So you want to buy a Foreclosure because you hear in the Media how great a market is for that property? And how easy it is to fix and flip? And you’ll make a ton of moolah?

*Snort*   (Excuse me, that was the sound of me spitting out my coffee…)

Do you have a lot of cash, time, patience and a strong stomach? Because at the bare minimum, those are what you are going to need to succeed.

Aloha from the Hawaii Real Estate Biz!

So you want to sell your home yourself and save the Commission you would pay a Realtor? Terrific!

Are you aware that in April of 2010 on Oahu there were 1,956 single family homes for sale and 2,469 condos? That is a seven months supply of inventory if no new homes come on the market. And last month 520 single family homes and 669 condos joined their older buddies on the Multiple Listing Service. And only 286 homes and 390 condos sold!

Aloha from the Hawaii Real Estate Biz!

I’m going to chat today about marketing your property Mr. & Mrs. Seller. Of course the most important number one thing is to price it to generate offers in today’s market.

The second most important thing is to consider what exposure your agent will give your property.

(Here is where I am going to get BLASTED by some “traditional agents”…)

Of course everybody needs a yard sign presence on the property. Am I going to send out postcards to your neighbors? Nope. I will get on the phone and call them telling them we have a home on the market in their neighborhood and ask them who do they know that might want to move in? A nice personal conversation is better than an anonymous postcard that usually gets thrown in the trash.

I will also get on the phone and call agents who have registered that they are interested in your property through a program in the local Multiple Listing Service called ”Reverse Prospecting”. The agent specifies they are interested in; say a 3 bedroom, 2 bath Condo in Downtown. When I have a listing that meets their criteria the agent’s name pops up and I get on the phone. Do most agents do this? Nope. I even have called agents who are listed in my reverse prospecting that deny they are in there…

Am I going to hold open houses? Not unless the seller absolutely insists on in. Statistically Open Houses don’t sell homes; they are traditionally used by listing agents to find buyers that aren’t represented. I will do a Broker’s Open for the trade, and will show by appointment only. Would you want someone you don’t know cruising through your home possibly casing the joint to rob you? And you DO only want qualified buyers who are ready, willing and able to purchase your home don’t you?

Am I going to pull newspaper ads about the property? Nope. I will market heavily online to give my listing international exposure, as that is where 87% of buyers look first.

Internet users
• 1.73 billion – Internet users worldwide (September 2009).
• 18% – Increase in Internet users since the previous year.
• 738,257,230 – Internet users in Asia.
• 418,029,796 – Internet users in Europe.
• 252,908,000 – Internet users in North America.
• 179,031,479 – Internet users in Latin America / Caribbean.
• 67,371,700 – Internet users in Africa.
• 57,425,046 – Internet users in the Middle East.
• 20,970,490 – Internet users in Oceania / Australia.

That is a lot more eyeballs of potential buyers than a once a week three line ad buried in the Sunday Real Estate section of the local paper. My feed goes out to dozens of Real Estate web sites online including Century21.com, Trulia, Zillow and many more. Among other additional websites I also post to Craigslist as allowed by their terms of use; this cannot be posted every day. Usually 48 hours apart, but sometimes Craigslist holds off for three days between postings.
I feature your home in my newsletter and of course this blog The Hawaii Real Estate Biz
as well as present it in person to the numerous networking functions I attend each month. These networking functions are one of the few venues I will use print media in: nobody leaves with out a full page, four color presentation piece highlighting your property!

“350 million – People on Facebook

Every time you turn around you hear the term “Social Media” these days. What is Social Media? It is the next generation of how people use the Internet to convey information and communicate. It’s an interactive “give & take” form of communication. People post content and others comment and respond to the posts. Think it’s just kids playing online? Think again: A full 25% of the users on these sites are aged 35 to 44, which in other words is the age group that dominates the social media sphere. Only 3% are aged 65 or older. Do people 35 to 44 buy homes? You Betcha!

Social media:
• 126 million – The number of blogs on the Internet (as tracked by BlogPulse).
• 84% – Percent of social network sites with more women than men.
• 27.3 million – Number of tweets on Twitter per day (November, 2009)
• 57% – Percentage of Twitter’s user base located in the United States.
• 350 million – People on Facebook.
• 50% – Percentage of Facebook users that log in every day.
• 500,000 – The number of active Facebook applications.

“Twiiter is not for Twits!

