Keller Williams Continues Growth in 2007

Company reports positive numbers despite sluggish real estate market

(Austin, TX – February 27, 2008) – Keller Williams® Realty Inc., the fourth largest real estate company in North America, announced positive growth numbers for 2007, showing an expansion in market centers to 659 and a growth in its roster of agents to 74, 962.

CEO Mark Willis emphasizes the significance of the company’s growth given the well-publicized downturn in the real estate market.

“Research shows that the U.S. residential real estate market peaked in late 2005. In 2006 and 2007, the market experienced a two year decline of more than 20 percent in closed units,” says Willis. “Yet, during that same period, Keller Williams Realty’s sales increased 8.4 percent. That means that over the last two years our company’s market share has increased by 36 percent nationwide.”

“During the same two year period, we have seen a 42 percent increase in gross commission income and a 25 percent increase in the profit that we return to our associates through profit sharing,” adds Willis.

“We have been overwhelmed by the positivity of our associates and their willingness to think outside the box to continue growing despite this market,” says Mary Tennant, president and COO. “We are optimistic that the trend will continue upward if we give our associates the highest level of support and cutting edge tools.”

In 2007, the company implemented several new initiatives to assist its agents as the downturn in the real estate market became big news. The company launched Operation Heart to Heart 2, a training initiative designed to help agents and market centers survive in today’s market. Operation Heart to Heart 2 offerings included a new Website authored by Keller Williams Chairman Gary Keller, (www.agentmountain.com) featuring audio, video and other materials relevant in today’s market; a new nationwide skills-based seminar tour, Thriving in a Shifting Market; a Web portal for scripts, training products and more; and new market-specific agent guidebooks that teach associates how to take advantage of the opportunities of the current real estate market.

“Our goal in 2007 was to support our associates with the best educational opportunities in the industry so that they are positioned to gain market share and emerge from this market stronger than before,” adds Willis. “I am confident that our associates are going to make the most of this shift and will come out ahead as the dominant real estate brokers and agents in their local markets.”

Along with support through Operation Heart to Heart 2, the company rolled out a variety of new technological offerings to associates.

Through an agreement with WolfNet™ Technologies, Keller Williams’ IDX vendor, agents have the ability to display all MLS listings directly on their Websites – ensuring that once buyers are on their Websites, they won’t have to go anywhere else to search for properties within their market.

The year also saw the development and cementing of Keller Williams new lead routing philosophy – dubbed, “My Listings, My Leads.” Rewriting the rules on how leads are distributed to its agents from online listings, the company applied this new philosophy to two of its technological advancements this year.

The Keller Williams Listing System (KWLS) provides agents with increased exposure for their listings online. When an agent enters their listing into the KWLS, the listing is automatically displayed on their own Website, their office Website, KW.com, as well as more than 100 popular home search engine Websites, including: Trulia, Google, Yahoo!, Homescape, Cyberhomes, AOL, Point2Homes, Unique Global Estates and Yuvie. Every lead generated from these listings goes directly back to the listing agent.

KW.com was also revamped to serve as a property search engine for home buyers and a lead generation Website for associates. All inquiries on Keller Williams listings from KW.com are routed directly back to the listing agent.

“What distinguishes the Keller Williams technology platform is that it is being developed with an overarching emphasis on our associates,” says Dave Therrien, Chief Technology Officer. “We believe that our success lies in our associates’ hands, and our technology offerings are a strong reflection of that agent-centric culture.”

What is this Indiana Reconciliation bill all about and how does it affect me?

I’m going to try and explain what is going on with property taxes, and how you have to be careful buying a home in the first half(or longer) of this year. I’ll preface this with the thought that it’s so confusing, I might crisscross some terms as I try to write it all out… So what I am listing below is more of my current understanding and deemed reliable, but not guaranteed..(Take that you litigious types!)

Indiana is SOoooo confusing on property taxes.. We pay 1 year in arears. Supposedly we pay in May and November for the previous year. So theoretically the May 2008 bill is paying for January-June 2007, and November 2008 is paying for July – December of 2007. However with things so screwed up lately. we prolly won’t pay that may 08 bill(for 1st half of 07), until august or september 08.

It gets really nasty when you try to buy/sell a home, because a lot of real estate transaction have the seller paying for their taxes, and the buyer paying for his.. So generally, at closing, the buyer is issued a credit for the taxes of the seller. e.g.- the buyer, at some point, is going to have to pay for the sellers taxes and it could be a few months after closing. Take heart though, because you will get to do incur the same nightmare to the next buyer.

