Now that I'm with GraphicalData I am having more focused discussions with real estate agents and their brokers about websites. One of the things I've quickly learned is that you can not have a "website" discussion without having a "marketing" discussion.
Too often agents want to jump in and order up a website so they can check that task off some list they have in hand. Later, when the going gets rough financially they jettison the website because it is not meeting their needs.
Before getting the website ask yourself some questions, this may require a bit of introspection:
1) What kind of business do I want to do. Am I focusing on residential resale, commercial, new construction, condos.......etc
2) Write a paragraph describing your perfect buyer
3) Write a paragraph describing your perfect seller(in both cases be specific to type of home, geographic location, qualifications of the buyer or seller)
4) What are your goals for the website?Be realistic here. Come up with a number that you can logically work toward.
5) How much am I willing to spend?This has to be a realistic number that will not change with the market. Too often agents and companies spend lots of money when the market is good and pull it all back when things get tough. The key word here has to be "consistency". Granted, you may invest more as you have more to invest...but you should always have a core marketing effort going on. Note...I use the word "invest" on purpose. Dollars you spend are either to improve your business, have a goal and measurement attached or it is a charity. Too often business people mistake the two.
6) How am I going to track my success?
With this information you will be able to tailor your site to meet the needs of the people you are trying to attract and keep as customers. Don't try to make one site do too much. If you do residential sales and property management you may want to consider two separate websites, otherwise you dilute your message and will make it harder for your site to show up on the first page or two of search engine rankings.
Now that you are sitting down to actually start planning the website looks are important but only go skin deep as the old saying goes. Content is king. I'm running across good, hard working agents who have invested a lot of money into a website that looks good but has no real content. Make sure your website developer can and does provide the IDX feed for your site. Without it you will not be able to provide interactive home searches for your clients, nor will you be able to use many of the tools that make a great site like flyer makers, CMA tools or automatic e-mail notification services.
Real Estate Loan, Interest Rate Chart for 13 months
As a buyer you just have to ask yourself...how much better can it get. Buyers and Sellers for that matter have been asking my agents if we are at the bottom of the market.
I think we are "within" the bottom. Don't know if that is going into or out of the bottom (won't know that until we look back after six months) but we are certainly within the bottom. Buyers who wait are faced with the likely hood that they will miss the bottom and loose because a jump in .5% will offset any further price drop. Chances are in 6 months that rates will be higher than they are today.
Bottom line, if you want to gamble, go to Las Vegas. This is not gambling. If you are going to own your home for the next 5 years or so this is an investment. Remember....I'm a big believer in flipping houses.....the slow flip.....buy, hold for 4 to 6 years then sell.
Trying to do too much with one website
Over two years ago I developed a website www.FranklyRealEstate.com which led to this blog. Even then Ozzie, the guy at Graphical Data who helps me with all things web, cautioned me that the site was too broad. I was trying to make it be all things to all people.
Last week I met with Ozzie and we developed a new plan. Essentially I'm breaking down my one website into two which in turn will roll out a second blog as well. The goal is to focus the information and tools to a smaller group.
www.FranklyRealEstate.com will focus on home buyers and sellers. It will address questions and concerns a typical home buyer or seller might have in today's real estate market. Search for homes, learn about neighborhoods and schools and pick up a little education about the process along the way. This blog will be restructured to pick up the day to day conversations that goes on and refer readers to the website just as you would refer to a reference book.
The new website will be www.MyRealEstateCareerBuilder.com and the new blog will we www.MyRealEstateCareerBlog.com. These will address concerns that real estate practitioners might have. Getting started in real estate, classes to take, technology to use, interesting changes in the market and the like.
Needless to say there is a lot of work ahead to string up my new portion of the net. Fortunately I'm passionate about the topic and eager to share what is happening in our neck of the woods.
Feel free to check out these new sites and learn along with me. I'm setting up the blog first. This gave me a chance to try out a new platform....wordpress. Because I've settled on a specific template I had to have my blog hosted for me, not hosted within wordpress or like this one within Blogger. As I go I'll try to share all of the things I learn....Let me bump my shins as I work through this unfamiliar room called wordpress and hosting. I'll give links as well so you can check out the choices I've made.
