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!

Buyer Resources

Can you share some advice with us that you arm your clients with during the process of buying a home?

I know that buyers have questions about how all the pieces of the puzzle will fall into place, in terms of the basic logistics of going from house hunter to home owner. After 27 years of experience in real estate and 3,600 closings, my team and I have found many tools to benefit our clients. There are so many factors that go into buying a home, but let's touch on just a few of the buyer systems and resources that my team and I utilize. Before you get into my car to look for a home, take some time to write out your wishlist. Envision what activities each member of your home will partake inside and and outside of the home, and where school and work is or will be, and then you can get down to the details like bedrooms, bathroom, square footage, and location.

How does the house hunt work?

After your wishlist and home's parameters have been determined, we will set up our FREE home search tool with up-to-the-minute accuracy of all available homes on the market within your criteria.  They are sent straight to your inbox, so you can look at pictures and info, and select the homes you want to see.

Great, what about putting in an offer?

I have had great success in working with clients to help negotiate the best deal we possibly can. Once you've selected your new home, I'll help you decide how much is reasonable to offer based on comparable data. After the terms have been decided, we have tools such as electronic signature systems to expedite the process and grab the home before someone else can! No scanning, faxing, or mailing necessary if you have access to email. It helps to be on the cutting edge of technology.

Are there many details on negotiating a transaction to a successful closing?

There are hundreds of details we manage for our buyers and sellers. Thankfully, I have an amazing Business Closing Manager who handles all of the details of inspections, repairs, etc. I jokingly tell me clients she has severe OCD, and I won't allow her to be medicated! We have a great list of contractors outside of our office team that we work with on a regular basis that help ensure a smooth closing. If you're looking for a home, now's the time take advantage of the opportunities in today's market! Call me today for a no-obligation, free home search tool!

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.