Internet Trailblazing?

The Internet has changed how everyone does business and this is especially true in the real estate world. A recent report shows that home buyers are using the Internet to search for homes, but the majority of real estate agents don't have websites or advertise on the Internet. Here's an excerpt:

In the latest National Association of Realtors Profile of Home Buyers and Sellers, based on a survey of 7,500 home buyers and sellers, 80 percent of home buyers used the Internet in searching for a home, up from 77 percent in the 2005 survey and 74 percent in 2004.

Meanwhile, a 2006 survey by media research firm Borrell Associates Inc. found that 61 percent of real estate agents do not advertise on the Internet and 87 percent of agents do not buy keyword advertising from the Google or Yahoo search-engine companies. (from Inman News)

I've tried to take full advantage of the Internet in every way that I can and I guess that makes me a trailblazer of some kind. It just makes sense to me. I know that home buyers and sellers are using the Internet and as my clients, they expect me to use it as well.

Here are some of the Internet tools that I provide as a service to my clients...

• INTERACTIVE MAP SEARCH- An innovative way to search for homes using a map. This is the absolute best search method I've found that is available. It's very user friendly with numerous ways to search and features like SearchSaver and Favorites.
• VIRTUAL TOURS- When selling your home I can easily create a virtual tour highlighting the selling points and exposing your home to Internet users anywhere.
• HOME VALUE REPORT- If you're thinking about selling your home, just enter some simple info into this form and I'll send you an estimate of what your home is worth based on recent sales of comparable homes in your area. It's FREE and no obligation.
• WEBSITE- The hub for all these tools as well as general information on buying & selling homes.
• BLOG & CITY NEWS- I try to offer all kinds of real estate news and information through both this blog and my website.
• NEIGHBORHOOD LINKS- This ever-expanding part of my website will contain useful information about local Nashville neighborhoods with links to neighborhood associations, restaurants and other points of interest.
• ONLINE MLS REPORTS & MORE- When buying a home, I can email you reports for various homes listed in the Multiple Listing Service (MLS). Paper is optional these days as I can also send all sorts of documents from tax records to comparative market analysis via email and web links. My goal is to empower you as the buyer to make well-informed decisions.
• ONLINE MARKETING- Internet buyers want to see lots of pictures and details about homes that are for sale. I post all my listings to Craig's List and other similar online 'classified' advertising to get more exposure. This generates a lot of traffic to my virtual tours, especially with buyers who are out of town and considering a move to Nashville. I also do keyword advertising on search engines to invite more people to try these tools and see what makes me different.

As the Internet continues to grow and change so will the many tools and information sources available to you. Please give some of these a try and let me know what you think.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Real Property vs. Personal Property

"Do the drapes stay?", "Will they leave the chandelier?"

These are the types of questions I hear when showing homes to buyers and they are good ones to ask. It's important to understand what you're getting when you purchase the home. We refer to this as real property.

Real Property is not just the land and anything that is permanently attached to it, but also the rights and benefits that are included. Anything else is typically called personal property. For my clients, the key phrase is "permanently attached".

If you can pick up an item and move it, it's probably not considered real property and it doesn't come with the house. That is, unless you ask for it! This is important to know. If a buyer wants the refrigerator, but doesn't specifically ask for it to remain in the contract, the seller will likely remove it because it is personal property and not permanently attached.

Here are some examples. Do these come with the house?

• Drapes- Not automatically. You must ask for them in the contract.
  
• Kitchen Appliances- Maybe. Some, like the refrigerator and the microwave, may not be permanently attached and you could just pick them up and move them- they don't stay. However, the garbage disposal and the dishwasher are most likely hard-wired and considered real property. Note: If the microwave is built in and hard-wired it would stay.
  
• Washer and Dryer- Not automatically. Even if the seller offers them in the listing, you should make sure and ask for them in the contract to make sure they stay if you want them.
  
• Light Fixtures- Yes, they stay if hard-wired. The kind that hang on a hook and plug into the wall are considered personal property, though.
  
• Bathroom Mirror- This can be tricky. It stays if permanently attached to the wall. If it is just hanging on a nail, it's technically personal property.

As you can see, there can be some confusion about this. That's why if there is something about the home that is important to you, make sure to include it in the contract. It is all negotiable anyway. If you really want the drapes, chandelier, or even a certain piece of furniture be sure to ask and make it part of your offer.

You should also know that if you ask for much of the personal property in your offer we may use what's called a "Bill of Sale Agreement". This will list the personal property on a separate form and keeps it outside of the actual sales contract. This is done to keep lenders from thinking that you are borrowing their money to buy a bunch of furniture, etc.

The imporant thing is to think about all of this up front. Otherwise you may find that you bought a home without any bathroom mirrors...

