Bringing the Dream of Homeownership Within Reach
As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:
* Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
* Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
To view more information about the specifics of the credit, click here for more information.
Wednesday, November 11, 2009
Thursday, October 15, 2009
Life changes...Now Married...
Sorry the posting has been a little light lately. I've been a little distracted the past month or so because I just got married to the most wonderful woman. Jenna and I were officially married on September 26th at Blackhawk Church.
Thursday, September 3, 2009
Latest Marketing Strategies for Real Estate
I'm in the marketing business. I sell houses. My job is to market and sell houses in the Madison area. Last week I attended a convention in Wisconsin Dells sponsored by the Wisconsin Realtors Association. This is an annual convention for the local realtors in the entire state of Wisconsin. If you have been to conventions or trade shows in the past, you might recognize this type of convention. There were a variety of sales agents and brokers that attended numerous workshops. There was a huge room filled with vendors ready to sell agents on the latest marketing technology, newest sign rider, magnetic calendars, title company, real estate related books, mortgage company, website vendor, home inspector, and other "magic" pills to help your real estate business.
Like many businesses these days, the internet and social media is making a big impact. Nearly every speaker at every workshop that I attended mentioned something about twitter, facebook, linkedin, ning, or some other kind of internet social media. Clearly, this is where things are happening in the marketing world. The featured speaker was from Next Generation Consulting, discussing the various demographic differences among various age groups. Dustin Luther discussed his success in real estate with his Seattle blog titled Rain City Guide. Another speaker Carol Jensen spoke about her success with an eNewsletter. One after another they spoke about everything that Realtors should do to market themselves and how to sell more homes.
I have a confession to make. I'm a skeptic. For whatever reason, I'm skeptical of some people. Salespeople especially. I recall a time when I went into a retail store at West Towne Mall. I was looking for a new shirt. "Can I help you?" the salesperson asked as I was perusing the rack. "No thanks, I'm just looking," I replied. I put up this shield because I didn't want to be sold something I didn't want. I wanted to buy a new shirt, yet I pushed this salesperson away. Why is that?
Another time, I was getting ready to buy a car. I went around to a few car lots and they showed me around, but nothing quite got me excited enough to buy. Then I had a talk with a relative. They said, "you should call Jerry. He deals with used cars and will get you whatever you want." I called up Jerry and introduced myself. "I got your number from a relative and said you could help me buy a car." Within two weeks I found the car I wanted at a price I was willing to pay. Why did this second situation happen much smoother than the first one?
Look closely at the main differences in these scenarios. In the store it was a random salesperson coming up to "sell me something." In the car example it was a friend of my relative "helping me buy" what I wanted. I hate being sold something I didn't want or need. In fact, I'm a rather frugal shopper. I'm the kind of guy who goes into Target with a list of five items and leaves with only purchasing those five items. Okay, maybe six. But in the car buying example, I went forward with the purchase much easier because of a built in relationship. Jerry was a friend of my relative, not just a random salesperson. If I met Jerry without my relative referring me, I might have treated him in the same manner as the retail store salesperson.
One of the main reasons that I'm a Realtor at Stark and not another real estate firm is that they have figured out that successful realtors (like most other salespeople) market mostly to the people that they know and focus on building relationships. In fact, over 70% of the business that I did last year was from helping friends of friends, or family. A much smaller part of my business came from the random phone call to see a certain house.
But what about those people who are moving to the Madison area that don't know anyone here? I think that's what the speakers at the convention were so excited about with social media (facebook, linkedin, etc.). It's a way to truly put yourself out there in a way that allows people to see who you really are, not just a salesperson. The irony is that now I go into stores and look for salespeople, because I realize that they are just there to help me buy--if and when I'm ready.
Like many businesses these days, the internet and social media is making a big impact. Nearly every speaker at every workshop that I attended mentioned something about twitter, facebook, linkedin, ning, or some other kind of internet social media. Clearly, this is where things are happening in the marketing world. The featured speaker was from Next Generation Consulting, discussing the various demographic differences among various age groups. Dustin Luther discussed his success in real estate with his Seattle blog titled Rain City Guide. Another speaker Carol Jensen spoke about her success with an eNewsletter. One after another they spoke about everything that Realtors should do to market themselves and how to sell more homes.
