value of the property. Had the investor jumped at the "opportunity" to purchase the property below market value, he certainly would have suffered a loss when you include carrying, sales, and repair costs.
In summary, in this market, the way for an investor or homeowner to get the best estimate of what a property is worth is to start with the most stringent guidelines, specifically, one month previous sales and only those within ¼ mile of the subject property. Next the seller or buyer should look out ½ mile and back three months at actual sales to get comparable values. Most importantly, it is now imperative that buyers and sellers look at open listings on the MLS (Multiple Listing Service) or on Realtor.com and carefully check the sale by owner offerings in the neighborhood. Armed with this information, a buyer or seller can get a significantly better idea of FMV, even if it is not what he expects.
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• 1,336 sq. ft., 2 bath, 3 bdrm Raised ranch -  MLS® $185,000 Royal Pines, Arden - Price drop! Bring an offer! Delightful 3 bedroom, 2 bath home in a desirable south Buncombe neighborhood with walk-in-closets, central heat & air, stone fireplace and sunny fenced backyard. There is easy access to shoppping, schools, a neighborhood park and professional services. Priced to break the rent habit $185,000.
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• 1,076 sq. ft., 1 bath, 3 bdrm 1 1/2 story
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MLS®
$64,000
- Great Starter Home
Eastview Homes Condo, Asheville
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Great starter home comes complete with 3 bedrooms, refrigerator and gas range. Plenty room to garden, entertain or relax in the secluded yard with refreshing stream that runs along the property.
Don’t wait this starter home will not last long at this price.
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• single story - MLS® $56,000 Not In a Sub, Mars Hill - Subject to Survey out of larger Tract. Beautiful acres with Views!Views!Views! Less than 5 minutes to 1-26. State road access. Rolling hills all create the most peaceful setting. Enjoy sunrise and sunsets from the top with 360 views. Property information
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• single story
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MLS®
$56,000
Not In a Sub, Mars Hill
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Subject to Survey out of larger Tract. Beautiful acres with Views!Views!Views! Less than 5 minutes to 1-26. State road access. Rolling hills all create the most peaceful setting. Enjoy sunrise and sunsets from the top with 360 views.
Property information
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• single story
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MLS®
$56,000
Not In a Sub, Mars Hill
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Subject to Survey out of larger Tract. Beautiful acres with Views!Views!Views! Less than 5 minutes to 1-26. State road access. Rolling hills all create the most peaceful setting. Enjoy sunrise and sunsets from the top with 360 views.
Property information
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• single story
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MLS®
$56,000
Not In a Sub, Mars Hill
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Subject to Survey out of larger Tract. Beautiful acres with Views!Views!Views! Less than 5 minutes to 1-26. State road access. Rolling hills all create the most peaceful setting. Enjoy sunrise and sunsets from the top with 360 views.
Property information
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• single story
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MLS®
$147,500
Carriage Park, Hendersonville
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If you're tired of the busy city life and are ready for a change, maybe it's time to discover the many benefits of mountain living.
Experience for yourself the awe-inspiring nature of a mountain community unlike any other. Surrounded by stunning views, each cul-de-sac seamlessly integrates into the Carraige Park community.
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• single story
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MLS®
$47,500
Mountain Estates, Etowah
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Great private wooded lot. Affordably priced, gradually sloping, easy build, with good drive up appeal and minutes from both Asheville AND Hendersonville. Landscaping of abundant Mt Laurel and Rhododendrons are provided by mother nature. 3 bedroom septic permit on file. State maintained road easily accessible from Hwy. 64. Come build your mountain home!! Priced at $47,500
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