It’s not often that I am asked the question, “What is the real estate ‘absorption’ rate?”  But, occasionally the question will arise.   The question is one sometimes asked by folks interested in buying or selling real estate; or for those simply interested in current market condition.  The term, “real estate absorption rate” is used to help predict the housing market.

The general public sometimes hears the label used via the media, but they don’t often have the data to translate it into meaningful information.  The real estate absorption rate helps the public more accurately determine whether it is a buyer’s or seller’s housing market.   In a “Normal Market” the absorption rate is between 5 and 6 months.  In a “Buyers Market” the absorption rate is higher (7+ months).  But in a “Sellers Market” the absorption rate is lower (1-4 months).   A clearer definition of real estate absorption rate is to ascertain the number of months it will take to sell all homes currently on the market.  If the inventory of homes presently on the market is a 12 month supply, it would mean at the current rate of sales, the market would need 12 months to clear the inventory, IF no additional homes came on to the market.   Being aware of the real estate absorption rate assists in creating perspective for homebuyers and sellers.  It educates sellers so they can have realistic expectations about pricing their home for the market.  By being competitive in price, they improve their odds of having their home sell quickly.  Sometimes while making an offers on homes, buyers will use the absorption rate to obtain a lower price during negotiation.   It should be remembered however, that outside influences may dramatically affect the predictability of real estate absorption rate.  For example, government policies and programs can either stimulate or wither the marketplace.   An improved job market would have a significantly positive effect on the economy, which could spur buying and quickly clear out housing inventory and change the absorption rate picture.  It is important that serious homebuyers and sellers understand their local real estate market, and trends for their area, in order to make informed decisions regarding their real estate needs.

 

Real Living Great West Real Estate
(916) 635-0420
http://www.myrljeffcoat.com

 

 

How To Prepare for a Home Appraisal

You’ve just signed all of the paperwork for your refinance, handed the loan officer the check for the appraisal, and now you’re wondering what is going to happen next. Good news-the appraisal inspection is painless, and usually takes anywhere from 30-60 minutes to complete. However, there are a few things that you should do to help the process move along as smooth as possible.

Preparing for the appraisal inspection:

• Create a detailed list of the recent improvements, which should include the following: when completed, cost of the improvement, before and after pictures if available.
• Make sure each room is accessible; the appraiser is required to inspect each room.
• If there is a crawl space, this area will also have to be made accessible for inspection for an FHA appraisal.
• Give the appraiser room to do their job. Errors are more likely to occur when the appraiser isn’t able to concentrate on their inspection.

• Keep all pets restrained. I’ve been bitten twice by a dog, and once by a cat; the owners had assured me that their pets were friendly-not so much!
• If you live within a development that has a homeowners association, have the name and phone number of the contact person available, along with a fee statement.
• If the appraisal is for an FHA loan, then the area leading to the attic will have to be cleared and made accessible-the appraiser is required to make at least a head and shoulders inspection of the attic area.
• Walk through each room and straighten up as if you were getting ready for company to visit. Appraisers are objective and can look past many things, however, the underwriter reviewing the appraisal photos may feel differently.
• Complete any unfinished projects-most appraisals are done “as is”, and any projects that haven’t been completed, will have to be adjusted for within the appraisal report.
• A copy of any agreements regarding easements (shared driveways and/or garages,etc.) should be made available.

Concerns about value:

For years I’ve been a big proponent of developing a relationship with a Realtor. I’m not talking about a real estate agent who happens to be a relative that lives half way across the state. I’m talking about one that does a lot of work within your neighborhood.

By building a relationship with a professional Realtor (this is all they do and they do it well), they’ll be able to give you great insight as to what’s happening within your neighborhood, and they would be glad to let you know what similar homes are selling for.

 

Once the appraisal is complete:

You have a right to a copy of your appraisal, so ask for it. If you should find any errors or have any concerns, talk with your loan originator. This is hard for borrowers to understand, being that they paid for the appraisal, but the mortgage company is the appraiser’s client, and they can’t discuss the appraisal with anyone else unless given permission.

