Did you know that most high commission companies charge an administrative fee of anywhere from $195 to as high as $499 at closing? THIS is above and beyond the 5%, 6% or 7% commission one pays with these companies. It is a travesty that so many sellers blindly pay these fees on top of an excessive commission. These sellers either do not know any better or they are in a frame of mind of paying over $12,500 for the average priced home that they figure what's a few hundred more.
Our administrative fee is only $95 AND you pay much less to sell and have a truly skilled Realtor on your side.
Bottom line: a few hundred dollars on top of the thousands ONE SAVES BY USING HOMEOWNERS CONCEPT adds up to a substantial amount of money, especially in this economy. And even if one wants to be a big spender with money why not take the savings and make a big donation to your favorite charity. YOU WILL feel good rather than spending it on unnecessary commissions.
Thursday, January 29, 2009
Sunday, January 25, 2009
2008 MARKET STATISTICS
Locally and for the 7 county area of southeast Wisconsin, 18,558 properties sold in 2008 almost 20% less than in 2007. This figure includes single family, duplexes and condos.
The average selling price was $209,730 about 8.5% less than 2007. Smart homesellers who used HOMEOWNERS CONCEPT though walked away from closing with MORE MONEY due to our very low fees. For most areas of metro-Milwaukee, prices are now at the pre bubble years of 2003 to 2005. And one has to consider the fact that today's sales prices include properties in a better condition than one could expect at the peak. The reason is that when sellers had the distinct upper hand and many homes were inundated with multiple offers, buyers were willing to overlook issues with a given property. In other words, today's prices are actually lower than the numbers suggest when one considers that sellers have to invest in improvements and repair in order to be able to sell.
Days on the market was an average of 104 however, this figure is very misleading since it does not take into consideration listings which relisted with the same or a different company or took it off the market and listed it later. There are thousands of properties with a year or longer on the market when one combines the total time of various listing times.
Nationally housing starts and permits plunged to an all time low since records began in 1959. That is 76% below the peak in 2005.
It is always the darkest before dawn and these figures suggest that the bottom may be close at hand. With the rates at or below 5%, first time buyer credit and more incentives on deck from Washington an uptick in number of sales in 2009 is to be expected.
The average selling price was $209,730 about 8.5% less than 2007. Smart homesellers who used HOMEOWNERS CONCEPT though walked away from closing with MORE MONEY due to our very low fees. For most areas of metro-Milwaukee, prices are now at the pre bubble years of 2003 to 2005. And one has to consider the fact that today's sales prices include properties in a better condition than one could expect at the peak. The reason is that when sellers had the distinct upper hand and many homes were inundated with multiple offers, buyers were willing to overlook issues with a given property. In other words, today's prices are actually lower than the numbers suggest when one considers that sellers have to invest in improvements and repair in order to be able to sell.
Days on the market was an average of 104 however, this figure is very misleading since it does not take into consideration listings which relisted with the same or a different company or took it off the market and listed it later. There are thousands of properties with a year or longer on the market when one combines the total time of various listing times.
Nationally housing starts and permits plunged to an all time low since records began in 1959. That is 76% below the peak in 2005.
It is always the darkest before dawn and these figures suggest that the bottom may be close at hand. With the rates at or below 5%, first time buyer credit and more incentives on deck from Washington an uptick in number of sales in 2009 is to be expected.
Wednesday, January 21, 2009
Our 25th Year in Business!
CONGRATULATIONS TO US! HOMEOWNERS CONCEPT TURNED 25 YEARS OLD IN 2009! Thanks to the tens of thousands of clients who were smart enough to use our program and save thousands in commissions.
From the very beginning clients embraced our concept as an innovative alternative to the traditional high commission agencies. In the first few years of our existence we suffered the sling and arrows of traditional agents (we were after all making it tougher for them to justify the big commission). We heard the competition say many times "why don't you guys charge more?" Most high commission agents were missing the point. We have proven beyond a doubt that the intelligent consumer wants and deserves a low cost alternative to the 5% 6% or 7% commission. There was a void between the very low chance of selling For Sale By Owner (FSBO) way and the full service high commission method. Our program not only was the "missing link" in real estate it also proved that clients can receive more expertise and more exposure for their property than the high commission programs and cost much less. Smart sellers love our program that they call us when ready to go on the market. With our impeccable reputation (designated A+ accredited business by the BBB) and grass roots growth we do not have to badger or high pressure people to sign up with us.
