Posted by Annalisa Burgos | April 17, 2009
It’s time for another fun-filled weekend of open houses. As you brave the gauntlet of brokers eager to get your business, here are some great tips and worksheets on FrontDoor.com to help you with your search or sale.
Buyers – Hopefully, you’ve done your research and know how much house you can afford and what to expect in the homebuying process. Check out the listings on FrontDoor.com. When you see a place you like, add it to your list of “must-see” properties. If you’re working with a buyer’s broker, he/she should have compiled a list of homes for sale that meet your criteria. Before you head out, master these tips for what to know and expect at an open house. Print out FrontDoor’s Homebuying Checklist and multiple copies of the Home Tour & Open House Worksheet. Fill one out for each property you see and like. And don’t forget your camera!
Sellers – Your real estate broker should have broken down the entire selling process to you and explained how to prepare your home for the open house crowd. For your easy reference, print out FrontDoor’s Home Selling Checklist and the Home Tour & Open House Worksheet. Make sure everything is ready to make that great first impression. Now, it’s up to your listing agent to sell your home to the potential buyers walking through the door.
Speaking of open houses, don’t forget to watch Open House Sundays on HGTV, starting at 10:30 a.m. See how homebuyers and sellers just like you are working the real estate market.
Posted by Annalisa Burgos | April 15, 2009
Judging by the lines at my post office this morning, a lot of people are waiting til the last minute to mail those tax returns. Kudos to those of you who have already received your tax refunds — April 15 is just another arbitrary date. If you’re a procrastinator like me, you’ve filed an extension so you can put it off for another day.
For homeowners, tax issues are always at the forefront of their minds, regardless of the date. Tax breaks are often touted as the biggest perk of owning a home, since you can deduct mortgage interest, property taxes and mortgage points for the year you buy. This year, an $8,000 tax credit for first-time homebuyers is enticing more newbie buyers to come out of the woodwork.
Any real estate transaction has an effect on your tax situation. Whether you’re selling a home or transferring a home to a family member, research the tax implications first.
Perhaps the most contentious tax issue for homeowners is property taxes. Local governments rely heavily on real estate tax revenue to balance their budgets. Today, as home values plunge in many markets, homeowners are asking that their properties be reassessed and their taxes lowered to reflect that sharp loss in value. If you want to appeal your property tax, contact your county assessor or the local government entity that handles real estate taxes in your area. Be wary of companies that claim they can get your property tax lowered if you pay them a fee. Oftentimes, you can start the appeal process yourself.
But don’t be too hopeful. It’s a recession and many cities are coming up short on their budgets. So even if you do appeal, they may simply increase the tax levy in order to get the same amount from you.
If you’re buying a home, do yourself a favor and estimate your property taxes yourself. Real estate listings show what the current homeowner pays, but oftentimes, the property is reassessed when a new owner takes over. Do the research so you aren’t unpleasantly surprised.
For more helpful tax tips, go to http://www.frontdoor.com/home-finance/FrontDoors-Top-10-Tax-Tips/54900. And remember to always consult your tax professional before taking any action.
Posted by Annalisa Burgos | April 10, 2009
Everytime I tell people I work for HGTV, they immediately tell me how much they looooove “House Hunters.” Most of these people aren’t actively looking to buy a home, so I ask why. And the response is pretty much the same across the board — “I love looking at houses.”
Imagine that. People who just want to look at houses. Well — ask, and you shall receive. We’ve got just the thing to unleash your inner property voyeur.
FrontDoor’s “Cool Houses Daily” gives you an exclusive peek into an amazingly cool house each day. And by cool, we mean homes with over-the-top features like panic rooms and helipads, celebrity-owned homes or even a house that supposedly will extend your life!
Safe to say HGTV has mastered the art of showcasing homes and bringing the excitement and drama of homebuying and selling to viewers who can not only relate, but want to be part of it (i.e. how can I get HGTV to redo my kitchen?).
So it was only natural for HGTV to launch FrontDoor.com, with the goal of reaching the millions of Web-savvy consumers who are not only actively buying or selling a home, but those who are just genuinely passionate about the idea of “home” and real estate. You’ve probably already seen the extensive how-to guides and expert tips on the site. But how cool is it to check out some of the most unique homes on the market?