Wordpress
Dreamhost (Put the word "Frankly" in the coupon code for a free domain and save $10)
Thesis (template for blog)
GraphicalData (designs real estate websites for agents and companies)
Last week I met with Ozzie and we developed a new plan. Essentially I'm breaking down my one website into two which in turn will roll out a second blog as well. The goal is to focus the information and tools to a smaller group.
www.FranklyRealEstate.com will focus on home buyers and sellers. It will address questions and concerns a typical home buyer or seller might have in today's real estate market. Search for homes, learn about neighborhoods and schools and pick up a little education about the process along the way. This blog will be restructured to pick up the day to day conversations that goes on and refer readers to the website just as you would refer to a reference book.
The new website will be www.MyRealEstateCareerBuilder.com and the new blog will we www.MyRealEstateCareerBlog.com. These will address concerns that real estate practitioners might have. Getting started in real estate, classes to take, technology to use, interesting changes in the market and the like.
Needless to say there is a lot of work ahead to string up my new portion of the net. Fortunately I'm passionate about the topic and eager to share what is happening in our neck of the woods.
Feel free to check out these new sites and learn along with me. I'm setting up the blog first. This gave me a chance to try out a new platform....wordpress. Because I've settled on a specific template I had to have my blog hosted for me, not hosted within wordpress or like this one within Blogger. As I go I'll try to share all of the things I learn....Let me bump my shins as I work through this unfamiliar room called wordpress and hosting. I'll give links as well so you can check out the choices I've made.
Wordpress
Dreamhost (Put the word "Frankly" in the coupon code for a free domain and save $10)
Thesis (template for blog)
GraphicalData (designs real estate websites for agents and companies)
Bremerton Condo Sales
We recently had a new event in Bremerton, which is a city in Kitsap County Washington, an auction of a condo project called The 400. Carol Sue Rogers, the Broker of our Bremerton office wrote this article for our newsletter.
The auction of The 400 by Carol Sue Rogers
The highly publicized and much anticipated “400 Auction” took place a few Sunday’s back. There was quite a buzz in Bremerton and a lot of uncertainty of what the auction really meant.
NBC nightly news ran a story and several local newspapers covered what they perceived as more doom and gloom in the real estate market place. Buyer’s perception was that the building was in foreclosure and they could get a luxury waterfront condo for $109,000.
The auction company is a real estate company with a different method of selling real estate. It is a way to generate activity on their listing. With gorilla marketing efforts which included folks on street corners waving signs, it definitely got attention and the free advertising the media provided it is no surprise it received so much attention. This idea is new to our area and buyers lined up with hopes and dreams of buying a luxury waterfront condo for pennies on the dollar. Many left disappointed with the final outcome.
Below is an example of some of the sales information that we were able to obtain. Final results of the 28 units that were auctioned: 18 are currently sold/in escrow ~ 2 flipped at auction and 8 bids were rejected. The unsold units will be rented for the next few years through a corporate rental service.
| Unit – Floor Plan | Original List Price | Starting Bid | Final Bid | Actual Cost after Buyer premium | Results |
| | | | | | |
| 212 Enetai | 209,900 | 109,000 | 175,000 | 183,750 | Accepted/SOLD |
| 300A Illahee | 289,900 | 139,000 | 195,000 | 204,750 | Accepted/SOLD |
| 113 Sinclair | 399,900 | 209,000 | 225,000 | 231,000 | Accepted/SOLD |
| 205 Manette | 569,900 | 269,000 | 380,000 | 399,000 | Accepted/SOLD |
| 112 Veneta | 459,900 | 249,000 | 350,000 | 367,500 | Reserve Met/Sold |
| 108 Sedgwick | 897,900 | 409,000 | 610,000 | 645,750 | Accepted/SOLD |
| 111 Keyport | 317,900 | 165,000 | 220,000 | 231,000 | Seller Rejected |
| 301 Illahee | 327,900 | 159,000 | 217,500 | 228,375 | Seller Rejected |
| 114 Sinclair | 399,900 | 199,000 | 215,000 | 225,750 | Seller Rejected |
| 400 Veneta | 489,900 | 249,000 | 310,000 | 325,500 | Seller Rejected |
So what else did we learn…..
1. Over 1200 previewed the property, less than 100 attended the auction and approximately 35 were registered bidders. Only 3 of the bidders were from outside Kitsap County.
