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Trulia Adds “Trulia Estimates”: Novelty or Not?

Wed, 21 Mar 2012 11:25:48 -0700

Let me start by saying, Trulia.com and Zillow.com are great companies that I think bring great additional resources for home shopping to consumers. I love their websites and resources they offer. Zillow.com became a hit with it’s “Zestimate”. Just recently Trulia.com launched, what I am guessing is a competitive response to Zillow’s “Zestimates”, called “Trulia Estimates”. These are these companies attempts to provide real-time property valuation using proprietary algorithms. Sounds simple enough right? Think again.

One of the things any Real Estate Professional will tell you they wish was automated is . . . property pricing. This is one of the most daunting tasks that truly requires a hands-on approach. The common question is, “Why?” Seriously, look at all the amazing things computers can do today and they can’t automatically tell me the price a property should be just by typing in an address? Computers can tell you a price, but they can not tell you the price a property should be priced at accurately. The biggest reason being is that no two properties are the same. Even houses of the same model have different features added by owners over times, conditions can be different, location, etc. All of these factors play a role in pricing a property.

Novelty or Not?

Novelty . . . definitely. Be very careful with these valuation systems because we are not talking about possibly sacrificing just a few dollars with wrong information, you’re looking at tens of thousands of dollars if not more. Let’s take a look at Trulia Estimate’s Accuracy for my area Flager County, FL:

Properties on Trulia: 65,001
Properties with Estimates: 40,669
Median Error: 14.3%
Within 5% of Actual Selling Price: 19.2%
Within 10% of Actual Selling Price: 35.6%
Within 20% of Actual Selling Price: 67%

At their best range of “Within 20%”, 67% of the properties fell within that range. What does “20%” equate to in dollars? On a $150,000 that 20% is $30,000. No small amount of money at all to be guessing about. Zillow’s Zestimates are not much different for the area either.

Again, be careful with these systems. Believe me, I would love for an as-close-to-accurate automated pricing system but unfortunately it just doesn’t exist right now.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Seller Advice: Things To Be Aware Of With “Flat Fee” Selling

Sat, 03 Mar 2012 10:43:14 -0800

If you’ve been thinking about selling your house you may have come across the advice to to a “For Sale By Owner”. Whether selling yourself or through an agent, advertising online and in an MLS (notice that I didn’t say “the MLS”, and I’ll explain this more in a moment) is extremely important nowadays. Some real estate companies have begun offering what is called “flat-fee selling” as a “for sale by owner” option. This might sound like a great option, but you really have to be careful here as a seller.

First, what is a “flat fee” option? Simply put; instead of committing to a percentage commission to a real estate Broker, the seller pays a fee to the Broker for a set of services in selling your home. Typically the service is centered on entering the property into an MLS which advertises your home on Realtor.com, provides advice on dealing with agents bringing buyers, etc. Basically, it’s a very watered-down set of services offered to sellers and really focuses on simply “getting the property entered into MLS”.

Sounds great, right? Well here’s the pitfalls of this program and how to avoid them:

There is not just one MLS, and all MLS’s are local. This part is HUGE with this program. MLS’s (Multiple Listing Service) are privately held local databases owned and operated by the local Association of Realtors. Almost all MLS’s syndicate to Realtor.com, but entering a property into a California MLS for your home in Flagler County Florida makes it practically invisible to local Realtors here in Flagler County. Important: Ask the company what MLS they enter your property into prior to paying them anything. If it’s not with the local MLS, you are actually limiting your exposure.
You can actually limit your exposure. First, let’s look at the first part. Entry into an MLS does get you exposure onto Realtor.com, and although that’s the #1 place buyers shop for properties online . . . it’s not the only place. Likewise, it often times not the property people end up buying that they see on there. When I list a property for a customer, it’s entered into and syndicated to hundreds of websites where I know buyers are looking. Likewise, I want every local Realtor knowing it’s for sale. Why? Because they are working with buyers every day. If it’s a non-local MLS, your limiting your exposure a great deal.
You may cost yourself more in equity than listing on a commission basis. The biggest enemy of a listing is . . . time. The greater the days on the market, the more likely price will be impacted. The “gut reaction” to a lack of showings and anxiety is setting in is to reduce the price. The biggest contributor to time on the market is lack of exposure to the widest possible buyer audience. In essence, you can reduce price and not address your advertising issue which then results in the same lack of response and further price reductions. Beyond that, buyers are savvy today and one of the questions they ask is “How long has it been on the market?” (or they may already know if they’ve been patiently watching the property). Why? The reason is they know they longer it is on the market the more desperate I seller is probably getting and the buyer typically gains negotiating leverage. You may find yourself taking far less than you initially advertised the property for. And if you are not pricing based upon valid comparable sales you are wasting your time. Not only will you reduce your chances of getting an offer, you will reduce the likelihood of being able to close a sale on your property that could not possibly appraise for too high a price.
Putting up barrier to others bringing buyers. One of the slogan angles with these “flat fee” services is often times “Reduce their commission.” So put the shoe on the other foot for a moment and you are the agent, which property are you going to be more motivated to sell? The one with the lower payout or the higher payout? Your property may have a lot of great features but it’s not the only property on the market. Likewise, if your property is listed with an MLS outside of the local area you most agents won’t ever see it and the many buyers they have set up on automatic email updates of properties aren’t going to see it either.
The risk factor. One of the things agents take into account with listing a property is security for the seller. They know who is showing your property and the buyer is monitored. Lockbox systems are monitored to insure access is limited to agents who have scheduled a showing. I spoke with a woman the other day who is selling this way and she told me how she has someone coming to see her property because of an ad she placed on a free online classifieds website. So how does she know the person coming to see the property is legitimate? She doesn’t. AND she has two children with her. I’m not trying to go the “fear” angle here, but the reality is that you have to be careful as to who you granting access to your home when selling and the route she is going is far less secure.
Negotiation. What you listed your property for sale is often not what you’ll sell it for. Have you developed a negotiation strategy and planned out various offer scenarios? Do you know th elocal market as to what properties have sold and what ones are available? If not, you have greatly reduced your negotiation leverage.