Trying to understand an appraisal can be like trying to read the “Dead Sea Scrolls,” so ask questions and get clarification when needed-you paid for it!

If you have any questions, or Minnesota real estate appraisal needs (divorce, bankruptcy, tax appeal, or estate planning) please contact Michael at 612.599-2581, or use the form on the contact page.

"An optimist stays up until midnight to see the new year in. A pessimist stays up to make sure the old year leaves."~ Bill Vaughan ~


Were you excited to see the old year end or were you excited to start the new? Which one are you, the pessimist or optimist?

Not everyone regards a new year as a new beginning. For some, it is just the continuation of time with the same habits and same day-to-day pattern. For others - me included - January 1st is always a fresh start. I don't toss everything aside and start over - that is not the point. It is, however, the chance to start with a blank page, to set new goals and to learn how to achieve them best!

January is just a great opportunity to reflect on the past. I am big on visualization and always write down my goals beginning of each year: personal and professional. I don't make promises I know I can't keep but I set realistic goals. Those don't need to be monstrous achievements - I don't say: I want to lose 50 lbs this year. Instead, I say I want to get into better shape and I'll accomplish this by working out twice a week and incorporate the little stuff on a daily basis, e.g. park further away from the store and walk, take the stairs instead of the elevator etc.. I don't say I want to eliminate all our debt (although that is a nice thought) but instead focus on not incurring new debt by paying off credit cards as soon as the bill hits my inbox.

Personally, I follow these 5 basic rules on goal-setting:

1. be realistic
2. write them down
3. revisit goals on regular basis and reassess
4. celebrate progress along the way
5. don't beat yourself up if you don't accomplish it all

Each rule carries the same importance, one without the others will make it harder to reach your goals. While I've always written down my goals, I had to work hard on the last one. I no longer obsess about the goals I did not accomplish one year but instead analyze what I missed and what I could do better and use that knowledge to fill my blank pages! My friend Mike Cooper wrote a great blog about that very thought: Turn Setbacks Into Springboards. It is a great read, very inspiring and motivational.

The start of a new year is always exciting to me! There is so much hope for a better tomorrow and the promise of new opportunities. I choose to be an optimist - I stayed up to see the new year in!


"We will open the book. Its pages are blank. We are going to put words on them ourselves. The book is called "Opportunity" and its first chapter is New Year's Day!"

~ Edith Lovejoy Pierce ~


Which one are you, the pessimist or optimist?

ANDREA BEDARD, M.A. ~ THOMPSON COMPANY, REALTORS ~ LIVING MARYLAND BLIPS

Thompson Company, Realtors 15711 New Hamphsire Ave Silver Spring, MD 20905 o: (301) 384-9177 c: (240)593-2860 andreabedard@mris.com Military Real Estate in MD Maryland Home Search Andrea is a proud military spouse, mom of two beautiful little girls, hobby decorator and a Realtor® based in Silver Spring, MD. Andrea focuses on Montgomery County and Howard County Real Estate, she enjoys everything beautiful in life and always answers the phone with a smile. All photographs are my own and I'd like to keep it that way. All information is deemed reliable but not guaranteed.

Then they came for the REALTORS®!

　

First they came for the mid-level bankers, and I did not speak out-

because I was not a mid-level banker;

Then they came for the appraisers, and I did not speak out-

because I was not a appraiser;

Then they came for the Mortgage Brokers, and I did not speak out-

because I was not a Mortgage Broker;

Then they came for the Consumers, and I did not speak out-

because I was not a Consumer;

Then they came for the REALTORS® -

and there was no one left to speak out for me.

　

Then they came for the REALTORS®!

There is very little difference, today than when Pastor Martin Niemöller (1892-1984) wrote the original just different scape goats!

Today Dodd-Frank took away the consumer's options and choice about mortgage origination and control of their cost.

It's been twenty years now, since the Chairman of Countrywide made his speech about getting rid of the Mortgage Brokers, the very people that made him rich, to bring the origination fees back to the Banks. Today the Mortgage Brokers are nearly gone.

Then they came for the REALTORS®!

