Real Estate Sifter

RISMEDIA, July 29, 2010—Reflective of the real estate buyers’ market conditions in many regions in the U.S., satisfaction with real estate companies among home buyers has improved from 2009, while satisfaction among home sellers has declined, according to the J.D. Power and Associates 2010 Home Buyer/Seller Study.

The study, now in its third year, measures customer satisfaction of home buyers and sellers with the largest national real estate companies. Overall satisfaction is determined by examining three factors for the home-buying experience: agent/salesperson; office; and variety of additional services. Four factors are examined for the home-selling experience: agent/salesperson; marketing; office; and variety of additional services.

Overall satisfaction among home buyers averages 803 on a 1,000-point scale in 2010—increasing by 12 points from 2009. This improvement is primarily driven by increased satisfaction with agents and salespersons. In contrast, overall satisfaction among home sellers has declined by 40 points from 2009 and averages 742 in 2010. Among home sellers, satisfaction has decreased in all four factors, with the largest declines observed in marketing of the home and the variety of additional services offered.

“Among both home buyers and home sellers, the importance of agents and salespersons has increased substantially in 2010, compared with 2009,” said Jim Howland, senior director of the real estate and construction practice at J.D. Power and Associates. “Buyers are increasingly relying upon negotiating skills of agents and seem to be satisfied with the purchase prices they are obtaining. Despite the fact that selling agents appear to be doing a good job of negotiating and marketing on behalf of home sellers, the tough economic conditions are negatively impacting their overall satisfaction with real estate companies.”

In the home-buyer segment, Keller Williams ranks highest for a third consecutive year, with a score of 817 on a 1,000-point scale. Keller Williams performs particularly well in the agent and office factors. Following in the rankings are Prudential (811) and Coldwell Banker (805). Prudential performs well in the additional services category.

Among home sellers, Prudential ranks highest with a score of 760 and performs particularly well in the marketing and agent factors. Prudential is the only company to improve in home-seller satisfaction in 2010, compared with 2009. Following Prudential in the rankings are Keller Williams (751) and RE/MAX (744). Keller Williams performs particularly well in the office factor.

The study finds that fewer than one-half of home buyers and sellers indicate their agent asked them to provide a referral or recommendation to a friend or family member.

“Positive recommendations are a critically important driver of new business for agents, and there is ample opportunity for improvement in this area,” said Howland. “Particularly during tough times in the real estate market, asking for referrals and recommendations should be considered an essential part of doing business.”

J.D. Power and Associates offers the following tips to consumers who are buying or selling a home:

- Finding the right agent to suit your specific needs is critical. J.D. Power research has consistently demonstrated that having the right agent is critical to a satisfying home-buying or -selling experience. Due to the unique nature of real estate transactions, clients often form bonds with their agents, as a single buying or selling transaction can take several months or more to complete. For customers who have previously bought or sold a home, the right agent might be someone they’ve worked with successfully in the past. For first-time buyers, seeking recommendations from friends, relatives and colleagues is critical. Increasingly, agents and brokers are advertising their services on the Internet, so this can be a good starting point for research, particularly for someone moving far away from their current location.

- In addition to a buying or selling agent, consider the additional services you may require. Buying and selling a home is a complex undertaking with many “moving parts” to consider. In addition to the real estate agent you work with, you may also need to work with a loan officer, a financial institution, title/escrow company, inspectors, appraisers, home warranty agents, movers, storage services, contractors, etc. One of the advantages of using a full-service real estate company is that they can assist with finding and coordinating some of these necessary additional services.

- For sellers, marketing one’s home should be a primary focus. In addition to finding the right agent, home sellers should pay special attention to tools used to market the home. When selecting an agent, find out their approach to open houses and online marketing, in particular. J.D. Power research finds that home buyers often search for homes online long before they engage a buying agent, or even attend an open house. Ask about which websites will contain the home listing, the number of home photos that can be included and if any special features will accompany the listing, such as virtual tours or mortgage calculators. Tools that assist prospective home buyers may help attract attention to the listing.

