Broker Predicts What's In & Out for 2006

Real estate broker Mark Nash, author of "1001 Tips for Buying and Selling a Home", has presented his picks for what he thinks are "in" with homebuyers for 2006, and what's out...

What's In:

• Smaller square footage homes. After years of sprawl, new construction buyers want less space with better finishes.



• Quality kitchen cabinets. With the kitchen/great room the center of family living, buyers today are looking at furniture style cabinets.



• Bamboo wood floors. It could over-take maple as the favorite light-colored wood flooring in 2006.



• Wall space for flat screen TV's. Specify power and cable boxes close to locations where homebuyers want to place the latest in visual technology. The popular location for installation in new construction is over the fireplace.



• Multiple and high-powered phone lines. With modems, DSL, wi-fi moving into mainstream use, tech-savvy homebuyers want "wired" homes.



• Separate shower stalls and bathtubs in master bathrooms. The growing divide among "soakers" and "showerers" is increasing. Not having one of each in a master bath could squelch a purchase.



• Built-in home stereo systems are a must-have for many audiophiles. Wireless hasn't quite made the pre-wired audio system home obsolete, at least not in 2006.



• Balconies and decks wider than 3 feet. Homebuyers want usable outdoor space. Big enough for a bistro table and chairs and a couple of pots for container gardening.



• Guest parking. With the rise in condominiums, lofts and zero-lot line subdivisions, homebuyers want their guests to have a hassle-free experience when they arrive at their new home. Buy or lease an extra space for family or friends.



• Dog Parks. Dogs and homeownership go hand-in-hand. The new way to meet neighbors in the hood is to interact with them at the dog park. Before buying a home, check out the nearest one.



• Ranch or one level homes. The baby-boomers are discovering their utility in droves.



• Second Homes. The baby-boomers are also keeping this market segment strong. Demand for second homes was still on the upside in 2005, but if primary home demand weakens, the second home market will historically follow.



• Seller give-backs. With a more balanced market in most metro markets, requests by buyers to pay closing costs have increased, and some sellers are paying them.



• Carbon Monoxide detectors. Home inspectors red flag homes that have only smoke detectors. Inexpensive and life-saving, install one on every floor of a home before opening to homebuyers.

What's Out:

• The real estate bubble. It's a correction with a soft decline in prices.



• Ebony-stained hardwood floors. You're better off tearing it out than trying to sand the ebony out to refinish.



• Single-rod closets. Buyers want the most storage in the least amount of space. Organizers accomplish this.



• Dark rooms with small windows. Natural light can over-rule a lot of other problems in a home.



• Wallpaper. Buyers never have the same taste as decorators. Take it down (carefully) and paint.



• Builder grade light fixtures and interior fixtures used outside. The right fixtures say quality to buyers.



• Mid-century awnings on exterior windows and doors. Buyers want to let the sun shine in.



• Mirrored backsplash's in kitchens and everywhere else. Mirrored walls and ceilings say 1980's hedonism.



• Commitment (strong, bold trendy) colors. They look great in magazines, but as one buyer said to me "I don't live in a magazine".



• Gas grills that need their own tank. Buyers prefer the gas piped from the house so they don't have to replace tanks.



• Dropped ceilings. It might have updated a bungalow in the 1950's, but buyers want as much vertical space as possible.



• Flipping. Increasing inventories of unsold homes is increasing, signaling weakening demand by all buyers. If you are holding properties to flip, prepare to place them on market after the holidays.

In addition, a couple things that are on the way out..

• Stainless steel appliances. Word-of-mouth says the cleaning requirements aren't for everyone.



• Laminate flooring that looks like hardwood. Not only can buyers tell it's not wood, the noise it makes with high-heel shoes is the deal killer during property showings.

Mark Nash's fourth real estate book "1001 Tips for Buying and Selling a Home" (2005) and a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on CBS The Early Show, Bloomberg TV, Fidelity Investor's Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Universal Press Syndicate and USA Today.

SEO Answer Book for Real Estate Professionals

A new book teaches real estate professionals how to design or tweak their website to get listed higher on Google, Yahoo, and other search engines.

It's authored by Michael Small, who blogs about search engine optimization on his website SEOPartner.

Home Sellers Can Now Post Comments on Agent Websites

Point2 Realty Solutions added some new features to their broker/agent software platform allowing homeowners to log into their agent's website, and post comments.

In addition, the software allows agents to use RSS technology to send news and updates to their clients.

When an agent signs a contract with a homeseller, he or she provides them with a login and password to their website. The homeseller can then upload text and photos to display in a special "Seller's Comments" section of the website, effectively adding a new dimension to online listings.

The RSS technology feature allows an agent to compose a message within the software that gets stored in a "RSS newsfeed" file on his or her website, but is not visible to the general public. The homeseller can then subscribe to that newsfeed, and read the contents via a newsreader program. This bypasses the problem of bounced e-mails and e-mail spam filters when communicating with the homeseller.

Developer Pays $1,700 for an Inch of Land

A Michigan real estate developer was the highest bidder for a square-inch piece of land in Owen County, shelling out $1,752.60 for the parcel in a wooded ravine.