The REAL issue comes in currently when the property taxes are in flux, like right now. Lets quote an article found at indygov.org

(QUOTE)

Reconciliation Statement for Property Taxes due in 2007: Under the governor’s reassessment order, property tax payers were instructed to pay the same amount of property taxes in 2007 as they paid in 2006 and that a final bill would be used to collect remaining taxes once the reassessment was completed in 2008. The reconciling property tax statement, which is the final tax statement for taxes due in 2007, will be mailed in June and due in July 2008. That reassessment has been completed and the state approved the values in late March, 2008. Based on the reassessed values, new tax rates will be determined and then multiplied by the assessed value to determine taxes due. Assessed values will be available on the County Assessor’s webpage http://www.indygov.org/eGov/County/Assessors/County/home.htm and a link to that page will also be posted on this website.

(/QUOTE)

Needless to say, if you are buying a home this year, you need to make sure you are covering all your bases on reconciliation bills that may be heading your way.. Either get your Realtor to figure out possible worst case numbers and figure that into your offer, and or check with the title company to see how they are handling the situation. Some title companies are making buyers sign a form that basically says the Realtors and Title company can not be held responsible if the numbers they credited you at closing are off, and you(the buyer) owe more than you were given credit for. Really, the assessor’s office hasnt released the final reconciliation bills yet, so there isnt a tried and true way to figure out the final numbers, but the title companies are by-enlarge only using the tax numbers from 2005, in which case you need to make sure that if you are charged the revoked tax bill numbers, you are credited for them..

Wow, does that make sense? Prolly not, so lets do an in-conclusion..

1) Get with your Realtor to look up the Worst-case scenario numbers that could possibly be hitting you, and figure that into the price you offer, or get ready to get billed for it… possibly…

2) Check with your closing company to see if they are, or did charge the seller for the worst-case scenario numbers.

If you are a seller, get prepared to get billed for possible reconciliation fees. Most Realtors aren’t paying attention though, so you are prolly fine… Imagine how ticked the buyers are going to be though..

Phew… hope some of that make sense… It’s a nightmare, and even I get lost in the convoluted mess…

Indianapolis property tax reassessments hitting businesses hard, home owners seeing relief.

Lee’s Notes: Found this article on WISH TV 8 Blog. Figured i would post here… The article basically tells us what politicians have already been saying over and over…. Be careful when buying a new home in the next year, because taxes can be incorrect according to the title company. If you are the buyer, you could end up owing more of the sellers taxes than what the title companies are holding back.. It’s very tough to figure out the reconciliation numbers.  A lot of Realtors are in the dark on where and how to look up the most correct numbers and help you make sure you aren’t in the dark.

INDIANAPOLIS (WISH) – Businesses will be paying more and many residential property owners should be paying less. That’s the result of the 2007 property reassessment in Marion County.

Marion County Assessor Greg Bowes said property owners can rest assured that the reassessment is accurate and fair. But does everyone agree?

Marion County Assessor Greg Bowes officially announced the results on Friday.

“The assessments in Marion County are more accurate, more uniform and more equitable. What this means is our taxpayers will know that they’re more likely to pay no more, no less than their fair share,” said Bowes.

Among them, more than $4.7 billion from commercial and business properties he said were under-assessed. The 32% increase, along with little change in residential assessed values means a tax rate drop for homeowners.

“What do taxpayers do now? Certainly you want to wait for your bill,” said Bowes.

However, auditors still must calculate the actual tax rate which will take at least three weeks. Still, Bowes said assessments have changed for about half of all residential properties. In Washington Township home values dropped 60%, in Center Township, 46%.

“There will still be some cases where taxpayers still don’t agree with the assessed value that they have. They have the right to appeal,” said Bowes.

Great news for Attorney John Price. He had big math questions before the reassessment and still has big math questions.

“Seems to me that if market values go down and homes are worth less than they used to be, then the assessment of their values should go down commensurate with the decline in the market value, but we’re not seeing that,” said Price.

To figure out your reassessment click here. Keep in mind, this will only give you your new assessment, not your property tax bill. Those won’t go out until mid-June. They are due in July.

Choosing the right windows for a home

Upgrading to better quality, more modern and energy efficient windows can instantly add warmth and comfort to your home as well as additional value and curb appeal.

