Bloodhound Realty

Sun City real estate - sell, buy, invest, relocate

Month: May 2008 (page 1 of 1)

May 31, 2008

Looking for the bottom? Real estate speculators are establishing the bottom-dollar price for lender-owned homes in Phoenix

by

Sun City Real Estate Broker

Author website

This is my column for this week from the Arizona Republic (permanent link).

 
Looking for the bottom? Real estate speculators are establishing the bottom-dollar price for lender-owned homes in Phoenix

If you’re looking for the bottom of the real estate market in Phoenix, chances are it’s right up the block. It’s that house with the jungle of overgrown weeds in front.

It used to be for sale. Then it was a short sale. By now it’s lender-owned. A year ago it might have been listed for $250,000. Now the price has been slashed to $120,000 — maybe less.

That’s a sad story, particularly if you knew the owners. And now, as you watch the parade of investors checking it out, you might feel a certain anger toward them.

If so, your anger is misdirected. Between syrupy books and movies and high-strung high-school-teachers, we have been indoctrinated to despise speculators. But the truth is, speculators are the garbage collectors of capitalism. They come in and clean up messes they did not create, returning productive value to underperforming assets.

It you’re looking for a villain in these stories, look to the borrower, to the lender or just to the vicissitudes of life. But it is the speculators who are going to bring the real estate market back to a viable state.

How? By establishing the bottom-dollar price.

What is your home really worth right now? It’s worth as much as the lowest-price lender-owned comparable plus the cost of returning that home to turn-key condition plus a small convenience premium. In other words, if the lender-owned house sells for $120,000, and if it will take $10,000 to make it as nice as your home, then your home is worth $135,000 — $140,000 at most.

And if you’re not willing to sell you home for that price? Get it off the market right now. It will not sell for more, but the surplus of over-priced inventory is a false signal to buyers that the market has not found its bottom.

If you must sell into this market, you’ll sell at the market price. If you can afford to wait, you will almost certainly do better after the market has turned.

Technorati Tags: , , , , , ,

May 24, 2008

Phoenix real estate conference teaches Realtors and lenders the brave new world of internet social media marketing

by

Sun City Real Estate Broker

Author website

This is my column for this week from the Arizona Republic (permanent link).

 
Phoenix real estate conference teaches Realtors and lenders the brave new world of internet social media marketing

What happens when you bring the brightest Realtors and lenders from all over the country to Phoenix for a social media marketing conference? Great ideas are cross-pollinated, germinated, planted, take root and flower.

We run a national real estate industry-focused weblog called BloodhoundBlog.com. There are 24 contributors — Realtors, lenders and investors from all around the country — and hundreds of daily visitors. We’ve been doing this for nearly two years, and, in that time, we have avidly pushed for excellence among real estate practitioners, especially in the burgeoning internet side of the business.

This past week we hosted the inaugural BloodhoundBlog Unchained event at the Heard Museum in Phoenix. People came from all over — a third from Greater Phoenix, a third from the rest of the Southwest, a third from places where it rains and snows. Together for three days we explored the world of social media marketing in real estate.

What’s that? Social media marketing is the commercial arm of the participatory internet. As more and more people make the internet their primary means of interacting with the world, real estate professionals are learning how to move their own practices online.

The important question: What’s in it for you? The internet is a brave new world of commerce. No one likes sleazy sales people, but sleazy sales tricks cannot work on the internet, where every suspicious claim can be checked in an instant. Transparency rules, and the practitioners who succeed with net-empowered consumers are the ones who are prepared to back up everything they say.

The bonus for people willing to work this way is that consumers will have a much higher degree of trust in their Realtor or lender. Rather than picking a name out of a phone book or off of a yard sign, they will have gotten to know that person — passively and anonymously — online.

BloodhoundBlog Unchained was put on by me and my partner, Brian Brady of MortgageRatesReport.com. If you’d like to sneak a peek at the world of real estate as the professionals see it, feel free to join us at BloodhoundBlog.com.

Technorati Tags: , , , , ,

May 17, 2008

The Flip digital video camera makes illustrating real estate ideas fast, convenient and fun

by

Sun City Real Estate Broker

Author website

This is my column for this week from the Arizona Republic (permanent link):

 
The Flip digital video camera makes illustrating real estate ideas fast, convenient and fun

I’m becoming a fan of digital video for marketing real estate.

I’ve always hated the video home tour: “This. Is. The. Living. Room. This. Is. The. Dining. Room. The. Family. Dines. In. This. Room.” The images will be small, dark and grainy. The motion will be either jerky, swooping or both. And the tour itself will do nothing that could not be done better with digital photos.

But just lately I got a Flip video camera, and I can’t seem to stop thinking of real estate uses for it.

