All kinds of important information is gathered and summarized in the survey.  Price of homes purchased, age of buyers, household incomes, even how buyers value heating and cooling costs and energy efficiency are all included.  But, I want to focus on a small bit of information that is always helpful to my clients and may be helpful to you.

If I only knew how buyers find the homes they purchase:  The real question is where or by what method does the buyer find the home they buy?  If you know the answer, you might consider that information in your marketing.  Read on and you’ll know what trend I have been following since 2001.

For South Carolina, the answers to the question are:

31% Internet (I would say 100% of buyers use the internet in their search, but 31% find the home they end up buying on the internet; the internet is the first place they see it.)

30% Real estate agent

15% Yard sign or open house sign

9% Home builder

8% Friend, relative or neighbor

3% Print newspaper advertisement

2% Directly from the sellers / knew the sellers

1% Home book magazine

1% Other

It is even more interesting to note (and certainly makes sense) that since the first survey results were released in 2001, the identification of the internet as the source of where buyers find the home they purchase has increased by 400%.  Times are changing, we know this.  But, the real issue is how we work with these changes and, even more importantly, take advantage of the opportunities created by these changes?

(This information is based on the 2008 Profile of Home Buyers and Sellers (South Carolina Report) and  SixStepstoSOLD^TM, the simple six-step process created by Aaron Cole that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.)

Our area (the Greater Greenville area), as you may know, was among the last areas nationally to feel the housing downturn and appears to be among the first to show recovery.  Our area continues to show improvement.  Among the reasons for this improvement is the quality of life which has driven record setting population growth between July 2007 and July 2008 in Mauldin and Greer.  Quality of life and affordability together are having a positive impact on housing and are bringing the Greater Greenville area out of the recession slowly but surely.

I don’t have any specific numbers on housing affordability in the Greater Greenville area.  However, nationally, housing affordability during the second quarter of 2009 continued to hover near its highest level since the series began 18 years ago.  One index showed that 72.3% of all new and existing homes sold in the second quarter of 2009 were affordable to families earning the national median income of $64,000, down only slightly from the record-high 72.5% during the previous quarter and up from 55.0% during the second quarter of 2008.

The increase in affordability, along with the $8,000 federal tax credit for home buyers is stimulating demand, particularly among young, first-time buyers.  Affordability has driven current homeowners to make a move as well.  Looking specifically with our company’s activity, in the last few months we have sold our listings in price ranges from $139,900 to $725,000 with several sales in the $300,000 range.  The reason for many of these sales has to do with these buyers seeing opportunities to take advantage of the ability to buy a move-up home that might have been out of their financial reach a year or two back.  So, first-time buyers are not the only activity in the market.

Bottom line, there are many positive signs that our recession is coming to an end.  Historically low interest rates, the most affordable inventory of homes currently on the market right now, $8,000 tax credit, and a general “cautious optimism” that things are getting better are among the things that are fueling the end of our recession and creating a better housing market in our area.

(This information is based on articles from Market Click, the GGAR online magazine, and RISMedia, an online real estate news magazine.  Aaron Cole, is the creator of HomeSOLDin60^TM, the simple six-step process created by Aaron Cole that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.  To learn more about Aaron’s 60-Home Sale program, visit www.HomeSOLDin60.com or contact him at (864) 292-3333.)

Marketing a home that is vacant may require a different approach as far as the condition is concerned compared to marketing a home that is currently “lived in”.  When you have furnishings in your home, you can in many instances control how the buyer views your home.  What I mean by this is, you can control what they focus on as they walk through your home.  And, at the same time, you can de-emphasize negative aspects of your home by the way it is furnished and decorated.

But, when you move the furnishings out, many homes may look “left behind”.  You probably have viewed homes that look this way.  In many instances vacant homes look like the homeowners just left in a hurry – lots of dust balls and dead bugs in the corners, marks in the walls, stains in the carpets, small items left laying around the home, small projects started by the homeowner that are left incomplete, torn or damaged wallpaper, the yard looks like it needs to be mowed and edged – you get the picture.

If you move out prior to selling your home, your goal related to the condition of your home is to make sure it does not look left behind.  The key here is to take a good look at your home after the move-out and make a list of things to do that will make your home look fresh and “almost new”.  Your list will probably include items that are related to making your home look maintained and also items that are related to making your home look more appealing.  You want buyer prospects who come through your home to get a positive feeling about your home.  Some items may be more involved like replacing carpet.  Other items may be as simple as cleaning the kitchen and baths.

The cost of addressing these maintenance and improvement items at the initial move out is generally far less than the cost of maintaining your home for an extended period of time.  Don’t let your home look “left behind” and you’ll get a successful sale even if you vacate your home prior to signing a purchase contract. 

(Aaron Cole, the author of this information, is the creator of HomeSOLDin60^TM, the simple six-step process that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.)

