Kitchens Sell a House
It’s a tool used by house flippers all across the nation. Stagers know its power. Real estate agents push its importance. What is this not-so-well-kept secret of real estate? A kitchen can sell a house.
Kitchens are integral to entertaining and in today’s age of open floor plans, they’re a focal piece of many family rooms. It’s because of this that kitchens play such an important role in the buying and selling process.A kitchen is the heart of a home. This is true all across the globe. The old saying that the “stomach is the way to the heart” carries a lot of truth. Kitchens are where we spend much of our time and most of that is with our families. It’s the room where we nourish our bodies and our spirits.
This one room is the showpiece of the house. You’ll see it every day and your guests will see it during most visits. This means buyers want homes with up-to-date kitchens.
Kitchens, however, can be one of the most expensive rooms to renovate. These projects can also be the most labor and time intensive of all home renovations. It’s not just a new layer of paint.
Instead you find a complicated array of flooring, tiling, cabinets, and counters. This means buyers may want a home with an up-to-date kitchen but they aren’t willing to tackle this problem themselves. Most buyers want a kitchen that is ready to use the day they move in.
What do buyers look for in up-to-date kitchens? A lot of this depends on what price range your home is in.
The main thing to remember as a seller is to not price yourself out of your market. If homes in your neighborhood are selling for $100,000 with tidy, but not luxury kitchens, then this is no time to upgrade to granite, travertine, and marble at the price tag of $40,000+. You simply won’t find a buyer.
Scope out the competition. Use open houses in your area or MLS listings to find out what your competitions’ kitchens look like.
Do area homes have new solid wood cabinets and granite counters in today’s designer colors? You’ll be wise to consider making the same move. Are they including new stainless steel appliances and add-ons like dishwashers, wine-coolers, and trash compactors?
Are you in a higher-end neighborhood? It’s time to think high-end. Your older home may have a highly functional kitchen, but a buyer will take one look at your formica counters and white appliances and become lost in the stress of how much money and time it would take to remodel. If you don’t want to put in the time yourself to make upgrades then you’ll have to make concessions in the price.
Don’t become overwhelmed, though. Sometimes a kitchen update can mean doing just a few minor changes. Change the paint color to a warm, neutral tone. Get rid of any clutter. Update your appliances, paint your cabinets, change the pulls, or get a high-end looking counter for a fraction of the cost (faux-granite or lower end granite). You might even save a bundle by doing much of the work yourself.
The bottom line is a kitchen can sell a home. Do a little research and find out what your kitchen needs to make it competitive with area listings.
Published: January 24, 2012
Experts: Housing market is gaining
It’s only one report.
But it suggests that the worst of Arizona’s housing market may be behind us.
New figures from the Federal Housing Finance Agency indicate the price of homes in Arizona actually rose more than 4 percent in the last quarter of 2011. By contrast, the national figure was still one-tenth of a point in the red.
Even looking at a broader index that measures home values — one that also takes into account appraisals done to refinance homes as well as sales prices — Arizona is still in positive territory vs. a 0.8 percent drop nationwide.
Still, the state has a long way to go to dig out of the hole.
One quarter of positive numbers does not erase even the losses of the past year. Overall home prices at the end of last year in Arizona were still 2.4 percent below where they were the same time a year earlier.
And the typical Arizona home is still worth only about half of what it was five years earlier.
The report also shows that some areas of the state remain weaker than others.
Coconino County home values continue to slide. In fact, its 9.7 percent year-over-year drop is the seventh-worst of the 306 metropolitan areas in the FHFA study.
Yuma County is not far behind, with its 8.7 percent annual decline only five spots above that.
Pima County, which had a 1.1 percent quarterly price increase, is five positions above that with an 8.4 percent drop between prices this year and last.
“The question is: Is this just a blip or a long-term trend?” said Michael Orr, a real-estate analyst with the W.P. Carey School of Business at Arizona State University. Orr said he’s willing to predict that it is the latter, saying there were some indications last fall that the housing market might finally be ready for a turnaround.
“This is really good news,” said economist Marshall Vest of the Eller College of Management at the University of Arizona. He said the numbers, coupled with prior reports that showed price declines flattening out, suggest the bottom may have been reached.
But Vest was not quite ready to break out the champagne.
“I think we still need to see one more quarter or two to see if this thing holds,” he said.
The why of it all is more complex.
Orr sees it as a simple matter of supply and demand, particularly at the lower end of the market.
“It would be very rare to have any home below $300,000 not receive multiple bids,” he said. “In that situation, competition sets in and prices tend to rise.”
And the lower the price goes, Orr said, the fewer homes that are available for sale. That includes foreclosures.
“We’ve got foreclosures still happening above normal, but about half of what it used to be,” he said.
Vest said just news like this will help accelerate the rise in prices.