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Sell Your Home With Pictures

When you're looking at home listings and come across one without a picture what do you generally do? Skip it. How about if there's only one picture from the street an it's not very good? Skip it too. So here's my burning question: WHY ARE THE SO MANY LISTINGS OUT THERE WITH TERRIBLE PICTURES OR NO PICTURES AT ALL!!!

Okay. I'll try to be calm. This is something that has baffled me for long before I became a Realtor. Digital cameras are fairly cheap, and you don't have to be a photographer to get a good picture. There are huge reasons to show buyers as many great things about a house as you can- and you can always find something!

1. A listing with no pictures will generally be overlooked by buyers AND Realtors. If I do think one of my buyers may be interested, I'll start by seeing if I can find a picture of the home with WebPro. (Go to this website and Click the WebPro icon) This page is hosted by the TN Property Assessor and has pictures of about any property I've looked up. Of course, it won't normally be a good picture, but I can at least see what the home looks like.

2. A listing with low quality pictures makes the home look low quality. (or at least the Realtor- ha!) This would include pictures with bad lighting or pictures that were uploaded upside down or off 90 degrees. I remember a picture of a home that had a large luxury van parked on the street in front of it. All you could see was some of the roof peeking out above the van. Unbelievable!

As a Realtor, I don't want to waste my buyer's time by taking them to a home that is not anything near what they wanted. That means if the pictures are bad or missing I'll have to go preview the home before I pass it along to my buyers. All of this extra work means that the home will likely take longer to sell and will have less people interested in it.

3. A listing with few pictures tells the buyer that there aren't many good things to look at. I had a recent client point out that if there aren't pictures of the kitchen or bathrooms they assume the worst. Me too! I'll admit, the kitchen may not be a selling point in some cases. However, it's usually possible find something else to include. The multiple listing service (or MLS) allows 10 pictures and I can always find 10 things about a house to show off- even if it's the park or convenient restaurant down the street.

4. Internet users want to see more. I go beyond the 10 pictures with a virtual tour for every listing. Going this extra step will allow buyers to get a much better feel for what the home is like. I've found this especially good for out of town buyers who are thinking of moving into Nashville. Sometimes homes are even purchased sight unseen by people seeing the home through a virtual tour.

Great pictures are the basics to marketing a home. It's square one. If you're interested in getting your home sold through great pictures and a virtual tour (and much more, by the way) please contact me or request a Free Home Value Report.

-Peter

www.nashvillecityhomes.com
REALTOR. City Home Specialist.

Get Your Stuff Out! (Please)

It's always amazing to me how many homes on the market are just a few easy steps away from being in their top condition (whatever that is). Many times, just removing personal items and clutter will change the entire impression that the home gives. Here are a couple examples:

I just sold a home in Forest Hills that was vacant. It was a family home where the older parents had moved into a retirement community while the children took care of selling the home. The problem was- it still had many of the family's personal items and outdated furniture from decades ago. It wasn't dirty or in need of repair, it just felt like someone else's home. Later, when the home was empty, it felt much different and looked incredible. If they had cleared the contents sooner would they have sold it for more or quicker than the 6 months it was on the market? Who knows, but it wouldn't have hurt.

Another home I recently listed and sold was a fixer-upper that hadn't been lived in for over 2 years. However, all of the contents of the home were still there from when the home became vacant! Even though it was a home in need of some serious rehab, I knew it would show better if it was at least empty. We ended up having all the personal items removed and then sold it for full price on the second day!

When you're selling a home, you want it in the best possible condition to entice the most buyers to take a look. If possible, it's great to stage the home. Staging involves rearranging furniture, decluttering, etc to get as close as possible to being a model home showplace. You want to "wow" the buyer as they tour your home, not distract them with all of your family pictures and unusual collections.

This is especially true in this day of Internet home searches. Buyers make a lot of judgements based on the pictures (or lack of them). So it's best to have your home presented in the best possible way.

I remember hearing Dave Ramsey talking on his syndicated radio program about how you should move everything that you possibly can out of the house into a storage unit when your home is on the market. He said it should look like a model home and you'll even feel different living there because it won't feel like your home anymore.

That is the idea. It's not always possible, but many times the steps to making your home more appealing to buyers just takes a little extra attention and short-term inconvenience.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Two Homes of the Future

In cities across the U.S. people are 'rediscovering' downtown living- forsaking the suburbs to live within walking distance of restaurants, parks and entertainment venues. This is definitely true in Nashville as we see downtown condos selling out rapidly and new construction everywhere.