2. National media attention on your listing doesn’t guarantee a higher sales price.
3. A property that is being auctioned does not always mean it is in foreclosure.
4. Market Value was just established on New Waterfront Condos in Bremerton.
5. The auctioneers commented that this was a tough crowd. Tuxedos and all , they just couldn’t Kitsap County buyers to bid to the undisclosed reserve amount on 25 of the 28 units.
Kitsap County, WA, Real Etate Graph
This is a great snap shot of what is happening in Kitsap County, WA.....From a Real Estate prospecitve:
Note the red line which indicates pending is trending up. This will lead to a more balanced market if the trend continues. As pending goes up, invenory will go down.
We currently have over 2400 homes on the market in Kitsap County. I've seen a low in the lower 700 range and this is a high. I would like to see it closer to 1500 or so. Stay tuned....the adventure continues.....................
Bullet points from changes of new RCW 18.85. Real Estate License law in Washington State
For those of us who were involved in these changes a few years ago....this comes as a bit of a surprise. It appears that the revisions to WA States real estate license law has now been brought before our state legislators and is now ready for the Governors signature.
Though this was a hot topic 2 or 3 years ago many of us thought this had been stalled and set aside. It is time to start letting our agents know that this is now our future. Like many changes of this nature there will be some who are happy about the change and some....not so much. This has been a long time coming. Our industry has changed a lot since RCW 18.85 was last addressed.
Below are "Just the facts Mam" I'm sure there will be a lot of discussion about how this will affect our industry, our agents and the consumer.
Three levels of Broker:
Designated Broker
Managing Broker
Broker
New Licensees for Broker:
90 clock hours to sit for the Brokers exam
First renewal additional 90 clock hours
Managing Broker:
3 years as a Broker
90 clock hours of instruction (specialized classes)
Pass an examination
Designated Broker:
Licensed as a Managing Broker
Registered by DOL as a Designated Broker
Designated Broker may act as such for more than one firm
Renewals:
30 hours for each 2 year renewal
15 hours may be carried over from previous 2 years
Non licensed people may provide referrals to licensees provided their compensation is not contingent upon receipt of compensation of the licensee.
Licensees (all three flavors) must be fingerprinted and have a background check conducted. The Director may institute a schedule by which this information is renewed on a regular basis.
If a Broker is in a position to supervise or exercise control over other Brokers they must be licensed as a Managing Broker.
During the first two years a new Broker must have a “heightened level of supervision” provided by a Managing Broker.
Licensees must now provide a copy of singed documents to their principles “within a reasonable time after signing”. (instead of at the signing of those documents)
A salesperson will now be considered a Broker and must take a transitional course prior to their first renewal after this goes into effect.
The real estate market, much the same but at least we are used to it.
Well here we are, almost through the first quarter of 2008. By now many thought we would be through the tough times. I think realization began to set in towards the end of 2007 or certainly by mid February as more and more sub-prime woes spilled out.
So...where are we now? I actually think we are better off this year than last. Even if it is a psychological factor of once you get past the shock you begin to acclimate. Sellers are becoming more realistic about their homes value. Agents are focusing more on sold data. Buyers are asking more questions about their loans and are actually much more informed than I think in the past.
Where we are is not all that bad, at least in this neck of the woods. I'll hear agents indicate it will be another year before we are done with this......do they think someone will through a switch at 12:53 pm on April 18, 2009 and the market will return to what it was 3 years ago??? What we will be seeing is a slow increase in market health. None of us want it to shoot upwards, just a nice slow improvement.
What does improvement look like? 1)Reduced inventory, we currently have 2259 listings on the market in Kitsap County. Getting below 2000 will indicate we are headed in the right direction. I've seen a low of 700 or so. 2) Slight increase in sales. Last week we had 45 homes go into a pending state. This means we currently have 50 weeks of inventory, certainly a buyers market. Both of these items will help to bring down our "days on market" which is currently 98...which is not bad compared to other parts of the country that are well into the triple digits. It will also allow homes to begin a more sustainable value growth. A 3% to 5% increase in your homes value each year is a nice place to be.
So...where are we now? I actually think we are better off this year than last. Even if it is a psychological factor of once you get past the shock you begin to acclimate. Sellers are becoming more realistic about their homes value. Agents are focusing more on sold data. Buyers are asking more questions about their loans and are actually much more informed than I think in the past.