The bottom line to it all is that selling a house (and any real estate) is complex. There is the intricacies of advertising and then there is the actual transaction if you do get to offers. I know that equities have been reduced and have even considered offering a “flat fee” type of service myself. Here’s why I chose not to. I can’t honestly reduce the amount of service to a seller, take their money, and be ok with the property probably not selling. At the same time from a business perspective, I can’t afford to invest the same level of service for a fraction of the income. So why is this service offered a lot of times? It’s simple . . . leads. Many times this service is offered knowing that you will not sell and then later convert the seller to the original commission model. Again, a route I don’t feel is the best level of service I can offer to sellers and is misleading them.

Again, be careful with these offers. And if you want the “secret formula” to successful selling, this is the one I use and it works:

Priced right + Great Exposure to the Widest Possible Buyer Audience = Showings => Offers => Negotiation => Contract => Sold!

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

2011 Palm Coast/Flagler County Market Recap

Wed, 11 Jan 2012 12:37:28 -0800

So how did the local market do for 2011? Very well, and here's just a few highlishgts on the Residential Housing sales in the area:

A total of 1,665 houses closed from January 1st to December 31, 2011
The total number of sales was up 14% compared to 2010 when 1,460 houses closed
82% of all houses sold were in the price range up to $199,999
The luxury market ($500k+) also saw a slight uptick as well making up 3% of the area houses sold compared to 2% for 2010
3 bedroom homes were the most popular making up 62% of all houses sold, and 30% were 4 or more bedrooms

Financing Type

This is where the statistics get really interesting and often very surprising for people, because 54% of all residential house sales in 2011 in the area were cash. Here's some highlights for financing:

Again, 54% of all residential houses sold in 2011 were cash sales compared to the number of cash sales in 2010 which contrbuted 47%
Conventional loans contributed 31%
FHA and VA loans made up 10%

2012 Outlook

I am confident the area will see another solid year. For the past couple of years we have seen slight rises in the number of residential house sales. We are currently at much lower inventory levels than the past several years (1038 houses litsed for sale in Flagler County as of 1/11/12) and there is continued activity in the area.

Disclaimer: Information based upon the Flagler County Association of Realtors MLS as of 1/11/2012 for Residential Houses. Information may be deemed reliable, but is not guaranteed

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Looking Up: Palm Coast/Flagler County Real Estate Recap

Tue, 15 Nov 2011 12:32:22 -0800

We're through October and the local real estate market has been another year of some real positives. It's also been a year of interesting devlopments too.

Highlights through October (Click here for a full market report):

Inventory levels remain lower.

As of 11/14/2011 there are 1024 houses for sale in Flagler County and 762 in Palm Coast. Palm Coast alone has typically remained above 900 for the last few years.

The number of house sales has increased 10% compared to this period last year.

There have been 1,345 houses that have closed through October 31st. Palm Coast has contributed 1,170 of those. This is an average of 134 closings per month for the area which has typically been about 100/month over the last few years.

The percentage of Short Sale houses for sale has dropped to about 26% for Flagler County and 30% for Palm Coast as of 11/14.

This has averaged about 36% pretty consistently

What about price?

Median and Average sale prices are slightly below last year.
Taking into account lower inventory levels and increased demand, next year will be one to watch. We could see positive gains next year.

Foreclosures ("Lender Owned", "REO", "Government Owned") all remain at low levels for sale in the area and move at very quick paces.

There are currently 55 houses for sale that are "Foreclosures".
Average days on the market for this category this year has been 80 days compared to 188 days for all house sales.

There's also been some nice and interesting surprises as well.

Cash sales for houses has contributed about 53% of the 1,345 houses closed through October. The highest of which was $1.8M. The average cash sale has been $157,483 for the area.
The Luxury housing market ($500k and above) has seen an uptick this year as well. 50 houses listed $500K and above have closed through October compared to 31 during the same period last year. Likewise, last year the highest sale was $1M during this period and this year it is $1.8M.

So, yes, it's been an exciting year with some nice surprises. We are in our "traditional" slower period right now. Decembers are typically an up month and there are a decent number of pending house sales which should contribute to a good end of the year.

If you are planning on buying, now is a good time to get serious as inventory levels are lower and demand is trending up (as it has been over the last few years). If you are looking to sell, it's also the perfect time to start planning. On either side it's very important to be open to reasonable negotiation to get to your goals especially with these market conditions. Low offers initial offers as a buyer can lead to the house not being available as another offer comes in while the seller is contemplating what they should do. Sellers not pricing realistically can cost you dearly in the long run as the house sees little or no activity (# of showings can be an indicator that you are priced too high).

Don't forget to visit www.PalmCoastHomeShow.com for your local real estate needs whether it being shopping all area houses for sale through a custom feed of our local MLS or getting started to offer your house for sale.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Flagler County/Palm Coast Market Highlights

Wed, 19 Oct 2011 11:42:43 -0700

Can you believe it's Fall already and the end of the year is fast approaching? I know I can't. "How's the market? " is the common question I hear, and there really are some some things about our local market. Here's just a few from the residential housing portion:

Inventory levels at their lowest in recent years

The number of houses for sale over the last few years in Flagler County has rarely dipped below 1,100 (and 900 for Palm Coast) at any given point in time. As of today, there are 986 homes for sale in Flagler County and 739 in Palm Coast. Of those for sale in the County, only 39 fall under "foreclosure" status and 245 are "Short Sale" designated. All positive numbers in my opinion.

Sales

Sales are one of the most important things obviously, and over the last few years we are seeing great year-over-year trends. Take a look at the comparison of the same period from 2008 to present:

We've seen increases each year to the tune of 7% to 10% during this period. This year 1219 houses have sold for Flagler County through September. The highest at $1.8M and the lowest at $13,400 for a median price of $120,000 and an average price of $158,275.

The most active price brackets really haven't changed much either. Here's a chart showing housing sales by price bracket in Flagler County through September of this year:

We typically see an uptick in activity in November and December in the area as well. So it will be interesting to see the outcome over the next couple of months of the year. If you are looking to sell, now is a good time to list. If you are looking to buy, now is a good time to start looking. Either contact me today or visit PalmCoastHomeShow.com to get started.