So stop by everyday: http://www.frontdoor.com/coolhouses. You’ll get a daily dose of interesting properties you never knew existed. Who knows? It may motivate you to start house hunting or at least see what other unusual homes are out there. And if you know of a cool house for sale, email a description and photos to coolhousesdaily@frontdoor.com. We could feature it on CHD.
Posted by Annalisa Burgos | April 7, 2009
If you’ve got $150 million to burn and you’re a huge fan of classic TV series like “Dynasty” and “Beverly Hills 90210″, we’ve got a home for you.
The widow of legendary TV producer Aaron Spelling is downsizing and has listed their 56,000-square-foot monster mansion in Los Angeles at a whopping $150 million.
Dubbed “The Manor,” the estate spans nearly 5 acres on South Mapleton Drive in the exclusive Holmby Hills neighborhood. The three-story home features a dozen bedrooms, two dozen bathrooms, a high-tech screening room (for watching all those great episodes of 90210!), library, gym, doll museum, bowling alley, wine cellar and a beauty salon/barber shop in the finished attic. The estate includes 16 car ports, a tennis court, pool/spa complex and several gardens. And best of all, the Playboy Mansion is nearby!
You’d think that with a recession going on, buyers would bulk at the price tag. But that doesn’t seem to be the case.
“We already have interest from both local and foreign buyers, even though it is very early in the process,” said Sally Forster Jones of Coldwell Banker Previews International, who shares the listing with Hilton & Hyland/Christie’s Great Estates. “The Manor is a property unlike any other. A property of this pedigree comes on the market once a decade, if not, once in a century. For that reason alone, discriminating buyers recognize it as a once-in-a-lifetime opportunity.”
If this McMansion is out of your price range, Candy Spelling is selling another property in nearby Century City for a mere $4.8 million. The more “modest” home in the gated Century Woods community has 5 bedrooms and 5 bathrooms.
If that one isn’t for you, check out thousands of other homes for sale in Los Angeles. With home prices in the City of Angels falling (as they are in many markets), you’re sure to find a home perfect for your price range.
And if you’re not buying but are just really into cool homes, check out “Cool Houses Daily” on FrontDoor.com. These homes are too cool to miss and they’re for sale!
Posted by Annalisa Burgos | April 2, 2009
As they say, April showers bring May flowers. And in real estate, it seems like all the elements are in place for a perfect storm heading into the prime Spring season.
News headlines are proclaiming “falling home prices” and “interest rates at record lows.” Throw in record levels of foreclosures on the market, and you’ve got a trifecta for a Spring homebuying spree.
We already started to see the trend in February, when the National Association of Realtors’ reported a 5.1 percent jump in existing home sales, citing a surge in distressed home sales. And with the latest S&P Case-Shiller Home Price Index showing home prices in 20 major cities down 19 percent from a year earlier, this trend is likely to continue.
Speaking of home prices, what are today’s sellers supposed to do when trying to price their homes? Yes, they’re supposed to be using comps to determine fair market value. But if you’re competing with foreclosures, short sales and just desperate (er, motivated) sellers, it screws up the whole paradigm. Not sure if you can really call all this “fair.” Unfortunately, that’s the reality of selling in this market. So if you have no choice but to sell now, buck up, get realistic, research what’s happening in your market and try these tips on how to price your home to sell, courtesy of FrontDoor Insider and San Diego Realtor Kris Berg. And real estate guru Barbara Corcoran shares her top 4 must-do tips, including one on pricing your home.
Home values aren’t what they used to be. But the ways to determine home value won’t change. Sellers, get back to the basics and check out FrontDoor’s Home Seller’s Guide, specifically steps 7 and 8.
And buyers, we’ve got tips for you too. FrontDoor’s Top 10 for April features our Top 10 Bargain Markets for Homebuyers. And check out steps 9-10 of FrontDoor’s First Time Homebuyer’s Guide. Just because prices and interest rates are falling doesn’t mean everything is an automatic bargain. You’ve still got to do your due diligence.
Happy house hunting and selling!
Posted by Annalisa Burgos | March 27, 2009
I’m about halfway through my 75-hour New York state real estate licensing course, and each class gets more and more amusing. It’s like any other classroom setting — you’ve got the students who ask random questions (”why do we need to learn about property insurance?”), students who act like they know everything (”I’m a property manager so I already knew that”), and students who just observe and take it all in (that’s me).
Literally anyone can get a real estate license. All you need is to be at least 18 years old, pay about 500 bucks for 75 hours of training, and pass a school exam and a state exam. No high school or college education required. No hundreds of thousands of dollars in tuition fees. No experience necessary. All you need is the dedication to get deals closed.