It's been even more than twenty years since the Banks wanted to get into/control real estate sales! Can the REALTORS® who didn't speak out for the mid-level bankers, for the appraisers, for the Mortgage Brokers, or for the Consumers really think all their finger pointing will protect them? Pastor Niemöller faced annihilation for 5 years in a Nazi concentration camp, may the REALTORS® be so lucky.

IE: MoPros Eat No Mo!!! New Amendment to Reg Z goes into affect April 1st. REALTOR, how long will you be eating?

　

　

Bill

William J Archambault Jr

The Real Estate Investment Institute

wja@reii.org      Cell 832-259-7078,      Houston 832-582-8415,       Las vegas 702-516-1569

             

From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.

©William J Archambault Jr   ©The Real Estate Investment Institute   ©REII

WordPress trackbacks and pingbacks are notification methods that allow blogs to communicate and link to one another. Pingbacks (XML-RPC) automatically find links in a post and attempt to pingback to those Urls. When they are found, your blog is notified.

Trackbacks are done manually by sending a HTTP post request to the destination blog using a trackback ping URL. Trackbacks contain content and need approval from the recipient, pingbacks don't.

How WordPress Trackbacks and Pingbacks Work

Let’s say that you wrote an informative and engaging post. Another blogger reads your post, likes it, comments about it on their blog and links back to your post. The other blogger then notifies you of the reference to the post in the form of a trackback.

If a trackback notification is coming from a relevant site that puts your blog in a favorable light and includes a link to your blog, then it makes sense to approve the trackback. However, before you can send a trackback to another blog or vice versa, both parties must support the trackback protocol.

Pingback notification allows bloggers to keep track of who is linking to, or referring to, their content. WordPress has a built-in pingback feature that notifies a blog whenever another blog post adds a hyperlink to the blog within their post entry. When a blog records the ping from an incoming link, the blog receives a pingback notice. No additional trackback link is required here. Since pingbacks do not send content like trackbacks, they are less likely to be spam.

Linking out to Authority Sites is Good SEO

Linking out to authority sites is actually good SEO. Yep, that's What I said. Even though this is concept is against what many SEO pundits will say, sending an outbound link to an authority website is good for your own SEO as it reinforces your own blog's topic authority. When you reference other relevant sources, it makes your own content more authoritative and relevant in the searches.

However, you only want to link out to relevant sites that offer quality content and you only want quality trackbacks posted on your site that provide value to your readers. Otherwise you risk tarnishing your site's reputation as a trustworthy source of information.

Sub-Web within the Worldwide Web

The blogosphere is often a two way street and if you're not spamming the recipient of a trackback and you're acceptingtrackbacks from sites that aren't spamming you, essentially, you are creating a sub-web within the worldwide web where everyone benefits.

The receiver of the trackbackgets an inbound link and a nice, supportive comment on their blog, the trackback sender gets a backlink (if a DoFollow exists), exposure and visitors to their blog and people searching for relevant content on the web are able to find what they're looking for.

NoFollows Links

Links to less important sites from your blog may not be so good for your SEO. You can add rel="nofollow" to all trackbacks, making them a good source of information for your visitors without affecting your SEO. Most Wordpress themes by default set the NoFollow trackback/pingback link.

A lot of bloggers remove the NoFollow to share link juice and appreciation with other bloggers who link to their blog. Personally, I feel it's good Karma to give a little "link juice" to relevant sites that link to your site. Hey, "what goes around comes round" I always say.

Even though NoFollow trackback links don't pass on any link juice, they do associate your site with the keyword phrase /URL pointing to your site, they put attention on your site by adding you to the discussion and they get people to visit your site.

Where to find the Trackback Link to Insert in Your Post

Most trackback links appear as a trackbackURL or hyperlink right immediately following the post entry and above comments. Here's an exmple:

Where to Insert the Trackback Link in Your Post

Once you find thetrackback URL on the blog you want to reference, paste it at the bottom of your post in the send trackback box before you publish it.