* Disclaimer: Information based upon the Flagler County Association of Realtors MLS as of 10/17/2011 for Residential Houses. Information may be deemed reliable, but is not guaranteed

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Google+: Hands-On Review

Tue, 12 Jul 2011 15:56:55 -0700

By now you've probably heard about Google's latest entry into the social networking arena with Google+. This is Google's latest entrance into the social networking arena. And they have done a stellar job. The service is far 'cleaner' with a more common sense type of approach than Facebook. The design allows users to overcome some of the challenges Facebook has for Realtors and users such as:

Circles - This feature allows you to easily group people. Unlike the lists in Facebook, the circles feature allows you to choose what you share and to whom. Plus it allows you to view posts by a circle of people.
Huddles - This feature allows you to group message with video for up to 10 people. This offers teams and brokerages a great way to meet, collaborate, and discuss business. It could also be used as a more personal way to communicate with a customer if you and them wanted to.
Sparks - This is a nice feature in which you can target multiple topics taking adavtange of seeing news from Google's news agrregator and easily share it out on the Google+ service.

By far, my favorite feature is the 'circles'. This is a feature that truly overcomes Facebook (I really like that service too). I can easily choose who I want to see what from who. Plus I can target messages to particular groups of people.

The Android Mobile app is nice too and ties in nicely for photo sharing and check-ins.

If you haven't checked it out yet . . . do so. Google apps accounts do not work with the service at this time, but normal gmail account seem to.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Have you checked out Google+ yet?

Mon, 11 Jul 2011 22:38:20 -0700

Really liking the new Googel+ service. My two favorite features are circles and sparks. What do you like and/or dislike about it?

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Flagler County/Palm Coast Market Update 5/9/2011

Mon, 09 May 2011 11:45:31 -0700

As the age old question goes in Real Estate, "How's the market doing?" In Flagler County and Palm Coast, FL . . . very postive. You can get a full break down of Residential Home Market Statistics for the area at PalmCoastHomeShow.com. But here's an overview of the market as of today:

There are 1196 homes for sale in Flagler County and 887 in Palm Coast. Both are some of the lowest levels of inventory in the last few years.
Of the homes for sale 27% are 'short sales' in Flagler County and 32% in Palm Coast.
Foreclosures represent 2% of all homes for sale in both areas.

In terms of sales, we are seeing great activity in the area.

440 homes have closed through 4/30/2011 in Flagler county which -7% compared the same period last year. This is not a concern because last year we had the Home Buyer Tax Credit as saw unusal high activity early on in the year compared to historical trends.
32% of all sales this year have been short sale.
Sales have been averaging around 95% of list price for home sales this year.

All of which are positive numbers for the area.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

2010 Palm Coast & Flagler County Housing Recap

Sat, 08 Jan 2011 19:27:17 -0800

At the beginning of 2010 I had said it was going to be a very interesting year. The tax credit was showing some promise to help boost home sales, but it remained to be seen as to what the effect would be once that credit ended. Initially contracts had to closed by June 30th. This spurred sales to perform very well in the first half of the year with the area running about 15% above the year before in terms of the number of sales and then fell off in July and the proceeding months. The year ended basically even with 2009 in terms of the number of residential home sales for Flagler County as follows with 1,408 versus 1,411 in 2009. Median selling price dipped 5% coming in at $130,000 compared to 2009 at $137,000 which was to be expected as the market continues to correct itself.

As you look at the graph of the number of home sale by month below you see that we had another good year in the area with sales "pushed" up in the year due to the tax credit deadline. What do I anticipate for 2011? If the phone calls and the messages I have been receiving during the holiday are any indicator, it should be another great year for the area. I expect us to see a return to a consistent trend in terms of the number of closes each month throughout the year with another year that either meets or exceeds 2010.

Disclaimer: Information based upon the Flagler County Association of Realtors MLS as of 1/3/2011 for Residential Houses. Information may be deemed reliable, but is not guaranteed

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

The 'For Sale' Sign Just Got Better

Sat, 27 Nov 2010 10:01:07 -0800

The 'For Sale' sign on the lawn of a property is still alive and well and continues to serve a purpose . . . letting others know the property is for sale. In fact, buyers still continue to find properties of interest by these signs and continue to take drives to look for them in an area of interest. But the sign has always had a huge barrier . . . the lack of information. You basically get 3 bits of information from the sign:

That the property is for sale
The company and agent the property is listed with
A phone number to call

So if the buyer does want to know more about the property they can either call the number on the sign or jot down the property address and look it up when they get home. The buyer has really never been able to get any more information immediately other than maybe 'clunky' text message or 800-number requests . . . until now.

At PalmCoastHomeShow.com we just launched scannable signs. The lawn sign has a scannable QR Code (quick response code) which can be scanned with a smartphone and a scanning app such as Shop Savvy. Once the code is scanned, the person is directed automatically to a site that contains the property information plus photos, local information such as schools, satellite maps, and more. If the buyer wishes to schedule a showing or has more questions, simple click the 'Request More Information' button or touch the phone number on the screen to dial. It's that easy.

An example of the rider is below and scan the QR code to see the result at 13 Pinelark Ln in Palm Coast, FL:

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Two Great Tech Marketing Options You Might Have Missed

Fri, 12 Nov 2010 10:02:23 -0800

We're always exploring new options and services that are out there and particularly like the word 'FREE' in any advertising. Over the last few weeks we've found two newer options that you might have missed.

The first is www.Paper.Li This service takes Twitter feeds (i.e. a member, hastag, or a list) and creates a custom automated online newspaper-looking site. The paper provides vistors with a very rich reading experience that can be updated daily, weekley, or twice per day. It also adds in automated announcements on Twitter that your new edition is available. Check out two I created this week:

The other is a great tie-in with Postlets (an already very powerful service) called vyoo.it. This powerful service takes your Postlets property advertisement and turns it into a mobile site complete with a QR code that is automatically generated. We've been exploring using QR codes recently and focused alot on adding them to property signs to direct 'window shoppers' to more information on the property from the comfort of their car. We're thinking vyoo.it is defintely the solution. Once the barcode is scanned with a smartphone, the shopper is directed to a great looking version of the Postlets ad complete with photos. Plus they can simply tap the phone number at the bottom to make the call to schedule an appointment. Scan the QR code below to see what I am talking about:

Have fun and let me know what you think.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Why Interest Rate Can Be The Better Benefit Than a Tax Credit

Fri, 17 Sep 2010 13:03:22 -0700

The national average interest rate on a 30-year fixed mortgage is an astonshing 4.29%. Many buyers were obviously motivated by the tax credits last year and unfortunately the record-low interest rates get overshadowed. Are these rates a better benefit to make the decision to buy now if you are considering purchasing a home? Well let's do the math and you'll see that the truth is that these rates are the better benefit.