“The idea that we’ve had prices moving up will definitely change the psychology in the market,” he said. “Some people who have been sitting on the fence may decide that now is the time to jump in, which would, of course, boost demand and boost prices even further.”
Orr said prices for townhomes and condos have not been affected as much as for single-family homes. But he said that, here too, the supply of lower-priced units is drying up, which should force sales prices up.
Even with the higher prices on existing homes, Orr said, that’s not going to suddenly result in a big increase in new construction.
He said there still is a gap between what existing homes are bringing and what builders need to charge to cover their costs and make a profit on new ones.
Million dollar housing market small but brisk in 2011
Million dollar housing market small but brisk in 2011
Posted: 27 Mar 2012 07:39 AM PDT Luxury Insights
How many million dollar and above home sales closed last year in the U.S?
According to the National Association of Realtors’ Research Division, there were 68,200 closed residential transactions at a million dollars or more. This represented just 1.6 % of all home sales in 2011, evidence that the luxury market at the million dollar and above level is a small segment of the market.
But, last year for the first time, the $500,000 and above market segment represented 10% of all home sales. Both the anecdotal and statistical information indicate that although the luxury niche is small, it isoutperforming the market in general.
It’s a good time to target the upper-tier.
Real estate: Tucson’s No. 1 for housing investors
Tucson is the best market for real estate investors, an online real estate company says. The Old Pueblo, where home prices have tumbled to levels not seen since the early 2000s, topped Realtor.com’s top 10 list of investment towns. Realtor.com tracks data in 146 major metropolitan markets.
With prices in Tucson having fallen so hard since the burst of the housing bubble and inventory dwindling, investors have grown eager to jump in the market, said Jennifer DuBois, a Realtor.com spokeswoman.
“Foreclosure opportunities seem to be decreasing and people are sensing now’s the time to get in,” DuBois said.
Homes are selling faster in Tucson than they were a year ago, DuBois said. And even though sale prices are lower than they were then, sellers are generally asking for higher prices when they list their property on Realtor.com, DuBois said.
In Tucson, investor activity has picked up over the past year, agrees Justin Bentley, an agent with Tierra Antigua Realty. Bentley, who himself purchases and flips houses, said he’s seen in-state and out-of-state buyers. Even contractors whose business has slowed because of the decline in new-home construction have gotten into the game, he said.
In 2011, nearly 6,400 homes in Pima County were sold for less than $100,000, which is more than 35 percent of the 18,000 homes sold last year, according to an Arizona Daily Star analysis.
Prices that low are ripe for investors with cash on hand who are either looking to fix up a house for a quick sale, rent it out or hold onto it until prices come back.
And while values have dropped and investors are swooping in to pick up deals, the presence of such buyers indicates they have confidence housing prices in Tucson will eventually rebound, Bentley said.
He and some other investors recently purchased a house near East Golf Links and South Kolb roads. The bank-owned property was listed at $37,700, but because competition for foreclosures is increasing, Bentley said he paid $54,000 for it. “I knew we had to be aggressive,” he said.
The house had some fire damage and it took about $30,000 to spruce it up. Now, Bentley said he plans to put the red-brick home on the market for $119,000.
Alan Murdock, another Tierra Antigua agent who’s also an investor, said even though housing prices have dropped significantly, rent prices haven’t plunged as much.
Murdock said he purchased a duplex for $100,000 that a previous buyer paid $290,000 for. By putting a mortgage on that property, he could use the money to purchase other houses, and collect rent to pay down the debt.
Some investors have worried about getting into the market, fearing banks might unleash a backlog of foreclosed properties and further drive down prices.
But so far, that hasn’t happened, Murdock said. Now investors who may have been waiting are starting to get into the market.
“There’s a broader level of buyers that have confidence right now,” Murdock said.
Top 10
Realtor.com’s top investment towns:
1. Tucson
2. Austin, Texas
3. Kansas City, Mo.
4. Baltimore
6. Salt Lake City
7. San Jose, Calif.
8. Raleigh, N.C.
9. Milwaukee
10. St. Louis
Housing Crisis to End in 2012 as Banks Loosen Credit Standards
Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.
The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.
Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.
However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.
Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.
Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”
In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.
While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.
Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generate actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.
3 Ways Print Marketing Still Beats Digital
With all of the hype around digital marketing, it can sometimes feel like you are behind the times as a professional if you use print marketing, but it still has distinct benefits digital marketing simply cannot deliver.
1. Use Your Home-Field Advantage – With the current trend of increased support of local businesses, this is your time to really network within your community. A great way to do that is through print marketing.
2. Give Your Customers a Little Extra Attention – Send your customers, whether longtime or new, a little something in the mail now and again. Let them know that you appreciate their business and remind them of upcoming sales, discounts, and specials.
3. Introduce an Entirely New Target Market to Your Company – There’s no debate that there is a different set of people who only stay abreast of things through digital and online means and those who prefer the “old-fashioned” way—physical books, newspapers, magazines—to using modern technology. So, instead of choosing one method over another, why not use both?