The recipient of a trackback will have the option to edit, post or dismiss it. Here's an example:

If thetrackback is approved, it will appear on the referenced site as a link, typically with a short excerpt of your entry, just enough to 'entice' readers to go back to your blog and read more. Here's an example:

Blog Marketing with Trackbacks

Check out Jack Humphrey's video on how to use trackbacks for link builing and getting visitors to your site.  He explains how to find other relevant sites that allow trackbacks and walks you through the entire trackback and link building process in easy to follow, layman's terms. 

Trackbacks are a good thing when they are not used for the purpose of spam commenting. They build links, give your site exposure, generate traffic and allow you to connect with other bloggers.

Search Engine Optimization & Quality Content - The Best of Both Worlds!

On our website, we give away a ton of free, up-to-date SEO information for webmasters, written by Michael Stankard, and expert business blogging tipsfor non-SEO experts, written by Victoria Stankard. Learn more about why people-focused, optimized content on WordPress is the answer for top, organic search engine placement SEO WordPress success – the Diva and Cowboy Way!

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With three years of struggle under our belts, are we ready to solve the housing crisis? Are we ready to accept a strategy that could help stabilize housing and begin to get the economy rolling again? Now that housing has become mired in yet another calamity (the the foreclosure scandal), are politicians, economists, pundits, and homeowners ready to take the medicine necessary to get our country back on track? While I’d like to think so, I’ve yet to see any positive action being taken.

 

The U.S. has thrown billions into the failed mortgage modification program, HAMP, the results of which have been pathetic. By the government’s own estimates we’ve made little progress in slowing the number of homeowners losing their homes, and in fact, are now facing a potential onslaught of 5 million additional foreclosures. Add in Foreclosure-Gate and it becomes obvious that we’re not only failing to make progress; we’re falling deeper into a hole in which housing could remain mired for years to come.

 

To ignore this problem is short-sighted at best; and to continue with the same failed “fixes” could allow the crisis to fester into a wound so severe that our very recovery could be in question. And while some may brush off my analysis as unnecessarily alarming, none have yet to offer alternative or less-costly solutions. The choice of many has been to be to just allow housing to crash and to pick up the pieces later. However, it’s now been three years, and we’re still crashing. Foreclosures are increasing; personal bankruptcies are increasing; and the nation has borrowed and spent billions that have failed to stabilize the economy.

 

Housing is the key to a recovery; it has always been so. The graph below shows just how far housing has fallen. As a percentage of GDP, residential investment is now at a record low spanning the past 60 years. Home sales and construction drive the engine that can lift us from this quagmire; without a housing recovery we may not add enough jobs to absorb the millions of unemployed for another decade. I don’t think we’re prepared to deal with the consequences of such malaise.

 

In order to restore housing it will be necessary to have PRINCIPAL WRITE-DOWNS, a solution I described in, “Punishing Foreclosure Victims Only Increases the Pain for all of us,” written earlier this year. At that time many objected to the idea, but the worsening market and economy has begun to make it more palatable to some; and whether or not we find the concept appealing, the issue must be addressed. Of course it’s complicated, and might require one more act of assistance from taxpayers; but doing nothing has already consumed billions and will consume billions more. Let’s put our money where it can have an impact and where it has the potential to produce a result from which we will all benefit.

 

Such a plan will require that banks absorb losses, that government provide some underwriting, and that homeowners commit to sharing future gains with their lender. The development of a workable plan would require compromise from all sides and would probably be best accomplished without forced government intervention. Creating such a plan would require bi-partisan support (if that’s possible) and should include the participation of Treasury as well as representatives of both the real estate and mortgage industries.

 

I see only two options. We can complain about the inherent unfairness of such a move, continuing to disparage those “irresponsible” borrowers who should have known better, or we can implement a strategy from which we will all ultimately benefit. Business as usual hasn’t worked; housing remains on a downward slide. Do we want to risk calamity? Or are we willing to learn from our mistakes and move ahead? Politicians won’t take the initiative unless forced to do so. Are we ready to solve the housing crisis?

 

The Housing Guru: The expert source for all your housing questions—now featuring daily updates of Today’s Housing News

 

 

Glenn Roberts | Ravenna Park | My Seattle | Lake & Co Real Estate

The Stimulous Program

In This Post

A Halloween treat from my Wisconsin brother-in-law.