The article notes when the economy tightens, decision making changes. Corporations look for ways to orchestrate moves that are more efficient, to create programs that are leaner relative to benefits available to those being transferred, and to be sure that there are compelling reasons relocation is warranted. Moves must be imperative rather than discretionary. 

An example of increasing the efficiency of the relocation relates to changes to the loss on sale (LOS) provision of many relocation packages. If the home the relocated employee is leaving was purchased for more than is able to be realized in a sale, the transferee is protected from absorbing that loss. Covering the loss on sale is the number one most expensive cost to the corporation. For those who are protected by such a provision, the average cost to the corporation is $20,000. In 2004, 33% of all companies had a LOS policy; 46% have one today. The percentage rose as a result of the value of homes declining and therefore the risk of loss rising quickly. Some corporations are controlling those rising costs by capping the allowable amount of the loss and by not including capital improvements made by the employee as a part of that loss on sale. Transferees might be paid 100% of loss up to a maximum amount of ‘X’.

Reasons for fewer employee relocations according to the article include the condition of the job market and how this has affected the employee’s ability to accept a transfer.  With the job market in turmoil and unemployment high, most people are just happy to have a job or to find one. If the employee is required to move to keep that job, so be it. However, with dual family incomes playing such a crucial role in making ends meet, giving up one salary is not always an option. That applies even in a new hire situation. In good employment times it was fairly easy to help the trailing partner find employment. That is no longer true. The quality of the job market at the destination will play a role in whether the employee is able to make the move.

Additionally, many transferees are ‘upside down’ in their mortgages. They owe more than the house is worth. The amount may be so significant that any loss on sale protection would do little to bridge the gap. Those folks are often just unable to move. It would be unusual for the corporation to just ‘make it happen’ as might have been the case at the height of the market.

As noted back in 2007, a tightening American economy means fewer corporate employee relocations.  Fewer relocations to our area means real estate transactions and therefore more competition for home buyers’ money

(Aaron Cole, is the creator of HomeSOLDin60^TM, the simple six-step process created by Aaron Cole that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.  To learn more about Aaron’s 60-Home Sale program, visit www.HomeSOLDin60.com or contact him at (864) 292-3333.)

The topic of the economy and the real estate market seems to be on everyone’s minds.  Have we hit the bottom of the market yet?  When is the right time to buy to take advantage of what is going on?  These are some questions that I often hear.

There are some very positive signs that signify that our real estate fall here in the upstate is almost over.  In a recent article in a national financial magazine, the author names the Greenville / Upstate area as one of the areas that will show signs of recovery first, most likely as soon as the end of the 2^nd quarter of 2009.  Another study, called the North American Cities of the Future, named Greenville as the top micro city in the US (email me if you would like the .pdf version of the study).  Positive press regarding our area with respect to near term and future success in economic and real estate sectors is gaining steam.

More specifically, when you look at sale activity for residential real estate over the last 3 months, you notice a distinctively positive trend.  And, even more specifically with regard to our business at Del-co Realty, we have noticed increases in contracts, closings, and call and website activity.  There appears to be a more positive mood in general.

Another item of note is the effect of the First Time Homebuyer Tax Credit of $8000.  Estimates are that around 2000 first-time buyers (nationally) will take advantage of this tax credit by purchasing a home before December 1, 2009.  The overall impact of these buyers is much greater when you think about the fact that the sellers of the homes they buy in many cases buy another home as well, i.e. the domino effect.

The news is not all positive.  The automakers are still struggling to find traction.  There will be more changes to the lending and banking industry.  There are many businesses that will have significant layoffs in the next few months.  Many individuals are still struggling to pay their bills due to job losses and cutbacks.

So, what does all of this mean?  Our current situation is very unique, indeed.  If we are not at the bottom, we appear to be very close to it.  Now may be the perfect time to buy a home.  Prices will probably remain low until inventory levels equalize, due to increases in sales.  But, as the positive news gains more momentum and the market begins to increase, the bottom will be gone.  You’ll never be able to pinpoint exactly when we are bottom, because as you notice things improving, the bottom of the market is already behind you.

(Aaron Cole, the author of this information, is the creator of HomeSOLDin60^TM, the simple six-step process that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.)

It depends.

You should always remember this:your price doesn’t matter if the buyer doesn’t like your home.  This is one of the most important “real estate truths” I have learned in the last few years.  And from what I have seen, many sellers and agents don’t understand this.

A price reduction might be the right thing to do depending on how you established your list price (and your expected sale price).

I have found the best way to establish a list price is to follow a three-step approach:

1)  Determine the value for your home that is historically justifiable based on previous comparable home sales and current pending home inventory – this number is your bottom line number (i.e. your contract sale price should be at this number or above)

2)  Add 3% to 5% to this historically justifiable number to give yourself some negotiating room

3)  Take the number arrived at in step #2 above and adjust it to reflect how buyers use price ranges to determine the homes that fit their search criteria 

It is important to note that in a market where home prices are falling, your calculation of the number in step #1 above could be affected dramatically.  If you establish an historically justifiable price that is even a little bit above the current market price, with each day that goes by as the market prices fall, your list price will be getting farther away from your market price and perhaps farther away from a successful sale.