Let's take a $100,000 loan at 30 years fixed today at 4.50%.

Payment would be $506.69 (principal and interest)
Total interest over the life of the loan would be $82,406.71 or $2,746.89 per year

That same loan of $100,000 at 30 years fixed just 1% higher at 5.50% would be:

Payment of $567.79 (principal and interest) or $733.20 more per year
Total interest over the life of the loan would be $104,404.04 or $3,480.13 per year

The difference in the cost of the two loans year over year would be $4,213.33 combining the additional payment amount and interest. Over the life of the loan the savings in interest is an whopping $21,997.33! So are these interest rates a better benefit to buyers today? Absolutely.

Start your Palm Coast or Flagler County, FL home search today at PalmCoastHomeShow.com or contact me so we can get your custom plan today.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Flagler County Sees Soft July But Still Up For The Year

Fri, 27 Aug 2010 10:46:17 -0700

Like the rest of the country, Flagler County and Palm Coast saw a dip in the number of home sale closing in July to the tune of about 28%. 103 homes closed in July of this year compared to 142 in July of 2009. Year to date, the area still remains 7% above last year through August 25th in terms of the number of home sales. August through 8/25/10 has seen 82 closings and is slightly below the same period in August last year when 94 homes closed.

The dip in the number of closings in July this year was actually to be expected. The motivation of the homebuyer tax credit naturally shifted the selling season a bit. Most will tell you in the area, that July was quieter than normal inlcuding me. August on the other hand is looking strong and traffic in the area has definitely picked up.

What about price? Median price in the area for home sales is slightly under last year at $137,500 last year through 8/25 compared to $131,000 this year for the same period. This is about a 5% decline.

All in all, sales remain strong in the area. The expiration of the home buyer tax credit at this point seems to have caused more of a shift in the natural trends of the selling seasons in the area rather than to have impacted overall demand in a negative way. This is a very postive because it shows that people are very interested in the area and are continuing to buy here, but many were obviously motivated to buy earlier than usual due to the benefit of the tax credit. Then when you look outside of the tax credit, there are other great benefits such as amazing interest rates right now. Buyers are often able to get into a mortgage under 5% right now. Definitely a rate to take advantage of.

Looking to buy a home in the area, start your search at PalmCoastHomeShow.com. The most powerful and easy property search in the area!

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

How To Decide What a Good Offer Is

Fri, 13 Aug 2010 11:27:13 -0700

So you searched through homes. You've visited each one. And you've narrowed it down to which homes(s) your are interested in. Now it's time to make the offer. The question becomes . . . how much? This is the part that is a little more complex than most people think and a lot of factors should be taken into account.

Remember, an offer is the first step in negotiation. It is about opening up the door to a conversation. Offers that are reasonable and have attractiveness to them can lead to a very good discussion that is very beneficial to both parties.
What is the 'market value' of the property if it were listed for sale today? This is derived from reviewing the comparable sales in the area recently. The list price on the property today may have been derived from information that is several months old and conditions may have changed. By doing this you:
1. Have real data that backs up your offer.
2. Gives you better guidance of the property real value
3. Reduces speculation and better opens up the lines for real negotiation
Consider the type of sale (i.e. Short Sale, Foreclosure, neither).
1. Short sales and foreclosures are not the same nor can offers be tens of thousands of dollars less than the list price in most cases. Short sales, for one, are on the market because the lender is owed more than the property can sell for so they are attempting to reduce their loss. They look at the 'market value' of the property very closely prior to giving their approval of what they accept. Again, a CMA of the property will give you better information as to the best offer. Foreclosures are often listed below market value and tend to sell very quickly in our market. Therefore, offering a great deal less is often times a flat-out rejection or a case of losing the property to another buyer.
2. In the 'neither' scenario, the motivation of the seller may not be as much of a priorty as one thinks. Some owners may 'want to move' but do not 'need to'. This is about determing how motivated they really are.
How long has the property been on the market? There are a couple of things to look at here:
1. Under 60 days. This is actually not a long period of time for most properties. Therefore, motivation for sellers in 'normal' listing situations may not be highly motivated at this point.
2. 60-90 days. This is the range where sellers begin to get more motivated. This is also especially true if there has been low activity or no previous offers. Does this mean they will 'accept anything'? No. This is point where sellers are often more open to negotiation conversations.
3. Over 90 days. At this point sellers are usually motivated and willing to enegage in real negotiation conversations. Again, this does not mean this is 'desparation' time for a seller and they will accept 'any offer'. This is a time where they are often more open to conversations.

Again, making an offer is intended to open up the door to a negotiation conversation. The offer should be arrived at by looking the information available to insure the conversation will be productive and beneficial to both parties.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Palm Coast Real Estate Gets Great new Systems

Tue, 27 Jul 2010 10:01:45 -0700

Recently the Flagler County Association of Realtors began transitioning over to Sentrilock lockboxes. These lockboxes add far greater security and peace of mind for sellers. These lockboxes add in the following security features for sellers:

Double coded entry system.
Wireless updating and reporting. Local Realtors are now able to see and be notified as to who is accessing a property and when.
Realtors can assign 'day codes' for out-of-town Realtors showing a property which reduces appointment conflicts and insures properties can be shown when requested.
Sturdy rubber-coated construction protects doors and handles while insuring the security of keys.

This past year, the Association also transitioned over to a new MLS system known as Navica by Systems Engineering. This online MLS system added great new features to provide better services to buyers and sellers. Some of these great new features are:

Seller Gateway. This option allows us to provide sellers with a login to see their property as it appears on the MLS, view showing schedule and activity, and view feedback from showings.
Online showing scheduler for properties that is customizable. Realtors are able to add-in black-out times and recieve notifications as requests come in.
Online consistent feedback form. All properties use the same feedback form which allows us to recieve a consistent set of information back from visitors that is crucial to the selling process.
Quick feeding to Realtor.com. Getting out in front of potential buyers is important. In the past, processing took about 24 to 48 hours for a property to appear on Realtor.com. Now those properties are appearing on the same day as they are entered.

Customers are loving the benefits of these great new systems. The added services are great bebfits to present and future customers. Both companies are outstanding service providers in our area and we appreciate all they do and the support they provide.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

So What Is 'Walk Score' In Regards To a Property?