I have a confession to make. I'm a skeptic. For whatever reason, I'm skeptical of some people. Salespeople especially. I recall a time when I went into a retail store at West Towne Mall. I was looking for a new shirt. "Can I help you?" the salesperson asked as I was perusing the rack. "No thanks, I'm just looking," I replied. I put up this shield because I didn't want to be sold something I didn't want. I wanted to buy a new shirt, yet I pushed this salesperson away. Why is that?
Another time, I was getting ready to buy a car. I went around to a few car lots and they showed me around, but nothing quite got me excited enough to buy. Then I had a talk with a relative. They said, "you should call Jerry. He deals with used cars and will get you whatever you want." I called up Jerry and introduced myself. "I got your number from a relative and said you could help me buy a car." Within two weeks I found the car I wanted at a price I was willing to pay. Why did this second situation happen much smoother than the first one?
Look closely at the main differences in these scenarios. In the store it was a random salesperson coming up to "sell me something." In the car example it was a friend of my relative "helping me buy" what I wanted. I hate being sold something I didn't want or need. In fact, I'm a rather frugal shopper. I'm the kind of guy who goes into Target with a list of five items and leaves with only purchasing those five items. Okay, maybe six. But in the car buying example, I went forward with the purchase much easier because of a built in relationship. Jerry was a friend of my relative, not just a random salesperson. If I met Jerry without my relative referring me, I might have treated him in the same manner as the retail store salesperson.
One of the main reasons that I'm a Realtor at Stark and not another real estate firm is that they have figured out that successful realtors (like most other salespeople) market mostly to the people that they know and focus on building relationships. In fact, over 70% of the business that I did last year was from helping friends of friends, or family. A much smaller part of my business came from the random phone call to see a certain house.
But what about those people who are moving to the Madison area that don't know anyone here? I think that's what the speakers at the convention were so excited about with social media (facebook, linkedin, etc.). It's a way to truly put yourself out there in a way that allows people to see who you really are, not just a salesperson. The irony is that now I go into stores and look for salespeople, because I realize that they are just there to help me buy--if and when I'm ready.
Friday, August 14, 2009
There's a Movement Happening - New Urbanism
There is a movement happening across American these days. It's a movement pushing for a change in the way our communities are designed and developed. If you've ever traveled outside the United States, then you have probably seen that there are a number of different ways a community can grow. In America, many people think that the design of our cities need some changing.
One prime example of this trend comes from something called New Urbanism. "Giving people many choices for living an urban lifestyle in sustainable, convenient and enjoyable places, while providing the solutions to peak oil, global warming, and climate change." Check out Amazon and you will quickly discover that there is no shortage of books on this subject.
Things like renewable wind energy, electric transportation on rails, and walkable communities are some of the magic ingredients to a "New Urban" environment. In fact, there's even a handy website at www.WalkScore.com that assists in finding a walkable community. Simply type in the address of a home and receive a "score" of a place that is walkable. The higher the score, the more walkable. The lower the score, the less walkable.
Alan Durning at Sightline Institute writes on their company blog, "Compact, walkable communities—the opposite of poorly planned sprawl—are the solution to some of our biggest shared challenges, from childhood obesity to social isolation, from crash deaths to disappearing farmland, from the high price of gas to the architectural blight of strip development.
But the main reason to love walkable neighborhoods is their human energy: they're fun, lively, memorable... not boring. They're the kinds of places where you might bump into a long-lost friend; stumble across creative inspiration, whether for a song or a new business; or meet the love of your life. (That's why they're becoming among the most sought-after addresses around.)
Still, such qualities are—if valuable—also intangible. "
Another organization pushing for development changes in America is the Complete Streets Coalition. "Complete streets are designed and operated to enable safe access for all users. Pedestrians, bicyclists, motorists and transit riders of all ages and abilities must be able to safely move along and across a complete street.
Creating complete streets means transportation agencies must change their orientation toward building primarily for cars. Instituting a complete streets policy ensures that transportation agencies routinely design and operate the entire right of way to enable safe access for all users. Places with complete streets policies are making sure that their streets and roads work for drivers, transit users, pedestrians, and bicyclists, as well as for older people, children, and people with disabilities." Complete streets can help improve safety, address climate change and oil dependence, and foster stronger communities.
