Choosing the Right Realtor

Choosing the Right Realtor

Selling or buying a home should be like any other business transaction, but all too often buyers and sellers make emotional or impulsive decisions that can in turn cost them money and time. Choosing the right Realtor to market a property or negotiate a sale is the most important step in the process.  

When selecting a Realtor, have high standards just as you would when hiring an attorney or doctor.  For example, a lot of sellers will hire an agent offering the lowest commission. You have to remember, you get what you pay for.!  Do you want a negotiator with a lot of expertise to protect your equity?  If you had a lawsuit that was worth the value of your home, would you hire the cheapest attorney to protect you or the best attorney you could find?  If you had surgery, would you look for the cheapest doctor?  Or you would look for the best doctor?  The same should be true for the Realtor you hire.  In today’s highly competitive market it takes time, knowledge, expertise, targeted marketing, and a lot of hard work to get the job done and to get it done right!

In our current market, choosing a professional can even make a difference in whether or not you sell your home and how much goes into your bottom line.  I’ve practiced real estate for going on 29 years and have negotiated nearly 3800 contracts in my career.  If you want real results, hire a real professional.  I have a very strong team to back up my experience.  We keep you informed and have one of the best percentage of list price to sales price ratios out there.  Hiring the right agent in this market will make a significant difference for both buyers and sellers and their bottom line.



If you are looking to buy or sell a home today, call our office at 505-923-4730 or email us at cheryl@cherylmarlow.com.  

Home Not Selling? What you should keep in mind...

When a home's not selling, there's a reason, and often there's more than one reason why a home continues to sit on the market.  We all know it can be very frustrating to put that For Sale sign in the front yard, expecting a fast sale, only to find that after months you’re still waiting for an offer. I’ve said it before and I’ll say it again… if you want to sell your home in this market, you have to be competitively priced and your home has to show well.  

Pricing, by far, is the most important thing to consider!  Inaccurate pricing can kill a potential deal.  On the other hand, a home priced at market value peaks the interest of agents and buyers. Overpricing simply chases everyone away. In today’s market, the most serious sellers are pricing their properties slightly below market value to generate excitement and activity.  That in turn can lead to a faster sale, especially with all of the competition out there.

You want to be in the top 2 in your area when it comes to pricing.  And if your home doesn't show as well, then you need to be the best deal out there in your price range.

Another reason why your home could be sitting on the market is insufficient exposure.  For Sale By Owners, I'm talking mostly to you. If you’re attempting to sell your home on your own, or with minimal marketing, you need to reconsider. You may have the best home out there, but if no one knows about it, it won’t help you get your home sold. Hiring a Realtor that develops comprehensive marketing strategies is absolutely key.  Realtors like myself will create a compelling MLS listing, effectively market your home on the  internet and showcase your home to top agents in the Greater Albuquerque Area.

Last, but definitely not least, we need to talk about the condition and appearance of the home.  Buyers may see seven or more homes in a single day. The most memorable home will be the one that seemed the brightest, the most spacious, and the most cheerful.   Remember, clutter can distract a buyer from the beauty of your home.  Remove the clutter and a buyer will be able to better envision themselves living there.  A real estate professional can offer guidance in that department.

It pays to have a Realtor working for you on both sides of the deal! 

Call my team today for more information on how we can help you! 505-923-4730 

Real Estate Search Engines

How does someone typically start the process for buying a home?

With the do-it-yourself trend, Bob, so many people start by looking online. They use real estate search engines like Zillow and Trulia.com. This gets people excited about the process, looking at the available pictures and general information. However, I caution my buyers and sellers that oftentimes the information is not accurate. I have seen prices too high or too low, houses that were sold months ago and still show up as available to buy or rent. It can be very confusing.

 

Why is that? Where do these websites get their information?

