Hey Readers! I’ve been comin across some crazy stuff the past few days from a few different blogs around the web which I just had to share with you. Check em out below…
Sale of former tannery land nears completion in Mercersburg
Located between the Leach House and the Allegheny Power substation, off of Main and Oregon streets, the property is referred to as Lot 6 by borough … Read More…
NATHEL v. COMMISSIONER OF INTERNAL REVENUE
In addition to profits, an S corporation shareholder is also taxed on any gain from the shareholder's sale of S corporation stock, which gain is calculated … Read More…
Countdown To Buy Helping Real Estate Agents Unlock Significant REO Opportunity
One REO real estate agent from Oregon who recently worked with a client to purchase a foreclosed property said, “Countdown To Buy is a refreshing change. … Read More…
That’s all the news for today guys, so until next time, thanks for stopping by.
Selling a home in today’s real estate market can be an eye-opening experience for many sellers. Many acknowledge the changing real estate landscape, but since their home is clearly the “best one in the neighborhood”, short sales and foreclosure sales are often dismissed as irrelevant. This perception is particularly true in areas where short sales and foreclosures represent a high ratio of overall home sales.
In order to effectively compete with this trend, it’s critical to understand how these types of transactions impact local real estate markets. Zillow.com recently published the results of their research into the percentage of foreclosure home sales and the associated “foreclosure discount” in different real estate markets across the country. This research illustrates the point that foreclosure home sales really do create two separate markets and that home buyers tend to demand a discount over and above the physical damage often seen in these homes. All data was from the 3rd quarter of 2009:
Forelosure Sales – Metropolitan Area Foreclosure Discount as % of All Sales:
Pittsburgh, PA 59% 10%
Cincinnati, OH 39% 15%
Columbus, OH 38% 19%
Minneapolis-St. Paul, MN 34% 26%
Phoenix, AZ 29% 58%
Denver, CO 27% 25%
Los Angeles, CA 27% 39%
Kansas City, MO 25% 29%
Riverside, CA 25% 66%
San Diego, CA 24% 39%
San Francisco, CA 24% 39%
Las Vegas, NV 23% 74%
Washington, D.C. 21% 21%
Sacramento, CA 19% 50%
Seattle, WA 19% 17%
Portland, OR 18% 18%
Source: Zillow.com
Based on the results of their survey Zillow reports an average “foreclosure discount” of about 28%, which is an important factor for other home sellers to consider. For example, in the Denver real estate market where the foreclosure discount is reported at 27%, that $146,000 foreclosure sale down the street might suggest that a similar clean, well-kept, non-distressed home in the same area might command as much as $200,000. We can’t do much to change the fact that these types of real estate transactions are influencing many real estate markets across the country; what we can do is acknowledge the problem and figure out how to successfully market and sell homes in this environment. Here are a few common-sense tips for home sellers who want to successfully compete against foreclosures and short sales:
· First and foremost, price your home competitively. This does not necessarily mean that the foreclosure sale down the street is the best comp for your home, but it has to be considered.
· Present your home in prime condition. Foreclosures and short sales tend to be in comparatively rough shape; people losing their homes often neglect routine maintenance for quite a while before they actually lose the home. Your home has to clearly out-shine the competition in this area. Doing so will go a long way to overcoming the “foreclosure discount”.
· Hire a Realtor who will out market the competition. Just putting a sign in the yard and flyers in a box won’t cut it. In order to stand out and differentiate your home from sub-par competition like foreclosures and short sales, your marketing efforts need to include an intense online focus with quality details, i.e. virtual tours, lots of good photos, enhanced listings, detailed descriptions, etc. Make it clear to potential buyers that there’s a difference in quality.
· Offer minor incentives that highlight some of the advantages your home offers. Foreclosures and short sales tend to represent increased risk to the buyer as these homes have not been cared for, may have been vacant and neglected for a long time, and can even be tough to inspect thoroughly because the utilities are shut off. Offering things like a home warranty, a pre-sale inspection report, etc., can draw attention to the fact that your home is a better value because it represents higher quality and less risk.
· Make sure you can offer a reasonably quick closing. Particularly with short sales, timing can be a deal killer for many home buyers. Waiting for a response from the bank – sometimes for months – is frustrating for many potential home buyers and makes these types of sales a challenge. With the federal tax-credit deadline looming, timing will become more and more of an issue and is an area where you can easily stand out.
These are just a few tips on how home sellers can effectively compete with foreclosures and short sales. The main focus should be creating separation on points of interest that matter to home buyers, and marketing those differences in the most effective way. Understanding the effect these types of transactions have on the residential re-sale market in your area will enable you to plan your home-selling strategy appropriately, and overcome the dreaded “foreclosure discount”!
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Phil Boren is a 26-year veteran Broker and Realtor with RE/MAX of Boulder, the #1 RE/MAX office in the U.S. Take advantage of this powerful combination as you search for Colorado real estate here: http://www.BoulderHomeResource.com, and take advantage of the free Relocation Resources and videos we provide at http://www.BoulderHomeResource.com/Relocation.php.
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http://EzineArticles.com/?expert=Phillip_Boren
Ok so 3 more posts today that I’ve dug up – I’m an information JUNKIE on this stuff lately. Give em a browse and let me know what ya reckon. They’re just from a few different sites I’ve been surfing lately that are generally good for information like this…
Baxter & Baxter, LLP | Bankruptcy Practice Group
Oregon Bankruptcy & Washington Bankruptcy . Bankruptcy Practice Group This information is presented by the Bankruptcy Practice Group of Baxter & Baxter, LLP. The Portland, Oregon bankruptcy attorneys and Vancouver WA bankruptcy lawyers …
Locate Very Best Resort Hotels In Portland, Oregon, US
Portland is referred to because most “green city” situated close to the confluence of Willamette and Columbia rivers inside the US state of Oregon. This town was incorporated in 1851. The climate with warm, dry summers and rainy but …
Dubai Shares Slide to 2-Month Low on Moody’s Property Report
Dubai shares fell to the lowest level since March, leading a decline in Gulf markets, as Moody's Investors Service said the outlook for the region's real-estate industry is negative because of excess supply. Oman's benchmark index rose. …
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