Where we are is not all that bad, at least in this neck of the woods. I'll hear agents indicate it will be another year before we are done with this......do they think someone will through a switch at 12:53 pm on April 18, 2009 and the market will return to what it was 3 years ago??? What we will be seeing is a slow increase in market health. None of us want it to shoot upwards, just a nice slow improvement.
What does improvement look like? 1)Reduced inventory, we currently have 2259 listings on the market in Kitsap County. Getting below 2000 will indicate we are headed in the right direction. I've seen a low of 700 or so. 2) Slight increase in sales. Last week we had 45 homes go into a pending state. This means we currently have 50 weeks of inventory, certainly a buyers market. Both of these items will help to bring down our "days on market" which is currently 98...which is not bad compared to other parts of the country that are well into the triple digits. It will also allow homes to begin a more sustainable value growth. A 3% to 5% increase in your homes value each year is a nice place to be.
2007 Year End Real Estate Letter
I hope this annual letter and calendar find you and yours doing well. Please note that your calendar starts on December 1st so go ahead and start planning next year today.
2007 has been an interesting year in real estate. The good news is the northwest has done very well in these turbulent times (except Tacoma Pierce). Even though we have seen our value increases flatten, our inventory grow and our market times lengthen we are still far better off than many other areas.
Some Stats comparing 2007 to 2004-2006 in Kitsap County (through Nov. 1 2007)
2004 2005 2006 2007
# of New Listings: 5038 5237 5634 6007
# of transactions: 3823 3871 3406 2836
Avg. Days on Market: 65 58 63 89
Avg. Sale Price $254,809 $307,235 $336,299 $367,730
You have heard a lot of talk about our real estate market. Much of the discussion has been framed by the media in a very negative light. When you add to it new highs for the price of oil, a lot of discussion about subprime lending and a falling stock market there is some room for jittery nerves. Real estate is a very local discussion. Sweeping generalizations of the real estate market cannot do it justice, you have to talk with local Realtors to get the straight scoop about their area.
Some facts about our area that make it a great place to live, buy and own a home. Our economy seems to be stable, unemployment is at 4.2%. Though subprime loans in the US accounted for upwards of 20% of the loans made in 2006, in our area only 8% of them were subprime. Money Magazine has listed Silverdale in their top 100 list of best places to live. We are close to the amenities of a large city without having to live with the drawbacks. The increase of population in Washington state for the foreseeable future will continue to outstrip construction.
As promised in last year’s letter, our market has shifted from a seller’s market to a buyer’s market. Though sellers are having to be a bit more patient than years past, and cannot afford to be as aggressive with their pricing, homes are still selling. Buyers are in the best position right now. There is plenty to choose from, sellers are being a bit more negotiable and interest rates continue to stay low.
I believe this trend will hold through the first half of 2008, we should begin to see a shift next summer or early fall. If you are thinking of investing in real estate I would recommend doing so before the end of the first quarter 2008. As this cycle works through, the fed will feel pressure to increase interest rates.
I’ve included with this year’s letter a graph showing how our inventory has grown. Should you have any questions about the graph or other market statistics let me know.
Please have a wonderful holiday season and a safe, healthy and prosperous new year. Should you know of anyone thinking about buying or selling real estate in 2008 please let me know or if you just want a market update please feel free to call or check out one of my web resources. Web Page: www.FranklyRealEstate.com or my Blog: www.FranklyRealEstate.Blogspot.com.
PS....sorry for the formating. Blogger just has never done well with cut and paste from MS Word.
Washington State Foreclosure Facts
Just the word "foreclosure" can send many running or begin to make a person sweat. It carries such negative energy that I think it needs to be put into perspective in Washington state.
Current foreclosure rate in WA:
.49 %
Current foreclosure rate in the U.S.:
1.4 %
1997 foreclosure rate in WA:
.5 %
1997 foreclosure rate in the U.S.:
1.08 %
Even though there is a lot of press right now about foreclosures the nation and WA state are actrually down from highs in 2001/2002 when WA reached 1.24 % and the Nation was 1.51%.
Without perspective the media can drive our real estate market into a holding pattern. Buyers will stop buying and sellers will stop putting their homes on the market.