 

It is a slow day in the small Minnesota town of Marshall , and the streets are deserted.Times are tough, everybody is in debt, and everybody is living on credit.

A rich tourist visiting the area drives through town, stops at the motel, lays a $100 bill on the desk and says he wants to inspect the
rooms upstairs before selecting one for the night.

1. As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher.

 2. The butcher takes the $100 and runs down the street to retire his debt to the pig farmer.

 3. The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Farmer's Co-op.

 4. The guy at the Farmer's Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit.

 5. The prostitute rushes to the hotel and pays off her room bill with the hotel owner.

 6. The hotel proprietor then places the $100 back on the counter so the rich traveler will not suspect anything.

 At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves town.

 No one produced anything. No one earned anything. However, the whole town is now out of debt and looks to the future with a lot more optimism.

 And that, ladies and gentlemen, is how Stimulus works.

Glenn Roberts
Lake and Company Real Estate
206-524-3665
Seattle Residential ~ I Do That 

Licensed broker since 1985 offering spectacular service to buyers and sellers in greater Seattle, with particular interest in Green Lake, Ballard, Phinney Ridge, Wallingford, Ravenna, Bryant, View Ridge, Roosevelt and the University District.

Referrals from past clients and other agents always make me smile.  

Glenn Roberts | Lake and Co Real estate on Facebook

The home inspection is a very important step during the buying process, but for some reason, it is a step that can give some buyers—and even some seasoned real estate professionals—an awful fright! So, in honor of Halloween on Sunday, here are my 5 Ways to Make the Home Inspection Less Spooky!

1. The Spook: Home inspections are just plain scary.
   The Scoop: OK, they are only scary if you let inspection myths control your experience. The truth is, we aren't scary people and we are here to educate, not get you shaking in your boots. What makes home inspections scary for some people, is actually past experiences, disappointments or just plain nerves. The good news is that most of that can be helped by just choosing the right inspector. The rest can be helped by acknowledging the concerns you may have. If it's your first home, it's OK to be nervous, if you've had past inspections not go as you liked, it's also OK to say hey, this is a different house and a different inspection—everything is gonna be OK.
2. The Spook: Maybe this house is more work than I thought.
   The Scoop: You might see the house differently on inspection day, then you ever have before. The home inspection is often the first time you will look at the house more “analytically” instead of “emotionally.” It can be difficult if you are not prepared for the step-by-step evaluation of the house. But if you are prepared for the slight change of perspective that the home inspection may bring, the process becomes much easier.
3. The Spook: The house is not perfect anymore.
   The Scoop: Ok, but rest assured, there is no such thing as a perfect house. Prepare for the fact that some defects may be found in the house, but keep in mind that every house—even a new house—has some. The inspection report and the inspector will help distinguish between big problems and small ones. Ask questions during the inspection. Think about your concerns and needs prior to that day and make sure you get the answers you require. 
4. The Spook: The house is great, but the report still mentions a lot about required maintenance.
   The Scoop: Buying a home is similar to buying a pre-owned car. One must always expect maintenance and some unexpected repairs. No inspection can completely eliminate all risks, and all homes require maintenance, repair, and care. It is important to be comfortable with this concept prior to the inspection experience—especially those who have never owned a home before.
5. The Spook: For what they are asking for this house, it should have been flawless!
   The Scoop: Unfortunately, home price and home condition do not go hand-in-hand. Price has much more to do with location and the market conditions than anything else. After all, even million-dollar homes have defects. So no matter what the purchase price, avoid falling into the trap of expecting a flawless house.

Posted By: Chrissy Doremus, U.S. Inspect Blog

TRICK-OR-TREATING IN CROFTON, MARYLAND

 

Keep the REAL spooks out of your children's Halloween night by taking these precautions when they go trick-or-treating in Crofton MD (or anywhere):

1.  Accompany children when they go trick-or-treating - If they're a little older, stand back so you're not "lurking", but don't let a pedophile take advantage of this great opportunity to troll for vulnerable kids.  And never let them enter a stranger's house!