Our emphasis on advertising our properties directly to the buyers (we have the most widely distributed homes magazine and a great website, among others) rather than advertising our company to get more listings has resulted in selling many more homes per agent than the conventional agent (3-4 times more homes per year). This way the agents can make a decent living even with our low fees AND be experts in real estate by doing such high volume.
The fact that we have continued to offer attractive low fees and grown for the past 25 years is a testament to the success of our program and the consumers' desire to lower commissions to a reasonable level.
Sunday, January 18, 2009
Can it get any better for buyers?
Being a buyer in today's market is the best it's been in decades. Why? For starters, you have a large inventory of homes (almost 3 times as large as it was in 2004). Buyers and renters who can become buyers have the opportunity to purchase a home that just 2 to 3 years ago would have cost 15% to 30% more. In some extreme cases that number is as high as 50%. In addition, ask yourself the last time you had a 5% fixed rate mortgage for a term of longer than 3 to 5 years. It's been decades since rates were this low.
In some cases it now costs more to rent a home than it does to buy a home. Why??? Simple, when foreclosures are on the increase rentals are in greater demand. With this greater demand comes a shortage of housing, and increase of rents, and the cycle begins. Renters who have good credit, and there are many of you out there, should be looking to becoming a homeowner and why not? Yes credit is tighter, yes you will actually have to have a job, yes you will actually have your income verified and yes you do need some money down. If you want to be a homeowner and have everything but the money, FHA even allows a gift from family members to help you so you can become a homeowner. At Homeowners Concept we also have a creative way for getting part or all of the down payment in a form of a rebate (call for details). Furthermore, if you are a first time home buyer the government is offering up to $7,500 tax credit.
It is difficult to imagine how it can get much better for a buyer.
In some cases it now costs more to rent a home than it does to buy a home. Why??? Simple, when foreclosures are on the increase rentals are in greater demand. With this greater demand comes a shortage of housing, and increase of rents, and the cycle begins. Renters who have good credit, and there are many of you out there, should be looking to becoming a homeowner and why not? Yes credit is tighter, yes you will actually have to have a job, yes you will actually have your income verified and yes you do need some money down. If you want to be a homeowner and have everything but the money, FHA even allows a gift from family members to help you so you can become a homeowner. At Homeowners Concept we also have a creative way for getting part or all of the down payment in a form of a rebate (call for details). Furthermore, if you are a first time home buyer the government is offering up to $7,500 tax credit.
It is difficult to imagine how it can get much better for a buyer.
Friday, January 16, 2009
Should one use the same agent to sell and buy?
Absolutely. If both homes are in the same market area it makes no sense to not use the same agent. Working with the same agent will help stream line the process, they already know your financial information and can coordinate the dates and make sure both closings are as stress free as possible.
One has to MAKE SURE though that the agent they are thinking of working with is a very experienced and competent one. Unfortunately the bulk of agents in traditional high commission companies do very few sales/year and have been in business less than 5 years. You can rest assured that if you choose to work with an agent from Homeowners Concept you can count on someone with an average of 17 years in the business and sales of 3-4 times more than the average traditional agent. And to top it all off you pay much less to sell, even with our 4.4% full service program and have a skilled Realtor help you buy your next home. A skilled licensed Realtor working for you is as important as having an accountant, financial planner, etc... In this market you need to make WISE real estate decisions. Why work with a rookie when you can have unquestionable expertise guiding you.
One has to MAKE SURE though that the agent they are thinking of working with is a very experienced and competent one. Unfortunately the bulk of agents in traditional high commission companies do very few sales/year and have been in business less than 5 years. You can rest assured that if you choose to work with an agent from Homeowners Concept you can count on someone with an average of 17 years in the business and sales of 3-4 times more than the average traditional agent. And to top it all off you pay much less to sell, even with our 4.4% full service program and have a skilled Realtor help you buy your next home. A skilled licensed Realtor working for you is as important as having an accountant, financial planner, etc... In this market you need to make WISE real estate decisions. Why work with a rookie when you can have unquestionable expertise guiding you.