Licensed Brokers upload accurate information into the Multiple Listing Service, or MLS, as required by law. Search engines like Trulia and Hotpads.com have limited access to this data, and they offer it for free to people searching for houses. Yet, these sites are really just another way to sell advertisements as they are not monitored for accuracy and are often unreliable. As Brokers, we can’t control what they choose to promote. The MLS is the gold standard, with information updated daily and only accessible by a Realtor. 

So you’re saying that a buyer really needs to look at the MLS?

Absolutely! As a Broker, I make sure that my buyers and sellers are obtaining current and accurate information and offer them expert advice on what is often, for many of us, the biggest financial decision we will ever make.

I gather that searching online can be only an initial step?

I love the online process when it comes to the buyer. I can set up a portal to the MLS for a buyer with a search to their specific preferences, such as the desired area and price range, sent right to your inbox; as new homes come on the market, it will continue to send them listings of homes that fit their criteria. Only an agent can access the real, live information about homes for sale in our area. So call me today and start your home search!

Purchasing Investment Properties

I believe that everyone that possibly can should buy 1-2 rental homes this year as part of their financial plan. Real estate is still one of the number one long term investment strategies that makes sense. Many factors make this the perfect time to invest in real estate for the future.

How does the down turn affect this strategy?

Prices hit the low point, creating an incredible investment opportunity for the investor. As the market stabilizes, values increase, you will benefit from an increase in equity. Many of the banks are accepting short sales (in fact, we recently got two short sales to be approved in less than 4 weeks!), which is taking less than what is owed on properties to avoid foreclosures, resulting in great deals for buyers.

What are some of the factors that make this a good time in your opinion?

Interest rates are still at an all-time low. Sellers are negotiable. You control when you buy or sell so you can buy low and sell high. With a reasonable down payment, your investment can produce cash flow now and into the future. One of my favourite things about rental houses is that the tenant makes the monthly payment for you. As the owner, you benefit from the appreciation and don’t have to make the payment, I think that is a pretty good deal!

Isn’t it more difficult to get financing as an investor?

Many people think that! However, there are still great programs out there for people with a down payment and good credit. If you don’t fit in that category, you can still buy an investment property with owner financing. As I always say, “If you don’t buy now, you’re going to say ‘I wish I had bought then’.”

As always, who do you know that needs to buy or sell real estate today? Thanks!!

Forecast for 2014

I know everyone is wondering about how the real estate market is going to perform in 2014. Can you give us your predicted forecast?

My real estate crystal ball remains cautiously optimistic for 2014! I predict that we will see the Greater Albuquerque areas continue to slowly stabilize. We will continue to be in a price war and a beauty contest with realistically priced homes selling well. I expect inventory will increase dramatically in the first and second quarters, which may create downward pressure on pricing as supply and demand drives home values either up or down. Overall, 2014 should see a higher number of sales than the previous year. I predicted 2013 to increase over 2012, and the final yearend figures should show an increase of over 1,000 sales. I’m optimistic that we may even experience home value appreciation.

Stabilizing sounds good. What about all of these foreclosures we’re hearing about?

As part of the market stabilization, we expect to see a continued decrease in bank controlled sales in 2014. A bank controlled sale is a home that either is bank owned through a foreclosure action or bank controlled through their willingness to accept a short sale whereby they’re accepting less than the homeowner owes on the property. In 2012, 30-35% of sales were bank controlled. As I predicted last January, the 2013 bank controlled sales dropped to approximately 25% of all sales.

Your crystal ball tends to be really clear! Cheryl, tell us a bit about mortgages and interest rates in 2014.

When historically low interest rates are enjoyed for an extended period of time, the only way to go is up. Interest rates will continue to slowly increase. This is a great motivator to buy now, instead of paying more later! Momentum continues to build in the housing market and there are still many opportunities to take advantage of the past few years of lower home prices and unbelievably affordable interest rates. These favourable conditions will not last.

Overall, you’re prediction is positive?    

                     

Again, I’m cautiously optimistic about the Albuquerque real estate market for 2014. For many reasons, New Mexico is a great place to live and own real estate. Whether you are a seller, a first-time buyer, or a move-up buyer, there are great opportunities in this market to take advantage of. Call me today and let’s get started. 

