Blogging From The Desk of Alicia Lagarde Craig
1. Homes have never been more affordable.
Do you realize that today people are buying houses at the same prices they were ten years ago? It's like having a time machine: you get to go back and buy at yesterday's prices today. One of the advantages of buying at the lower end of the market is that in a few years it will appreciate more than homes that are more expensive. Homes that now cost $100,000 are likely to appreciate to between $130,000 and $150,000, while homes starting at the $500,000 won't reach $650,000-$700,000 in the same time frame. That's because there is less demand the higher you go. Demand drives price increases and, as the market improves, demand for lower price points will go up faster than at the higher end.
2. Mortgage rates are at rock bottom and won't stay there forever.
The national average on a 30-year fixed-rate mortgage dropped to 4.36% in August 2010 - lower than it's been in the past half century. Once rates start going up again, they can go up fast - creating a major impact on monthly finances. Do you know that if your interest goes up 1%, your monthly payment will go up 10%? What's more likely? Home values dropping 10% or interest rates going up 1%?
3. Lenders are back in the game!
The final quarter of 2009's financial meltdown led to a sense that financing had dried up, but mortgage funds are alive and available. The majority of banks make money by making loans - they simply have to get back in the game. Most people don't know that it is still possible to get a loan with as little as 0-3% down where your credit score isn't the only determining factor.
4. Prices are trending back up
Every major price index points to a housing market that has hit bottom and is moving in a positive direction. After thirty months of declining values, home prices appear to be stable or appreciating in nearly every U.S. market. Locally, in the New Orleans Uptown market, prices are trending back up and sellers are beginning to see the shift from a buyer's market to a seller's market, meaning that sellers are not willing to make the concessions that they use to make in the past and they are also starting to see competing offers from different buyers on their homes.
5. Sellers are motivated!
When speaking of the New Orleans Metropolitan Area (i.e. Lakeview/Lakefront, Metairie, Mid-City, The Northshore), Supply now exceeds demand and buyers have the upper hand. This means lots of choices, lots of negotiating power and smart sellers fiercely competing by offering great prices and excellent conditions.
6. Ownership costs are dropping below rental costs!
The recent downturn in the housing market resulted in a drop in rental rates, but rents are back on the rise while the cost of home ownership has dropped.
Did you know that everyone is buying real estate, just not necessarily for themselves? If you are renting, you are buying real estate for your landlord. Wouldn't you rather be buying it for yourself?
7. Home ownership remains at the core of the American Dream
A recent Fannie Mae study reveals that the majority of Americans still aspire to own a home.
-Owning a home is critical to financial stability and wealth building.
-A home serves as a forced savings account and provides a solid asset, as well as a place to live.
-Despite the recent market upheaval, the vast majority of Americans still consider home ownership to be important to the economy and preferable to renting.
-Since the end of World War II, promoting home ownership has been high on the list of the federal government's priorities, and will continue to be so.
If you need assistance in real estate, contact Alicia Lagarde Craig or Jeff Craig @ 504.352.6190 or 504.382.3724.
References: KW Seize the Market Action Book
Wednesday, February 1, 2012
Tuesday, January 31, 2012
Thursday, January 13, 2011
Listing Your Home Or Listings At The Magic Number
Blogging From The Desk of Alicia Lagarde-Craig
Finding the Magic Number:
Pricing strategies can help you market your listings and generate offers that turn into closed deals.
January 2011
"Once you get a real estate license, you can start telling consumers what their homes are worth," says Melanie McLane, ABR, CRB, owner of the Melanie Group in Jersey Shore, Pa. She’s a certified appraiser with more than 30 years’ experience in real estate. "But I find many people aren’t prepared or haven’t done their homework to know what the market will support before giving price estimates."
