Today’s market has brought about the illusion that buyers hold all the cards and can offer whatever they “feel” is a good price for a house and that every seller should appreciate whatever they can get and be happy someone wants to buy their house. To all the buyers out there, “Control yourselves! Your ego may just possibly force you to lose a great new home for your family. You are not ‘king of the hill!” To all the sellers, “Hire a professional realtor who knows how to sell a house, listen to your realtor -it’s what they do for a living, and for the love of “Pete”-do not take offensive offers personally!”

With the market having such high inventory and either stagnant or declining prices, buyers are making ridiculously low offers to the point that it offends the seller so much that the seller won’t even counter on principle alone or they counter back at full price. I’ve seen it over and over again and whether you agree with it or not, it is a FACT. Some sellers get so ticked off that they refuse to even sell the house to the inquiring buyer at all. Again, this is not made up material for a good article, it is really happening!

First and foremost, when looking for your next home, you should hire a professional realtor. There are several benefits in it for you, and you don’t pay the realtor. We are in the business of managing the biggest asset that most people own on a day to day basis. We are experts in negotiations, real estate laws and the transaction process which could quickly turn sour if you don’t have someone looking out for your best interests and who knows which questions to ask and what to watch out for. If you don’t have one yet, call me!

Determine the seller’s motivation. As a realtor, I know how to expertly get this information with stealth like precision. As a third party who is not emotionally involved, I can see things clearer. And, I will ask the seller’s realtor a myriad of questions and then listen closely for clues to their individual situation. Such as ….the seller has already purchased another home, the house has been on the market over the average days on market for the neighborhood, their relocating to another state…..etc.. All of these things are key factors to their level of motivation to sell.

Explain your offer. I have often included a cover letter explaining my reason and/or my client’s reason for coming up with that number. Sometimes, having the buyer actually write a letter to the seller making their point is a positive step. They can express their interest in the home, the positive aspects that make them want to make it their home and also their concerns about the market conditions and dropping values… I recently made an offer on a house that was in an estate sale and needed a ton of improvements. I wrote the letter to the listing agent about how our intention was to fix it up and sell it right away. With that said, the only way we could possibly buy the house after calculating the estimated costs of improvement, would be to get it at XYZ price and that we had no intention of offending the owner’s family….but if they wanted to get rid of it immediately, we could pay cash and close in 2 weeks. It worked.

Prepare yourself for rejection or heavy negotiating. This is where your realtor can offer a TON of value to you. We can negotiate hard enough to get the very best price the seller will offer, but not so much that we will tick the seller off. I always try to verbally discuss the offer price and situation with the seller’s realtor. I guess it’s that “good ‘ol boy” philosophy of doing business with a handshake. I have had positive results when the other realtor and I can talk through an offer before getting it finalized on paper. It keeps it personal and there are certain things you just can’t convey on a piece of paper, such as the client’s good intentions and genuine nature.

“Believe there is a great power silently working all things for good, behave yourself and never mind the rest.” -Beatrix Potter

Breathe New Life Into Your Home!

A new year brings plenty of opportunities for new beginnings, so why not give your home one? Whether you are about to put your house on the market or are just a bit bored with your surroundings, some simple changes can make a world of difference.

Slap on Some Paint
Try something different and stay away from boring beige or wimpy white. Or, at the very least, use the more muted colors with vibrant accent colors on one or two walls. “We’ve gone through an era of everything being very muted and quiet and what we see with the younger generation coming up is that we’re really going to use lots of colors,” says Dixie Lovejoy, owner of Arizona’s Apple Interior Systems, Inc. “Colors on the walls, color on the furniture, such as lime greens, browns, oranges and bright reds.”

A fresh coat of paint will give your home an instant lift since it makes guests (or buyers) feel that your home is clean and well-kept. “Paint is a very inexpensive way to do something new and not have your house seem dated as time goes on,” Lovejoy explains.

Go Big or Go Home
When purchasing accessories, buy bigger and buy less. “People used to buy accessories on a very small scale,” says Lovejoy. “In our office, one of our slogans is: bigger is better.” She means that things like pots, vases, flower arrangements and fountains should all be larger. Replace a lot of knickknacks with one big focal piece. You will make a statement with your decorating rather than making your home look cluttered.

Pillow Talk
Accent pillows are a key home décor item that no home should be without. Pillows can tie together your home’s look, harmonizing colors from the painting above your fireplace with the antique wingback chair. “Accent pillows are kind of a key to all design that ties everything together,” Lovejoy says.