In the Madison area, places that come to mind that might fit these descriptions are located Downtown, in the Monroe Street area, or possibly even Middleton Hills. Perhaps one example is the latest proposed development in Bishops Bay by T. Wall Properties. The Alexander Company may be another example of a good job at urban infill development. In fact a number of local builders and developers have joined together to form a "Smart Growth Organization" to help foster good development design ideas for the Madison area.
What do you think? Is it time to change our thinking about community development, growth, and urban design? Or are we on the right path? How so?
One prime example of this trend comes from something called New Urbanism. "Giving people many choices for living an urban lifestyle in sustainable, convenient and enjoyable places, while providing the solutions to peak oil, global warming, and climate change." Check out Amazon and you will quickly discover that there is no shortage of books on this subject.
Things like renewable wind energy, electric transportation on rails, and walkable communities are some of the magic ingredients to a "New Urban" environment. In fact, there's even a handy website at www.WalkScore.com that assists in finding a walkable community. Simply type in the address of a home and receive a "score" of a place that is walkable. The higher the score, the more walkable. The lower the score, the less walkable.
Alan Durning at Sightline Institute writes on their company blog, "Compact, walkable communities—the opposite of poorly planned sprawl—are the solution to some of our biggest shared challenges, from childhood obesity to social isolation, from crash deaths to disappearing farmland, from the high price of gas to the architectural blight of strip development.
But the main reason to love walkable neighborhoods is their human energy: they're fun, lively, memorable... not boring. They're the kinds of places where you might bump into a long-lost friend; stumble across creative inspiration, whether for a song or a new business; or meet the love of your life. (That's why they're becoming among the most sought-after addresses around.)
Still, such qualities are—if valuable—also intangible. "
Another organization pushing for development changes in America is the Complete Streets Coalition. "Complete streets are designed and operated to enable safe access for all users. Pedestrians, bicyclists, motorists and transit riders of all ages and abilities must be able to safely move along and across a complete street.
Creating complete streets means transportation agencies must change their orientation toward building primarily for cars. Instituting a complete streets policy ensures that transportation agencies routinely design and operate the entire right of way to enable safe access for all users. Places with complete streets policies are making sure that their streets and roads work for drivers, transit users, pedestrians, and bicyclists, as well as for older people, children, and people with disabilities." Complete streets can help improve safety, address climate change and oil dependence, and foster stronger communities.
In the Madison area, places that come to mind that might fit these descriptions are located Downtown, in the Monroe Street area, or possibly even Middleton Hills. Perhaps one example is the latest proposed development in Bishops Bay by T. Wall Properties. The Alexander Company may be another example of a good job at urban infill development. In fact a number of local builders and developers have joined together to form a "Smart Growth Organization" to help foster good development design ideas for the Madison area.
What do you think? Is it time to change our thinking about community development, growth, and urban design? Or are we on the right path? How so?
Wednesday, July 29, 2009
So how is the market? Is anything even selling around Madison?
"Is anything actually selling?" That's a question I heard from a recent customer. "I've heard from other Realtors that the only thing selling is under $250,000 because of the home buyer credit. What about $300,000 and up? Are any of those homes even selling?"
This comment got me thinking a little bit because I think it resonates with something that people ask me often. "so how's the market?" In an effort to explain this question, I'm planning to explore what properties have sold in the past two weeks in Dane County.
According to the South Central Wisconsin Multiple Listing database, there were 229 homes sold in the past two weeks ranging from $45,000 for a fixer upper on the east side of Madison to $925,000 for a beautiful home on Lake Mendota off University Ave. Out of these 229, there were 170 that were priced at $250,000 or below. Clearly, the $8,000 first time home buyer tax credit is having an impact, since 74% are in a price range where most first time home buyers land.
Another area of interest, might be to look at properties that sell in Madison versus outside of Madison (Middleton, Sun Prairie, etc.). Out of the 229 sales, there were 117 in the City of Madison, while 112 were outside of Madison. The two most popular suburb's (in terms of most sales) during this time period was Sun Prairie with 18 and Fitchburg with 12 sales.