And just doing your homework isn’t the end of setting a price; it’s also important to have a pricing strategy that works for your market and your clients. Here are four techniques:
• Employ shock and awe. Remember Economics 101—the simple law of supply and demand? Adam Smith, the grandfather of modern economics, said when an asset is undervalued, the "invisible hand of the market" corrects the pricing to fair market value. It’s a principle that Amanda DiVito Parle, ABR, CRS, broker associate with RE/MAX Alliance of Arvada, Colo., has used to her sellers’ advantage. By drastically lowering the price on some of her luxury listings—a process she calls "shocking and awing the market"—she creates instant demand. "I listed a $1 million–plus property for $599,000, and a sales professional called and asked if it was correct," she says.
Often, properties can end up selling for more what you’d have originally listed them at. "You need to the drop the price so dramatically that buyers think it’s outrageous," she says. "They’ll determine the price. They’ll be eager to see the property and create a competitive bidding war."
• Set a market-leading price. "Do your homework on the local market and price the home to lead the market, not chase the market," says Rick Lawrence, e-PRO, SFR, a sales associate with RE/MAX Professionals Select in Naperville, Ill. He recommends showing sellers virtual tours of comparables to get them on the same page about setting a price that will lead the market.
• Pick an exact number. Ben Kinney, founder of the Home4Investment real estate team in Bellingham, Wash., assesses a listing’s value, setting a price to the dollar: $137,368 or $213,348, for example. "Consumers assume that even prices aren’t carefully calculated and probably just a home price thrown out for the sake of it." At least with Kinney, that notion is correct. He considers all the features of the home to reach a precise number.
• Don’t get counted out. It’s not uncommon to price a house slightly under an even price point, say at $199,000 instead of $200,000, to give the home a competitive edge. The trouble is, buyers who search for homes online (and virtually all do) are typically searching a range of prices, Kinney says. So a buyer looking for a $200,000–$250,000 house wouldn’t even see your $199,000 listing. By knowing the range buyers usually use for a neighborhood, you can price your listing for maximum exposure, Kinney says.
When the offers do start rolling in, take them seriously, McLane says. Sellers sometimes make the mistake of refusing reasonable offers early in the listing period. Help your clients understand that the longer their house sits, the less desirable it may become to active house hunters.
By Katherine Tarbox -- Senior Editor of REALTOR® Magazine
Finding the Magic Number:
Pricing strategies can help you market your listings and generate offers that turn into closed deals.
January 2011
"Once you get a real estate license, you can start telling consumers what their homes are worth," says Melanie McLane, ABR, CRB, owner of the Melanie Group in Jersey Shore, Pa. She’s a certified appraiser with more than 30 years’ experience in real estate. "But I find many people aren’t prepared or haven’t done their homework to know what the market will support before giving price estimates."
And just doing your homework isn’t the end of setting a price; it’s also important to have a pricing strategy that works for your market and your clients. Here are four techniques:
• Employ shock and awe. Remember Economics 101—the simple law of supply and demand? Adam Smith, the grandfather of modern economics, said when an asset is undervalued, the "invisible hand of the market" corrects the pricing to fair market value. It’s a principle that Amanda DiVito Parle, ABR, CRS, broker associate with RE/MAX Alliance of Arvada, Colo., has used to her sellers’ advantage. By drastically lowering the price on some of her luxury listings—a process she calls "shocking and awing the market"—she creates instant demand. "I listed a $1 million–plus property for $599,000, and a sales professional called and asked if it was correct," she says.
Often, properties can end up selling for more what you’d have originally listed them at. "You need to the drop the price so dramatically that buyers think it’s outrageous," she says. "They’ll determine the price. They’ll be eager to see the property and create a competitive bidding war."
• Set a market-leading price. "Do your homework on the local market and price the home to lead the market, not chase the market," says Rick Lawrence, e-PRO, SFR, a sales associate with RE/MAX Professionals Select in Naperville, Ill. He recommends showing sellers virtual tours of comparables to get them on the same page about setting a price that will lead the market.