It’s time to redefine the benefits and usefulness of print media. It may not be hot, new thing in modern marketing, but it has stayed around so long for a reason.
3 Simple Ways to Stand Out
Posted: 15 Feb 2012 09:24 AM PST
from Ray Edwards
When you are being compared to your competition, do your customers see any compelling difference? In today’s environment, they must! If they don’t, your business is already in trouble.
Here are three simple but compelling qualities that will make your business stand out from the competition:
1. Make a great first impression - not only in person, but with your website and marketing too
2. Respond quickly – how quickly you answer the phone and return calls and emails helps you build trust with your clients and prospects
3. Go the extra mile – give/do the unexpected, and always over-deliver
It’s not always easy to stand out – but it is usually simple.
Share Your Listings on Your Facebook Business Page – Instantly
Posted: 01 Feb 2012 11:11 AM PST
You may already know that Homes & Land makes it easy to market listings using social media. With a few clicks advertisers can share listings on Facebook and Twitter that automatically include the property photo and description, or post EZ Tours on YouTube.
We also give you a choice as to where and how to display your listings within your Facebook account. You can post listings individually on your Profile page, or include all your inventory on a dedicated “My Listings” tab on your Business Page.
Now you have a third option. From the same “Social Syndication” section of the Homes & Land Control Panel, advertisers can choose to post select listings on their Business Page wall. This way your new listings are shared with everyone who “likes” your page – instantly.
The Second Most Important Thing About Online Listings
According to Google, “mobile went mainstream in 2011” with increased smartphone and tablet usage – which means your listings not only have to be online to reach consumers, they have to be mobile-accessible too.
Nielsen reports that 44% of US mobile customers are using smartphones – up from 18% in 2010. With thousands more consumers having instant access to the Internet, it’s no wonder mobile browsing has increased 45% in the past year – not to mention the huge influx of Internet traffic from tablets (up 440% according to Google).
In fact, Google states “It’s not just that more people are using smartphones and tablets (though the numbers are skyrocketing at an accelerating pace)—it’s that a huge, and fast-growing base of smartphone users, now expect to engage with businesses on mobile.”
This is true for home shoppers too. HomesAndLand.com has seen an 186% increase in mobile traffic in the past year. That’s why mobile-enabled websites are included in our marketing package. Advertisers receive personal websites that are automatically formatted for smartphones and tablets at no additional charge. Which means no additional work for you to put your listings online – or on-mobile.
Hot Marketing Trend In 2012
Last month Bernice Ross, a Realtor and one of Inman.com’s best columnists, declared thatMicromarketing is the hot real estate marketing trend for 2012. Ms. Ross described micromarketing as “old-fashioned farming with a 21st Century twist.”
Micromarketing means marketing to an area where the residents’ demographics, lifestyle, and recreational pursuits match your own interests and expertise. Perhaps you target residences around a large recreational lake where people buy second homes or retire. This appeals to you because you are an agent who a. lives on the lake and b. owns a boat and likes to fish.
Ms. Ross uses AustinLakefrontProperties.com as an example of a micromarketing website, as opposed to a more common and generic URL like yourname.com. You should also use micromarketing to enhance Search Engine Optimization (SEO) and promote your social media efforts.
Ms. Ross reports that “agents who are having the best luck with this approach have integrated their print marketing efforts with their online marketing efforts.”
If micromarketing intrigues you, consider using Homes & Land’s Integrated Marketing Package. Your Homes & Land Publisher can help you reach a micromarket using direct mail.
A Homes & Land ad is also a great place to promote your Facebook page and blog. In addition, we feature QR codes that can be linked to a video promoting your micromarket.
You probably have a website, but with the Homes & Land package you receive an additional website that can be branded as a micromarket (e.g., TucsonGolfProperties.com). You can also backlink your Homes & Land site to your primary website for enhanced SEO.
As usual, Homes & Land is ahead of the marketing curve.
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Andrea Barrett-Casertano
Every week we will be posting new information on home buying and selling. We will present photos and short videos of homes for sale in Tucson and Southern Arizona. We'll also share short neighborhood videos to help you to get to know Tucson better and find your next new dream home.
Kathy Martinez
I am a Tucson native and attended Salpointe HS and University of Arizona, earning a Masters of Education with a Reading Endorsement. I taught Reading at Sunnyside HS, worked in sales, owned businesses.Two years ago, I started working with Andrea, a family friend. Have enjoyed learning the publishing business, the real estate business and especially Homes and Land. The company is innovative and the product can't be beat. It is a great service to be able to offer our clients, who I have come to know and enjoy. My friendship and respect for Andrea has grown over time. She is caring, innovative, hard working and especially FUN. We love working together to serve our clients. It's all good. :)