A few observations:
• The average social network user is 37 years old.
• LinkedIn, with its business focus, has a predictably high average user age; 44.
• The average Twitter user is 39 years old.
• The average Facebook user is 38 years old.
• The average MySpace user is 31 years old.
• Bebo has by far the youngest users, as witnessed earlier, with an average age of 28.

BUT! (And I have a big Butt!) Real estate sales, no matter where the warm bodies are generated, is and will always be an in-person service business. Pro-active is getting out there in person, networking, calling and meeting people: talking it up! Re-active is printing a few flyers, mailing postcards and praying to the Real Estate Gods that the phone will ring or somebody will walk into the office by chance.

So Mr. and Mrs. Seller, do you think it is important in this day and age to hire an agent that has a command of these Internet tools to market your home? As well as being a pro-active agent and getting out there in person and on the phone to promote your home? Or do you want one that is going to just send out postcards and “Hope” somebody will buy your property?

Aloha from the Hawaii Real Estate Biz!

Internet Usage Statistics courtesy of Pingdom

I just have earned the nationally recognized Short Sales and Foreclosure Resource certification. The National Association of REALTORS® offers the SFR certification to REALTORS® who want to help both buyers and sellers navigate these complicated transactions, as demand for professional expertise with distressed sales grows.

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new “traditional” transaction. REALTORS® who have earned the SFR certification know how to help sellers maneuver the complexities of short sales as well as help buyers pursue short sale and foreclosure opportunities.

“As leading advocates for homeownership, REALTORS® believe that any family that loses its home to foreclosure is one family too many, but unfortunately, there are situations in which people just cannot afford to keep their homes, and a foreclosure or a short sale results,” said 2009 NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “Foreclosures and short sales can offer opportunities for home buyers and benefit the larger community, as well, but it’s extremely important to have the help of a real estate professional like a REALTOR® who has earned the SFR certification for these kinds of purchases.”

The certification program includes training on how to qualify sellers for short sales, negotiate with lenders, protect buyers, and limit risk, and provides resources to help REALTORS® stay current on national and state-specific information as the market for these distressed properties evolves.

Aloha from the Hawaii Real Estate Biz!

Senate lawmakers stuck an agreement recently to not only extend the existing program but to expand it to allow current homeowners and buyers in a higher income bracket to claim the tax credit. Senators moved to increase its annual limits from $75,000 to $125,000 for single buyers and from $150,000 to $225,000 for married couples.

The deadline for first-time home buyers to claim the $8,000 credit has been extended to April 30, 2010. But the term “deadline” doesn’t mean the same thing as it does in the current program. The Senate agreement requires that buyers must have a sales contract on a house by April 30 to be eligible, but it gives them an additional 60 days to close the purchase. The current credit program requires that transactions must be closed by November 30, 2009. So effectively deadline of the new version credit agreement is the end of June.

The current credit is restricted to home buyers who have not owned a primary residence within the past three years. The expanded agreement also allows current homeowners to claim up to $6,500 as long as the property they are vacating has been their primary residence for at least five years. This is intended to target “move up buyers” . In this market many homeowners are taking advantage of lower prices to move from one house to another of higher value.

I’ve got an appointment with some first time buyers who will be purchasing in January 2010, I can’t wait to tell them the good news!

Aloha from the Hawaii Real Estate Biz!

I’m reading on the National front that sales of new homes unexpectedly rose in February. A Commerce report indicated new-home sales jumped 4.7 percent from a record low pace in January.

February Oahu Home sales for single family were 129, and 160 condos for a total of 289. There wasa total of 4,435 homes on the market in the Multiple Listing Service. (1,928 SF and 2,507 Condos) This brings us to 15.8 months of inventory remaining, up from 10 months in January. According to the National Association of Realtors a balanced, normal market has 6 months of inventory. Mortgage rates are still under 5% in many cases, so if your credit score is good enough to qualify you for financing or you are paying cash it is a shopping spree out there!

I keep hearing on the local news “The Median prices are up from last year!”… that can be misleading. Do you know that Median price is a number that can be skewed by one high end sale? If you have three homes in a neighborhood that sold for $450,000 and one that sold for $650,000, that one high sale will drive the “Median” upwards. Truth be told Oahu overall is down around 33% + from this time last year. However, some neighborhoods such as East Oahu and the Town-Kaakakao Corridor are holding values very nicely. Oahu is NOT one Real Estate market, it is many individual niches!

If you want to know what exactly is going on in your niche neighborhood give me a call, I can give you a “Market Snapshot” specific to your area.