The housing boom may be over, but you can’t tell with how many people are clamoring to be real estate agents. And from talking to some of these people, many are looking to capitalize on one of the hottest buying markets in history. Obviously, this is the best time to be an industry insider.
When I lived in Knoxville, my husband and I wanted to buy a house and went house hunting several times a week. Being investors, we were often surprised to find that many of the homes on the market were owned by real estate agents. It seemed like the agents were buying properties from sellers, making superficial fixes and then putting them on the market at a higher price to make a profit, in one word — flipping.
In a recent class, the teacher said flat out, “This business is not about showing houses. It’s about investing in properties and building your wealth. That’s where the real money is.” And true enough, many of the students agreed that that’s why they’re getting their licenses – to get first dibs on bargains and position them for personal gain.
As we continued to talk about things like ethics and good business practices, I’m concerned about the ethical implications. Personally, I think there’s nothing wrong with agents who are in the biz to flip houses. Heck, if I find a bargain, I may do it as well. But where it gets murky is when an agent’s true intentions are hidden behind promises to be true consumer advocates. Like when a seller says he wants X amount for the house but the agent knows it’s worth more and buys it so he can flip it himself. Or when a buyer is looking at a house and the agent tells him it’s a great buy, though he knows it’s a flipped property. Agents who don’t make their intentions clear are at risk when the public gets wise.
The best way for consumers to protect themselves is to arm themselves with their own research and information. That way, they can tell the difference between a true agent and someone who’s just in for the flip. Ask friends and family for referrals and interview at least three agents before choosing one. Get to know the buying process with FrontDoor’s First Time Home Buyer’s Guide, which gives easy-to-follow, step-by-step information from evaluating your finances to closing escrow. We also offer tools to research homes for sale, cities and neighborhoods, recent sales prices, how much mortgage you can afford and more. It’s all incredibly empowering!
With all this information, today’s smart consumer wants a trustworthy, dedicated real estate agent. Even if an agent has his/her own investments on the side, quality customer service is still the benchmark of this profession.
Posted by Annalisa Burgos | March 26, 2009
Now that Twitter is mainstream — with politicians and former naysayers now regularly tweeting (moi, for one) — every industry is trying to figure out how to use this tool to its advantage.
The news industry, for one, is finding it very useful when reporting and finding sources, especially during breaking news events like the terrorist attacks in Mumbai.
Real estate, meanwhile, is still trying to figure it out. Most real estate professionals have a Web site (maybe with a blog) and a Facebook profile, but many will tell you that they are too busy to Twitter or don’t see the value in doing so. After all, if you Twitter four or five times a day about yourself or your brand, don’t you risk diluting your brand, or even worse, turn off people with your constant self-praise?
Yes, and that’s the problem. Companies — real estate and otherwise — shouldn’t be thinking of social media networks like Facebook, LinkedIn and Twitter as straight-up advertising and marketing vehicles, where you plaster your name and expect clients to flock to you. Most people are like me — they’re not going to scour Facebook for a Realtor. But I may tell a friend of a friend that I’m looking to buy a house, and if you (the Realtor) have a relationship with that friend, I may get referred to you.
Think of it this way — you’re at a networking event and you meet that guy who is pushing his business card in your face as soon as you say hello. No one likes that guy. On the other hand, you’re more likely to reconnect with the guy who explained the ebb and flow of mortgage rates to you.
So think broad reach and long-term — think of these social networks as bridges to a ginormous audience, bridges that never existed before, but have the huge potential of helping you build relationships. They are called “social networking” services, not “marketing” services, after all.
Millions of people are on these networks having genuine real estate conversations. Whether it’s a person complaining about the buying process or a seller trying to hawk his home that’s been on the market for 8 months, people are talking about real estate.
And some agents are generating leads by joining these conversations and sharing their expertise, without the in-your-face marketing tactics. Find out how they did it in FrontDoor’s article “Twitter Your House and Friend a Realtor on Facebook.”
Speaking of social networking, you can follow FrontDoor.com on Twitter at www.twitter.com/HGTVFrontDoor and join our fans on Facebook at www.facebook.com/pages/FrontDoorcom/18669721826.