Mon, 12 Jul 2010 11:16:55 -0700

If you are shopping for properties these days, you may have noticed 'walk score' in the information are for the property online. Walk Score is a service that measures the distance of a property to important locations such as grocery stores, schools, etc. and then calculates an overall rank. This allows buyer the ability to better guage transportation costs in regards to making a home purchase.

Does it make a difference to buyers and property values? For example, does a property with a higher 'walk score' have a higher property value than a comparable property with a lower walk score? That's not so easy of a question to answer. According to a study of 15 major markets, 13 out of 15 of the markets showed higher property values for properties with higher walk scores.

The issue with looking at 'walk scores' in regards to property values is that you really can't compare market to market or a variety of different homes either. What a property will sell for is always based upon comparable sales within a reasonable distance. 'Walk score' then becomes a feature of the home that may be more 'attractive' to certain buyers dependent upon their lifestyle. Although I haven't had buyers directly refer to a 'walk score', buyers are often interested in the distance of things such as shopping and schools to a property. This deosn't always mean that all of these items being close to a property are more attractive to all buyers. For example, schools for a buyer with no children obviously would not be of any 'value' to them.

So what are your thoughts. Is a 'Walk Score' important information to you when shopping for a property?

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Palm Coast State of the Market 7/10/2010

Sat, 10 Jul 2010 10:39:39 -0700

The common question today is how is 'the market' now that the tax credit for new contracts has expired? Remember to qualify for the tax credit the buyer must have signed the contract by April 30, 2010 and closed by June 10, 2010 with the closing date date extended now to accomodate short sales. Since most sales will close within 30 days, May was a real focus as an indicator of the impact of the tax credit and June to a point. So how is the market? Still holding strong in the area. Let's take a look at the Palm Coast Residential Home statistics:

Sales

June 2010 June 2009 %Difference

# of Closings 135 131 +3%

Avg. Sold Price $155,685 $164,479 -6%

Median Sold Price $135,000 $138,000 -2%

So we are still seeing positive gains in the number of sales which is a continued trend over the last two years and that's always a great sign. The average and median prices, again, are seeing slight dips but the single digit drops are a very postive sign compared to the double digit drops from the last few years and indicate stabilization.

Pending sales have been getting a great deal of news as well. Palm Coast currently has 130 pending home sales and this is about average for this time of year. The average list price for these pending sales is $$185,803 and the median list price is $140,000. Again, positive numbers for the area.

In terms of active homes for sale in Palm Coast, there are 1034 homes for sale with an average list price of $223,803 and a meidan list price of $169,000. Short Sale comprise 36% of the homes for sale and foreclosures comprise 3%. This has been the average for some time now and not much change in the area of actives.

So all in all we are seeing the market in the area stabilizing and positive response to all that Palm Coast has to offer. It's been a great year in the area and we're only half way through!

Remember, you can easily search for properties in the Palm Coast area at www.PalmCoastHomeShow.com and even start your search in simple ways such as:

Create a PalmCoastHomeShow.com account and manage your property search with powerful features such as:

Saving properties to review later
Save multiple custom searches unqiue to you
Get email alerts for properties meeting your specific criteria
Easily set up showings or request more information on a property

Or call me today to get started on the road to your new dream home in Palm Coast, FL.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Palm Coast State of The Market 6/24/10

Thu, 24 Jun 2010 10:27:15 -0700

Everyone is continuing to keep an eye on the housing market nationally and locally to see the effect of the Tax Credit program which ended in April. The terms of the program were that contracts needed to be signed by 4/30/10 and closing occur no later than 6/30/10. Realistically, many of those closings would have occurred in May for contracts signed in April. So June and July are key months to look at in reagrds to impacts. We are still seeing strong numbers in the area compared to 2009 in Palm Coast which comprises the majority of the activity in the Flagler County area. Here's a breakdown through 6/24/10 for Palm Coast Residential Home Sales:

Year-to-Date

2010 2009 Difference

# of Sales: 621 553 +12%

Median Sold $ $129,000 $136,000 -6%

Avg DOM 206 205 ---

June 2010

2010 2009 Difference

# of Sales 110 92 +19%

Median Sold $ $135,755 $136,000 -----

Avg DOM 192 241 -20%

As you can see, we are seeing very positive gains in terms of the number of home sales in the area both this year and for June so far. One notable point that many look at is the median home sold price to base prices. This number is derived from the 'in between' of the number of the highest and lowest sold. What is driving this number is the change in the price area customers are buying at which has changed from last year. Take a look at the graph below:

As you can see there has been a significant shift in the number of sales by price bracket. In 2009, the peak was at the up to $140,000 range and has shifted downward to the up to $120,000 range for 2010 so far.

This will continue to be an interesting summer for Real Estate in the area. We are continuing to see very positive signs in the area which I believe will continue. Again, we are seeing minimal foreclosures offered for sale through our MLS and the double-digit increases in the number of home sales is always a great sign.

Disclaimer: Statistics based upon the Flagler County Association of Realtors MLS through 6/24/2010. Information is deemed reliable but not guarnteed.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

My Daughter, The Graduate!

Sun, 30 May 2010 11:00:09 -0700

My Daughter, The Graduate! Posted on May 30, 2010 by Kathleen West, Realtor | Edit Today, I am a very proud Mom. Yesterday I sat with my husband and father as we watched my daughter Patricia graduate high school. As a parent, it’s a day that sneaks up on you so fast. It’s a day of a lot of “It seems just like yesterday . . . “. And it’s a day that you realize that your child really has grown up. Most importantly, it’s a day that truly makes you proud. My little girl overcame challenges, leaped hurdles, and reached her goals over her school career. She made it.

As I sat and watched the 300+ Matanzas High School Graduates of the Class of 2010 each coming up and receiving their diplomas, I couldn’t help but reflect back. I began thinking back on my own graduation, the dreams I had (and still have), and many paths life has taken me down. Although some of those paths were not always what I would have ever hoped for, they have all lead to better things.

Although so many tell us around graduations that the graduates are the future. It’s something that truly can’t be appreciated at the time, but it is so true. There are so many wonderful students that I have had the opportunity to meet from Matanzas High School, and am confident that their future will be filled with many joys and successes for each and every one. Whether they know it or not, they have had a great stepping stone in attending Matanzas High School. I can never express how wonderful I think the school is, and thankful that my daughter had the opportunity to go to. From the Principal, Dr. Pryor, to all of the wonderful and dedicated Teachers. I thank them all for all they do and the selfless dedication they put in.