Why A Buyer Chooses A Home

I would like to visit with the listeners about why a buyer makes the decision to purchase their next home, the things they desire and missteps by sellers. I think this can be helpful information for both buyers and sellers. If you’re like most people, you probably think that practical issues such as the number of bedrooms or kitchen amenities control the home buying process, correct?

That would make sense, yes!

Nevertheless, this is not the case.  Financial and emotional considerations have taken the lead when buyers view homes. Over 60% of homebuyers say the “feel” of a home is important and 78% place more emphasis on quality rather than square footage. We are seeing that buyers will no longer tolerate purchases of “as-is” properties. In our marketplace, we have recently seen multiple offers  for nice properties simply because buyers don’t want to deal with a lot of “projects.” Remember, we are still in a price war and a beauty contest! Buyers want the best deal on the best house! This doesn’t mean that sellers need to spend a lot to sell their home; there are some tricks to get that necessary first impression on good standing.

What are a few things sellers can do to help showcase their home and make a good first impression?

Every home is unique and with 26 years of experience, I can easily point out the key elements to draw buyers’ attention to the best features of your home. Overall, however, sellers should keep up on curb appeal, even in the winter time. Your yards and driveway free are the first impression they will see upon arrival. De-cluttering your home so that buyers can picture their own belongings in the floorplan as well as keeping dirty laundry and dishes away is definite bonus! If you have time, boiling some cinnamon before a showing is a welcoming scent, and fresh cookies are always appreciated! And last but not least, sellers staying for the showing is a no-no; buyers want to tour the homes with freedom of discussing their options. 

Tips for Homebuyers

Whether you are a single home buyer or a family, there are probably few things in life that are as exciting - or nerve-racking - as looking for a home. If one has organized a home buying plan, one can minimize a great deal of the emotional impact. By determining your buying bower, your wants and needs, and have an organized search plan, your chances of a stress-free experience are much better.

What is one of the most important factors in utilizing organization?

A mortgage pre-qualification is the second step after calling me. This will not only give you an exact price range, a pre-approval will add a great deal of strength to an offer you present. We have several quality lenders we work with to obtain the best loan programs personalized for our buyers' needs.

How about finding the "perfect" home?

I hear about this, and having sold over 3,000 homes, I can tell you there is not a perfect home. There are many people that make the mistake of thinking that they will, if they look around long enough, find a home that has 100% of their needs and wants. Determine the most important of your needs, and the most desired of your wants, and select a home that meets the majority of them. Ideally, if you can find 80-85% of your requirements, you should jump on it before someone else does.

Any other tips for home buyers?

An important thing for single individuals: don't over-buy the first time. A large and beautiful home with little or no furniture tends to be empty and cold. A life where almost every dime of your earnings goes to the support of your home wears thin very quickly and is a frequent cause of stress. Also, certain types of homes may possibly appeal a bit more to some single home buyers, such as townhomes and condominiums that help with maintenance, are a good place to start. 96% of people start their search online, and many internet sites offer inaccurate housing information. Our team offers a competitive edge to this with completely accurate information, and a personalized, professional search sent straight to your inbox!

Technology in Real Estate

What are some helpful facets of technology you can share with us today?

I am constantly working, and don't have time to waste on things that don't function efficiently for my clients or my team. When I think of using futuristic gadgetry, I envision things that are simple and uncomplicated, yet flexible and powerful enough to perform the way they promote themselves and to fit in with my high-performance lifestyle. There are many, many apps and websites out there to choose from, and I wanted to share the ones that my team and I utilize. Today, I want to discuss the websites.

What are great websites for buyers?

