“Expert” Advice and Points of View

The following was taken from a magazine for real estate professionals. Please read.

 Don’t let Sellers give a personal tour of their home.

It is hard for some Sellers to resist sharing their personal experiences, but when it comes down to it, Buyers should daydream about the overall home being theirs, not concentrate on some upgraded sink faucet the Seller installed last week. You want the people to become interested in the home on a personal level, thinking of how they will go about their daily lives in it rather than notice every detail. Noticing every detail will come later.

At Help-U-Sell, we give sellers the option of shoiwng their own home. I know personally that many buyers love having the owners show the home, as there is not a question about the house which a seller doesn’t know, unlike all agents. However, some sellers need to know when to turn off the “production”.  The buyer must experience the house, feel it, and absorb it. As the magazine excerpt states, they don’t need to know about the upgraded faucet, or the 55 gallon hot water heater, etc.

Get to the Settlement Table Faster

Advice to sellers:  If a buyer wants to make you an acceptable offer, try to close as fast as possible.  This new credit crunch may change the rules on your buyer midstream, as it has already done to thousands of would be buyers. I am not saying to panic, or but if you can close the deal in 30 days, just do it.

If you are a seller on the market now, be prepared to settle in 30 days to avoid having the financing rug pulled out from under your buyer. Make sure to have your municipal inspections done where possible, be de-cluttered and partially boxed to move, and if you are really proactive, have a pre-listing home inspection done buy a legitimate home inspection company.

With many different mortgage programs being yanked off the market, make sure to answer the door as opportunity knocks. 

End of the 100% Financing?

Will the credit crunch forever eliminate 100% financing?  That’s what many lenders are insinuating lately, anyway. While some unique programs may always be available, it is quite possible that the no money down deals will fade away, as too high a percentage of them are slipping into foreclosure.

While all of this may seem like a bad thing for our economy and for real estate (as the media wants you to believe), I feel that the market and the industry are now in a self-cleansing mode.  In the end, we may have less sales, but we will also have less foreclosures.

If you will be buying your first home within the next few years, now is the time to begin saving, have a monthly personal budget, and stop wasting money on things which may bring you immediate, but no long term satisfaction.  Who knows how much your lender will require as a downpayment by the time you buy?  Save now!

But They Had to Sell!

Seller:  I want $300,000 for my home.

Agent: Well, the last 3 sales in your direct area sold for $235k, $265k and $275k.  I am not sure this market or area will produce $300,000.

Seller:  Those people had to sell. One bought another home, another was getting a divorce, and the third couldn’t afford it…I don’t think.

Agent: I understand. There are 500+ homes for sale in your town right now, and many of those folks have to sell. That’s why they are  on the market. They must move for one reason or another. It is homes like these which set the benchmarks for value.  Of the 500 homes for sale, I would guess that at least 150 of them Have To Sell.

Seller: My house is better. 

Days on Market Grows, But Manageable

This YTD, up to the minute report shows how long it now takes to sell a home, versus the average of the past few years.

January-August Average Days on Market
	2007	2006	2005	2004
Hamilton	82	65	59	54
Trenton	82	74	61	60
Washington Township	70	76	55	59
Florence Township	82	58	57	50
Bordentown Township	68	66	47	53
Burlington Township	79	54	50	45
Mercer County	82	71	57	55
Burlington County	78	58	49	48

Every town is still below 90 days on average, which is not so devestating compared to what the media wants you to believe. 

Price it right, and it will sell. Use last year’s pricing, and it will expire.

Changing Brokers

In the last 90 days in Mercer County, 382 listing contracts between seller and broker have expired.  More than ever, I am watching sellers change brokers or agents with the hope of having “better luck”.  Even some of my sellers have done so, while I have also listed other broker’s expired listings. 

What is most painful for me is to watch one of my former clients take their business elsewhere, then promptly give their agent a $20,000 price reduction or other substantive changes to help them get the house sold.  Like they heard that idea from their new agent for the first time.

What may be even more perplexing is watching sellers go from one agent to another and make absolutely no changes at all, truly believing that the fault is all on their former agent. It reminds me of a saying I heard years ago:

If I always do what I always did, I’ll always get what I always got.