The 2007 International Builder’s Show in Orlando highlighted this trend by building two different, yet incredible model homes on the same street in a historic part of Orlando. Both of the homes were built to show off the latest innovations and technologies in home building and reflect both the challenges and advantages to an 'in-city' home.

The New American Home, pictured left, is a completely new home, built to incorporate international style and yet blend in with the surrounding historic homes. The 3-story, "urban loft" home with roof plaza will feature 4,707 sq. ft. of air conditioned living area plus a 576 sq. ft suite above the detached garage. Sales price will be around $3 million.

The Renewed American Home, pictured right, was originally built in 1909. It was moved from its former site then fully renovated and expanded to 5860 sq. ft. of air conditioned living area, not to mention the basement and two-car garage. Though keeping some of its historic charm, the home includes the latest in automated controls from the lighting and zone audio systems to the security and safety systems. It's a marriage of a historical environment and a modern entertainment lifestyle. The home will also sell at around $3 million.

I know you want to see more pictures and get more information about these homes from the International Builder's Show. Just don't get too envious.

-Peter
http://www.nashvillecityhomes.com/
REALTOR. City Home Specialist.

Buyers, Be Armed!

Armed with information, that is! As you browse homes on the internet and start venturing out to see them, how do you know when it's a good deal? How do you know that you won't get stuck with a "money pit" that will require massive repairs that you can't afford? How do you beat out the competition and get a contract on the home once you find it?

Here's how:
1. Work with a Realtor- I'll try not to be overly biased when I say this: I truly believe that you are at risk when you are unrepresented in a home purchase.

• When a home is listed, the seller is already offering to pay for the buyer's representative. It won't cost you anything extra!
• Why not have a professional on your side to help you negotiate and wade through the fine print to make sure your interests are protected?
• A great Realtor will provide you with numerous tools so you can make well-informed decisions.

2. Look at a Comparative Market Analysis- Before I show a home to a buyer I do a comparative market analysis, or CMA. This CMA shows us what similar properties in that neighborhood have sold for so we can judge if the asking price makes sense. Without it, you have no basis for justifying the price.

3. Look up the tax records- I also pull the tax record for every home I show to a buyer. This extra piece of information tells us the sales history of the home and important facts like the recorded number of bedrooms and square footage. It's also helpful to know if the current owner bought it just a couple months ago to renovate and 'flip' or if it has been in one family for generations.

4. Be pre-approved for a loan- I wrote a recent article with more specifics about this, but it definitely needs to be mentioned here. When you're pre-approved, the home seller can know that a lender has looked at your finances and there should be no snags to you purchasing the home. This will be a huge advantage for you in situations where there are other competitive offers for the same home, which happens quite often.

5. Do a home inspection- This is a common part of the process, but shouldn't be overlooked. A great home inspector will give you a report of all the repairs that need to be made on a property and let you know about any 'red flags' that might need any further inspection. It is a fabulous tool and really helps with any fears that you have about the condition of the home. Cost usually starts around $250, but it is money very well spent.

6. Have your checkbook ready and be decisive- Once you've done some research and toured a few homes, you start to get a better idea of what is available and what you can expect to find. Now when you see a home that is a good buy, you'll know, because you're "armed"! At this point you should make sure to have a checkbook with you and enough funds to cover the earnest money check. Earnest money is basically a deposit that shows that you're a serious buyer and committed to seeing the process through to close.

It takes some extra effort and preparation, but it's all worth it to be in the best position possible to buy a home you love at the best price. If you're ready to get armed and serious about your home search, please call or email and we'll get started today!

-Peter

www.nashvillecityhomes.com
REALTOR. City Home Specialist.

Of Alleys and Septic Systems.

I've learned a couple things about alleys and septic systems that I thought I'd share before I forgot. As a homeowner, you may never run into these problems, but my last two listings have had some unusual issues that had to be dealt with.

A Home Needing A Sewer Line...
The first home was a fixer upper that had been vacant for a couple years. When I listed it, the sellers told me that it had a septic tank. This was unusual since it was located in the middle of town. Apparently, when the sewer lines were installed years ago, the homeowners were not required to connect, though most did.

I knew this would be an issue to anyone that might purchase the home, but in speaking with my broker I learned it may even be required to be connected before it could be sold. To confirm this and get some more answers, I called the folks at the Metro Health Department who said this was true. If the property was sold, the buyer would not receive clean title to it until it was connected to the sewer line.

If the home was not located on a sewer line it wouldn't be an issue, but at this home, the sewer ran right through the backyard. It was an ordeal getting it done, but we got the sewer line finished by closing and it's all behind us now!

Building a Fence in the Alley...
My other recent listing was unusual in that there was an old alley that ran beside the home, in addition to the one behind. This side alley was left from earlier times when they were used for fire truck access. It hadn't been used for years and the sellers wanted to enclose it with a privacy fence.