The Multiple Listing Service, or MLS, is accessibly only Realtors, but there are other websites that pull directly from the MLS using what is called an IDX feed, such as Realtor.com and Homes.com. When people think of online websites, typically the first ones pop up are Trulia and Zillow, being two of the most popular sites out there. If I didn't say what great exposure they can be for sellers and prospective for buyers, I would be lying. However, these are often terribly inaccurate; know that you can always call our team for up-to-the-minute accurate information on homes. As a buyer, we can set up an up-to-the-minute, personalized portal of homes available straight to your inbox for FREE.

Listing Activity Report

What do you have for sellers?

For our clients, we utilize an electronic signature system which you have heard of, Docusign, so that no matter where you are, we can have you sign an offer (or Counter Offer) within minutes. There is also my Listing Manager's favourite: ShowingSuite.com, that is linked to the lockbox in place on your home. Every time that lockbox is opened, it sends an email informing you, as well as our team, about the showing, and when the showing agent's feedback is submitted, it's sent unedited to our seller's email. My personal favourite is one that only those under the Prudential umbrella can use, what we call the Listing Activity Report. Every week, we send a personalized comparative market analysis, showing how many people have searched for your home, how many homes in your area just came on the market, amongst other helpful information. This is a sample of the technology that we offer our clients, and I will report on other application in the future.

Listing Activity Report

Buyer & Seller Mentality

How is the spring market?

With the spring market in full swing and the strong activity we’ve been seeing lately, I wanted to discuss motivation and mindsets of buyers and sellers as it’s very important for all parties to understand what their goals are and the best way to achieve them. As a seller, if you can get into the buyer’s mindset, the sale of your home can happen faster and for more money.

What, in your opinion, are the most important steps in selling a home these days?

The first step starts with a decision. I often talk to my clients in terms of motivation. So ask yourself: on a scale of 1-10, what level of motivation are you at to sell your home? A three would be maybe next year; 6-7 would be to get the kids in school before August; 9-10, we are relocating to Chicago for a job. Often selling is a hard decision, so this process helps people focus on the decision with more clarity.

What are other factors in selling a home?

Success in selling a home is primarily driven by three factors – the condition of your home, appropriate pricing, and an aggressive marketing plan to generate traffic through the door! My proven aggressive marketing plan can make the difference between a for sale and a sold sign. I just sold a home in 8 days that had been on the market with another company unsold for several months, a clear indicator that the marketing plan is critical to a successful home sale. As the seller, remember that the old cliché of “you only get to make one first impression” definitely applies to selling real estate. With many serious buyers looking right now, you want your home to stand out amidst all of the competition! It’s important to remember that your home is for sale and on open display. Buyers like to see things that are streamlined, clean, and fresh looking. Deep clean and declutter to showcase how beautiful your home can be!

How can sellers achieve their real estate goals by thinking from a buyer’s point of view?

Today’s buyers benefit from historically low interest rates and they still want the absolute best deal on a home! They are focused more on the best value and less on emotional purchasing. They will buy their second choice before paying top dollar for their first choice! By working with an experienced Realtor, like myself, you can ensure that your home makes the best overall presentation. This will give you an upper hand when negotiating on price and other important terms of your home sale. My job is to protect the interests of my clients, from the price war, to the beauty contest, until your home is closed and the cash is in your hand!

Contact Cheryl today at 505-238-3272 or email her at cheryl@cherylmarlow.com!

As always, who do you know that needs to buy or sell real estate today? Thanks!!

Real Estate Contracts - Buyer's Viewpoint

You wanted to talk today about buying a home on a real estate contract, can you tell us what that is?

The first thing to know is that we call them REC's. A real estate contract put simply is a way for the seller to act as the bank for the buyer. In other words, the seller is, in effect, lending all or a portion of the purchase price for their property to the buyer and accepting monthly payments, including interest, over a period of time.

Does the buyer have to qualify?

The buyer does not have to qualify, however most sellers will review the credit report. It is much easier than qualifying for a mortgage and many sellers will take a chance on someone with poor credit, especially if they have a good explanation.

Why would a buyer want to buy on a real estate contract?