- For buyers, it’s important to understand the full cost of the home prior to making a purchase. It’s prudent for home buyers to establish a housing budget and to expect agents to show homes in the appropriate price range. Particularly for first-time buyers, it’s important to understand all the associated fees and expenses that go along with purchasing a particular home. These can include one-time expenses, such as ‘points’ that lower mortgage rates, title fees and appraisals, as well as ongoing expenses such as homeowners association fees, property taxes, or other specialized local taxes that can impact your monthly payments.

For more information, visit www.jdpower.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

RISMEDIA, July 29, 2010—After getting the keys to their new homes, many first-time home buyers are excited about finally having the opportunity to personalize and furnish their new house. From coffee tables to lamps to lawnmowers, many previous renters leap into homeownership quickly realizing they need to do a lot of shopping to truly make their house a home.

“Whether you’ve been living in an apartment with roommates or at your parents’ house, many first-time home buyers do not think about all the items they need – and want – when moving into a house,” said Janice Jones, national vice president of merchandising for Centex. “With a little advance planning and budgeting, you won’t break the bank to make your new home a reflection of your personal style and showcase your pride of homeownership.”

A typical home buyer spends $7,400 on average on their home, with more than half of that spent in the first year after purchase, according to the National Association of Home Builders.

While many first-time home buyers may not have accounted for this level of spending, Jones offers advice on what types of items to purchase to not only properly maintain and live in the home, but also more importantly, items that help new homeowners feel like their house is a place to call home.

Furnishings
Many first-time home buyers no longer want their parents’ hand-me downs or their childhood bedroom set. From sofas to dining room sets to mattresses, many first-time home buyers take the opportunity to upgrade their furniture when moving into their new home. According to an NAHB study, furnishings take the biggest chunk of the budget, with home buyers spending about $5,300 on furnishings during the first year after buying a home. The biggest ticket item for all households is bedroom furnishings, including mattresses, followed by sofas.

Window coverings and linens
The median square footage of homes bought by first-time buyers is 1,500. So, you can only imagine the number of windows that need to be covered to ensure privacy and security in a home. According to Jones, many home buyers don’t account for this in their budget. Additionally, with the ability to now paint and decorate each room, new homeowners find that they want to purchase new bedroom and bathroom linens.

Garden tools
Since a first-time home buyer is likely to move into their home from an apartment, unless you plan on hiring a gardener, you’ll need to purchase a few basic gardening tools, including a lawnmower, garden hose, sprinkler and a shovel (for winter weather).

Flat screen TV
Let’s face it: many home buyers shop for their new home while taking into a consideration how a new, large, flat-screen television set will be situated in their new living space. So, it’s not a surprise that a hot item on the list is purchasing an entertainment system.

However, you’ll also need the basic appliances in your new home: a refrigerator, stove, and a washer/dryer. While many existing homes usually come with appliances, a home buyer needs to take inventory as to whether or not they will need to purchase these big ticket items before they purchase their new bedroom set.

Basic tool kit
Every home needs a well-stocked tool box. Many home improvement stores have sets you can purchase, but make sure it includes a hammer, screw drivers, pliers, wrenches, a tape measure and a staple gun.

“My biggest piece of advice for new home buyers is to be creative and tackle this room by room,” said Jones. “For example, after outfitting your home with the necessary items—like appliances and window coverings—move on to the kitchen and family room spaces. This area is the heart of your home where everyone gathers.

“Look for great values on the items you need that will be utilized most. Take your time and get the feel of how you want to use each space for both function and enjoyment. This strategy allows homeowners to stage their purchases and add new furnishings as the budget allows. Decorating your new home should be fun and a reflection of your personal style.”

For more information, visit www.centex.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

RISMEDIA, July 29, 2010—Property owners prepared with research and information can save thousands of dollars on their property taxes. Following the simple steps outlined by Barry Sharpe, President of South Florida-based Property Tax Appeal Group (P-Tag), one can help property owners keep money in their pockets and assess property values on target.