Sliding Away
Sliding glass doors and even French doors are disappearing in newer homes, says Lovejoy. Their replacements are doors that virtually vanish and allow greater access to the outdoors. Installing these doors can replace the eyesore that some sliding glass doors can be. “They actually can slide all the way into a pocket that’s built into the wall or stack on top of each other so it becomes one small window on the left or right side, but the rest of your house is all open,” explains Lovejoy.
Homeowners want more than the typical three-foot opening that French doors or sliding glass doors give. “The newest trend is opening up a 12 to 22 or 30 feet of glass,” says Lovejoy. “It gives you almost the lanai effect like you have in Hawaii where the inside and the outside all become one.” This look is ideal for homeowners who entertain a lot or host big events. These doors allow you to essentially merge the inside and the outside of your home.

The Outdoors Becomes the Indoors
Connected with this trend is the growing trend to decorate the outdoors like the indoors. Patios and decks with fireplaces, couches, chairs and even drapes and pictures are not uncommon and can blur the line between the inside and outside of your home. Today’s designers are incorporating big patterns into velvets and sheer materials on outdoor furniture that still holds up to the elements. These materials allow you to hose off your outdoor couch or chairs or vacuum them to remove dirt or stains.

With Flooring, Hard Is In
Carpeting is on the decline, says Lovejoy. Traditionally, homes have had carpeting in bedrooms and tile or wood in other areas. This is changing to homes that have hard flooring in all parts of the home to create a flow between the different areas of the home, as well as between the inside and outside. “That way, when you open up your house for entertaining, the patio or the lanai on the outside, or your sunroom, has the same surface as the house so you get that huge expanded feeling,” says Lovejoy.

Going hand in hand with this trend is the prominence of rugs. Of course homeowners want some soft areas in their homes, like near couches or beds.

If you need a referral for a quality, reliable painter, designer or other contractor, please contact Kelli!

A colleague from San Diego sent me the excerpt below, and I thought it was an excellent reminder. The industry I work in has sure had its share of blows. The media has shelled out negative report after negative report, even at times when it wasn’t negative. (Remember the days of 80% appreciation in 6mths to a year and THAT was a negative thing?) Transactions are as difficult as ever and this was a fresh of breathe air (ahem! A BREATHE of FRESH air –ha ha).

I am a person who has always tried to embrace adversity as an opportunity, take proactive steps to pursue the path to a successful outcome, but even I have had my share of moments. This was an important reminder at a time when we’re hearing “recession” and the country isn’t feeling very confident in the decisions being made on our behalf.

Get up and get moving. No more excuses. After all, you know what they say about excuses! Start asking the right questions… instead of “why is this happening” or “why me”..how about “what can I do to bring a positive result?” or “what do I need to do to succeed in this situation?” –KJG

Your actions

Whether something is possible or impossible for you depends more on what you do about it than on any other factor. Your persistent, focused action is what brings possibilities to life.

Certainly there are obstacles that stand in your way. And you can choose to use those obstacles as excuses for not taking action.

Or, you can choose to get up, get motivated and get busy working your way toward the results you seek. Once you begin to take action, the obstacles lose their power to stop you and instead become steps along the pathway to achievement.

The actions necessary for success can often seem to be difficult, complicated, inconvenient, embarrassing, uncomfortable, tiresome or demeaning. Realize that those
undesirable qualities are, for the most part, mere inventions of your mind, and your choice to take action will override them every time.

When you know what you must do, then go ahead and make it happen. Stop focusing on the excuses and start moving toward real, valuable achievement.

Your actions have the power to change your life and to change your world. Make full use of them, and fulfill your greatest dreams.

What is the infamous “Housing Market?”

We keep hearing people talk about the “housing market” as if it’s all the same from Rhode Island to Montana. The term “housing market” is thrown around as if it’s one entity, no matter where “it” is. I don’t think the “housing market” and all of its characteristics are the same from Nantucket to Newport (Nantucket??)

The “market” has all the same differences, complexities and intricacies that humans do. Why? Well, because the housing market consists of an inanimate object that we, as people, control. So, to talk about it from state to state and city to city as if it were all the same, would be like talking about “people” as if we were all the same. How absurd!

Each city and state have their own economies with individual distinctions. Why do I bring this up? We live in a growing city that has had its setbacks in the “market”, however, it’s just not that bad. It’s like if we were to compare the real estate statistics of Queen Creek and North Scottsdale. It would make no sense. Meaningless facts are being spewed all over us like a bad salesman on a car lot would do.

For Example
Arizona was just named BEST GOLF DESTINATION by the International Association of Golf Tour Operators for the North American category. That’s unique to our state! Maricopa County is also one of the fastest growing counties in the nation. At one point, we had surpassed Nevada, so THAT’S unique! I got a phone call from a Canadian investment company asking me to help them find properties to buy. They have a $10M budget and they are buying in 4 markets and Scottsdale-Phoenix is one of the four. I have also heard from several Canadian buyers who want to buy vacation homes in our sunny city because their dollar is so strong, our weather is fantastic and our market has a lot to choose from! I bet they’re not buying in New Jersey (NOT that there’s anything wrong with New Jersey)!

