Insigniaresidential - FSBO

The world of real estate marketing has become even more critical to the success, if not the survival, of every agents plans to stay "in the game." The greatest revolution in marketing is now upon us: blogging. With the advent and adoption of blog marketing blasting into the stratosphere as web 2.0 takes off, Realtors and brokers are just beginning to understand this pioneering new medium. As social networking and creating "your voice" through blogging gains momentum, the need to understand the technology side of blogging becomes ever more critical.

Within the technological side of blogging lies a virtual avalanche of free share ware type of "widgets" which will add depth, clarity, convenience, and richness to the blog. Maps, chat boxes, and instant internet phone calls from net to blogger are just a few of these great widgets.

Just as important and exciting are widgets within the "monitoring" niche that help bring clarity and traffic measurement to a blogger's efforts. One of the greatest such tools is the traffic/reach measuring site: www.alexa.com.

Alexa.com measures a blog's traffic (number ofusers combined with page views) and reach (number of users) and ranks that blog within the total blogs measured on the internet. A big scoreboard scenario if you will.

1. Traffic Rank according to Alexa.com: " traffic rank is based on three months of aggregated historical traffic data from millions of Alexa Toolbar users and is a combined measure of page views and users (reach). As a first step, Alexa computes the reach and number of page views for all sites on the Web on a daily basis. The main Alexa traffic rank is based on the geometric mean of these two quantities averaged over time (so that the rank of a site reflects both the number of users who visit that site as well as the number of pages on the site viewed by those users). The three-month change is determined by comparing the site's current rank with its rank from three months ago. For example, on July 1, the three-month change would show the difference between the rank based on traffic during the first quarter of the year and the rank based on traffic during the second quarter.

Although this may seem a bit detailed at first, the Alexa rankings allow a blogger to measure his or her progress against a large "population" of blog sites and users on the internet. This type of measurement is invaluable as an added incentive to blogger's who strive to acheive more readership, more potential leads, ultimately culminating in more sales.

2. Reach according to Alexa "Reach measures the number of users. Reach is typically expressed as the percentage of all Internet users who visit a given site. So, for example, if a site like yahoo.com has a reach of 28%, this means that of all global Internet users measured by Alexa, 28% of them visit yahoo.com. Alexa's one-week and three-month average reach are measures of daily reach, averaged over the specified time period. The three-month change is determined by comparing a site's current reach with its values from three months ago.

Granted "Reach" can be a very humbling statistic as I can attest from my stratospheric rankings. But if you put your ego aside, this measurement gives bloggers another opportunity to measure their writing efforts effectiveness, their social networking progress, and their ability to popularize their blogs by developing their "voice" that compels people to read the articles.

If you are wondering why I feel humbled by Alexa here is the proof:

With the decline in prices, and scarcity of buyers, it may be tempting for a seller to fall for this scheme, but be careful, it could be one of the mortgage fraud schemes that are going around! 

The basic idea is that after a property has failed to sell, a buyer comes in and offers to pay above asking price, and the seller will rebate the difference back to the buyer.  Read the details of how this works, and be careful that you don't fall for it!

Click here for more information

Charming, updated College Park bungalow renovated in 2004

$365,000 

1332 West Princeton between Florinda and Northumberland 

¨       1,700 square feet of living space

¨       Lot and a half (75x133 feet) with room for pool or extended patio/decking

¨       Three bedrooms and two baths

¨       20x26-foot master suite includes walk-in closet, oversized shower and French doors to the multilevel, 200-square-foot pressure-treated, stained wood deck in the backyard

¨       Open floor plan integrates kitchen, dining and living areas (30x27 feet)

¨       Mahogany kitchen cabinets with cherry finish, handcrafted trim molding and stainless pulls

¨       Dupont-certified granite counters in kitchen and master bath

¨       Refinished (living areas and two bedrooms) original oak floors, new solid oak floor (master) and ceramic tile in kitchen, baths, closets and breezeway

¨       Stainless appliances (4 years old and under extended warranty) and washer/dryer included

¨       5-inch handcrafted baseboards and 4-inch handcrafted door/window trim throughout

¨       Brand-new, leaded art-glass front door (to be installed) and brand-new French doors from master to backyard deck

¨       Beautiful windowed front facade; large windows in every room

¨       Neutral paint colors

¨       20x20-foot brick paver patio

¨       Tons of storage (walk-in closet in master, two closets in one bedroom, one in another, loft storage in single-car garage (20x12 feet), and two attached storage rooms (12x12-feet inclusive), one with finished walls, trim and window)

¨       Charming, enclosed, step-down 18x6-foot breezeway connects kitchen to garage and offers patio/deck access

¨       All-new within five years: roof, AC/heating, electricity, plumbing, windows, appliances, water heater, cable TV/high-speed access in living room and two bedrooms

¨       New copper mission light fixtures on garage and front porch, new rubbed-oil-finish bronze handsets on three entry doors, and self-watering window planter boxes