The Flip uses solid state memory rather than tapes to store its video. It’s a tiny little thing, about the size of a digital still camera, and you can operate it with one hand. It’s really only good for certain kinds of work. It would be useless at a wedding or a basketball game. But for capturing interviews, it is the prefect video camera.

Even better, it comes with a built-in USB connection and software for emailing videos or pumping them directly into YouTube or MySpace. Shooting, storing, editing and sharing videos are all painlessly convenient.

The first real estate application I thought of for the Flip was to collect testimonials from clients. That’s kind of self-serving, but the next idea was all about selling houses. In the past we have done video interviews with sellers or neighbors, but the editing process for normal video is onerous. But with the Flip we can just shoot the interview, upload it to YouTube and then link it from the web site for that property.

If I want to make a quick video to show weather conditions or traffic around a house, it’s easily done. I had a home inspector deliver a short video summary of the repair issues on a home for out-of-town buyers.

The breakthrough for me was thinking of video in the same way I think of still photography, as another way of illustrating real estate ideas. Because it’s so small and easy to use, the Flip now rides on my hip with my digital still camera.

Technorati Tags: , , , , , , ,

May 12, 2008

Are you an investor looking for a Phoenix-area rental home that will stay rented? Buy a home worth living in

by

Sun City Real Estate Broker

Author website

This is from my Arizona Republic column (permanent link):

I represented tenants for my first two years as a real estate licensee. Working with tenants didn’t pay very well, but it was a good way to get a lot of real estate experience very fast. Gradually I started working with home buyers, and then with home sellers. By now, I only work with tenants as a courtesy. It still doesn’t pay very well.

But in those two years, I saw an awful lot of rental homes. Or, more precisely, a lot of awful rental homes. Again and again, I would find myself wondering why anyone would think a particular house would be appealing to tenants. Not just the condition of the property, often atrocious, but simply the location itself. It’s astounding to me how many vacant rentals are situated nowhere near where tenants might want to live.

In the years since then, I’ve represented a huge number of investors. Market conditions haven’t been kind to them lately, but Phoenix is once again a market ripe for landlords. Prices are low and cash flows are positive. If landlords buy the right properties to use as rentals, the homes should rent quickly and stay rented.

So which homes will work best as rentals?

I’m looking for a home in a built-out suburb. Buckeye is a bargain for owner-occupants, but why would tenants move to a town with no employment base? What I want are jobs, schools, shopping and entertainment, all nearby, with decent freeway and bus access. I want a north-facing home; tenants read their power bills, too.

Am I looking for the cheapest house? No. Price matters, but what matters more is livability. Parents worry about the kids taking a header down the stairs, so I want a single-story home. There has to be at least a little grass in the back yard so toddlers can romp.

Here’s the magic bullet: If you buy a house that will resell well, and you maintain it in a way that communicates that you like and respect your tenants, it should rent well the whole time you own it.

May 4, 2008

Do you want to make sure your home will sell? Little things matter

by

Sun City Real Estate Broker

Author website

This is my column for this week from the Arizona Republic (permanent link):

 
Do you want to make sure your home will sell? Little things matter

I tend to do a lot of previewing. I will go into houses alone to take photographs. My buyers and I then use those photos to draft a short-list of homes to view when they’re ready to see for themselves.

Because of this, I get to spend a lot of time alone in homes, looking at absolutely everything, with no distractions.

Here’s what I’ve learned from looking at thousands of homes for sale: Little things matter.

Is the home picked up, or are there clothes, toys and magazines scattered everywhere? Are there dirty breakfast dishes on the kitchen table? Dried up orange juice splotches? Toast crumbs? Are last night’s dirty dishes piled up in the sink?

Is the house clean? Does it look and smell like the cleaning crew just left? If I look for dirt, I can find it. But can I find it easily without having to look?

Is every room of the house packed to the walls with furniture? Are there pictures of every member of the family for three generations tacked all over the walls? Do the kids like dark blue, dark purple, dark black paint?

I can probably guess your religion by the stuff you own and the other stuff you don’t own, but my buyers should never, ever see symbols of your religion in the house. Why? Because it can be subtly off-putting to them without their even knowing why at a conscious level.

Likewise, if they can smell your cat — or the fish you fried for dinner last week — you’ve probably already alienated potential buyers before they have even given your house half a chance. Odors kill sales, so kill those odors now.

Fix any obvious defects. Only a specialist can say for sure if the air conditioner is working properly, but no one has to be told when it’s completely broken.

It only takes a few small things to drive buyers on to the next house on their list. If you want for yours to be the one that sells, it simply must be better than others. Little things matter.

Technorati Tags: , , , , , ,