Here’s a local stat for you to consider: if house prices are down by 8% in the past 12 months according to the Case-Shiller index, but up by a net 80.2% between 2002 and 2007, it left homeowners with most of their paper gains intact.

The most forgotten aspect of this beast called the “housing market” is that these houses are our homes. They are shelter for our families, a refuge to come HOME to at the end of a day. A shelter that comes with tax benefits and leveraged appreciation. The home where memories are made with family and friends. Let us not forget that owning a home in this country is quite a privilege.

Remember Norman Rockwell. Hundreds of his paintings centered around the American dream of family and the essence of home ownership. The home wasn’t just an asset to be flipped and bartered. Don’t forget the American dream.

So, the market is that bad, eh! Well, here’s some great news that ensures we keep them visiting here…and moving here!

Arizona has been honored as the best golf destination in all of North America! The International Association of Golf Tour Operators honored Arizona as the Golf Destination of the Year in the North America category.

“The global trade organization for the golf tourism industry comprises more than 1,000 companies in 73 countries, including more than 320 golf tour operators in 45 countries. Arizona averages more than 330 sunny days each year, and the state has more than 300 golf courses, according to the group.”

Let’s face it . . .we are the place to be! We have excellent weather at least 7 mths out of the year (shhhhh), no natural disasters to worry about, no snow to shovel….so it’s really not that bad. We have so many economic indicators that are in our favor for the local housing market to be “aweswome” by 2009. Now, if only we all jumped on that mental bandwagon instead of staying in the doomsday mindset.

Clearly, folks, things could be a heck of a lot worse for us. Turn to one of the good cities in the US of A, New Orleans, and count your blessings and quit complaining. The more you stay in analysis paralysis waiting for some imaginary floor to drop -the more stagnant our market will stay. It’s like trying to time the stock market just right - it’s totally unrealistic.

For those of you who keep waiting, you just might miss the perfect home for your family. This is a great time to invest in a home!

With the market being so competitive for sellers, I can’t help wonder why realtors would not maximize their client’s exposure by putting photos in the MLS and marketing materials.

What shocks me is just how many homes are in the MLS without pictures! ??? Most realtors AND buyers think the house must be a dump when there aren’t any photos. My initial thought is that they have a lazy realtor.

The theory, “Less is more and not posting pictures will make them come see the house in person,” is not one I would spend time proving. With so much inventory on the market and homes with virtual tours, slide shows and video clips, you may want to rethink that thought process.

Every house, like every person, has its good and bad features. Even your worst fixer-upper has something to offer. It does not take much to go into a house and find a selling feature. Describing the true manner of the house in the MLS is the agent’s responsibility and is imperative…. and the price should reflect that. A home in need of major repairs should be priced substantially lower depending on the severity of the work needed. This lower asking price will attract the buyers and investors looking for a fixer-upper.

Get this! Not every house without photos is a home with physical handicaps. I have seen beautiful homes that failed to show their full potential. Wonderful homes that would photograph beautifully and were not given the opportunity. The real estate market is slow and sellers don’t need another obstacle preventing buyers from seeing their homes.

Sellers, at the very least, make sure you have your realtor put a couple of pictures in the MLS. If they are charging you a full service fee, they should provide full service…. and THAT includes photos! Just my humble opinion. If you are working with a discount broker . . . well, you get what you pay for.

Make sure that the photos show off your house to its full capacity. Dirty dishes in the sink or clothes on the floor will not help your cause. Would you submit a picture of yourself to a magazine or local newspaper with your eyes closed??? I doubt it. Your house deserves the same respect. Remember, a picture is worth a thousand words!

Home Selling Tip

With so much inventory on the market, it is imperative to make sure that you have prepared your home for optimum showing. Buyers,…in what has been deemed as a “buyer’s market” …are pickier than ever. They are asking to see between 30-50 homes sometimes before they make a decision!

Buyers usually know within about 10 seconds if your house will make the final cut. So, before a buyer votes you off the island or shouts “Your Fired” -you will want to impress them as soon as they pull up to the house, but especially as soon as their realtor opens the door and ushers them in.

Today’s tip has to do with your “scentmosphere”. This is often forgotten when staging the home for sale. The visual aspects are the main focus. You’ve heard it from your realtor, “Pack up the clutter and put it in storage,” “Take down all the family photos,” “Take out some of the furniture,” and “Clean out the closets!”