¨       Side door in front of the house leads to handy porch entry from driveway for guests and groceries

¨       Mission style, 9-light side and back doors

¨       ADT alarm system

¨       Freshly painted exterior in sage green

 FOR SALE BY OWNER

AGENTS WELCOME

321-663-4119

geral64@aol.com 

Owner will send you an online photo album of interior and exterior photos

I thought the whole CAR virtual headquarters in Second Life story was strange, but weird real estate related news just keeps rolling in:

• There's a report that Fidelity National Financial is looking to buy fast food chain Wendy's.
  > Huh?!?
• ActiveRain is suing Move.com for $33M over an acquisition that fell apart right around the NAR mid-year conference in May of this year. The lawsuit alleges that the Move.com board of directors had approved the deal, that it was to be announced at NAR, and that it fell apart hours after ActiveRain handed over all their secrets.
  > Bummer for ActiveRain, but it's always fun when Move.com is getting sued!
• The CEO of Point2 Technologies resigned, then pled guilty to sex offense charges.
  > Scandal up in Saskatoon!

And the weeks not even over yet!

Iggyshouse.com free mls listings are available in most states and are a great, easy way to list your home for sale by owner real estate. Please comment on your experience with IggysHouse.com  free mls listings. If you have not used Iggyshouse.com ask questions or explain why?

I came across this article from CommercialRealEstateDirect.com

Credit Dislocation Hits Commercial Sector
Credit-market dislocation has impacted capitalization rates in the multifamily and office sectors, reports Reis Inc. Capitalization rates during late July and August dropped 30 basis points in the multifamily sector and 10 bp for office, according to Reis' latest report on credit market conditions. Late July into early August is when the commercial real estate investment market started feeling the full brunt of the credit market turbulence, in which lenders pulled back from the market, causing deals to be re-priced or cancelled altogether. The New York research firm further indicates that credit turbulence has caused a decline in investment activity and moderation in price appreciation.

Commercial lending did not approach the level of carelessness (with respect to loose guidelines) as the residential market has.  It goes to show that lenders get a bitter taste in their mouths from all types of real estate based lending.  The spreads of interest rates among different levels of risk continue to re-align as the "new" market looks for stable ground.  The current market opinion has it that the real estate market will worsen before the clouds clear and we have some solid ground to stand on.  In the mean time, extensive research needs to be done for each transaction to avoid financing pitfalls. 

That was the question put to me this week, so I put the question to my "go to gurus" on such matters, The 1031 Exchange Experts, and this is what I found out.

If you are a "taxpayer," you are eligible for a 1031 exchange.  This includes individuals, LLCs, partnerships, corporations, trusts, or any other legal entity you can think of.

Of course, just because you are a taxpayer, it doesn't automatically mean you can do an exchange.

For instance you cannot sell your shares in a c-corporation (even if the c-corp only owns real estate) and then use the money to buy real estate. Shares are not "like-kind" to real estate. Neither are membership interests or partnership interests.

On the other hand, if you sell business or investment real estate, all you have to do is buy other business or investment real estate. A piece of land almost always qualifies for a 1031 exchange, and can be exchanged for a rental house, apartment building, commercial property, or any other real estate you hold primarily for business or investment.

The bottom line is that your ownership entity should have zero bearing on whether you can do a 1031 exchange if you are exchanging real estate for real estate.

Behind the scenes.  My daily checking of the MLS "Hot Sheet" has provided me with a lot of insight on how many agents are clueless about the importance of putting their listing in the best light when it is new on the market.  They don't seem to understand the fact that your listing is only "NEW" for one day, so you need to make the most of it.  Many times after viewing the new listings, I think, "I bet the seller has NO idea what their agent just did, and how much it will probably cost them!"  

To appreciate the negative impact of these errors, you have to understand how the MLS system works. 

1 - Listing agent enters the listing in the MLS.

2 - The buyers who are serious are on "email alert" and get a notification that a new property has just come on in their size and price range.

3 - Buyers look at the email and see no description, no photos, and just the check-the-box details.  Buyers delete email (Seller just lost a chance for a motivated buyer to consider it).

4 - Local agents check the "Hot Sheet" for new listings, see the lack of description, lack of photos, and then go look at the next property listed on the hot sheet. (Seller lost another chance to have the property viewed by agents who might bring the buyer!)

At that point, the listing agent just lost the best opportunity to have the most interest generated in his new listing, and he blew it!

Usually, the photos are the last thing to be done after the sellers have taken care of all the de-cluttering and staging before putting a house on the market, but in the SoCal MLS, the agent can begin entering the data and build up the info over several days while keeping it from showing up in the MLS "before it's ready for prime time." 