Sunday, January 11, 2009
Buy now or wait for rates to drop further?
This past week mortgage rates dropped below 5% (you can now check daily mortgage rates on our site as offered by Netcentral Mortgage - who we can count on offering competitive rates, good service and on having a very high percentage of closing loans - ). The continued buying of MBS (Mortgage Backed Securities) by the Fed has resulted in rates not seen since the 60's. With the holidays over, buyer interest in properties has increased and a higher number of homes went pending this past week than any week in December.
Nevertheless, some buyers are waiting for the rates to drop further and are putting off buying. That's gambling because nobody knows what rates will do tomorrow. Anyone who says they do is lying. The only thing predictable about mortgage rates is that they're unpredictable. Take what you can, when you can. You can always refinance again later. At this juncture, there is an even chance that rates will rise going forward as it is that they will fall.
With many homes priced at pre-bubble prices (2002 and earlier) combined with the low rates makes it one of the best times in history to buy a home.
Nevertheless, some buyers are waiting for the rates to drop further and are putting off buying. That's gambling because nobody knows what rates will do tomorrow. Anyone who says they do is lying. The only thing predictable about mortgage rates is that they're unpredictable. Take what you can, when you can. You can always refinance again later. At this juncture, there is an even chance that rates will rise going forward as it is that they will fall.
With many homes priced at pre-bubble prices (2002 and earlier) combined with the low rates makes it one of the best times in history to buy a home.
Sunday, January 4, 2009
Understanding Short Sales
We recently added a new feature to our website that allows our clients to search for "Hot Deals" which includes properties which will be a "short sale" at time of closing. What exactly is a short sale? The seller is "short" on monies to payoff the mortgage as well as closing costs.
In a “normal” sale, the seller has money left over after paying closing costs, proration of taxes, liens and the outstanding balance of any loans/mortgages against the property. This money is known as “net equity”. Unfortunately, there are a growing number of sellers who, due to a variety of reasons, find that they owe more on the property than it is currently worth. They are “upside down” or have “negative” equity.
There are two ways to handle “negative” equity. First, if the seller had the funds available, he could pay off the negative equity by bringing money to closing. This way the lender gets paid in full and there are no adverse consequences to the seller’s credit rating. The second way is with a “short sale”. The assumption here is that the seller does not have the funds to make up the deficiency. It is also often that a seller in this situation has stopped making payments on his mortgage(s) and is suffering from a degraded credit rating because of this. Foreclosure would be the end result, if neither of these options are available.
Foreclosure should be avoided as it is worse than a short sale for the seller and the lender. The short sale closing impacts the seller's credit MUCH LESS than a foreclosure. FNMA guidelines require a minimum of 2 years before one becomes eligible for a mortgage with a short sale on their record. It is 5 years minimum with a foreclosure. For the lenders, selling a property short is better than foreclosure because of time and cost savings.
The technical skill involved in getting a short sale approved by the Seller’s lender starts with knowing which sellers are good candidates for a short sale and which are not. For instance, someone who is simply “upside down” but can otherwise afford to pay the deficiency is not a good candidate. An experienced agent can assess the seller's situation. This is where it becomes necessary to employ a veteran agent - as all the Homeowners Concept agents are. There is technical skill involved in knowing how to price the property, write the contract, and ultimately assemble and deliver a good “package,” providing all the information that the lender will need to make their decision. Each lender has a different “punch-list” of documents that they require. There's definitely more work involved in a short sale but it is good for all: sellers, buyers and lenders.
In a “normal” sale, the seller has money left over after paying closing costs, proration of taxes, liens and the outstanding balance of any loans/mortgages against the property. This money is known as “net equity”. Unfortunately, there are a growing number of sellers who, due to a variety of reasons, find that they owe more on the property than it is currently worth. They are “upside down” or have “negative” equity.
