July Unemployment

Taking a bite out of our wallets

Ever wonder where all your hard-earned money is going? Think about this. If you drive 15,000 miles per year, and your car averages 30 mpg, your fuel cost has increased about 102% since January, 2009. To put it in numbers; regular gasoline averaged $1.84 a gallon according to Consumer Reports on January 26, 2009. Today, July 30, 2011 it averages $3.71 according to AAA. You can do the math. I don’t know about you, but I could use that $935 elsewhere.

If you have more than one car, you’re paying even more.

Keeping the Seller Informed of Market Conditions

Communication is the key. I have always thought keeping the seller informed of market conditions was just one of my responsibilities when I take a listing. Here are ten, I’m sure there are many more.

First responsibility: Do a walk through of the house. I like to do the walk through before taking the actual listing. I can make notes and comments about the house. This also gives me a chance to speak with the owners and ask why they’re selling, how much they still owe on the mortgage, what they think their house is worth and how much they would like to walk away with after the sale. Listen to what they are saying.

Second responsibility: Work up a complete market analysis on the home. Does the market analysis support the price the homeowner hopes to receive? If not, ask myself, do I really want to take an overpriced listing in this market. That answer is NO!

Third responsibility: When finished, report the CMA findings to the seller. At that time, I work out a “seller net sheet” with the homeowner. I like to sit down at the table with them and with pencil, paper and calculator in hand work backward to the price the home would have to sell at in order to achieve the “net” dollars they want. Sometimes, this alone will help them understand if the listing price would need to be too high to achieve their desired results.

Fourth responsibility: If we agree on a price that fits the home and list the property, it’s time to fill out the listing contract and explain the process. I heard one time it is a good idea to let the home seller know we are partners in this venture, they must do their part and I mine in order to be successful. Make sure their questions are answered, or you will get the answers for them. Leave them a detailed checklist of their responsibilities and things that need to be kept up daily.

Fifth responsibility: Enter the information into MLS and check it for errors. With all the information needing to be entered, it’s easy to make an error. While mistakes do happen, we owe it to our clients to check and double check for anything that might not let your listing pull up in another agents search.

Sixth responsibility: Take plenty of “good” photos and keep them updated. Here again, once you have uploaded photos to MLS, check them. Are they clear? Are they to small? Make sure they make the home, inside and out, stand out. If the home is still listed when seasons change, please change the photo. Nothing dates a home for sale more than a photo with snow on the ground and we are now in the month of July.

Seventh responsibility: Once showings start, provide feedback as quickly as you can. If the showing agents make suggestions, let the home sellers know. Especially if they are all making the same suggestion on the same thing. Sometimes you may need to be a little more tactful than how it was told to you.

Eighth responsibility: Drive by your listing once in awhile. You don’t even need to get out of the car. Check to make sure the curb appeal is still there. Is the grass cut? Are things picked up in the yard? Is your sign still standing or laying over in the yard? If you have a flyer box, are flyers in there?

Ninth responsibility: I am not big on calling the home sellers every week if we have no showings. I sometimes will email them, but I don’t usually call to chat. It’s ok to set your hours for accepting and returning phone calls, but let them know that when you list their house. If they call you, always try to call them back.

Tenth responsibility: Markets change and listings like old shoes don’t get better with age. Past sales do not mean homes will continue to sell in a given price range in the future. If your listing is still on the market in two months, do another CMA. I think it is a good idea to continue doing a market analysis every couple of months until the property is sold. Always bring it to the attention of the seller. If prices are decreasing, they may not like it, but it is still our responsibility to keep them informed.

Communication is very important in this business. Communication with your clients, potential buyers and other agents. Just because you have a new listing on the board does not mean you have money in the bank. It still has to sell.

My fishin’ story and selling your house

My dad was a big fisherman. He loved go to the Tennessee River and spend a weekend drifting down the river. Many times, he would take my younger brother and me along.

As a boy, patience is usually not high on the list, but dad would make us sit as still and quietly as possible after baiting our hooks and dropping our lines.

This is where the fishin' story comes in. I sometimes tell it when I list a home for sale: One day, while sitting quietly for at least five minutes, I decided my bait was not doing its job. I thought if I reeled in my line and put fresh bait on I would stand a better chance of getting a fish on the hook So, I started reeling. Just as my hook cleared the water, I caught site of a fish swimming toward the bait, mouth open. Had I left it in the water a little longer, I would have probably had the fish. The thing dad was trying to teach us (other than, be quite, you'll scare the fish) was patience, which usually is a valuable thing later in life.

This is what I try to tell clients I work with. Especially home sellers. Next to pricing a home correctly, patience is a must. Buyers will buy according to their schedule. I know keeping your house on the market over an extended period gets old, but it's just the way the market is at this time. No one knows when it will get better.

With that said, homes are still selling. Not as many or as quickly as they once did, but some are selling. As a home seller, you should always keep your property in showing condition and make it as convenient to show as possible. If you turn away a prospective buyer whose agent has requested a showing, you may have turned away the buyer of your home.

Checking homes in several subdivisions around Waxhaw, The Oaks on Providence, Hermitage Place, Kingston on Providence and Alma Village show a large drop in home sales this year from previous years. Homes are for sale in those subdivisions, just not as many buyers. The last I checked, interest rates were posted at less than 5% for a 30 year fixed loan and unit inventory is still high, about a 13-month supply as of 7/10/2010 in Union County, NC. If you are planning to buy, now might be the time to act.

Home sales in Union County, NC showed an increase for the third month in a row for the month of June. According to the Carolina Multiple Listing Service (CMLS), home sales in June were 235 homes to last years 195 homes. The tax rebate ended on June 30th. Homes under contract on June 30th have until September 30th to close. Will the increase in home sales continue? Interest rates are still very low and home prices are down, now is a great time to buy.

The Peach Lady of Waxhaw

The Peach Lady in Waxhaw has been selling peaches, tomatoes and other vegetables in Waxhaw for the past twenty-eight years. The vegetables are grown at Gowan Farms in Lancaster, SC about 17 miles from Waxhaw. The Peach Lady is usually open for business seven days a week May-October. If you’re looking for some beautiful fruit and vegetables, this is the place to go. You can’t miss her. She is on the corner of McDonald St and Highway 16 south.

Going Up?

Going Up? Are home sales in Union County, NC on an upward swing? We had a large increase in April. Was it just because of the tax credit? To date, for May, it looks like we have an increase going (105 to 81). By my count, approximately 42% of them are foreclosures or short sales. Right now we have 15.5 months supply in Union County. See chart below for sales through April.