Remember, adolescents are not too old to be at risk on Halloween or at any other time. (You might want to check the Maryland Sex Offender Registry, and avoid those residences when you take your children trick-or-treating.)  

2.  Encourage children to go trick-or-treating in small groups.  If the group is too large, you might lose count if one is missing.  My grandkids love it that their parents dress up in costume, too, but other kids may wish the adults to be less visible.  Make this decision in advance, to avoid last minute hassle and controversy as you leave to go trick-or-treating.

3.  Make sure that your children's masks don't restrict their vision, breathing or speaking .  You don't want them to trip and fall, bump into things, or be oblivious to what is around them.  You want them to be heard, if they call for help, and you certainly don't want their breathing restricted.  Why not consider face-painting, instead of a mask this year?

4.  Dress your children in costumes that will be visible in the dark.  Black costumes may be Halloween-spooky, but they put children at risk, crossing the street.  Even when children are safely on the sidewalk, you want them to be visible to someone backing out of their driveway.  It's a good idea for them to carry a flashlight, too, and please remind them to stay on the sidewalks we have throughout our Crofton neighborhoods.

5.  Enforce a strict rule of "No testing the treats ‘til you get home" so you have an opportunity to look them over for obvious tampering.  Frankly, when my kids were small and less aware of every treat they received, I trashed everything they collected after they went to sleep and replaced it with candy I provided. (Reading this will probably be the first time they know that.) 

By the way, if you give your kids a big dinner before they go out Trick-or-treating, they're less likely to want candy before they get home.

Posted Originally on October 30, 2007

____________________________________

Check out the complete list of Halloween safety tips published yesterday by the Anne Arundel County Police Department on Facebook. 

Crofton MD is generally well-lit and there are sidewalks in most neighborhoods, so trick-or-treating is probably safer in this community than most.  But it's still important to be responsible and exercise precautions.  As an alternative to trick-or-treating, you may wish to take the kids to one of these local events:

• Hallow-Screen at the Annapolis Town Center tonight, (Kids of all ages)
  
• The Crofton Halloween Parade on Saturday (for the little ones), or
  
• Haunted House at the Baysox Stadium (PG-13)
  

Copyright 2010.  All rights reserved.

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MARGARET WODA
REALTOR® and Associate Broker
Long & Foster Real Estate, Inc.

Office:  (410) 721-1500 x 6245
Direct:  (301) 346-2923
Email:   MWoda@mris.com

'Still passionate about helping home buyers and sellers in Bowie, Crofton, Davidsonville, Gambrills, Fort Meade and Odenton, Maryland, after 30 years as a REALTOR®.

IF YOU WATCHED 60 MINUTES LAST NIGHT ON CBS, YOU TOO CAN SEE THE WRITING ON THE WALL! Homeowners are considering walking away from "underwater" homes---and they are doing it in great numbers. These are not your "subprime" mortgage foreclosure---they are average homeowners who have been making payments and CAN AFFORD to keep paying! They choose to move on because they do not see a future in their homes!!!

FALLING HOME VALUES. This is still A REAL ISSUE TO CONSIDER......prices are still falling , and may fall further! Let's not put our heads in the sand---we need to act now! With attention on the seriously underwater middle class homeowners, walking away from their obligations, we now have another possible situation that will cut into the already lower home prices.

Falling home values have not stopped--they may have slowed somewhat in certain markets, but prices are still coming down! With foreclosures still a factor and short sales increasing each month, we need to take a long hard look at what we need to do in order to prevent further erosion in the housing market....What we DO have in our favor are BUYERS!...People are looking to buy in this market because of percieved value, Perhaps for the first time in a decade!

There is no way to say how far home values will fall; we can look at prices as closings happen or we can look back on a 3 month time period to try to catch the trend for the next 3 months. None of this information is usable, however, because the actual price where a property trades appears to be based on the homeowners situation, not on any market trend.  No longer can we use 1 year or even 6 months as a criteria for pricing homes

So, given the fact that we are not able to price properties based on a trend, it is now essential to know the motivation of the seller in more detail than in the past---How do we measure home values NOW? How do we determine the real price of a property in a market where the homeowner, desperate perhaps, needs to sell fast?