There are two ways to handle “negative” equity. First, if the seller had the funds available, he could pay off the negative equity by bringing money to closing. This way the lender gets paid in full and there are no adverse consequences to the seller’s credit rating. The second way is with a “short sale”. The assumption here is that the seller does not have the funds to make up the deficiency. It is also often that a seller in this situation has stopped making payments on his mortgage(s) and is suffering from a degraded credit rating because of this. Foreclosure would be the end result, if neither of these options are available.
Foreclosure should be avoided as it is worse than a short sale for the seller and the lender. The short sale closing impacts the seller's credit MUCH LESS than a foreclosure. FNMA guidelines require a minimum of 2 years before one becomes eligible for a mortgage with a short sale on their record. It is 5 years minimum with a foreclosure. For the lenders, selling a property short is better than foreclosure because of time and cost savings.
The technical skill involved in getting a short sale approved by the Seller’s lender starts with knowing which sellers are good candidates for a short sale and which are not. For instance, someone who is simply “upside down” but can otherwise afford to pay the deficiency is not a good candidate. An experienced agent can assess the seller's situation. This is where it becomes necessary to employ a veteran agent - as all the Homeowners Concept agents are. There is technical skill involved in knowing how to price the property, write the contract, and ultimately assemble and deliver a good “package,” providing all the information that the lender will need to make their decision. Each lender has a different “punch-list” of documents that they require. There's definitely more work involved in a short sale but it is good for all: sellers, buyers and lenders.
Wednesday, December 31, 2008
Tips for Selling Your Home.
It is no secret that the real estate market has slowed down in the past couple of years. Inventory of homes for sale is up, and the time on the market for home listings has increased. In the past, selling a home was pretty easy. Demand was high and competing offers were quite common. In contrast, today's market is favoring buyers. Buyers have more choices and are able to be picky, so selling a property now requires better marketing, more effort, more patience and listening to recommendations of an experienced agent.
Here are 10 quick tips to keep in mind if you plan to sell your property:
1. First impressions matter - The single biggest marketing event for a property is when it first comes on the market. You will receive the highest number of website views and in-person showings during the first few weeks that a property is on the market, so make it shine! Make sure the curb appeal is there by cutting the grass, trimming the shrubs, properly shoveling the snow or raking. The interior should be well-organized, free of clutter and very clean. Seek the advice of an experienced real estate agent on the appearance of your home. Avoid agents who are part time, are novices - have less than 5 years in business (unfortunately the majority of agents fall in this category) - or agents that work for limited service companies (they charge a huge upfront fee and could care less if you sell). Pick carefully such as a seasoned Homeowners Concept agent (All Homeowners Concept's agents are veterans in the industry and rank in the top 1% in sales). Swallow your pride and allow them to be critical. They see homes every day and know what helps to sell a home more quickly.
2. Price it to sell - Everyone wants to sell their home quickly, but to achieve this in today's market, you must price your home accurately and be more flexible by not paying a high commission. Homeowners Concept's fees range from about 1.5% for the majority of homes sold to as high as 4.4% for the "everything under the sink" type full service program. A home should be priced based on a recent market analysis on homes that have sold in your neighborhood. Comparable sales should never be older than six months and you should always give the most weight to homes that have actually sold. Don't try to "test the market" with a higher price, which will simply increase your time on market. Be honest and analytical in your approach, and don't set your price based on the proceeds you would like to receive at the end of the process. Buyers do not make their buying decision based on what you owe or "what you need to get out of it".
3. Analyze your competition - There is no better way to gauge your competition and to set your price than to take into consideration similar homes for sale near you. Again, an experienced agent will be very useful in this analysis.
4. Acknowledge your property's weaknesses - All real estate is unique and every property has certain weaknesses. Some homes have more obvious weaknesses that need to be addressed with your price. Whether it is an ugly view, a noisy location, messy neighbors, or an odd floor plan, buyers have choices and will simply pass on such a property unless the weakness is reflected by a lower price.
5. Patience is a virtue - Marketing a home takes time. This is often one of the toughest things to go through as a seller, but you should mentally prepare yourself that it could take awhile, especially if you price your property higher than the competition. The time from listing until you receive an offer is often measured in months, not days.