However, selecting new or replacement windows, can be overwhelming with all the styles, materials and features to choose from. In addition, as this project is a major investment with windows expected to last up to 20 years, doing some homework before you make any decisions can save on headaches later on.
New Or Replacement?
One of the first decisions a homeowner must make is between “New” and “Replacement” windows. Here is the difference:

Replacement windows refers to when an old or poor quality window is removed without disturbing the surrounding trim (and/or frame), and is replaced with a new window that is designed to fit right into the existing opening. Replacement windows cost around the same as new windows, however there is less labor involved in the installation and therefore the overall cost is less. Replacement windows are a great option when the existing frame is still in good condition or when the trim is attractive and fits the décor of the home. Obviously the savings on labor costs are helpful when budget is a consideration. Depending on the manufacturer, replacement windows can be a stock size or they can easily be custom-ordered to fit any opening.

New windows would be chosen when the homeowner wishes to change the size or shape of the current window opening (generally enlarging) and put a completely new window in its place. This generally requires the work of a contractor to complete the installation and surrounding carpentry. Again, new windows generally do not cost more, however the labor does add to the overall price. A big advantage of new windows is that you have the option to completely change the appearance and feel of your home both inside and out.
Style Or Type Of Window
Once you have decided between new and replacement windows the next decision is the style or type of window you would like. The four most basic and popular types are listed below:

• Single or Double Hung Windows
  Single or double hung windows are probably among the most common windows seen in most homes. They are comprised of two separate “sashes” (the actual pane of glass in the inner frame), which open or close by sliding up or down. A single hung window opens from the bottom only by sliding up whereas a double hung window (which looks exactly the same) can be opened from either the top or the bottom. Double hung windows are ideal for creating wonderful ventilation when you lower the top sash. They are especially suited to homes where there are small children as they prevent the danger of a child climbing out the bottom window. (Remember: window screens do not support the weight of a small child.)
• Casement Windows
  Casement windows generally consist of one large pane of glass that is hinged vertically on one side or the other, and opens by swinging open from opposite side. Usually a lever or other mechanism is used to open this style of window.
• Awning Windows
  Awning windows are hinged horizontally at the top and are opened by tilting the window out from the bottom. As their name suggests the awning window creates the appearance of an awning. These windows are most popular in coastal areas and in bathrooms.
• Slider (or Glider) Windows
  Slider (or glider) windows – do just that. They slide open from side to side. These are an excellent choice when there is limited space outside to swing the window open such as in a casement window.

Materials
Once you have determined the style or type of window, next you have to consider materials. The most popular window materials today are wood, vinyl and PVC. There are also variations including “wood clad”. There are also aluminum frames but they are being used less and less.
Wood
Wood, of course, is beautiful and certainly resistant to heat and cold. However, the natural look that homeowners love means considerable maintenance. Besides periodic painting or staining, the wood must be treated to protect from moisture as it can warm, crack and stick.
Vinyl
Like their cousin, the vinyl fences, vinyl windows have become one of the most popular choices among homeowners. Vinyl is virtually maintenance free, provides excellent insulation, is reasonably priced and of course looks great!
Clad
Clad offers the beauty of wood on the inside with a vinyl coating on the wood frame outside. This offers the maintenance free feature that makes vinyl so popular.

Glass

Next you must choose the glass. Nowadays, as with every other area of our lives, advancements in technology have made choosing glass a lesson in science. Besides choosing between double-, triple- or even quadruple-pane you also get to choose the distance between the panes. As a point of interest – the additional panes of glass do not add to the insulating factor of the window. It is the air between the glass that provides the additional insulation. Nowadays, most companies offer a gas fill (usually Argon) that costs very little and insulates better than air alone.
Low Emissivity (Low-e) Glass
Low-e glass refers to glass with a special microscopically thin, virtually invisible layer of material on the surface of the glass. This serves to reduce the amount of heat that can flow through the glass itself.
Impact Resistant Glass
While if you wack this glass with a baseball bat it may crack, but it will not shatter and spread glass all over the place. The beauty of this glass is that under extreme weather conditions it holds up beautifully. And of course the occasional stray baseball won’t leave you with a big mess to clean up.