Andy Gutman, chief financial officer with NAI Farbman near Detroit, had the highest of nine bids and won the postage stamp-sized property on eBay.

What makes this land so special? Don't know!

It appears to be one of those eBay gimmicks, and this developer saw it gimmicky enough to pay $1,700. Must be nice to have money laying around.

Read the full article.

Imagine Your Real Estate Business Five Years From Now

Jim Gillespie, Ph.D. writes an article in Broker Agent News about real estate business owners getting bogged down working on small details that require a significant amount of time, but don't pay off much in rewards.

His advice?

With this in mind, an exercise that I've given to a number of my coaching clients recently is asking them to describe what they want their life to be like five years from now. I suggest that they ask themselves questions like, "What will you be doing with your time?" And, "What activities will you be focused on doing in your business?"

He explains that by thinking about how you see yourself in the future will help you identify the tasks you shouldn't be doing.

I can clearly see myself in the future, can you?

Read the full article.

Florida Realtor Wins "Tech Savvy" Distinction

Hewlett Packard announced winners of its 2005 Top Technology Producers Contest. Bev Sousa, a Realtor with Coldwell Banker, took top honors in the real estate category for her creative use of technology solutions to succeed in business.

She uses HP iPAQ technology, a portable color printer, a digital camera, and a wireless-capable laptop computer that allows her to produce documents and presentations on the go and allows her customers to watch virtual tours of her properties on her laptop. She even gives her clients a personalized CD made with her HP gear.

As an HP Top Technology Producer, Sousa received an HP Compaq Tablet PC.

She'll have to change her name to Bev HP Sousa.

Realtor Watches Porn in Client's House

A couple caught their Realtor on tape watching porn in their house.

NBC affiliate WCNC in Charlotte, NC reports the couple had given the keys to their Realtor for an open house. The wife set up a video camera just to find out what potential buyers thought and said about their home. Instead, they got something totally unexpected.

"I started noticing some of the lingerie was kind of like not where you would put it. He proceeds to take an X-rated tape out that my husband and I have and puts it in the TV in our bedroom. I hear my cabinet drawers open up and they open up and they close and you can hear him watching the tape and breathing really hard."

The realtor on the tape declined to comment about the couple's allegations. The North Carolina Real Estate Commission acknowledges the agent's improper conduct, but decided not to pursue disciplinary action.

There's a video report.

Don't Be Impressed with a Realtor's Car

That's the number one rule as presented by Alan Lavine and Gail Liberman, a husband & wife team who write a column in the Pittsburgh Post-Gazette.

Alan and Gail go on to list several do's and don'ts that people should consider when hiring a real estate agent.

They're number two rule is...

Keep in mind that all agents, no matter whom they represent, probably have one objective: Making a sale. That's the only way they generally make money.

I guess I didn't realize they made money from home sales. Read more.

Broker Waives Listing Commission for Poor Families

Michigan-based Ralph Roberts is making news once again by announcing that he will waive the listing commission for the first ten families in each of three counties - Wayne, Oakland and Macomb - who contact him between Thanksgiving and Christmas Day who have been laid off or lost overtime and can no longer afford their homes as a result of layoffs and plant closings faced by employees of GM, Ford, Delphi, Daimler-Chrysler and other automotive related companies.

"The families of metro Detroit and Michigan are facing a terrible situation, with these recently announced massive plant closings and layoffs, the likes of which we have not seen in many years," said Ralph. "I feel very strongly that those of us in real estate who have been fortunate and enjoyed success have a responsibility to extend ourselves to individuals and families who are facing some very hard choices."

Ralph's marketing strategy is to target families who need to downsize and get into a smaller house that they can better handle financially.

As an example, on the sale of a $200,000 house, the listing commission of usually 3%, or $6,000, will not be charged to the selling homeowner.

Realtor Superhero Business Cards

With so many people seeking a career in real estate, you need a way to separate yourself from the rest of the agent pool. Show Off Cards is one way to help yourself.

They make business cards that depict you in comic-book form, complete with muscles, six-pack abs, and a great looking mugshot. The back of the card has your contact info.

For $399.00, you get 1,000 cards printed via offset lithography on 14-point stock coated both sides, along with a personalized Show Off Web Page.

ABC and NBC Producing Shows about Realtors

ABC already has "Hot Properties", while NBC is working on a similar show, "Hot Property", both comedies that feature the lives of real estate agents.

Daily News Transcript has a 3-page article about the two shows.

Interesting thing about the ABC show, all the featured agents are young, sexy, and beautiful. How come none of my agents were like that?

Small RE Firms Chipping Away at the Big Guys

An article published in the St. Louis Post Dispatch examines a trend where smaller, niche real estate brokers are using new technology to grab larger shares of homes for sale.

The article says that where the industry had once shifted in favor of large brokerages buying out mid-sized brokerages, the pendulum is shifting towards the small niche players thanks to new technology, and alternative commission structures.

"Intense competition and double-digit growth have forced brokers and companies to come up with more innovative ways to do business and jockey for market share," said Steve Sawyer, an associate professor at Pennsylvania State University and co-author of the real estate market study.