For a buyer with little, bad, or no credit, it may be the only way they can purchase a home. It may not be a credit issue. They may be self-employed or in a new job, or other reasons that make qualifying at the bank difficult or impossible. Another reason is that the terms and the down payment are negotiable between buyer and seller. And since you are buying the house you get the tax deduction for the home ownership.

Sounds a little complicated, have you done a lot of these real estate contracts?

Yes, I have, both for clients and for myself as buyer and seller. When I started selling property 27 years ago, they were very popular. When financing became so easy they almost went away. As lending requirements have become more restrictive, REC's are back and more popular than ever!

Obviously, it is important to deal with an agent like you has lots of experience in these. Do you have a property to tell us about that the owner will finance?

Yes, I do! I have homes available with owner financing starting at $150,000 up to $1,250,000 in many locations in the Greater Albuquerque Area!

Price War & Beauty Contest

The real estate market is very competitive, so what can people do to set their home apart?

It's important to realize that even with the amazing activity we've been seeing in the market, in today's market, everything is a price war and a beauty contest! It used to be all about location, but these days' it's about price, condition, and location!

Let's talk price first. Lately, we have seen an upswing in home sales and decrease in homes available and this is due in part to homes being more affordable, coupled with low interest rates, has coerced buyers back to the closing table! The good news in our current market is that lower prices and a stabilizing market are shoving 'on the fence' buyers back into buying.

How should sellers price their home to get it sold?

Here's a good rule of thumb: when you list your home, price it to attract serious buyers' interest - don't price it like the neighbors' home that's been on the market too long! Why should you do that? If your home is priced too high, it will just help others to sell, and buyers won't even consider yours. Why would a buyer purchase your home when the house down the street is cheaper and has more amenities? Remember, fair market value has nothing to do with what you or I want for your home, what you put into it, or what your neighbor got for their house two years ago. Fair market value is what a buyer in today's market is willing to pay for your home!

That could be hard for some people to do because selling your home can be a very emotional process.

I agree, it is hard, but you have to take as much emotion out of it as you can, and try to look at your home as an investment and not as the home that you raised your children in. Take the emotion out of your mindset, because today's buyer isn't purchasing at an emotional level. Today's buyer will actually make an offer on their second choice, if they feel it is a better value than their first. It's absolutely necessary to do this because, as I said, today's market truly is a "price war and beauty contest," and you must be competitively priced and in great showing condition.

Seller Resources

Last week we talked about buyer resources, can you explain your seller resources this week?  

Over the past 27 years, my in-house professional team and I have designed a stream-lined, successful marketing plan, implementing many systems and resources to exceed our clients' expectations.  There are many benefits and resources you can avail yourself of when you hire us, such as an aggressive and effective marketing plan, team concept and availability, and technological magic. I have a wonderful team that brings diverse talents together to ensure our customer satisfaction and streamline each transaction to help ensure smooth closings.

What do you mean by team concept and availability?  

When meeting with potential clients, one of the top items people express that they desire from their Realtor is communication. This is such a key element in any relationship. We work with each homeowner individually to ensure that there is consistent communication and that all aspects of the sale are properly coordinated  to make the sale of your home as smooth and enjoyable as possible. Not only do we notify our clients the moment someone has shown their home, we also obtain feedback from that showing. We update our clients via email three times a week, in addition to a personal phone call. Our goal is to help sell your home for the maximum price, in a reasonable time frame, with the least inconvenience to you as the homeowner.

What can you tell us about the marketing plan?

We market our listings to over 100 of the top real estate websites, focusing on resources for potential buyers' rapid access to information, as well as other online and offline marketing. my team and I are also Relocation Certified and work with a variety of business, both national and local, offering a consistent stream of buyers and sellers. Technology in our business is a great benefit. However, what really sets my team and I apart is that we consistently look for buyers for our sellers and sellers for our buyers, the old-fashioned way: we get on the phone and prospect for business! There are many facets to our proven successful marketing plan, and I am happy to share them in greater detail with an interested buyer or seller!