And for my daughter and all of the students of the Class of 2010, I would like to offer this timeless poem:

‘The Road Not Taken’
- Robert Frost

Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth.

Then took the other, as just as fair,
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that the passing there
Had worn them really about the same.

And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.

I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and
I– I took the one less traveled by,
And that has made all the difference.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Tax Credit Expiration Does Not Appear To Have Effected Performance In Flagler County & Palm Coast

Wed, 26 May 2010 12:16:12 -0700

Many (including myself) had been wondering what effect the expiration of the Home Buyer Tax Credit Program would have on local sales. In all honesty, I had expected to see a drop compared to the year before this month (May 2010). I am pleased to see that performance remains strong in the area.

The number of home sales for Flagler County through 5/26/2010 are +15% compared to 1/1/2009 through 5/26/2009 with median price at -9%. Likewise, 5/1/2010 through 5/26/2010 sales are +9% compared the same period the year before with medin price at -6%.

We are seeing steady and strong comparables each month and this is obviously great news. In terms of median price, we are seeing dips but at a much slower rate than the past few years which again were seeing double digit drops.

Start your Flagler County and Palm Coast Home Search Today!

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

2010 Flagler County Housing Market Sees 17% Gain

Fri, 07 May 2010 11:28:02 -0700

Through April of this year, the number of Flagler County residential homes sold has risen 17% compared to the same period in 2009. This period in 2009 saw 378 homes sold with 2010 seeing 442. 83% of those sales were up to $209,000 compared to 81% in 2009. Median price during these periods saw a decline 7% which was driven by the increase in the rise in the number of lower priced homes being sold. See the price bracket breakdown below.

The number of homes for sale today remains significantly lower than the level it has been over the last few years. There are currently 1,318 homes active for sale in Flagler County which was typically up around 2,000 over the last few years. Of the homes for sale on the market today, the average Days on the Market has been 214 days. Interstingly enough, of the up-to-$209,000 price bracket (the largest price bracket sales contribution) represents only 48% of the homes listed for sale today.

All of these are very positive indicators for the area housing market. The increase in demand, coupled with slowing declines in median price, and decreases in the number of homes for sale all point towards stabilization. Since 2009 we began seeing year-over-year increase in the number of homes sold and very low foreclosure contirbutions (about 1%) for both number listed and sold. Short Sales remain considerbale and continue to comprise about 36% of the market for both sold and listed.

2010 Breakdown of Homes Sold In Flagler County 1/1/10-4/30/10

Price Range	Count

$40,000 - $49,999	2
$50,000 - $59,999	2
$60,000 - $69,999	6
$70,000 - $79,999	12
$80,000 - $89,999	24
$90,000 - $99,999	26
$100,000 - $109,999	35
$110,000 - $119,999	50
$120,000 - $129,999	57
$130,000 - $139,999	37
$140,000 - $149,999	26
$150,000 - $159,999	28
$160,000 - $169,999	16
$170,000 - $179,999	17
$180,000 - $189,999	12
$190,000 - $199,999	7
$200,000 - $209,999	10
$210,000 - $219,999	9
$220,000 - $229,999	8
$230,000 - $239,999	1
$240,000 - $249,999	4
$250,000 - $259,999	7
$260,000 - $269,999	2
$270,000 - $279,999	5
$280,000 - $289,999	6
$290,000 - $299,999	5
$300,000 - $309,999	3
$310,000 - $319,999	2
$320,000 - $329,999	2
$330,000 - $339,999	1
$340,000 - $349,999	2
$380,000 - $389,999	1
$400,000 - $409,999	3
$410,000 - $419,999	1
$430,000 - $439,999	1
$500,000 - $509,999	1
$510,000 - $519,999	1
$550,000 - $559,999	2
$560,000 - $569,999	1
$570,000 - $579,999	1
$590,000 - $599,999	1
$650,000 - $659,999	1
$670,000 - $679,999	1
$710,000 - $719,999	1
$770,000 - $779,999	1
$980,000 - $989,999	1

Totals:	442

*Disclaimer: All statistics are from the Flagler County Association of Realtors MLS as of 5/6/2010. Information may be deemed reliable but not guaranteed.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

How Much Is Poor Presentation Costing You?

Thu, 15 Apr 2010 10:41:19 -0700

One of the difficult things to do in terms of listing homes for sale is putting a dollar value on upgrades and/or worn elements in a house that may need replacing. Sellers obviously want to know the bottom line with all things optimal and their home would sell at the suggested list price. We all want to get the most we can out of our homes and needing to improve the presentation can often be something that sellers do not want to do (i.e. replacing worn/stained carpeting, painting walls, etc.). But these minors fixes to the overall presentation can actually cost you more. The reason is that buyers are trying to picture themselves living in the house when they visit. If they are noticing a lot of 'fixes' or changes they need to make, they are just seeing the costs to that in their minds. This can have two effects on their decision: 1) It will lower their offer taking into account the necessary repairs, 2) Offers will not come in and will increase the time on the market which is often followed by price decreases and/or lower offers later on. Often times those presentation pieces can end up costing thousands more than they would have been to do them in the first place.

Here are the top five areas of presentation to look at prior to listing your home for sale that can really pay off later:

Landscaping an 'curb appeal'. The front and overall outside of a house is the first impression. Great 'packages' leave us all wanting to see more. In the case of 'curb appeal', we want to see the inside. Here are some inexpensive things that can truly make a huge impact on your outside presntation:
1. Keep the lawn mowed and weeded.
2. Weed the garden areas and plant small colorful flowering plants.
3. Paint any worn or chipped fixtures on the outside
4. Replace any washed out or old mulch
5. Trim back overgrown trees
Worn or stained carpeting. If you can, replace with hardwood floors. Hardwood flooring is extremely popular and much easier to maintain. It makes a great impact. If not, make sure that carpets are steam cleaned and vacuumed before every showing.
Wall colors. Although we all have our own tastes in terms of colors in our homes, overly dramtic colors can often take the focus off of all of those other great things in your home. Use soft earth tones throughout with subtle shade differences. This type of color scheme with white trim has a really great presentation with a splash of elegance.
Avoid leaving rooms vacant. If you are not living in the home and have extra tasteful furniture you can spare, definitely do so. Vacant houses are very difficult for buyers to visualize how the rooms would appear living there. Empty rooms can also appear smaller as well.
Avoid clutter everywhere. It's definitely clean up time when listing your house for sale. Box up all the things you truly don't need and store away or donate. Kids rooms we all know can be a challenge. Make it contest time. Let them know that pictures are going to be taken and those pictures are going to be seen in a lot of places online.
Keep those appliances clean and in working order. If you are including appliances in the sale, make sure they are clean and in working order. Buyers that find an appliance that looks great but doesn't work now has to take into account the cost to replace it.
Sweep up that garage and move any stored item to the sides. Garages can often be storage places fora a lot of us. Buyers still want to see the size and it becomes very difficult to do with items scattered throughout. Box up any storage items and stack the boxes safely along one wall. One, it will make moving easier for you and will show off the garage area better.