Let’s recap, new or replacement, style or type, materials, glass, and finally…
Quality
When choosing windows, one tried and true rule of thumb is that you get what you pay for. While cost is certainly important, it is very important to choose a quality product made by a well-known company. It is imperative to choose a well-constructed product that will provide the energy savings with well-made mechanisms that will hold up over time.
Warranty
Carefully examine the warranties offered by the various manufacturers. This is where a well-known company with a good reputation will serve you well. Companies that have been around for a while are more likely to be around in the future should your lever cease to operate.
Choosing a Contractor
There are several ways to find a good window installation contractor, but Danny’s recommendation is that you choose the product you want first and then seek a contractor who is especially trained by that manufacturer. For example, Pella offers a specialty training to contractors so that they are specifically trained to install Pella products properly. Of course, as always, a great idea is to call your local Home Builder’s Association.

Spring fix-up for inside and outside of the home.

Lee’s notes: Found this link on minor projects for spring fix ups, figured I would share.

Outside Projects

Spring Cleaning doesn’t have to stop at the front door. In fact, you should probably clean the front door along with the rest of your home’s exterior. Dirt, grime, mold and mildew build up on the outside of our homes, and spring is the perfect time to clean them off. Cleaning is important not only for aesthetic reasons but also to maintain the integrity of the materials on your home. Lee’s Notes: When selling your home, make sure the area outside around your front door shows well. While the Realtor is fidgeting with the lockbox, the prospective buyers have nothing to do but look around your entryway…
Pressure Washer
The easiest way to approach this job is with a pressure washer . As the name implies this tool generates exceptionally high pressure water to blast away dirt. Though scrubbing is not required it is a good idea to use a detergent to speed up the process. A number of these products are available at home centers. It’s important to make sure the cleaner you choose is designed for use in a pressure washer, if that’s how you plan to apply it, and that it’s intended for the type of surface you’ll be cleaning. There are a number of cleaners for specific applications like siding, decks or masonry surfaces. Whether you buy ($200 to $600) or rent (about $50 per day) a pressure washer, be sure you know its strength and your limitations before you begin work. These tools can quickly do a lot of damage if they aren’t handled properly.
Barbecue Grill
Spring also means that the barbecue grill starts to heat up more often. Before you put on the first steak or batch of burgers give your grill its own spring cleaning. If it’s a charcoal unit, the process is fairly simple. A gas grill will be a bit more involved, but the cooking grate is a good place to start for both types. A wire brush and a degreasing detergent will remove the residue from the last cookout and any rust that occurred during the winter. The burners on a gas unit should be cleaned and inspected for deterioration brought on by rust. The tiny holes in the burners should be clean and free of debris. If necessary, use a small piece of wire to clean them out. The bottom of the grill pan itself catches most of the grease (gas or charcoal) so more wire brushing and detergent are needed here. You may find that the outer surface of your grill is in need of paint. If so, prepare it properly by lightly sanding the surface and washing thoroughly to remove all grease. After it’s totally dry, coat it with a high heat spray paint (often called barbecue and stove enamel).
Gutters
Another outside area that needs our attention is the gutters. Those fall leaves have to come out so the spring rain runoff can get through. Here are a couple of tips to make that easier: Create a custom gutter scoop by cutting down a plastic container (like an antifreeze jug). Keep the jug handle and top and cut away the bottom diagonally. The resulting scoop is just the right width for your gutters. To rinse out gutters without leaving the ground build a U-shaped spray handle from a length of PVC pipe (3/4″ works best) and several couplings. On one end of the pipe glue a female garden hose fitting then use two 90° elbow fittings to create the U-shape and get the water into the gutters.

Inside Projects

Filters
If your home has an air conditioner you’re about to put it to work, so have a pro check it out before the weather heats up too much. Small problems with air conditioners can be aggravated by excessive use, so you’ll not only save the hassle of trying to get an AC guy on a 90° day, but you may save some money as well. While hiring a pro is a good idea, there are a few things you can do yourself. One of the easiest, and yet most overlooked, is changing your return air filter. If allergies are part of your springtime experience you’ll want to consider using something more than a simple fiberglass filter. Some of the new pleated air filters actually catch the microscopic contaminants that cause problems for people with allergies and asthma. These filters also allow you to go 2 to 3 months between changes instead of every month.
Thermostat
Once that air conditioner stars running regularly you’ll be looking for ways to control your power bill. One great way is to install a programmable setback thermostat. This unit replaces your existing thermostat by simply re-connecting a few wires. The advantage is that you can program the system to raise the temperature while you’re away from home and then lower it again just before you return home. Most can be set up with different programs for all seven days of the week and can be overridden with a manual switch.
Sealing
Once you get that air in the house cool you want to keep it there. Sealing up air leaks around your home will keep you more comfortable and keep your energy bill lower. Caulk is your chief weapon here. Seal all cracks around windows and doors and anywhere air can pass from the inside to the outside or vice versa. Weather-stripping is a must around doorways (including the one leading into your attic) and there are tons of styles to choose from. The real test is to close the door on a sunny day and look at it from the inside. If you see light getting around the door then you know the air is too.