Posted by Annalisa Burgos | March 24, 2009
It looks like it’ll be a promising Spring for real estate. Buyers are back in the market, drawn to falling home prices, low interest rates, potential bargains in the form of foreclosed homes and short sales, and incentives like the $8,000 first time buyer tax credit. In fact, first-time buyers bought half of the homes sold in February, says the National Association of Realtors.
Of the existing homes sold in February, distressed sales — which involve a foreclosure property or a homeowner doing a short sale — accounted for 40 percent to 45 percent, pushing overall activity up 5.1 percent but dragging median home price down more than 15 percent, according to NAR. Sales are still down 5 percent year-over-year.
Distressed homes typically sell for 20 percent below normal market price, so it’s not surprising to see first-timers drawn to these properties, especially if they are move-in ready or require minimal repairs.
If you’re one of the many bargain hunters out there, check out FrontDoor’s Foreclosure Guide for tips and advice on buying a distressed property. Did you know foreclosure homes sold at auction are typically sold “as-is” and require a 10 percent to 20 percent cash deposit upfront?
The bad news is that sellers are competing with these heavily discounted properties. So even if you have a well-maintained property, you may have a hard time selling it, even if it’s priced reasonably.
Market value is just that — value dictated by the market, i.e. what a buyer is willing to pay for your home. It’s not what you paid for your home. It’s not what you paid for your home and all the wonderful home improvements you made.
The reality is that if your home is competiting against foreclosures and short sales, finding a buyer may end up coming down to price.
Posted by Annalisa Burgos | March 20, 2009
Happy first day of Spring! In celebration of the traditional kickoff to the busiest season for real estate (and this one will definitely be busy, what with interest rates as low as 4.3 percent!), FrontDoor.com is bringing you helpful tips to make the most of your homebuying and selling experience.
Sellers, we know this may be a challenging market, but the good news is that you have the potential to showcase your home to a large number of buyers who are out in force trying to take advantage of low interest rates. If your home is in great shape and priced competitively, you’ll have every buyer’s attention. You may even spark a bidding war. Get your home ready with our Staging Tips for Spring and be sure to visit FrontDoor’s Home Selling Guide for more tips and advice on selling in a buyer’s market.
Buyers, you’re in a wonderful position! There are great deals out there. But before you start looking for houses, call at least three lenders, compare rates and terms, and get a preapproval. It’ll help you determine how much house you can afford. Check out our Home Finance Guide for more tips and advice on shopping for a loan.
If you’ve never owned a home, check out FrontDoor’s First Time Homebuyer’s Guide. We’ve broken down the entire process in simple terms, complete with checklists and worksheets, so you’ll know exactly to expect. Did you know there are cities suited for first time homebuyers?
And buyers and sellers, consider going green in honor of spring. FrontDoor’s Green Real Estate Guide is chocked full of information on how to make affordable green updates and how to find a “green” home.
Happy house hunting and selling!
Posted by Annalisa Burgos | March 18, 2009
After months of doom and gloom headlines, the housing market finally had a positive one: “Housing Starts Leap a Surprising 22.2% in February.” That’s the biggest gain in nearly two decades. Stocks of homebuilders Toll Brothers and Pulte Homes and home improvement retailer Home Depot shot up on the news, leading a nice market rally. And news outlets even started using the word everyone wants to hear — recovery.
But hold on. This”positive” housing news isn’t exactly the miracle turnaround we’re waiting for. Dig deeper and you’ll find that the new home construction market is simply stabilizing after a 17% plunge in January and three straight months of double digit drops. Housing starts were at a record low in January, so this recent surge is just the market gaining back some ground. Even the National Association of Home Builders downplayed the news in their press release:
“Nationwide housing starts turned upward for the first time in eight months this February, posting a 22.2 percent gain that was due primarily to a big bump on the often-volatile multifamily side, according to numbers released from the U.S. Commerce Department today.
“While welcome news, this gain only reflects a modest rebound from January, which was the worst month in history for new-home production,” said National Association of Home Builders (NAHB) Chief Economist David Crowe. “The majority of the gain was due to characteristic volatility on the multifamily side, while single-family housing starts were up just over one percent for the month.””
Year over year, new home starts are down 47%, so the industry has quite a long way to go before we can even think “recovery.” Market analysts and economists expect the housing market to continue to hurt through next year, with people losing their jobs, foreclosures flooding the market and inventory growing.
The good news is that homebuyers can great deals on the new homes already on the market. Builders are offering enticing financial incentives and upgrades to unload their excess inventory.
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