My Favorite Local Restaurants

This of course is a service to all of my new buyers who have moved in to the area from far reaching places. As I post this, I am not even hungry, or the list could be much longer. In order of preference:

1. Chick and Nello’s.  Fabulous Italian food featuring breast of veal, roast chicken, veal and peppers, and incredible home made sauces. Set in one of the Kuser’s original farmhouses across from Colonial Fire on Kuser Road, this place is a step back in time. There are no menus and prices posted. My favorite is the chilled broccoli salad with crumbled blue cheese and onion.

2. Blue Danube.  Featuring Eastern European food, my personal fave here is the Chicken Paprikas. Tiny spaetzel and an incredible sauce make this one of my very favorite meals, anywhere. Great service and great prices are found here, and you will love the stuffed cabbage, pierogies, potato pancakes and everything else. Located in Trenton at Elm and Adeline.

3. Spigola. This new Italian restaurant gets better every time I go there. Fantastic ambiance, great food and a very large menu put this chic restaurant in my top 3.  Located behind Harry’s Army-Navy in the new shopping center on Crosswicks-Hamilton Square Rd.

4. KC Prime.  Wonderful steaks and a great atmosphere make this a must go for steak lovers. They also have an incredible burger and other nice dishes. Service is always stellar. Located on Quakerbridge Rd. in Lawrence near the QB Mall.

5. Rossi’s Tavern.  A local institution on Morris Ave. in Villa Park close to the Burg, this 1930’s era tavern has one of, if not the best burger in the area. Great place for a beer and a burger, and nice prices too. Very friendly and prompt service.

Announcing My 2 New Websites

This past week, I launched two new websites to help promote my listings and generate new business. 

MikeElliottHomes.com is my personal site, which sends my listings to dozens of other local agents using the same Point2 Technologies platform, and also sends my listings to other prominent national real estate sites.   It will reach a different audience than my office website, www.husharbinger.com, which is the new Help-U-Sell site which has been in the works for months.  The new Help-U-Sell site is a huge improvement over the last model, which was not as friendly or as easy to use.  The new Help-U-Sell site features 6 of our listings on the front page, which is what buyers want to see. It also has satellite mapping, Google Earth, and Cyberhomes Valuator, which are all fun tools to use.

With the internet being #1 place to find information for home buyers and home sellers, I  feel that both new sites will become popular destinations for local consumers. 

Check out these 2 new sites, and come back as we will continue to enhance them with upgrades and more tools and info.

How to Make Sure Your House Does Not Sell

1. Use last year’s prices. Be stubborn about it and don’t give in.

2. Restrict showings to a certain time.

3. Do not allow a lockbox.

4. Buy into the idea that open houses are just for lookers. Do not do them.

5. Don’t reduce your price.  Tell everyone that the price is firm.

6. Don’t return your agent’s calls.

7. Take your sign down.

8. Blame everything on your agent. Tell everyone they did nothing to help you.

9. Give your buyers hell if they show up 5 minutes late. Let ’em have it.

10. Don’t bother to make the beds, do the dishes or trim the lawn.

Racism is for the Weak

I grew up in a middle class neighborhood, raised by parents who, Thank God, respected people of all colors and backgrounds. I think racism is learned in most cases from parents.  While we may grow up hating broccoli and going to bed early, we must be taught how to dislike people with different color skin and people of different backgrounds. Racism is for the weak.

Racism, and sometimes discrimination unfortunately rear their ugly heads in my industry.  To think otherwise would be naive, and unrealistic.  I have had the unpleasant experiences of dealing with people in the past who made their racist feelings known, and while I have told them I will always abide by the law, I have also kept personal feelings to myself, trying to avoid heated debates or arguments.  Fortunately, I have also  had the great honor to work with many families from different countries and backgrounds.  I love getting to know them and learn about their cultures. It is fun to learn of sports and food and diffrent customs from their birthplace.  At the end of the day, It’s really amazing that no matter where people are from, how similar we all are.  Racism is for the weak. 

How creative is it to be racist? Any 7th grader can do it. It takes no creativity, intellect or character. From today forward, when someone makes a racist comment, I will tell them how I feel, and leave it at that.  My comment simply will be,  Racism is for the weak.  I encourage you to help me make this saying a catchphrase.