For Sale By Owner Thoughts – Response to “4 types of buyers…

I was going to write a response to Chuck Marunde on my “4 types of buyers when selling FSBO(For Sale By Owner)” Thread. I figure i’ll post it here for rehash sake….

Basically the original post was that there are 4 types of buyers in this market…

First type of buyers is The Relocation. These people are being relocated to Indianapolis, and are in a hurry to find a house.

Second type of buyer is The Just-Sold-Their-Home types.. These people just sold their home(Yes it happens currently!) and need to find a new home in a short amount of time. They do not want to complete a double move or pay enormous rates to stay in their current place.

Third type of buyer is The Invester.. These people want to buy your house for pennies on the dollar. I work with a few investors, and they will write you a low-ball offer and walk away if they don’t get the house. It’s a numbers game to them, and it isn’t meant to be offensive.

Fourth type of buyer is The Lookie-Lou’s or Tire Kickers.. They just want to see whats in the market and if they are interested in your place, they generally have to sell their own home, or aren’t really in a position to buy.

Chuck wrote a comment of “I practiced real estate law for 20 years and now as a Realtor I see FSBO’s making mistakes all the time to their detriment. Honestly, sometimes real estate agents are not any better at marketing. The only thing I can do to help is to educate. Any suggestions?”

My response: Oh I agree, I see both agents and fsbo’s making mistakes… You are correct that education is the key.. With technology becoming such a huge part of the home purchasing process, you have to really think outside the box to get homes sold.. Also, i seem to spend about 10-25 hours worth of work before I even list a house. Not to mention all of the other work I complete once the home listed.

The old school habits of placing a sign, placing it in the mls/blc, and praying it sells don’t really work in this environment…. As a Realtor, you know that in this market you have to sell the home TWICE.. Once to the Realtor, to get him/her to show the property and then you have to sell it to the buyer…

I actually have a list of 19 things I recommend for FSBO’s to do while selling their home. I will prolly post it later, and in the meantime if someone reading this wants a copy, then send me a note.

Buyers are also much quicker to dismiss homes. You have to make sure to grab their attention and keep it… I am finding my buyers are a lot more saavy, and want to look at a lot of homes online.. For the most part my buyers want to do the shopping, and then tell me what they want to see…  To that ends, we create a website for our buyers that shows them homes that meet their criteria. They then have the option to mark homes as “Possibilities, interested, and not interested”.  A lot of my clients are quick to mark homes “Not interested” because there is so many homes to choose from. The more you catch and keep their attention, the less likely they are to dismiss your home.

I’ll be truthful, you can save a lot of money by selling your home FSBO, you just need to realize there is an awful lot of work in order to get it sold. I’ll have to track my next listing, I want to say I spend between 100-200 hours to sell a home, and I am willing to bet I am WAY off in that number.. I forget the actual stats, but as i remember 30% of FSBO’s go under contract, and only about 20% of those actually close. So like 6-7 homes sell FSBO out of 100?!? Not very good statistics. Most of the time they fail because of financing issues.

Not trying to harp on using a Realtor, just realize that most Realtors won’t work with a buyer unless they are pre-approved. It’s just not worth all the time and effort to find out your buyer can’t buy. When I make an offer, I make sure to include the pre-approval letter.. I want the seller to know we are ready to go! Before you go to far down the offer-counteroffer phase, ask for preapproval paperwork.  Keep in mind that although someone may be pre-approved for 1 million dollars, it doesn’t mean they want to spend that much. e.g. The preapproval letter may show higher numbers that what is being offered, but the buyer may not want to go that high.

That is prolly enough rambling for one day… There is a lot of stuff running through my head, and hopefully some of that made it out in this post… DO YOUR HOMEWORK FOLKS!!! It’s not as easy as putting a sign in the yard, placing an ad in the newspaper, and praying your home sells!!