Preservation of Homeownership Tax Policies

Next week I'll be doing my monthly Albuquerque market report, but I wanted to speak about a broader, national topic today. Owning a home is still the American dream, and we're definitely seeing a renewed sense of optimism. Offering more evidence of a swing toward homeownership as the housing market continues to recover, a recent survey states that there has been a dramatic increase in the number who now say that they intend to buy in the near future. 49% simply want the chance to call themselves homeowners, 44% view owning a home as good financial investment, and 36% need more space for their family and/or children.

What can you tell us about the comprehensive tax reform?

Currently, you are able to take an income tax deduction for the amount of interest you have paid on your mortgage. The mortgage interest deduction helps many families become homeowners, and it is vital to the health and stability of housing markets. 65% of families who claim the deduction earn less than $100,000 per year, and as a percentage of income, the biggest beneficiaries are younger middle-class families.

What is the stance of the National Association of Realtors and yourself?

The National Association of Realtors' President Gary Thomas recently testified before the U.S. House Ways and Means Committee concerning federal tax provisions that affect residential real estate. Thomas said that homeownership has had long-standing support in the country because of its many benefits to individuals and families, communities and to the nation's economy. Realtors know that homeownership is an investment in your future and for many people, owning a home helps them gain a financial foothold and a feeling of security, especially once you own your home free and clear.

And this tax deduction helps improve the overall real estate market, correct?

Since we're in the midst of a fragile recovery, additional housing taxes would crush the real estate market just as it is poised to help lift us out of the economic doldrums. Our goal is to see that the tax code will continue to reflect the fundamental American value that homeownership helps build financial stability. Not only is this the right policy for housing, it's also the best for homeowners, for communities, and for the economy.

Albuquerque Rankings

As you may know, we are certified Relocation Specialists for the Greater Albuquerque Area. When I talk with someone who is moving to our area, I say, "You're going to love the weather, history, and culture of Albuquerque!" And, Albuquerque offers numerous top rankings and accolades.

So, how does Albuquerque measure up?

First of all, our weather is fantastic, with our location being lowest on the scale for natural disasters and sunny for over 300 days a year! This makes us one of the healthiest and fittest cities in the country. Albuquerque ranked third in Men's Fitness Magazine's 25 Fittest Cities, Bicycling Magazine's list of America's Top Bike-Friendly Cities. With thousands of acres to explore in open space and National Forest Lands, we are also named as one of the U.S. Cities with the Cleanest Air, 2012 Greenest Cities in America. The Trust for Public Land ranked our park system among the 10 best in the nation! Albuquerque park acreage per capita is 261% higher than average, and the 2nd highest in their survey.

As we are the Land of Enchantment, Albuquerque offers an exciting array of activities for all ages and interests! From mountain biking and hiking, to playing a rousing game of gold on one of our famed golf courses; perhaps taking a tour or of one of Albuquerque's vineyards; attending live music and performances; or browsing museums and galleries, there is a range of activities for all to enjoy!

So Albuquerque is a great place to live and work, right?

Yes, our rankings reflect the industries that have come to Albuquerque, especially filmmaking. The city and surrounding areas, and New Mexico in general, have become magnets for films and media projects. Film Industry Network, MovieMaker.com, and P3 Update all ranked Albuquerque as one of their top 10 Best Cities for work. And I quote, "You can shoot in the snow-capped mountain peaks of Taos one week and be in the dry, cracked earth of Lordsburg salt flats the next." Add to that our high scores for availability of local food, pet friendliness, and green and tech jobs. Albuquerque is a great place to live, work, and own a home!

Staging Tips

As I always state, real estate is a price war and beauty contest, and I wanted to discuss some simple things that sellers can do to maximize the value of their home and make it as appealing as possible to their potential buyers. Buyers judge a home in 15 seconds, so make every second count. Since over 90% of buyers start their search online, sometimes months in advance, prepping a home for pictures is vital.  This is the first impression that they get, and making your home as beautiful as possible is simply essential.