That heightened competition has spawned a new type of real estate company, he said.

Read the full article here.

Online Real Estate Dictionary

Real Estate Words is a website that features a dictionary of real estate terminology.

I found the definitions to be highly technical, and in many cases vague. I suppose the definitions are correct, but in a practical sense, not very helpful. For example, consider the definitions of "real estate agent" and "real estate broker"...

Real estate agent - A generic term pointing to a person licensed by a state who holds either a real estate broker or real estate salesperson license who assists people to buy, sell, rent or lease, manage, finance or value real estate for some type of anticipated compensation.

Real estate broker - A person or other legally-licensed entity by a state holding a real estate broker license who assists people to buy, sell, rent or lease, manage, finance or value real estate for some type of anticipated compensation.

In the technical sense, these definitions are correct, but they don't explain the practical meanings.

Real Estate Words is a free service of Realty U, a company that provides training to real estate professionals.

Post Free Property Listings on Google Base

"Google Base" is a name you'll have to get used to hearing in the real estate world. It's the latest foray launched by Google, in what many experts feel is the end of newspaper classifieds.

In short, it's database that people can use to post stuff, ranging anywhere from photos, recipes, garage sales, and property listings.

As an real estate agent, you can post your property listings on Google Base for free. Actually, it's free to anyone. You can write up some descriptive text, include a photo, and specify keywords like "las vegas homes for sale" or "omaha real estate", etc.

Once posted, anyone can search it by keyword to find whatever they want.

Each "ad" you post on Google Base lasts for no longer than 31 days, after which, you have to post it again, if you want to keep it online.

Many companies have already produced software products designed to automatically post content into Google Base. RealBird Inc., which provides Realtors with mapping services for their websites, says they've added a feature that automatically uploads an agent's featured listings into Google Base.

While Google Base is free, many expect the search engine giant to start charging fees.

Z57 Inc. Offers New Website Tool for Realtors

Z57 Inc. announced today the availability of "InstaCompare", a feature that Realtors can add to their websites to provide visitors with comparative home sales data.

The company thinks InstaCompare can generate more leads for Realtors by giving prospective home buyers and sellers the valuable data they need to make decisions.

Tim Johnson, Executive Vice President of Z57 Inc. says...

"This ability to provide a fast comparative market analysis is key in differentiating a Realtor from their competitors. Content is king on your website. Z57 continues to strive to serve as a source for the successful Realtors. InstaCompare is a powerhouse."

InstaCompare's backend database contains over 11 million transactions in more than 750 counties across 43 states, and can be accessed using a simple search interface. Visitors input a street address, town and/or zip code and get the following information:

• Complete address of recent nearby home sales


• Distance of recent sales from subject property


• Sale date and price


• Property specs - beds, baths, square feet, year built (where available)

For screenshots and more information, visit the InstaCompare website.

Domania Celebrates One-Million Registrations

Domania is a website that provides home buyers with access to home sales records. The website announced today that it registered its one-millionth user.

Consumers use Domania to get a home value estimation sponsored by a local real estate agent, including analytic data on neighborhood price trends.

Launched in February 2000, Domania is owned and operated by LendingTree, LLC.

McDonald's is Actually in the Real Estate Business

William Ackman, who owns a 4.9% stake in McDonald's stock had this to say about the fast-food company...

Despite the fundamental misperception that McDonald's is a restaurant company that owns a lot of real estate, the truth is actually slightly different. Nearly 90% of its economic earnings, excluding rent, fees, and other items, come from real estate.

This statement came after he made a presentation with a plan to boost McDonald's stock price up to as much as $45 to $50 per share.

The plan is based on the fact that McDonald's owns the land under many of its corporate owned stores.

Ackman, a managing partner of Pershing Square Capital Management, said McDonald's should spin off 65% of the 8,000 restaurants it owns and borrow $14.7 billion against its real estate to buy back shares. The chain owns 37% of the land beneath the more than 30,000 McDonald's restaurants worldwide.

The issue is being watched carefully. Ackman did the same with Wendy's International after he bought a stake there. McDonald's, however, said it's not interested in the idea.

However, Vornado Realty Trust recently bought a 1.2% stake in McDonald's since the Pershing investment and Deutsche Bank has increased its holdings to 3.2%, according to SEC filings.

HouseValues Inc. Offers Free Agent Websites

HouseValues Inc. announced last week that all new and existing HouseValues.com and JustListed.com real estate agent subscribers will receive a personally branded HomePages website at no additional charge as part of their home buyer and seller leads subscription.

The free website will feature the agent's mugshot, contact info, and bio. It will also feature their home listings, neighborhood info, and aerial imagery. Though, it's not clear if they mean aerial imagery of the agent, or of the agent's properties.

Well OK!

Ian Morris, the CEO of HouseValues Inc. had the usual PR blah-blah...

"HouseValues is dedicated to helping its subscribers succeed, and with these personalized sites real estate agents can more effectively position themselves as the neighborhood expert."

Yawn!

All kidding aside, the free website offer is available to all new subscribers through December 31. To take advantage of the offer, agents must contact HouseValues at 1-877-732-9509.

Via Broker Agent News