Buying and Selling Real Estate 101

Lee’s Notes: Received a flier from Jeff Blankenship at New York Life.. Figured I would cut n paste some of NYLife’s Buying and Selling info…

If you are ready to buy, keep these tips in mind while house hunting:

Don’t be afraid to negotiate prices. Some sellers are continuing to ask for prices that may have been realistic a year ago, but are considered to be inflated in today’s market. Compare local prices by pulling up reports on similar properties in the area. Ask a good Realtor for help. Lee’s Notes: Ideally you want to find 3-6 comparable homes in size(sq ft) and number of bedrooms/baths that have SOLD(not active on the market) in the last 3-12 months. PREFERRABLY find 3 in the same neighborhood, and the rest from the immediate area.
Don’t rush. The slowing market means you, the buyer, have more time to carefully look at all aspects of potential properties: including school systems, recent property tax increases, and zoning issues that could affect the value in years to come. Lee’s Notes: Either you or your Realtor need to do your homework! You don’t have to rush, but don’t expect a good deal to last, either. One of my investors has missed out on two different good deals because they figured they had time to think about deals.
Don’t be afraid to ask for freebies. Hoping to attract buyers, many homebuilders are sweetening the deal with upgrades and/or freebies: be it window treatments, appliances, landscaping. While you shouldn’t buy a home for the incentives alone, you may be able to use your bargaining power to get a little more than you expected! Lee’s Notes: WHAT?!?! hehe What is NYLife smoking? This is Indianapolis, not San Francisco… haha That being said, home builders are hurting, and they are throwing some incredible deals.. This one prolly doesn’t affect existing homes as much as newer homes.

And if you’re selling your home – don’t panic! A few tips may help you market your home:

Price it right. If you overprice your home, buyers will move on. Check out comparable properties in your local area to be sure you’re pricing it correctly. It’s better to be realistic, than have to drop the price later in the game. Lee’s Notes:This is SO true in todays market. I have most of my buyers set up with customized websites showing them homes that meet their criteria. The second a home shows up on their site, they can mark the home as “Interested in”, “Possibility”, or “Not Interested”. If your home shows up overpriced, most of my buyers throw you in the “Not Interested” list, and you dont come off that list unless your listing expires and you file a new listing. There is too many homes on the market, and your home can easily get lost in the shuffle.
Spruce up your home. You want your home to be appealing – clean up clutter inside and consider freshening up the outside with flowers or a fresh coat of paint on the door. Lee’s Notes: There is a lot of competition out there, your home needs to be the BEST home in its price range, otherwise the buyers go elsewhere. Location, Condition, and Price are the 3 biggest reasons a home sells. You can control 2 of those.
Hire an Agent. Although many sellers would like to do it themselves and save the agent’s commision costs, it is easier to let an experienced agent market your home. Remember most real estate professional’s fees are negotiable. Lee’s Notes: I have sold homes FSBO(For Sale By Owner) in the past myself. I don’t hold a grudge against anyone who does it, but in this market you REALLY have to work hard to get your home sold. A sign in the yard, the home in your local MLS, an ad in the newspaper,  and praying, isn’t always going to get your home sold…. Get a good Realtor with a good marketing strategy to get your home sold for you!

Although the housing market is declining, you can still buy, and sell, with a fair amount of confidence. Just keep your wits about you and do your homework(or have someone do it for you). And keep in mind that experts are predicting that housing prices will fall by another 5% nationally in 2008, and that the market should bottom out by midyear. Once the market has bottomed out, recovery should slowly begin. Lee’s Notes: Look at my Mibor Stats post if you want more info on what the Indianapolis Real Estate Market is doing so far this year.

I ran some real estate sale stats for MIBOR MLS/BLC(Indianapolis, and surrounding areas)

I ran some realty stats for the MIBOR BLC/MLS. Basically this would be for any area(Indianapolis or surrounding areas) that uses Mibor to list their properties. 

Basically, I pulled up stats for all of the past 3 years, and also just the first 4 months of each year…

Year in Total
Year	Sold	% Sold	Avg $	% Down Avg $	Days on Market
2006	34926		$152,056.00		85
2007	32264	92.38%	$148,731.00	97.81%	92
First 4 Months
Year	Sold	% Sold	Avg $	%Down Avg $	Days on Market
2006	8185		$145,275.00		87
2007	7919	96.75%	$140,954.00	97.03%	93
2008	6387	80.65%	$135,675.00	96.25%	107

So basically, we are down about 19% over last year in # of sales, and a little over 3% in avg price. Keep in mind April is the begining of the busy season, so things are starting to heat up. Also need to be aware that 13% more listings are expiring this year over last.