Step 1 - Listing Agent can set up the basic info into the MLS form, as soon as the listing contract has been signed by the seller.  The basic information includes the address, numbers of rooms, physical size, year built, lot size, current property tax assessment,  (much of it "auto-populated" from the tax data base).  There are also a lot of "check the box" fields such as: Pool, Air Conditioning, Fireplace, # of Garage Door Openers, School District, Separate Dining Room, Homeowner's Association Dues, HOA recreation facilities, etc.  Other information to be entered originally can be the showing instructions, lockbox location, owner's phone number, agent's contact info, etc.  So far, this information is simply facts, not marketing.  (Some agents simply load this raw data without any description or photos and click the button to make it live on the MLS.) 

Step 2 - This begins the marketing task of the MLS property listing input.  It is the least expensive marketing for the agent, but probably the most valuable and critical.  The remarks in the description shows up on all the IDX websites where potential buyers are looking.  The purpose of writing this is to make it sound attractive to the buyers.  Features and benefits need to be emphasized, such as "fabulous sunset view" or "just one block to best elementary school," in addition to remarks about the condition of the home.  "Hardwood floors, updated appliances, remodeled bathrooms, dual-paned windows, large yard, sparkling pool," etc.  paint a picture in the mind of the potential buyer reading it. Abbreviations should be avoided, or at least minimized, so that someone outside the real estate industry can understand what you are saying, and not be distracted trying to decode the information.  The motivation of the seller should never be revealed in a description, nor should the phrase "reduced to sell!"  Reducing the price may be necessary, but by declaring that it was "just reduced" translates to "we started out greedy or stupid ...."  

Step 3 - Provide good photos and lots of them!  The SoCal MLS allows up to 20 photos per property, plus a virtual tour.  If you have included remarks in the description section about some fabulous upgrade, feature, or view, don't forget to include a photo of that!  Some agents prefer to use a photography service or virtual tour service to take the photos of the house.  These photos are usually very good quality, but the number of them may be limited.  The photographer's schedule may also mean having to wait for 10 days to 2 weeks.  If the weather is overcast or raining, he won't get those beautiful views, or blue sky backgrounds.  Even if using a professional photographer, the listing agent should take preliminary photos to include with the listing the FIRST DAY it is on the MLS.  If it isn't ready for photos, then it isn't ready to be seen by buyers or agents. 

USA Today : September 26, 2007

What is happening in today's real estate investment market? I get that question from my investors every week. The headlines in the newspapers give facts, but where are we heading? In a meeting this morning, I used the following analogy to explain the supply/demand curve that I see cresting in Southern California.

Consider a person that brings in an investor to buy an existing doughnut shop. He gets to keep everything over $1.00 per doughnut and business is booming. He keeps raising prices and people pay the increases. Each day, he runs out of doughnuts after the 100 he cooked are gone. Doughnutless unhappy customers come back the next day earlier than before and willing to pay a little more to receive one. Then, Oprah does a special on trans fats. Millions tune in and hear about the horrors of what doughnuts can do to a body.

The next day, the doughnut shop only sells 50 doughnuts. People still pay the $1.75 that they had become used to, but there are 50 unsold doughnuts at the end of the day. This happens day after day and the baker keeps making 100 per day (since that is his contract with his investor). Some customers come in and try to bargain. "Doughnuts used to cost $1.00 and you have so many to sell. Will you sell me one for $1.00." The answer is NO, because if the shop-owner sold a doughnut for $1.00, he will make no money due to his contract with his investor.

After a time, there is a four year supply of doughnuts in the shop. Customers trickle in, but they increasingly are waiting for the price to come down. They don't care about the shop owner or the investor partner. They will do without a doughnut until the price either comes down, or Oprah says that they are safe to eat. Then one day, the investor comes into the doughnut store. He demands a return on his money and all the owner has to offer is a truckload of unsold doughnuts. The investor takes them back to his office.

What do you think will happen next? Here's a hint... the investor will not eat all the doughnuts. He will sell them for whatever he can. Where are we today in this scenario? Well, the lenders of real estate are the "investor" in my analogy.

The investor is loading his doughnuts into his truck and the shop owner is still trying to sell doughnuts for $1.75. No one is buying them. So, here is what everyone in the investment real estate market is trying to figure out... what will doughnuts be selling for in a few months or a year from now? $1.75? $1.00? Less than $1.00?

I've been in investment real estate for over 20 years and I don't have the answer because I don't have a crystal ball. I am sure of one thing. Doughnuts are not worth $1.75 when no one is buying them! Buy a bagel for $.60 and put some frosting on it. There are other things investors can do with their money and they are doing it.

USA Today : September 26, 2007

The following stories were in yesterday's USA Today. California has 8 of the 10 most expensive real estate markets in the country and sales have dropped 20-40%. Prices have not come down. Sounds like really expensive doughnuts to me. I want to buy them from the investor in bulk for $.90 per doughnut. In the next six to twelve months, I think they will be available. Now, I just have to reduce the trans-fat in my diet!