Once a property owner has received his estimated property taxes in the mail and determined that the property has been unfairly evaluated, the first step is to file a petition with the local government to appeal the estimated taxes. Being educated about appeal deadlines is essential because more often than not, the window for appeals is short. For example, in Florida, all appeals must be filed within 25 days of mailing of the notices of proposed taxes for the year. Since this is one of the shortest statutes of limitations, Florida property taxpayers are advised to not procrastinate in filing their appeals so they don’t miss out on savings.

The next step is to look at your property with a critical eye. Leave your personal connection to the property at the door and pretend you are a potential buyer looking for reasons not to buy the property. Walk inside and outside taking notes about flaws on the property or things that don’t look right. For example, while you might be okay with a roof that has a small leak or is missing some roof shingles, those are problems that a potential buyer would cite as reasons for a sale price reduction. Keep in mind that the goal of this exercise is to identify reasons why your property is worth less than what your government claims it is worth—thus, it is in your best interest to be thorough and honest about weaknesses in your property.

Once you have compiled your list of flaws, the next step is to do the research. Go down your list of flaws, call and obtain free, written repair estimates for each of the problems you find at your property. Under the theory of “Deferred Maintenance,” even if you don’t do the repair, you can still use the estimates as evidence why your property’s value should again be reduced the next year you file for another appeal.

The County uses a mass appraisal approach to determine the value of a property and the actual condition of the property is one of the factors that come into play. However, often times, due to lack of funding or manpower, the County is unable to inspect each property. Therefore, doing your own research in identifying property challenges can be used to the property owners advantage when it comes to arguing for reductions in taxes.

Another way to argue for reductions in your taxes is to accurately convey the amount of crime that takes place in your neighborhood. Contact your local police department and ask for a “Crime Grid” within a certain radius from your property. This added information can sometimes be persuasive as to why your property should be worth less than properties in safer communities.

The final step is to educate yourself about how the appeals process works. Find out where and when the property tax appeal hearings are held. Attend, watch and learn how they are conducted and you might learn some additional methods on how to reduce your property taxes.

Barry Sharpe is president of South Florida-based Property Tax Appeal Group, LLC (PTAG). Visit them online at http://www.ptagflorida.com/

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

RISMEDIA, July 29, 2010—Adapting to today’s market realities and getting back to basics are some of the best practices real estate professionals are attributing to their success. Here, Richard and Brenda Rose, Owners of Realty Executives Advantage in Bowie, Maryland discuss how they are helping their agents adjust to today’s difficult market—and find success.

Richard and Brenda Rose
Owners
Realty Executives Advantage
Bowie, Maryland

Region served: Baltimore, Maryland and Washington, D.C. area
Number of offices: 1
Number of agents: 75
Average listing price: $300,000
Average time on market: 90 days

How do you keep your agents motivated, especially in today’s market?
It has been tough to keep our agents motivated in today’s market, but we have focused largely on getting back to basics, which has been successful for us. We have had to adapt to the realities of the market and that means calling past customers as well as keeping in touch with your sphere of influence in addition to family and friends who may be selling or buying.

What strategies do you find most effective in communicating with your agents?
Communicating effectively with our agents means taking the time to walk around the office each day and talking with our agents about how things are going. While many of our agents have been with us for many years, we work hard to show them that we support them, whether this means stopping by their open house or even getting them to office meetings and functions.

How are you keeping consumers educated about today’s buying opportunities?
We are working hard to keep our agents on the phone with consumers in order to educate them about today’s market. By sharing information with our agents, they are then able to talk with consumers and tell them that now is a great time to buy as interest rates are down, prices have leveled out and the inventory is up.

When it comes to listing homes, what’s your pricing strategy?
Pricing a home correctly is simply about studying the comps and finding out the seller’s sense of urgency. In addition, agents need to get their sellers to trust them so they can list the house correctly from the beginning.

What makes your company unique in today’s market?
We have a great management team that has a lot of management experience and we work closely with our agents to show that we genuinely want them to be successful. We are a diverse group of individuals, but we know that if we all stick together, we will make it through this challenging market.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Copyright© 2010 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.