• Pick an exact number. Ben Kinney, founder of the Home4Investment real estate team in Bellingham, Wash., assesses a listing’s value, setting a price to the dollar: $137,368 or $213,348, for example. "Consumers assume that even prices aren’t carefully calculated and probably just a home price thrown out for the sake of it." At least with Kinney, that notion is correct. He considers all the features of the home to reach a precise number.
• Don’t get counted out. It’s not uncommon to price a house slightly under an even price point, say at $199,000 instead of $200,000, to give the home a competitive edge. The trouble is, buyers who search for homes online (and virtually all do) are typically searching a range of prices, Kinney says. So a buyer looking for a $200,000–$250,000 house wouldn’t even see your $199,000 listing. By knowing the range buyers usually use for a neighborhood, you can price your listing for maximum exposure, Kinney says.
When the offers do start rolling in, take them seriously, McLane says. Sellers sometimes make the mistake of refusing reasonable offers early in the listing period. Help your clients understand that the longer their house sits, the less desirable it may become to active house hunters.
By Katherine Tarbox -- Senior Editor of REALTOR® Magazine
Friday, January 7, 2011
Purchasing a Home is Still a Good Investment
Blogging From The Desk of Alicia Lagarde-Craig
Even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000—a 24 percent increase—while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent. That’s according to NAR’s 2010 survey of home buyers and sellers, available at REALTOR.org/research. "Eighty-five percent of recent home buyers see their home as a good investment, and nearly half think that investment is better than stocks,” says Paul Bishop, NAR vice president of research. This indicates the long-term view of home ownership as a fundamental goal and value remains sound.
Even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000—a 24 percent increase—while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent. That’s according to NAR’s 2010 survey of home buyers and sellers, available at REALTOR.org/research. "Eighty-five percent of recent home buyers see their home as a good investment, and nearly half think that investment is better than stocks,” says Paul Bishop, NAR vice president of research. This indicates the long-term view of home ownership as a fundamental goal and value remains sound.
Tuesday, December 14, 2010
This Month in Real Estate (US) : December 2010
Blogging From The Desk of Alicia Lagarde-Craig
This Month in Real Estate: December 2010
This Month in Real Estate: December 2010
Thursday, December 9, 2010
Update Regarding The Mortgage and Conveyance Division's Online Data Recovery
Blogging From The Desk of Alicia Lagarde-Craig
Update from Dale Atkins, The Clerk of Civil District Court
The following updates took place as of December 7, 2010:
PERSONNEL:
In total, 90 men and women are working on the data recovery project as of today, and the Clerk of Court's office is continuing to add personnel to complete this task as soon as possible.
BACKLOG COMPLETED:
The backlog of documents in the Conveyance and Mortgage divisions has been eliminated. This means all mortgage and conveyance documents received between October 26 and November 18, when the system was reactivated for data entry and cashiering, have been entered in the system.
CERTIFICATES:
As it relates to Sheriff’s sales, they are current on all Sheriff Certificates through sale date of December 29, 2010. The Clerk of Court's Office forgot to mention that the houses that are going through a Sheriff's Sale at this time were marketed 45 days in advance, meaning these houses were advertised in October, before the online data crash.
RESTORATION OF DATA PROJECT: CONVEYANCE
The Clerk's office is confident the final delivery of the 60,000 conveyance instruments which are currently being re-entered by the Windward Group will be Sunday, Jan. 2, 2011. Once the data is delivered, the only task will be to verify the information. The first delivery of a 1000-piece sample was successfully delivered by the Windward Group on Dec. 1, 2010 and successfully uploaded into the Clerk's database. This data is now being verified. Another 10,000 records are expected for delivery on Friday, Dec. 10, 2010. As more records are entered, more personnel will be shifted to data verification to speed this project along. The date of January 2, 2011 that the Clerk's office mentions is not a guarantee.