Yet, if homes are priced right, they are selling. I am not talking about deep discounts on homes either, I am talking about taking the avg price of homes sold over the 3-12 months and pricing accordingly. I have been involved in 6 multiple offer situations on 6 different homes since November. It was all on homes that were priced according to avg sale prices.. Not deep discounts and crazy terms. These weren’t all bank owned properties either. If a home is priced off of the avg sale prices, they are selling…

Also, these numbers are for all areas supported by MIBOR. Some areas are doing better.. Fishers Indiana Real Estate is up in avg sales price this year by over 5%.

This is not the market to fish for your price.. You won’t be doing yourself any service if you are just throwing your home on the market to see if you can get your price… You have to get a great Realtor who can do the homework for you and give you the straight scoop on what your home is worth, and THEN has a great marketing plan to get your home sold!

If you would like a free no obligation evaluation of your property, then send me a note. I’ll show you the numbers and my incredible marketing plan, and you tell me if you want to list your home. One of my past clients told me “You did more to market and sell my home in 2 days than my other agent did in 6 months!”

6 Quirks of Ownership: How Possessions Bend Our Perceptions

Lee’s Notes: Found this article, and thought it was interesting.

Anyone who’s ever tried to sell a house, a car, or practically anything, quickly discovers that buyers and sellers rarely see eye-to-eye on price. A quick skim through the classifieds in the back of the local paper will reveal endless examples of people overpricing what seem like pretty ordinary items. But that’s not how the seller sees it.

There’s no doubt that sellers want to get the best possible price and they also want to introduce some wiggle-room for negotiation. But does this really explain the unrealistic prices people sometimes demand, or is there something else going on?

We’re unnaturally drawn to special offers like 30-day money-back guarantees.Similarly, when shopping we’re unnaturally drawn to special offers like 30-day money-back guarantees. We’ll happily buy a new digital SLR on the basis that we can always return it even though, more often than not, we keep it. On auction sites like EBay we will set ourselves a limit for an item one minute, then, the next with a rueful smile we’ll break this limit when a higher bid comes in.

Behavioural economists argue that ownership – whether it’s real, partial or virtual – has a strange effect on us. But before I run down the six quirks of ownership, let’s see just how big an effect these quirks can have on us under controlled conditions.

The chasm between buyers and sellers

At Duke University, like many others, tickets for the most important basketball tournament of the year are like gold dust. There are so many people fighting over them that they have to be allocated using a lottery system. Consequently, after the lottery is complete, some people suddenly have something that others desperately want. Because of the random allocation, it provides the perfect opportunity for examining the psychology of buying and selling.

Into this ready-made market, researchers Ziv Carmon and Dan Ariely effectively set themselves up as ticket scalpers (Carmon & Ariely, 2000). They sat down with a list of students, some who’d won tickets in the lottery and others who’d lost but naturally still wanted to go to the game. They then started ringing up students who had tickets, along with those who didn’t, to see if they could find any common ground on price.

They found an incredible disparity between buyers and sellers.What they found was an incredible disparity between buyers and sellers. The average price which buyers were prepared to lay out for a ticket to a single basketball game was $166. This actually sounds like a pretty good offer given that these are students and that it’s only a few hours entertainment.

But it turns out these buyers’ offers didn’t stand a chance when compared with the expectations of sellers. The average price ticket-owners were prepared to sell their tickets for was a whopping $2,411! Did they really expect anyone to pay that price? Needless to say, no buyers were interested, no matter how desperately they were to see the game.