6. Share your situation with your agent - Much like a lawyer, a professional agent cannot fully help you if you don't share your situation with them. If family or financial situations require an urgent sale, make sure your agent knows that. Agents will likely recommend a different pricing approach for someone who needs to sell immediately versus someone who can afford to wait a few months.
7. Be willing to change the price - If no one is showing your property or if you have had no offers after a long time on the market, you need to lower your price. Price is the single largest motivator to change the behavior of buyers, and no amount of advertising or open houses will be as effective as a lower price. Make your price decrease a substantial, meaningful amount and be sure to give them time to take hold in the market (2-3 weeks, typically).
8. Negotiate all offers you receive - even a lowball offer, which sometimes feels insulting (fortunately only a small percentage of buyers fall in the category of lowballing). Don't be offended and don't be deterred. Everyone wants to buy for a lower price and buyers feel empowered right now. Inevitably buyers are willing to come up in price, sometimes far enough to make it acceptable to the seller. The only way to find out is to continue the negotiations.
9. Maintain your home during the listing - Your home may be on the market for a number of months. Keep the yard maintained and make sure that the interior is neat and clean at all times. Consider hiring a yard service or maid service to keep things in top condition.
10. Get feedback from showings - Your listing agent should be in contact with buyers who had a private showing and agents who have shown your home to buyers. There is no better gauge of what the market thinks of your property than feedback from a group of active buyers and agents in your neighborhood.
Here are 10 quick tips to keep in mind if you plan to sell your property:
1. First impressions matter - The single biggest marketing event for a property is when it first comes on the market. You will receive the highest number of website views and in-person showings during the first few weeks that a property is on the market, so make it shine! Make sure the curb appeal is there by cutting the grass, trimming the shrubs, properly shoveling the snow or raking. The interior should be well-organized, free of clutter and very clean. Seek the advice of an experienced real estate agent on the appearance of your home. Avoid agents who are part time, are novices - have less than 5 years in business (unfortunately the majority of agents fall in this category) - or agents that work for limited service companies (they charge a huge upfront fee and could care less if you sell). Pick carefully such as a seasoned Homeowners Concept agent (All Homeowners Concept's agents are veterans in the industry and rank in the top 1% in sales). Swallow your pride and allow them to be critical. They see homes every day and know what helps to sell a home more quickly.
2. Price it to sell - Everyone wants to sell their home quickly, but to achieve this in today's market, you must price your home accurately and be more flexible by not paying a high commission. Homeowners Concept's fees range from about 1.5% for the majority of homes sold to as high as 4.4% for the "everything under the sink" type full service program. A home should be priced based on a recent market analysis on homes that have sold in your neighborhood. Comparable sales should never be older than six months and you should always give the most weight to homes that have actually sold. Don't try to "test the market" with a higher price, which will simply increase your time on market. Be honest and analytical in your approach, and don't set your price based on the proceeds you would like to receive at the end of the process. Buyers do not make their buying decision based on what you owe or "what you need to get out of it".
3. Analyze your competition - There is no better way to gauge your competition and to set your price than to take into consideration similar homes for sale near you. Again, an experienced agent will be very useful in this analysis.
4. Acknowledge your property's weaknesses - All real estate is unique and every property has certain weaknesses. Some homes have more obvious weaknesses that need to be addressed with your price. Whether it is an ugly view, a noisy location, messy neighbors, or an odd floor plan, buyers have choices and will simply pass on such a property unless the weakness is reflected by a lower price.
5. Patience is a virtue - Marketing a home takes time. This is often one of the toughest things to go through as a seller, but you should mentally prepare yourself that it could take awhile, especially if you price your property higher than the competition. The time from listing until you receive an offer is often measured in months, not days.
6. Share your situation with your agent - Much like a lawyer, a professional agent cannot fully help you if you don't share your situation with them. If family or financial situations require an urgent sale, make sure your agent knows that. Agents will likely recommend a different pricing approach for someone who needs to sell immediately versus someone who can afford to wait a few months.