RESTORATION OF DATA: MORTGAGE DIVISION
The Clerk of Court's office is in the final stages of negotiating a contract for the data input of the more than 119,000 mortgage documents which need to be restored in the online system. Until the contract is signed, the work is being done internally. Nevertheless, the Clerk's office feels confident this data will be completely uploaded by mid-January 2011, but they are pushing for a commitment to an earlier delivery date of the data. Again, once data is delivered successfully into the system, the Clerk's office begins a verification process of the entries. The time frame for the verification process is about 7-14 days, but there are no guarantees on this either.
In short, this means that there will be very few closing until Mid-January 2011.
If your closing has been delayed as a result of the online data crash in Orleans Parish, here is a checklist of things that you can provide to the Title Company that may help to speed up the closing:
-Obtain Financial Statements from the Seller(s)
-Obtain Forwarding Address of the Seller(s)
-In Whose Name Is The Property Assessed?
-What is the Assessed Value?
-Any Outstanding Mortgages (1st Mortgage, 2nd Mortgage, HELOC)?
-Copy Of Appraisal
-Length Of Time The Seller Owned The Home? _____ Years
-Financial Statement Or Loan Application From The Borrower
If you have any questions regarding real estate, please contact me at 504.382.3724 or email me at AliciaLagarde@kw.com
Update from Dale Atkins, The Clerk of Civil District Court
The following updates took place as of December 7, 2010:
PERSONNEL:
In total, 90 men and women are working on the data recovery project as of today, and the Clerk of Court's office is continuing to add personnel to complete this task as soon as possible.
BACKLOG COMPLETED:
The backlog of documents in the Conveyance and Mortgage divisions has been eliminated. This means all mortgage and conveyance documents received between October 26 and November 18, when the system was reactivated for data entry and cashiering, have been entered in the system.
CERTIFICATES:
As it relates to Sheriff’s sales, they are current on all Sheriff Certificates through sale date of December 29, 2010. The Clerk of Court's Office forgot to mention that the houses that are going through a Sheriff's Sale at this time were marketed 45 days in advance, meaning these houses were advertised in October, before the online data crash.
RESTORATION OF DATA PROJECT: CONVEYANCE
The Clerk's office is confident the final delivery of the 60,000 conveyance instruments which are currently being re-entered by the Windward Group will be Sunday, Jan. 2, 2011. Once the data is delivered, the only task will be to verify the information. The first delivery of a 1000-piece sample was successfully delivered by the Windward Group on Dec. 1, 2010 and successfully uploaded into the Clerk's database. This data is now being verified. Another 10,000 records are expected for delivery on Friday, Dec. 10, 2010. As more records are entered, more personnel will be shifted to data verification to speed this project along. The date of January 2, 2011 that the Clerk's office mentions is not a guarantee.
RESTORATION OF DATA: MORTGAGE DIVISION
The Clerk of Court's office is in the final stages of negotiating a contract for the data input of the more than 119,000 mortgage documents which need to be restored in the online system. Until the contract is signed, the work is being done internally. Nevertheless, the Clerk's office feels confident this data will be completely uploaded by mid-January 2011, but they are pushing for a commitment to an earlier delivery date of the data. Again, once data is delivered successfully into the system, the Clerk's office begins a verification process of the entries. The time frame for the verification process is about 7-14 days, but there are no guarantees on this either.
In short, this means that there will be very few closing until Mid-January 2011.
If your closing has been delayed as a result of the online data crash in Orleans Parish, here is a checklist of things that you can provide to the Title Company that may help to speed up the closing:
-Obtain Financial Statements from the Seller(s)
-Obtain Forwarding Address of the Seller(s)
-In Whose Name Is The Property Assessed?
-What is the Assessed Value?
-Any Outstanding Mortgages (1st Mortgage, 2nd Mortgage, HELOC)?