The goal is to that magazine type look. Great presentation in a home for sale can really pay off big in the long run. Professional home stagers such as Anita at A1A Home Staging can add a lot of value throuh use of their services.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Last Month For the Home Buyer Tax Credit

Sun, 04 Apr 2010 09:49:39 -0700

For buyers searching for their next home, we are in the final stretch to take advantage of the Home Buyer Tax Credit. To qualify for this credit, the contract must be signed by April 30th and close by June 30th or this year. It’s important to understand that an offer made by April 30th does not qualify. The offer must be accepted and signed off on (creating an binding sales contract) by April 30th.

What is the Tax Credit? There are two types:

1. First Time Home Buyers – This credit applies to buyers of a principal residence and have not purchased a property in the last 3 years. The credit is equal to 10% of the purchase price up to a maximum of $8,000.

2. Repeat Buyers – This credit applies to home buyers who has a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date. This credit is equal to 10% of the purchase price up to a maximum of $6,500.

Obviously this is a great opportunity for buyers today. There are few questions I’ve been asked about this program that I wanted to touch on:

Q: Will the program be extended?

A: There is no indication at this time that the Federal Government will extend this historic program.

Q: What are my options if I don’t find a property and have a contract by April 30th?

A: First, no one should make a ‘rash decision’ when buying a home. Homes will obviously still be available for sale and the goal is to find the house the meets your lifestyle and financial needs while insuring you get the best financial benefit for your investment. The Tax Credit has been an added ‘bonus’.

Q: What will this mean if my house is listed for sale?

A: Some sellers have expressed concern that the ending of the tax credit will impact the list price and/or length of time to sell. This concern comes from speculation that the growing demand we’ve seen lately will decline or disappear all together. First, it is difficult to say exactly how much of a motivator the tax credit has had on the buying decision as of late. I’m sure it has had some impact on buyers who have purchased and we may see some decline in demand, but time will tell. Keep in mind that buying a home is a big decision for someone and one that people do not take lightly. They consider a great number of factors when making the buying decision. Selling a home is a process (the formula I use is ‘Priced Right + Great Presentation to the Widest Possible Buyer Audience =>Showing => Offers and Negotiation => Sold’) and you ’stay the course’ in the sales process.

Q: What will this mean for the overall market?

A: Local real estate markets are all different and perform vastly different based upon a variety of local economic factors. We have been fortunate to see a significant increase in demand and a reduction in the number of homes for sale which in turn has slowed the decline in median sales prices significantly from the double-digit declines we were seeing over the last few years. Demand and levels of inventory are the most important factors to continuing on the ’stabilization’ path and the ‘road’ back to more normal market performances. This does not mean a V-shaped recovery of median prices. We look for a return to the normal (and healthy) single digit appreciations year to year.

All in all, the ending of the tax credit will likely have an impact on real estate markets. The extent of which is yet to be seen. The Palm Coast and Flagler County area has the benefit of being a relocation area which many are attracted to. We are a growing area and I personally do not see that changing. We are somewhat dependent on other markets and their performance (the ability for outsiders to buy here that are dependent on selling elsewhere), and again time will tell how that factor plays out. For me it’s time to ’stay the course’.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Understanding Market Performance

Sat, 13 Mar 2010 10:58:22 -0800

The other morning I looked at the front page of an area newspaper, The Daytona Beach News Journal, and saw the top headline “Home-Sales Pace Cools Off”. Just below the headline and to the left were the number of sales of homes in Volusia and Flagler Counties for December 2009 & January 2010 with January being lower. So I’m thinking . . . so? January is always a lower month in terms of the number of sales with December often peaking up just before the end of the tax year. Even more interesting is that the article goes on to state how January 2010’s homes sales were 40% above January 2009’s. Again, “cooling off”? Just another example of ‘negative sells newspapers’. Now the article did point out correctly that median sales price was down compared to the same period last year. This has actually been expected. Scott Nieminen with Realty Executive made a great point in the article, ”I think all this is part of the settling out process as we bounce along the bottom here for awhile. I think we’ll see some pricing variances for the next six to 12 months, but I like the higher sales activity we are seeing.” I couldn’t agree more. So let’s take a look at how to correctly assess the market.

Number of Sales Performance Year Over Year

You can’t really get a picture of market performance looking solely month-to-month. Sales volume will naturally be higher and lower during different months. When you look at those monthly performances month by month and year by year, you will see similar peaks and valleys. January in Flagler County is typically one of the lowest closing months throughout the year. This year in January we saw 88 residential homes close. What now is important to look at is how that compares to the number of sales from January 2009. Interestingly enough, January 2009 had 68 residential homes close. That’s a 29% increase in the number of homes sold from the year before during the same period. That’s a real positive and far from a ‘cooling off’. In fact, 2009 in our area finished at 10% higher than 2008 for total number of homes sold. Again, not a ‘cooling off’ at all.

Now we are waiting to see what the impact will be on demand as the Home Buyer Tax credit expires soon. An offset may be the desire to leave the north after being slammed by a horrendous winter.

Price

The industry typically uses median sales price to measure price performance. Prices over the last few years as we all know have been in a steep decline. In short, our home values plunged. The graph below shows Florida median price performace since 1988:

Florida Median Sale Price 1988 Through January 2010

As you might notice, it looks like a roller coaster hill, but the important thing to look for is flattening out we are beginning to see. That slowing of the decline is mostly in part due to the increase in demand or the number of homes sold.