Next I looked at what is the most popular style of home: ranch, bungalow, colonial, tudor, tri-level, bi-level, victorian, contemporary, cape cod, bungalow, etc. The overwhelming majority of homes sold were ranch style homes, registering 82 of the 229. Recording the fewest sales were victorian style at only two. This strikes me as somewhat odd, because I have spoken with a number of people that tell me, "I really like older homes with lots of character." In most cases, I would consider an old victorian home to have these characteristics. Yet, in terms of actual sales, these are clearly in the minority. Perhaps there's a market for newer victorian homes with lots of character?
The last area that came to my attention was to look at homes sold in various neighborhoods. Since Madison Magazine recently put together an article about "Great Neighborhoods", I thought it would be interesting to see how the actual sales line up with some of the "Great Neighborhoods in Madison." The majority of homes sold listed "N/A" or "none" as a subdivision with 40 falling in this category, meaning there was no easily identifiable neighborhood. However, of homes that did list the subdivision the winner was Ridgewood with five homes. Then there was a four-way tie between Westwynde, University Heights, Sunset Village, and Orchard Ridge, all recording four homes from each area.
To answer the question, "Is anything actually selling?", the obvious answer is yes. Homes are selling throughout Dane County in a variety of neighborhoods and price ranges. If you are considering buying a home there's approximately 2761 homes to choose from and in the next two weeks, there could be roughly 229 sales (if the next two weeks are similar to the last two weeks). Based on these numbers (229/2761), from a home seller's perspective, there's roughly an 8% chance of selling a single family home in the next two weeks.
Disclaimer - some of these numbers may change slightly as the listing database is updated. Sometimes various real estate brokers do not input their "sold" information right away.
This comment got me thinking a little bit because I think it resonates with something that people ask me often. "so how's the market?" In an effort to explain this question, I'm planning to explore what properties have sold in the past two weeks in Dane County.
According to the South Central Wisconsin Multiple Listing database, there were 229 homes sold in the past two weeks ranging from $45,000 for a fixer upper on the east side of Madison to $925,000 for a beautiful home on Lake Mendota off University Ave. Out of these 229, there were 170 that were priced at $250,000 or below. Clearly, the $8,000 first time home buyer tax credit is having an impact, since 74% are in a price range where most first time home buyers land.
Another area of interest, might be to look at properties that sell in Madison versus outside of Madison (Middleton, Sun Prairie, etc.). Out of the 229 sales, there were 117 in the City of Madison, while 112 were outside of Madison. The two most popular suburb's (in terms of most sales) during this time period was Sun Prairie with 18 and Fitchburg with 12 sales.
Next I looked at what is the most popular style of home: ranch, bungalow, colonial, tudor, tri-level, bi-level, victorian, contemporary, cape cod, bungalow, etc. The overwhelming majority of homes sold were ranch style homes, registering 82 of the 229. Recording the fewest sales were victorian style at only two. This strikes me as somewhat odd, because I have spoken with a number of people that tell me, "I really like older homes with lots of character." In most cases, I would consider an old victorian home to have these characteristics. Yet, in terms of actual sales, these are clearly in the minority. Perhaps there's a market for newer victorian homes with lots of character?
The last area that came to my attention was to look at homes sold in various neighborhoods. Since Madison Magazine recently put together an article about "Great Neighborhoods", I thought it would be interesting to see how the actual sales line up with some of the "Great Neighborhoods in Madison." The majority of homes sold listed "N/A" or "none" as a subdivision with 40 falling in this category, meaning there was no easily identifiable neighborhood. However, of homes that did list the subdivision the winner was Ridgewood with five homes. Then there was a four-way tie between Westwynde, University Heights, Sunset Village, and Orchard Ridge, all recording four homes from each area.
To answer the question, "Is anything actually selling?", the obvious answer is yes. Homes are selling throughout Dane County in a variety of neighborhoods and price ranges. If you are considering buying a home there's approximately 2761 homes to choose from and in the next two weeks, there could be roughly 229 sales (if the next two weeks are similar to the last two weeks). Based on these numbers (229/2761), from a home seller's perspective, there's roughly an 8% chance of selling a single family home in the next two weeks.
Disclaimer - some of these numbers may change slightly as the listing database is updated. Sometimes various real estate brokers do not input their "sold" information right away.