-Copy Of Appraisal
-Length Of Time The Seller Owned The Home? _____ Years
-Financial Statement Or Loan Application From The Borrower
If you have any questions regarding real estate, please contact me at 504.382.3724 or email me at AliciaLagarde@kw.com
Tuesday, November 9, 2010
Tips For Hiring A Contractor
Blogging From The Desk of Alicia Lagarde-Craig
Finding a contractor – Choosing the right contractor can save time & money.
• Ask friends and trusted associates who have already hired contractors for recommendations
• Check potential contractors out with consumer protection groups, such as the Better Business
Bureau: www.neworleans.bbb.org or 504-581-6222. BBB’s video, How to hire a contractor, can be purchased from their online resource library.
• Ask for proof that potential contractors are licensed with the State of Louisiana, and verify with the State Licensing Board: www.lslbc.louisiana.gov/findcontractor.asp or (225) 765 2301
• Ask potential contractors about their familiarity and experience with energy efficient, environmentally responsible, and healthy building practices and materials.
Hiring a contactor
• Once you have found a licensed contractor who checks out with the BBB or another consumer protection group, ask for:
o A list of references, particularly of projects similar to yours – and check them.
o Lists of subcontractors and suppliers and check to make sure they pay their debts on time.
o Proof of current insurance (should include General Liability, Worker’s Compensation and Builder’s Risk). Make sure to obtain an insurance binder with you listed as the additional insured from the insurance company before signing a contract.
• The contract should be modeled after standard American Institute of Architect’s (AIA) construction contract. Contract templates can be purchased at www.aianeworleans.org.
• Before signing the contract, make sure you understand the terms and conditions. If necessary, ask an attorney, or a neutral party familiar with the construction process to advise you.
Payment
• Ten percent (10%) of the contract is the most a legitimate contractor will request for a deposit.
• Payment should proceed according to the contract. Pay only for what is completed.
• Do not pay in cash and keep written records of all payments
• Keep written records of paperwork, conversations and activities, including photographs of work completed.
• Changes to the scope of work should be estimated and approved by the contractor and you in writing before they are begun.
• Do not make final payment until all work is completed to your satisfaction, all subcontractors and suppliers are paid, and the jobsite is clean and cleared of all debris.
Finding a contractor – Choosing the right contractor can save time & money.
• Ask friends and trusted associates who have already hired contractors for recommendations
• Check potential contractors out with consumer protection groups, such as the Better Business
Bureau: www.neworleans.bbb.org or 504-581-6222. BBB’s video, How to hire a contractor, can be purchased from their online resource library.
• Ask for proof that potential contractors are licensed with the State of Louisiana, and verify with the State Licensing Board: www.lslbc.louisiana.gov/findcontractor.asp or (225) 765 2301
• Ask potential contractors about their familiarity and experience with energy efficient, environmentally responsible, and healthy building practices and materials.
Hiring a contactor
• Once you have found a licensed contractor who checks out with the BBB or another consumer protection group, ask for:
o A list of references, particularly of projects similar to yours – and check them.
o Lists of subcontractors and suppliers and check to make sure they pay their debts on time.
o Proof of current insurance (should include General Liability, Worker’s Compensation and Builder’s Risk). Make sure to obtain an insurance binder with you listed as the additional insured from the insurance company before signing a contract.
• The contract should be modeled after standard American Institute of Architect’s (AIA) construction contract. Contract templates can be purchased at www.aianeworleans.org.
• Before signing the contract, make sure you understand the terms and conditions. If necessary, ask an attorney, or a neutral party familiar with the construction process to advise you.
Payment
• Ten percent (10%) of the contract is the most a legitimate contractor will request for a deposit.
• Payment should proceed according to the contract. Pay only for what is completed.
• Do not pay in cash and keep written records of all payments
• Keep written records of paperwork, conversations and activities, including photographs of work completed.
• Changes to the scope of work should be estimated and approved by the contractor and you in writing before they are begun.
• Do not make final payment until all work is completed to your satisfaction, all subcontractors and suppliers are paid, and the jobsite is clean and cleared of all debris.
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