Where is price headed next? That is difficult to say and most share the opinion that price may ‘dip’ again this year. There are other factors such as distressed sales (foreclosures), short sales (pre-foreclosure), and other economical factors which can impact price. The important thing to remember here is that because we have had such drastic declines in median price that the slowing of the pace in decline is key which we are seeing. Over the past few years we have decreases year over year as much as 30% whereas that decline was only 8% comparing 2009 to 2008. This is stabilization and is something we are all looking for before we can see improvement in price which will come from a steady increase in the quantity of sales and inventory levels (number of homes for sale).

It’s also important to keep in mind that no one expects a dramatic increase in price over the next several years as you see in the graph above. That was unrealistic and you can easily see the repercussions. A gradual increase is typical and what we are looking for in a healthy market.

Other Factors That Impact The Market

There are obviously other factors which impact market conditions such as foreclosures, short sales (pre-foreclosure), interest rates, number of homes for sale, unemployment rates, the local economy, etc. Interest rates, unemployment rates, and the local economy all impact the desire and ability for buyers to purchase.

The big one that most look at is foreclosures and short sales. Foreclosures are actually less than 1% of the homes for sale in the area and typically sell below market value and at a rapid pace. A high amount of foreclosures that are not selling is a bad thing, but we have been fortunate in the area that they move quickly. Short sales on the other hand comprise about 26% of all homes for sale and since they take longer to close are often less desirable to buyers. Unlike foreclosures, they typically sell at market value whereas foreclosures are typically priced below market value.

How Do We Compare To Other Areas of the Country?

Real Estate is local, and I can’t say that enough. How one state, county, neighborhood, or street is performing can be drastically different than another. This is actually very interesting. Let’s take a look at statistics from Las Vegas provided byPaul Francis of Prudential Americana Group. Las Vegas has:

10,194 homes for sale
- Flagler County, FL has 1,336
4,852 are Short Sales (48%)
- Flagler County has 347 (26%)
3,049 are Foreclosures (30%)
- Flagler County has 21 (less than 1%)

Obviously we are in far better shape and positioned for recovery than the Las Vegas market.

All in all we are seeing very positive signs in the area and look for a very positive future for Flagler County and Palm Coast. Also keep in mind these are overalls and individual homes and situations are unique.

*Flagler County statistics are based upon the Flagler County Association of Realtors MLS and are deemed reliable but not guaranteed.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

"Bringing Real Estate to Life"

Understanding What Zillow's Zestimate Is and Isn't

Thu, 25 Feb 2010 10:49:57 -0800

First of all, this article is in no way meant to put Zillow and their Zestimate 'down'. Zillow has done a great job producing a place to shop for properties from both Real Estate professionals and owners. But after reading local forum posts, internet articles, and conversations with others that have begun to view Zillow's Zestimate as 'gospel' in terms of price it is obvious that people are not understanding the concept. For example, I recently read an article from a Real Estate investor who was questioning the need for appraisers since Zillow offers the Zestimate. Commenters agreed that this was a viable option. Likewise, in a recent conversation with another Real Estate professional it was discovered that a review board overturned a licensed appraiser's appraisal for the lower Zestimate to the tune of $14,000. It is easy to see that the perception is becoming that this is a viable option for pricing. Because of the inaccuracy issues related to Zillow's Zestimate, it is a serious situation that demands that every Real Estate professional, owner, and buyer understand the Zestimate and the consequences.

What is Zillow's Zestimate?

First, it is exactly that . . . Zillow's estimate of the value of a property. The price is derived from Zillow's proprietary calculation that is constantly being developed. Now Zillow does a great job disclosing the accuracy statistics of their calculation of the Zestimate. The problem is that I have found that most people never look at this. So I urge everyone to CLICK HERE TO READ ZILLOW'S ZESTIMATE EXPLANATION AND DISCLOSURE BY STATE AND COUNTY

Now I'd like to take a look at my own area, Flagler County FL. By Zillow's disclosure, the Zestimate is:

They are within 5% of the selling price 14% of the time
They are within 10% of the selling price 27% of the time
They are within 20% of the selling price 52% of the time
The median error rate is 19.3%

By any statistical analysis, this Zestimate calculation is far from accurate. Truth be told, most Real Estate professionals understand that listing price and actual sale price of a property should be as close to 100% as possible. The larger the inaccuracy, the greater the dollar cost to owners and buyers to the tune of tens of thousands of dollars! At best, the Zestimate is merely a novelty system that is 'fun' to look at but can not be taken as a serious valuation system by any means.

What do I do if a professional quotes the Zestimate for valuation?

This is the biggest issue for consumers, and you should immediately question this practice and demand the actual data that went into their own analysis (i.e. property comps, appraisal report, etc.). If they can not show you the comps, you should not proceed. I personally recommend challenging them to explain the Zestimate disclosure percentages for your area as well.

With all of our technology, why doesn't automated property valuation exist? Is this just another way for Realtors and Appraisers to justify their profession?

First, any Appraiser and Realtor would tell you that they would love a plug in an address and get a recommended list price type of system any day. Pricing is tedious and work. The problem is that no 2 properties are exactly the same. You are always comparing apples to oranges and avocados. Then you have to determine the value of differences to buyer expectations. For example, a 3 bedroom house with the same floorplan and one has granite countertops and a pool. What do those granite counter tops and pool really mean in terms of dollars to buyers? There is no definite answer here either. For some those things might be important and/or a must, but to others they might be 'luxuries' that they can do without and therefore have no real value to them. In fact, what is important to buyer tastes today might actually not be so important years later. There are many other things also taken into account.

As you can probably guess, it can easily become a tedious and daunting task of deriving not only a list price but also for an appraiser to determine fair market value for lending purposes. Unfortunately, you can not automate that at this time. You have to have to get into the property and make the best determination possible based upon the facts you see.

Again, this article is not to put Zillow down in any way. They have done a great job creating a communal place for properties to be advertised and shopped for. But in terms of valuation, it is not a place to get formal valuation of properties for listing or lending purposes and buyer and sellers need to be aware of that. You are literally risking tens of thousands of dollars of your money by doing so.

Kathleen West, Realtor
Trademark Realty Group of Palm Coast

2 Pine Lakes Parkway, Suite 1 Palm Coast, FL 32137 | Office: (386) 446-5930
Email: Kathleen@PalmCoastHomeShow.com
www.PalmCoastHomeShow.com

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