7. Be willing to change the price - If no one is showing your property or if you have had no offers after a long time on the market, you need to lower your price. Price is the single largest motivator to change the behavior of buyers, and no amount of advertising or open houses will be as effective as a lower price. Make your price decrease a substantial, meaningful amount and be sure to give them time to take hold in the market (2-3 weeks, typically).
8. Negotiate all offers you receive - even a lowball offer, which sometimes feels insulting (fortunately only a small percentage of buyers fall in the category of lowballing). Don't be offended and don't be deterred. Everyone wants to buy for a lower price and buyers feel empowered right now. Inevitably buyers are willing to come up in price, sometimes far enough to make it acceptable to the seller. The only way to find out is to continue the negotiations.
9. Maintain your home during the listing - Your home may be on the market for a number of months. Keep the yard maintained and make sure that the interior is neat and clean at all times. Consider hiring a yard service or maid service to keep things in top condition.
10. Get feedback from showings - Your listing agent should be in contact with buyers who had a private showing and agents who have shown your home to buyers. There is no better gauge of what the market thinks of your property than feedback from a group of active buyers and agents in your neighborhood.
Monday, December 29, 2008
Reason for this blog
Our goal for this blog is to help educate and inform people about housing market topics, the Metro Milwaukee-area real estate market, and general advice and lessons about buying and selling homes. We hope that you will add us to your list of RSS feeds.
Homeowners Concept is entering its 25th year in operation in Metro-Milwaukee. We are proud of our record, having sold tens of thousands of properties and saved well over $90 MM in commissions. We have done this by providing more in marketing properties (having the most widely distributed homes magazine and a great website, among others) and having highly skilled, full time, long term agents who are truly dedicated to real estate. This is so different than the way traditional high commission real estate works. You see, the traditional 5, 6 or 7% commission office is like a revolving door. Agents enter and leave the business constantly (ever wonder why the larger offices have to continually hire and train new agents?). They count on each agent to at least attract a relative/friend or spend enough money of their own to attract a client outside their sphere of influence. It takes a lot of time and money for traditional agents to convince the consumer to pay the exorbitant commissions and to differentiate themselves from the competition. Traditional agents then are left with less time to do actual real estate work and stay in business long enough to become veterans in the industry. After a couple of years in business many quit or resort to working part time having another job elsewhere to survive. On the flip side, our agents don't have to market themselves and we make every effort to hire just enough dedicated experienced agents so that they make a decent living. Our marketing is almost exclusively geared to promoting the properties for sale which is good for our clients and our long term survival as evidenced by our 25 yrs in business. Our agents are truly focused on buying and selling homes, not promoting themselves.
We have become the company that not only saves the sellers thousands of dollars in commissions but provides exceptional real estate expertise. We truly think that our way is the best way to sell real estate.
Homeowners Concept is entering its 25th year in operation in Metro-Milwaukee. We are proud of our record, having sold tens of thousands of properties and saved well over $90 MM in commissions. We have done this by providing more in marketing properties (having the most widely distributed homes magazine and a great website, among others) and having highly skilled, full time, long term agents who are truly dedicated to real estate. This is so different than the way traditional high commission real estate works. You see, the traditional 5, 6 or 7% commission office is like a revolving door. Agents enter and leave the business constantly (ever wonder why the larger offices have to continually hire and train new agents?). They count on each agent to at least attract a relative/friend or spend enough money of their own to attract a client outside their sphere of influence. It takes a lot of time and money for traditional agents to convince the consumer to pay the exorbitant commissions and to differentiate themselves from the competition. Traditional agents then are left with less time to do actual real estate work and stay in business long enough to become veterans in the industry. After a couple of years in business many quit or resort to working part time having another job elsewhere to survive. On the flip side, our agents don't have to market themselves and we make every effort to hire just enough dedicated experienced agents so that they make a decent living. Our marketing is almost exclusively geared to promoting the properties for sale which is good for our clients and our long term survival as evidenced by our 25 yrs in business. Our agents are truly focused on buying and selling homes, not promoting themselves.
We have become the company that not only saves the sellers thousands of dollars in commissions but provides exceptional real estate expertise. We truly think that our way is the best way to sell real estate.
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