In cases such as this, the city unofficially allows fences, etc as long as the adjacent homeowners allow it. I say "unofficially" because there are no official documents allowing the fence, and it is still a public right of way. This means if the city ever does need to use the alley, they have that right and they may remove the fence, etc. at without replacing it. The homeowner is at risk for the improvements.

For an alley to be officially closed, an ordinance must be passed that abandons the alley. When this occurs all the adjacent owners dived the alley right down the middle.

You have to have patience in dealing with Metro Government on these sort of issues. You'll probably get transferred to two or three other departments before getting the answers you were calling about. It seems that it has gotten a little better over the past few years as they have greatly improved their website with lots of direct numbers and even email addresses for the people you need to talk to.

I remember getting a building permit for some home remodeling in 2003 and being so frustrated because I could never get anyone on the phone. I'm sure that still happens, but I do see improvement. It is a bureaucracy after all.

-Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Take the Mystery Out of Home Prices.

It's always interesting to talk with people about the price of their home. It's usually a tedious subject because the homeowner often already has a price in mind. Perhaps they know of one down the street that sold for a high amount, or they've been renovating and need to price it high enough to make a profit. Sometimes they just want to get enough to pay back numerous home equity loans.

These methods may make some sense, but they may also be totally inaccurate. The prices for homes in the United States, like most other products, are based on supply and demand. When there are lots of buyers demanding a home on your street (with limited supply) the prices will go up. However, if no one wants to live on your street the prices will drop.

Even though the press may report home sales stats like the daily Dow Jones average, local home price trends typically move slower and even tend to lag behind large economic changes. When the changes do happen they may be felt most in the luxury market as opposed to those in the the lower price ranges due to a more steady demand for housing a these prices.

So, how do you really know what your home is worth? Good question. Here's the answer: It's worth whatever someone is willing to pay for it.

Before you say that was a stupid answer let me explain. Your homes value is not based on what you spent on repairs or how much you need to buy your next home. It's based on recent comparable home sales in your neighborhood.

For a Realtor to research this we use what's known as a Comparative Market Analysis, or CMA. We can pull historical data for all the surrounding homes that have sold recently and get an average price per square foot. Using the square footage of your home we can get an estimate of what your home may be worth.

To go further, we'll look at those homes and pick out the ones that are most like your home. These are called "comparable homes". If you live in a subdivision where all the homes are the same basic size and floor plan, this is pretty easy. However, if you live in a historic neighborhood where every home is unique and of varying size, it may be more of a challenge.

This is where a Realtor's experience and opinion come in. The CMA is the starting point. It shows you the cold, hard sales data to get the price in the right ballpark. Then, based on the unique selling features of a home and your specific wants and needs, the final price is arrived at.

Of course, the home seller ultimately decides on the price. These are all tools to aid in that decision. When actually preparing to list a home for sale, I will go much deeper into this process to really understand the neighborhood trends and what buyers are wanting. I'll have to get into this on another day.

Intrigued? Interested in what your home may be worth? Click here to request a Free Home Value Report.

Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.

Get Pre-Approved. (Buying a home, Step 1)

Many people, even myself, enjoy browsing homes. It's fun to imagine a different lifestyle living in a different neighborhood or having that gourmet kitchen you've always wanted. Somewhere between this pastime and having full-fledged "house fever", it's best to stop for a second and get pre-approved.

Before I go too far, I should talk about the difference between being pre-qualified and being pre-approved. Pre-qualification is less formal and can be accomplished in just a few minutes on the phone with a lender. The prequalified amount is based on information you provide about your income and debts. This is not a commitment from the mortgage company, but rather just a starting point to let you know how much house you can afford.

Pre-approval goes much deeper. This step involves providing the lender with financial statements and an extensive look at your credit history. The mortgage company may offer you some different loan packages based on your situation and then issue the pre-approval letter. This letter tells the home sellers that you are eligible for the loan and that there shouldn't be any obstacles financing it.

As you can imagine, with a pre-approval letter, you as the home buyer are in a much better position to make an offer on a property. The sellers can be more assured that your financing will come through and that the sale will actually happen. They know you're serious and that your offer is worth a serious look.

In addition, YOU know what you can afford. It's sad when buyers have looked at $300k homes and picked out several they like only to find out they can only afford up to $250k. This can easily be avoided by getting pre-approved up front.

If you're ready to make this step please call or email. I'd be happy to give you some referrals for some great mortgage lenders who will help you further understand the process and match you with the best loan for your situation. After all, if you're really serious about buying a home, why wouldn't you get pre-approved?

Peter

www.NashvilleCityHomes.com
REALTOR. City Home Specialist.