What does your house smell like? Your realtor would be a great advisor as this person doesn’t live there. We get immune to the scents in our own house. Does it smell like the dinner from last night or the dirty dishes, your family dog, or worse yet: dirty diapers? Sandra just told me last weekend of her horror story with her buyer clients when they walked into a gorgeous house that smelled like the dirty diaper sitting on the floor in the master bedroom! It doesn’t matter how great or perfect that house is, the smell of the dirty diaper was forever burned into the buyer’s memory…and nose!

Burn candles or get those reed diffusers that continuously give off fragrance. Good smells are kitchen spice scents, vanilla, citrus, or fresh/clean scents. Don’t get something so strong and spicey that it overwhelms visitors.

Be aware of the environment and your scentmosphere every day you leave! The day you forget to check will be the day the buyer comes to see your home…. afterall, it’s Murphy’s Law!

Kelli Grant of Platinum Premier Realty
8765 E Bell Rd. Ste 210 Scottsdale AZ 85260
602-799-5420

November 20, 2007
By Bernice Ross
Inman News

I am sick and tired of the negative media constantly ranting about how horrible everything is in our business. It’s time for our industry to fight back against these psychic vampires who seek to suck every bit of hope and optimism out of us just to build their circulation.

Newspaper headlines and buzzwords abound, such as: “Two million people will lose their homes in foreclosure in the next two years!” “Subprime Fiasco!” and “Mortgage Meltdown.”

These are the headlines we hear every day, yet where is the positive news about the real estate market? The answer is, buried in statistics on page 15 of section 3 of your newspaper, provided you can find them at all.

Here’s a typical example from USA Today, Oct. 26, 2007, page 1B:

New Home Sales Unexpectedly Rise

New homes sales posted an unexpected increase in September. But analysts were highly skeptical given the credit crunch and predicted further sales declines. The Commerce Department said sales of new homes rose 4.8 percent last month…”

By the way, here’s what they didn’t report. Sales in the West were up 36.6 percent. The media totally discounted these statistics. What about a different headline: “Great News! Real Estate Sales Surge Despite Biggest Credit Crunch in Decades”?

Here’s another example. In Sept. 6, 2007, article entitled, “New Mortgage Foreclosures Set Record,” Martin Crutsinger provided the following summary of a speech given by Doug Duncan, the chief economist for the National Mortgage Bankers Association. Here’s how it was reported:

“The number of homeowners receiving foreclosure notices hit a record high in the spring, driven up by problems with subprime mortgages. The Mortgage Bankers Association reported Thursday that mortgage-holders starting the foreclosure process in the April-June quarter reached 0.65 percent, marking the third consecutive quarter that this figure has set an all-time high.

“The delinquency rate has risen to 5.12 percent … The worsening performance was driven by two factors — heavy losses in the Midwest states of Ohio, Michigan and Indiana, and the collapse of previously booming housing markets in California, Florida, Nevada and Arizona … Analysts said the problems in the formerly red-hot housing markets of California, Florida, Nevada and Arizona reflected in part speculators walking away from mortgages they can no longer afford.”

This article ends with the negative media’s favorite theme for scaring their readers and/or listeners: “Two million people will face foreclosure in the next two years.”

Here are the numbers that the negative media did NOT report from Duncan’s speech:

1. Thirty-five percent of the homes in the U.S. do NOT have a mortgage.

2. Some 94.88 percent of the loans ARE performing.

3. The foreclosure problem in this country is really a story about seven states.

4. The biggest foreclosure problems are in Michigan, Ohio and Indiana. These are manufacturing states that had horrible job losses. Since 2001, Michigan has lost 300,000 jobs. These states would probably have had problems no matter what the market was doing.

5. The other four states — California, Florida, Nevada and Arizona — experienced significant overbuilding. Twenty-five percent of the foreclosures in these states are on properties that are held by investors who were speculating.

6. Only 25 percent of all mortgages are subprime, and of these, 75 percent are performing.

7. In the other 43 states, foreclosures have fallen in 2007 from 2006 (data from Michael Clawson, vice president, Central Texas Mortgage).

Furthermore, buyers who are waiting to purchase when the so-called bubble pops in California’s major metropolitan areas are going to be sitting on the sidelines, according to the latest data from a state Realtor group.

According to Leslie Appleton Young, chief economist for the California Association of Realtors, the areas being hardest hit in California are the outlying areas where there has been overbuilding. The resale market in California’s major markets continues to be strong. In fact, the closer you are to a metropolitan area, the better the sales are. In the million-dollar-plus price range, there has been essentially no change from 2006 to 2007.

There’s no question about the fact that there is bad news in some markets. What irks me is that there is also a lot of good news that is either being buried or is not being reported at all.

To get a PDF copy of The Forecast, Email Me. To get a report of sales activity and comparisons in a specific neighborhood, contact me and I’ll prepare one for you.