Measuring home values in this market is like measuring a moving target....we can be very wrong very easily and the homeowner who is more vulnerable then ever before, can easily become the victim of a distorted sense of home values if we use our former ways of pricing.

LET'S NOT PUT OUR HEADS IN THE SAND ABOUT VALUES AND LOSE  PRECIOUS TIME IN THE PROCESS!

One thing that I have noticed here in the Hamptons is that the "new builds" are selling quite quickly and they are selling at prices that were "set" before the downturn--in other words, at the highs of the market in '07-'08! Builders are more optimistic than I have seen them in a very long time; they are able to buy up properties in ideal locations for 1/2 the price they would have paid in '07-'08 and they are tearing down and building new homes that appeal to a "new" buyer. This new buyer has money and has been waiting to buy a new home in a great location....and the builders are making hay while the sun shines!

MEASURING VALUES IN A VERY DIFFERENT HOUSING MARKET: The challenges that we face going forward in measuring the true value of a home is going to cripple the housing market unless we fully understand the motivation of both the buyer and the seller. I have the sense that if we go about doing the same things we did in the past with prices, we will find ourselves in a very bad, longer term crisis than is now projected.

PROPER PRICING MAY BE THE ONE THING THAT IS PROPPING UP THE HOUSING MARKET!!

IN my opinion, there are 4 definitive categories that we need to focus on when pricing properly in this very precarious time. I have broken them down with pricing strategies by category so you can see the importance of giving each property the best chance to sell quickly:

1."Original" condition homes: those homes that may be coming on the market for the first time in it's history. These homes are usually 25 years old or older and need major work to bring them up to date.

• Because the pluming and electric is old, the appliances and fixtures are out of date, this property needs to be priced to allow for replacement of these things---save time and money by pricing this house to motivate buyers to want to buy it...maybe even list the approximate costs of replacement.
• These homes need to be priced at the lowest level possible, based upon mostc recent sales and in-contracts of similar homes in a given area. Emotion is a major factor in additon to price when a buyer is looking at this category.

2."Good" condition homes: those homes that have been well maintained and may have been recently renovated but are 10 years or older.

• Here, the home has much to offer in terms of less work to do but again, offering the approximate costs of anything that needs to be re-placed will help to motivate the buyer who wants the charm of an "older home".
• Proper Pricing is critical in this situation because a buyer knows that he/she will have to do work to make it like their own and is looking to have a good reason to buy it. The price will make the difference here; emotion willl be less of a factor.

3."Prime" condition homes: these are the houses that we may have considered "like new" or "mint" condition and are no more than 10 years old, have been very well maintained and are up brought up to date on appliances and baths.

• This category of home is surprisingly easy to sell to the buyer who wants to move in and not have to do any work what-so-ever. Emotion will be a major factor and a good price will be the cherry on the top of a great "buy"

4."New build": is new and has never been lived in....generally no more than a year old.

• This is a category that took a big "hit" during the downturn; prices could not go low enough for the buyers of those houses! Motivation to sell became a sheer need to sell; builders were making deals that were hard to say "no" to.
• Because the "new builds" of yesterday ('07-'09) were going up in less than prime locations, they sat! What is that old saying: "LOCATION, LOCATION, LOCATION"....well it is still the key to selling a brand new home! Top dollar can be the result when a new home is in a desirable location.

With the additional factor of "walk aways" on top of the lost value through forelosure, we have an obligation to be at the top of our game when it comes to pricing homes in this market. 

LET'S NOT MAKE THE SAME OLD MISTAKES WITH PRICES THAT WE HAVE IN THE PAST!!! LET'S NOT PUT OUR HEADS IN THE SAND WHEN IT COMES TO THIS ISSUE--OUR LIVELY-HOODS DEPEND ON IT!

Paula I. Hathaway, LBA, Prudential Douglas Elliman

Top Producer, Diamond , Gold and Chairman's Circle Awards