The above steps address the more objective aspects of determining your list price.  There are subjective aspects you should consider as well.  These are the state of the economy, your real estate market, supply of homes on the market, supply of buyers in the market, the buyer profile for your type of home, condition of your home related to your comparable sales, etc: 

Consider following the above steps to estimate your list price.  If your current list price is justified based on these simple steps then reducing your price might cost you money unnecessarily.  If it is not justified, then a price reduction is probably warranted.

(This information is based on HomeSOLDin60^TM, the simple six-step process created by Aaron Cole that guarantees a home seller the best chance of getting the best price his or her home in the shortest time.)

This phrase sounds like part of the chorus from the newest pop song.  But it’s not.  “If you don’t make it shine, you’re wasting your time,” is the simple real estate truth that home sellers are learning right now.

Take a look at the statistics for the Greenville SC area.  If you do the math, there is about 20.2 months of inventory on the market right now.  That means it will take more than 20 months to sell all the homes that are currently on the market for sale (if we continue to follow the current trend).  That is almost 2 years of inventory.  And, the issue is compounded when you understand that the population of homes on the market will most likely grow as we get into the Spring season.

To say it is competitive if you’re selling your home right now is an understatement.  It is extremely competitive.  There are buyers in the market right now, but these buyers are very picky and feel like they can wait if all of their buying criteria doesn’t line up exactly right.

But, notice this next point: the average days on the market for the homes that have sold in the last 3 months is still right at 100 days.  I bet you would have guessed that the average DOM was higher than that.  What this means is homes that do sell typically sell quickly.  The ones that don’t sell, don’t even make it into the DOM calculation.

The point I am making is that buyers are still buying homes (albeit, fewer homes than they were buying last year).  The ones they are buying are the best homes that are currently available; homes that have been prepared and priced properly.

If you’re a home seller and you haven’t done your homework (i.e. properly prepared your home for sale and priced it based on current conditions), then you’re going to fail the test.  Staging, which is a term we are all probably familiar with, used to be optional.  But it is not optional any more.  Not being accurate on your pricing used to mean that you would simply wait longer for your sale.  Now, pricing incorrectly can be a recipe for disaster.  To get the serious attention of buyers, successful real estate agents are helping their seller clients package their home as the product that commands the buyer’s dollars.

Even with the troubled economic times as they are, one of the basic real estate truths is still true…the buyer wants to fall in love with the home they buy.  If you don’t make your home shine, you’re wasting your time.

(This information is based on HomeSOLDin60^TM, the simple six-step process created by Aaron Cole that guarantees a home seller the best chance of getting the best price for his or her home in the shortest time.  To learn more about our 60-Home Sale program, visit www.HomeSOLDin60.com or contact Aaron at (864) 616-1504.)

The article says first-time homebuyers are a big part of the foreclosure market. Between 50 and 60 percent of foreclosure sales are going to first-time homebuyers (many first time home buyers will be taking advantage of the $8,000 tax credit available to them through the US government stimulus plan); another 30 percent is probably going to investors who are reselling them at another discount or hanging onto them as rental properties. Most of the financing for foreclosures is cash from investors and FHA loans for first-time homebuyers.

But, are foreclosed homes good deals?  The answer is: it depends.  Think about the lending climate in recent years.  Purchasers of homes tended to borrow higher percentages of their home’s value, so that left the borrower little equity in the home.  If the borrow fell behind and ultimately got foreclosed upon by the lender as the lender recovered the home, the lender’s investment in the home (the loan balance and legal costs for the foreclosure) may be so high that once the home hits the market for sale the price may not be a very good deal for a buyer.  The RISMedia article confirms this as one of the contributors to the article states, “In some cases, people are overestimating what they might expect in the form of a discount on a foreclosure property.” 

Another issue that hampers the “deal” associated with purchasing a foreclosure is correctly estimating the cost for repairs.  According to the article, more than 50% of purchasers of foreclosed homes underestimated the costs to repair the home.

So, what’s the deal with foreclosures?  They are a great place to look if you want a deep discount.  But remember: they may not always be a great deal and you should accurately estimate your costs.  Other sources of discounted homes can be pre-foreclosures and short sales.  And you should be sure to not overlook the motivated home sellers that are currently in the market.

You may also want to consider my ”Hot List” which tracks some of the best deals available in the Greenville area.  The “Hot List” is updated weekly and is available on www.GreenvilleHomeSearchOnline.com.

(Aaron Cole, the author of this information, is the creator of HomeSOLDin60^TM, the simple six-step process that guarantees a home seller the best chance of getting the best price in the shortest time.  To learn more about Aaron’s 60-Day Home Sale program, visit www.HomeSOLDin60.com or contact him at (864) 616-1504.)