What are some other interior updates?

When staging your home, you want to highlight the best features of your home and decor, so focus on decluttering, deep-cleaning, and brightening. Some simple and cost-effective measures can be extremely valuable.

How about the exterior?

According to HouseLogic's 2013 Remodeling Cost vs. Value Report, curb appeal projects are rated among the most valuable home improvement projects. Check your roof for winter wear-and-tear, clean up the yard, wash the windows, clean your mailbox, etc. Whether you work with a stager or do it yourself, show off what made you fall in love with your home, and you'll hopefully help a buyer find that same attachment.

Late Summer Buyers

The end of summer is fast approaching. Did you blow your once-in-a-generation chance to buy a home? The U.S. housing market crash of 2007-2008 presented a big opportunity for those in the market to buy a home. Mortgage rates lurched lower, continuing their downward trajectory to historic lows reached in late 2012. And, of course, home prices came way down. Now, there is concern that these trends are starting to reverse. Increased talk of tapering of monetary stimulus by the Federal Reserve has provided the impetus for the rise in interest rates in recent weeks. That does not mean that the opportunity has passed you by, though things have changed drastically.

What can buyers do to take advantage of the current opportunities available?

Having been in the real estate industry since 1986, my team and I have perfected methods to effectuate a successful closing. The more common multiple offer scenario, continuing skittish lending standards, and climbing prices mean you need to be ready to act. So, start by being prepared. This is something we can help you with, narrowing target areas and balancing your dream home with reality to ensure the most comfortable situation possible. Determine your deal breakers and deal makers. Do you need a 5 bedroom house when it's just three of you? What area of town or mountain might you and your lifestyle best fit into?

Once they find a home, what advice can you give on making an offer?

Low-balling is on the biggest mistakes you can make in today's market. Deals don't happen when one party is miserable with the final terms, and if the first terms signal a tough negotiation, many sellers will decide to just walk way. Multiple offers are becoming common in the affordable price ranges, so your low-ball offer may not even be considered. Also, offended sellers aren't your friend - so, make sure your offer is respectful and realistic based on comparables. We can help you in deciding what is the "right" offer to make, which isn't always the highest or lowest offer.

Real Estate Recovery Myths

Like anything else, real estate has its urban legends and these can create fear, panic, paralysis, and all sorts of other decision glitches.

Myth #1 is that the market is recovering too fast with 12 of the 20 major metro areas experiencing yearly double-digit price increases. This has created the fear that the market's exuberance will lead to another steep decline. Here's the deal: markets have cycles, period. When an area's home values have been very depressed for extended periods of time, it doesn't take that vast of an uptick to generate double-digit percentage point increases.

That makes sense. I've heard investors are driving the demand, is that true or false?

The presence of investors, whether they're big Wall Street investment groups or Mom-and-Pop investors, are nationally responsible for approximately 20% of recent home sales. This is somewhat on the decline as home prices are stabilizing, thus putting a cap on the profit these investments can churn out. Buyer demand is actually increasing, as evidenced by increasing numbers of cash transactions, offers per property, and the speed of homes leaving the market. First-time-home buyers are responsible for 36% of current buyer activity and repeat homeowners over 43%. Investors have been active, but by no means are they solely responsible for creating the increase in buyer demand that now characterizes the market, so this myth is busted.

What about foreclosures?

I've heard it said that foreclosures are a thing of the past. Through the recession, many banks held hundreds of thousands of foreclosed homes off the market to avoid flooding it, depressing prices even further. These institutions continually trickle these homes, the so-called 'shadow inventory', onto the market, rather than creating a deluge of home inventory. We can expect to have a higher-than-average number of foreclosed homes on the market for some years to come, though the shadow inventory has declined over 10% nationwide between January 2012 and January 2013.

These myths are just covering a handful of misconceptions about the real estate market, but feel free to contact me as I'm more than happy to go into more detail about how it affects you!