Six quirks of ownership

Dan Ariely, in his book Predictably Irrational argues that ownership has 6 strange effects on us:

1. Ownership increases perceived value to us: As soon as we acquire something we start to develop an attachment to it. Just the sheer fact of ownership increases how much we value it – we seem to develop a relationship with objects.
2. We tend to focus on losses: When selling we tend to overlook the money we’ll be gaining and focus on the object we’ll be losing. Our natural aversion to feeling bad then motivates us to place a higher asking-price on the long-cherished house, car or record collection than the market will bear.
3. We assume others share our perspective: Surely potential buyers understand how strongly we feel about our dusty old vinyl records? No, they don’t care – in fact they’re far more likely to notice how badly we’ve stored them or what poor taste in music we have.
4. Effort increases perceived value: A table I have bought and struggled to build myself has more value to me than the same table I bought, for the same price, ready assembled. Expending our own effort means we’ve invested ourselves in an object, so it has more perceived value to us. Other people don’t recognise this (and there’s no reason why they should).
5. Virtual ownership: We can even start feeling we own something before we actually do. Dan Ariely argues that the prices people are prepared to pay on auction sites like EBay are often inflated by people’s imagined ownership. Once we place our first bid we start to fantasise about ownership. Consequently when other bids come in we ignore our previously stated maximum because we’re now starting to value the item more, since we’ve been thinking about owning it.
6. Partial ownership: Marketing executives know the power of ownership so they use all kinds of tricks to encourage partial ownership because it often leads on to full ownership. We don’t usually return our furniture within the 30-day money-back guarantee period because we’ve grown attached to it – it’s ours.

Being objective
So the high price we tend to put on our own possessions is not just greed, we really do begin to perceive stuff in a different way once we own it. Unfortunately these biases open us up to all sorts of detrimental effects.

We might set unrealistic prices for things we’re trying to sell, resulting in us failing to sell them at all. Or, when buying, we can be suckered into virtual or partial ownership en route to full ownership of something we didn’t necessarily want in the first place.

The solution to these problems is trying to think objectively.Of course the solution to these problems is trying to think objectively about our own possessions and those that we’d like to acquire. But that’s easier said than done. It’s very difficult to be dispassionate when selling something that you treasure and it’s easy to form an imaginary relationship with something we want to own.

Theoretically, then, dispassion and objectivity are the keys to fighting the quirks of ownership, but is this enlightened, Zen attitude to ownership really possible in practice? What do you think?

If you like what I write, and you or someone you know are looking Buy, Sell or Invest in Real Estate in Central Indiana, then shoot me an email or give me a call.. If you aren’t looking to buy sell or invest in Indianapolis, but no someone who is looking.. Shoot me an email, and I will do my best to find you a good realtor in another city. I might even get a referral fee!

So you think 100% mortgage financing is dead and gone aah?

You’d be wrong…. sort of…..

As of March 31st, 2008, you can no longer get 100% financing.. BUT, if you were preapproved for it prior to March 31st, then you prolly have 60-90 days to still get that done(read your pre-approval letter to see how long you have)…

Want to get rid of PMI, and do 100% financing. Well that ends April 30th. Yes, I am talking about those 80/20 loans(80% first mtg, and 20% second mtg). You have to have 20% equity in a home in order to not have to pay PMI(Preventative Mortgage Insurance), and the 80/20 loan makes it look as if you have 20% equity. So if you want to take advantage of this type of scenario, then you need to get your loan approval before April 30th….

It’s my understanding, that the new minimum is 3% down, but you can circumvent that by having the seller pay for it. What you say?!?! Raise the asking price up by 3% on that home, and then have the seller give 3% towards your down payment/closing costs.. Also, you better hope the home appraises for more than the new price..

Speaking of appraisals. Banks are now self-auditing over a third of the appraisals that come through. They are supposedly getting tougher on bad appraisals. The mortgage broker I spoke with stated that he has only had 2 appraisal problems in the recent past, and one of those the appraiser didn’t agree to value, and the other the bank didnt agree with the appraiser. Bank wins on the second scenario, so that loan didn’t go through.

Lots of ways to buy a home. Just try not to get in over your head. ARM’s(Adjustable Rate Mortgages) can be a great way to get your foot in the door, but either expect to sell before the rates increase, or you better refinance before the rates increase.

Couple of things to look at when getting a mortgage: Pay attention to how long before rates can adjust when you have an ARM loan. Also, be aware and look for pre-payment penalties if you sell before the 15-30 year term is up. If you get a fixed rate mortgage, see if it is assumable. You get a great rate, then you might be able to use that when it comes time to sell. Hopefully you have some equity, so they give you some cash at closing, and you can let them take over your mortgage so they can take advantage of your great rate!

As I stated earlier. If you have a 150k loan, and the rate goes up by 1%, that adds $100.00 to your monthly payment. Most of these ARM loans are setup to where they can increase by up to 2% in a year… BE CAREFUL FOLKS!!!!!