Bottom line.....this may be the best time that I have seen in 17 years to purchase in our area. There are a lot of homes to choose from, Sellers are much more flexible and to top it all off....interest rates continue to stay very low. To those that ask the question "will interest rates go lower" I respond maybe....but it is not worth the risk. With rates being so low, there is a better chance that they will be higher 12 months from now than they will be lower.
Current foreclosure rate in WA:
.49 %
Current foreclosure rate in the U.S.:
1.4 %
1997 foreclosure rate in WA:
.5 %
1997 foreclosure rate in the U.S.:
1.08 %
Even though there is a lot of press right now about foreclosures the nation and WA state are actrually down from highs in 2001/2002 when WA reached 1.24 % and the Nation was 1.51%.
Without perspective the media can drive our real estate market into a holding pattern. Buyers will stop buying and sellers will stop putting their homes on the market.
Bottom line.....this may be the best time that I have seen in 17 years to purchase in our area. There are a lot of homes to choose from, Sellers are much more flexible and to top it all off....interest rates continue to stay very low. To those that ask the question "will interest rates go lower" I respond maybe....but it is not worth the risk. With rates being so low, there is a better chance that they will be higher 12 months from now than they will be lower.
U.S. Housing Market Update
Just reviewed a report from the Office of Federal Housing Enterprise Oversight.
This one paragraph gives a big overview:
The states with the greatest rates of appreciation between the third quarter of
2006 and the third quarter of 2007 were: Utah (12.9%), Wyoming (11.8%),
Montana (7.7%), New Mexico (7.4%), and Washington (7.0%). The states
with the largest depreciation for the same period were: Michigan (-3.7%),
California (-3.6%), Nevada (-2.4%), Massachusetts (-2.3%), and Rhode
Island (-2.2%).
The full report can be seen here....
This one paragraph gives a big overview:
The states with the greatest rates of appreciation between the third quarter of
2006 and the third quarter of 2007 were: Utah (12.9%), Wyoming (11.8%),
Montana (7.7%), New Mexico (7.4%), and Washington (7.0%). The states
with the largest depreciation for the same period were: Michigan (-3.7%),
California (-3.6%), Nevada (-2.4%), Massachusetts (-2.3%), and Rhode
Island (-2.2%).
The full report can be seen here....
Silverdale WA voted in top 100 of best places to live 2007.
Those of us who are fortunate enough to live in the area have known it for years. Silverdale was chosen as one of Money Magazine's best 100 places to live in 2007.
See the stats here:
Silverdale top 100 best places to live.
See the stats here:
Silverdale top 100 best places to live.
Response to Mad Money’s, Jim Cramer’s comments about real estate on the Today Show
Response to Mad Money’s, Jim Cramer’s comments about real estate on the Today Show:
Jim Cramer is as sharp as they get when it comes to stocks but missed some basic points about real estate.
Buying real estate is not like buying stock. You don’t buy houses low today and sell them high in a few days. Buying a home is a long term vision. How long term depends on your situation and the local economy.
My advice to buyers:
1) Look at your situation. If you are only going to live in the area for a year or so, buying a house may not make sense. If you are going to own this next home for 3 or more years it begins to make more sense in a normal market.
2) Talk with your local Realtor. They know the market history, they know the current inventory and they know the current influences on today’s market in their area.
Generalizing about the real estate market in the United States is as dangerous as generalizing about stock investments. I think even Jim would agree that in a bear market there are still specific companies or sectors that are doing well and would be a good investment even though a large part of the market is down.
Jim Cramer is as sharp as they get when it comes to stocks but missed some basic points about real estate.
Buying real estate is not like buying stock. You don’t buy houses low today and sell them high in a few days. Buying a home is a long term vision. How long term depends on your situation and the local economy.
My advice to buyers:
1) Look at your situation. If you are only going to live in the area for a year or so, buying a house may not make sense. If you are going to own this next home for 3 or more years it begins to make more sense in a normal market.
2) Talk with your local Realtor. They know the market history, they know the current inventory and they know the current influences on today’s market in their area.
Generalizing about the real estate market in the United States is as dangerous as generalizing about stock investments. I think even Jim would agree that in a bear market there are still specific companies or sectors that are doing well and would be a good investment even though a large part of the market is down.
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