Thursday, July 2, 2009
Is Madison like Denver?
I recently took a trip to Denver with a good friend of mine. In fact, he was moving out there from Milwaukee to take a different job. As many people who know me would agree, that I'm quick to jump on an opportunity for a vacation to Colorado. I love the mountains and the many outdoor activities in Colorado. Aside from my own love of the mountains, I was struck by some of the similarities of Downtown Madison and Downtown Denver. Now I understand, as of 2008 estimates, Denver has an estimated 598,707 people and Madison only has about 231,916. But if you look closely there are some similarities.
For example, my friend moved to an area that has a number of newer high rise condos and apartments, called Riverfront Park area with buildings like the Manhatten, and The Glass House. This reminds me of an area along West Washington ave in Madison with Capitol West, Metropolitan Place, or the Loraine. This downtown culture is targeted toward people who like to live in an urban environment where you can walk to a variety of activities. In fact, one comment I heard from Joe Alexander (President of Alexander Company and Developer of Capitol West), "we have a number of buyers that come from larger cities like Chicago." Though Madison is certainly not a New York or Chicago, there are some aspects of Madison that resemble a larger city.
Some other areas that struck me as similarities in Denver and Madison is the close proximity to numerous cultural activities, a large convention center, a pedestrian mall, access to public transit, and a good network of bike paths. There's the Overture Center or Kohl Center, similar to the Colorado Convention Center or Pepsi Center. State Street is full of unique shops, while the 16th street mall entices shoppers. Denver has a vast network of public transit with buses and trains, while Madison has Metro.
Then there's the obvious differences of climate and landscape. Madison will never have the mountains and the average of 300 sunny days a year, just like Denver will never have a city built around Lakes and the Midwest climate. But similarly, in Denver you can take a trip out to the wilderness in the mountains, and in Madison you can take a ride up to Devil's Lake for some natural beauty.
Lifestyle choices are very personal. People move all over the world in search of the, "best place to live". I recall talking to some people just the other day about, "wanting to retire in the best climate in America." I think they were not referring to the harsh Wisconsin winters, but instead looking to Florida or Arizona. Maybe the "best" place to live is in Denver, Madison, New York, Orlando or Phoenix. That's for you to decide. If you're familiar with Downtown Denver and like it, then you might like Downtown Madison as well. I think they have quite a bit in common.
For example, my friend moved to an area that has a number of newer high rise condos and apartments, called Riverfront Park area with buildings like the Manhatten, and The Glass House. This reminds me of an area along West Washington ave in Madison with Capitol West, Metropolitan Place, or the Loraine. This downtown culture is targeted toward people who like to live in an urban environment where you can walk to a variety of activities. In fact, one comment I heard from Joe Alexander (President of Alexander Company and Developer of Capitol West), "we have a number of buyers that come from larger cities like Chicago." Though Madison is certainly not a New York or Chicago, there are some aspects of Madison that resemble a larger city.
Some other areas that struck me as similarities in Denver and Madison is the close proximity to numerous cultural activities, a large convention center, a pedestrian mall, access to public transit, and a good network of bike paths. There's the Overture Center or Kohl Center, similar to the Colorado Convention Center or Pepsi Center. State Street is full of unique shops, while the 16th street mall entices shoppers. Denver has a vast network of public transit with buses and trains, while Madison has Metro.
Then there's the obvious differences of climate and landscape. Madison will never have the mountains and the average of 300 sunny days a year, just like Denver will never have a city built around Lakes and the Midwest climate. But similarly, in Denver you can take a trip out to the wilderness in the mountains, and in Madison you can take a ride up to Devil's Lake for some natural beauty.
Lifestyle choices are very personal. People move all over the world in search of the, "best place to live". I recall talking to some people just the other day about, "wanting to retire in the best climate in America." I think they were not referring to the harsh Wisconsin winters, but instead looking to Florida or Arizona. Maybe the "best" place to live is in Denver, Madison, New York, Orlando or Phoenix. That's for you to decide. If you're familiar with Downtown Denver and like it, then you might like Downtown Madison as well. I think they have quite a bit in common.
Thursday, June 11, 2009
Auctions, bidding, and other deals...
