We’ve all had them. You might have one now. That seller who takes your comps, cross-references them on Trulia, adds in seven more, and builds out a spreadsheet—complete with formulas—then wants you to get them into each of the properties so she can point out the comps’ outdated paint colors, inferior appliance brands or other reasons she thinks she should get double the price for her home. The buyer who sees 45 houses before deciding they want a condo, then sees 50 of those before revealing that his palm-reader and rabbit jointly hold final decision-making power.
Okay, I might be exaggerating the factual scenarios (a tad). But in the life of an agent, three things are inevitable: death, taxes and high-maintenance clients. Some are both high-maintenance and unreasonable, and these folks can become a massive hemorrhage of time, gas and energy. It’s also demotivating and frustrating to work with high maintenance clients who are beyond pleasing.
Which amenities can luxury homebuyers expect to find in today’s market? For our latest Real Estate Lab report, we combed through two years’ worth of luxury listings to see which words and phrases are trending up and down. We defined luxury listings as homes for sale that are priced at least four times above the median asking price for a given metro area: that means a million-dollar home in Rochester, NY, is a luxury listing, while a million-dollar home in San Francisco is not. We compared luxury homes listed between July 1, 2012, and June 30, 2013, with those listed in the previous year, between July 1, 2011, and June 30, 2012.
Have you ever said something in the heat of the moment, then wished for weeks later you could reel those words back in? The truth is, all of us commit emotion-driven mistakes in some areas of our lives. But when it comes to selling their homes (read: cashing out their most valuable assets) the stakes are simply too, too high to allow your sellers and their transactions to fall prey to predictable emotional pitfalls.
Fortunately, when it comes to emotion, what’s predictable is avoidable. Over the years, I’ve found that sellers can and often will check themselves before they wreck themselves if you can help them predict the specific emotions they are likely to experience at various points in their transactions.
Although residential construction jobs are outpacing overall job growth, construction job gains have been slow. Worse, the job market isn’t improving in the areas where it would most help housing demand: among young adults, and in clobbered metros.
Each month, we look at three measures in the monthly jobs report to see whether housing is helping jobs and whether jobs are helping housing. Residential construction employment shows whether housing is helping jobs. Job growth for young adults (key age group for household formation) and job growth in “clobbered metros” (those hit hardest in the housing bust) show whether jobs are helping housing.
Getting leads is a good thing, we all know that. But we also know that not all leads are created equal. We’ve heard from many partners that wading through leads — deciding which one to call first — can be a very painful process. So, we set out to improve this very important part of your business with the addition of “lead insight”.
The thing about the profession of real estate sales is that it is simply doesn’t operate on the long lead times and uber-predictable project management time frames that characterize work in other fields. Managing a real estate practice involves potentially hundreds of sheets of paper and versions of documents in each individual transaction, constantly shifting timelines and completely unexpected urgencies which arise due to things you have zero control over, from bizarro underwriter requests to leaky sewer connections.
This creates a situation in which chaos can arise and reign over our calendars, offices and even our lives —despite our best efforts to stay organized. And while the promise of the digital era was that it would make these things easier to manage, many agents find that:
the next-gen calendar demands of maintaining online marketing channels, and
In real estate, we often use the term “under market” to describe a home that is priced or purchased for less than it’s fair market value. But I sometimes see an unrelated real estate phenomenon I think Webster would rank as a second definition for “under-marketing”: to list a home and fail to mention features the homes have, which buyers would have been attracted to, had they seen them in the home’s listing description, flyer or online marketing.
For example, my first home was a very modest rancher, lots of fixing needed, located in a quiet part of town that I’d never heard of. At my agent’s insistence, I finally went to see it. Only then did I realize that the property just so happened to be situated with panoramic views of the San Francisco Bay. Bizarrely enough, this massive selling point had not received even a passing mention in the listing!
If your average listing has commercial-grade European appliances, sits on acres of land, or is in the most prestigious neighborhood in town, it’s pretty easy to know what to lead with in the marketing. But if you are listing a normal house in a normal neighborhood, there could very well be things that are easy to overlook (and under-market) which a first-time or relocating buyer might be magnetically drawn to – if you mention it in the listing and marketing materials. continue reading
How has the two-week shutdown of the federal government affected home prices? The main sales-price indexes won’t tell us until 2014: homes going under contract in October will close in November (or later), and November sales prices will get reported starting in January. But the Trulia Price Monitor shows how asking prices – a leading indicator of sales prices – are trending almost in real time, adjusting for both the mix of listed homes and for seasonality. This morning we analyzed asking prices between October 1 and October 15.
Finding the Effect of the Shutdown on Asking Home Prices
Nationally, asking home prices are up 1.0% between September and the first half of October, seasonally adjusted. This partial month-over-month increase is roughly in line with the month-over-month increases over the past few months. Before the shutdown started, several factors were already cooling down price gains, including expanding inventory, higher mortgage rates, and declining investor activity. Therefore, comparing how much prices have risen in October to date with previous months can’t, by itself, show whether the shutdown has affected asking prices.
Instead, to tease out the effect of the shutdown on asking home prices, we looked at price trends across individual metros. We compared price changes in metros where the local economy is more dependent on the federal government – like Washington D.C., of course, but other metros around the country as well – with prices changes in metros where the local economy is less dependent on the federal government. (Our measure of dependence on the federal government – and therefore likely impact from the shutdown – is the share of local wages coming from the feds.)
High-end sellers have luxuries middle-income and entry level folks don’t. They can afford to hold, stay put and wait for the market to bring their home’s value to a level that works for them, in market climates where others might be forced to short sale or walk away. And high-end sellers can and sometimes choose to rent a home out rather than take a loss on it.
That said, sellers of high-end homes also demonstrate behavioral patterns that others don’t. continue reading
“So, You Want To Be A Landlord” is an informative series brought to you by Trulia Pro member Elizabeth McDonald of The Rental Girl Los Angeles. The Rental Girl is a boutique rental agency with neighborhood branches throughout Los Angeles. Elizabeth has over 10 year experience in the rental business and has put together this informative series to guide you through the process of becoming and being a landlord.
The final step in processing an application is the credit and eviction report. Unfortunately, some landlords only take this step. In my previous posts for How To Properly Screen An Applicant, I’ve discussed in detail how important it is to receive and review a complete application package. With the many applications my company has processed, I have seen it all: applicants with great credit and bad rental history; applicants with mediocre credit and great income and references; applicants who don’t make the best first impression but have stellar application packages, and vice versa.