With the real estate market going through some painful changes, I have come across a few items that I thought were worth mentioning. Last week I met with an auctioneer from the Watertown area. He has been doing real estate and personal property auctions for years and has noticed a considerable increase in business in 2009. I suppose that makes sense with the downturn in the economy. I have also spoke with a number of attorneys that site 2009 as being an especially busy time for those that focus on bankruptcies.
The point of it all is to discuss the role of auctions within real estate. Historically, most Realtors have focused on trying to, "get the most money in the least amount of time." However, this may or may not always be the easiest thing to accomplish. One method of selling properties is to price it at or slightly above fair market value and then adjust the price downward or improve the condition, if it has not sold within a specified time frame. Auctions deal with this situation in reverse. They start with a price that is far below the estimated fair market value and attempt to entice multiple bidders to compete, thus raising the price.
Last month J.P. King completed an auction in Sun Prairie with some developer close-out properties. In fact, there is another auction coming up in Wisconsin Dells with a number of luxury condominium units on Lake Delton that will be sold on June 21st. My guess is that there could be some great values. In fact, I'm planning to attend the auction with a few registered buyers. Another property that I came across is a large fraternity house located on Lake Mendota. This property has a tax assessment at $1,286,000 and is taking bids up until June 26th, 2009. In this situation, it's a sealed bid auction and buyers are encouraged to submit their highest and best offers. Click Here if you're interested in more information about these upcoming auctions.
Similarly, I recently helped a friend purchase a home in the Oregon area, that was listed by a local real estate broker at an extremely low price. In fact, the home had 10 showings scheduled the first day that it hit the market, and received 4 offers by the end of the day.
The bottom line with real estate auctions, they are designed to put a deadline on the sale. A very low price tends to attract multiple buyers and if there are a lot of buyers, then the price can easily climb upward. For any home seller's out there having a difficult time, one possibility is to consider trying to sell your home "auction style". If there are concerns about selling too cheap, then you could build in a "reserve" price that is the minimum. This is different than an absolute auction, which are sold to the absolute highest bidder. Whether listing with an auctioneer or traditional real estate broker, this alternative method of selling might work for your situation. Especially if you have a deadline by which you must sell.
A word to the wise with auctions, they can move very quickly and I would suggest studying the local market very well before making any bids. Otherwise you risk paying too much for a property and it may take years to recoup your investment.
The point of it all is to discuss the role of auctions within real estate. Historically, most Realtors have focused on trying to, "get the most money in the least amount of time." However, this may or may not always be the easiest thing to accomplish. One method of selling properties is to price it at or slightly above fair market value and then adjust the price downward or improve the condition, if it has not sold within a specified time frame. Auctions deal with this situation in reverse. They start with a price that is far below the estimated fair market value and attempt to entice multiple bidders to compete, thus raising the price.
Last month J.P. King completed an auction in Sun Prairie with some developer close-out properties. In fact, there is another auction coming up in Wisconsin Dells with a number of luxury condominium units on Lake Delton that will be sold on June 21st. My guess is that there could be some great values. In fact, I'm planning to attend the auction with a few registered buyers. Another property that I came across is a large fraternity house located on Lake Mendota. This property has a tax assessment at $1,286,000 and is taking bids up until June 26th, 2009. In this situation, it's a sealed bid auction and buyers are encouraged to submit their highest and best offers. Click Here if you're interested in more information about these upcoming auctions.
Similarly, I recently helped a friend purchase a home in the Oregon area, that was listed by a local real estate broker at an extremely low price. In fact, the home had 10 showings scheduled the first day that it hit the market, and received 4 offers by the end of the day.
The bottom line with real estate auctions, they are designed to put a deadline on the sale. A very low price tends to attract multiple buyers and if there are a lot of buyers, then the price can easily climb upward. For any home seller's out there having a difficult time, one possibility is to consider trying to sell your home "auction style". If there are concerns about selling too cheap, then you could build in a "reserve" price that is the minimum. This is different than an absolute auction, which are sold to the absolute highest bidder. Whether listing with an auctioneer or traditional real estate broker, this alternative method of selling might work for your situation. Especially if you have a deadline by which you must sell.
A word to the wise with auctions, they can move very quickly and I would suggest studying the local market very well before making any bids. Otherwise you risk paying too much for a property and it may take years to recoup your investment.
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