What Housing Bubble?
I read a great article in
Wired Magazine about 6 months ago about the supposed housing bubble. I kept the article... and am just now writing a post on it. Here are some interesting stats it mentioned:
*all of the dollar ammounts are adjusted for inflation
Average American Home from 50 years ago as compared to today:
| 50 Years Ago |
| Today |
| 289.1 | Sq. Ft. per person | 896.2 |
| $60.61 | Price per Sq. Ft. | $59.49 |
| 229% | Percent of Annual Income Home Price Represents | 251% |
| 429.3 | Sq. feet annual income buys | 930.1 |
| 55% | Home ownership Rate | 69% |
| 16% | Percent of Homes Deemed crowded (more than 1 per room) | 6% |
| $3,419 | Annual Heating Cost | $2,644 |
| 13% | Percent of Annual Income Heating Cost Represents | 5% |
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| 55 year trend |
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| Housing Prices: +133% |
| Square Footage: +137% |
| Household Income: +113% |
| Heating Cost: -23% |
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| 50 years ago Average House: $59,575 2 BR, 1 BA, 983 Sq. Ft. |
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| Today Average House: $138,601 3 BR, 2 BA, 2,330 Sq. Ft. |
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Followup on Post about MLS
There are a couple of interesting articles out by Inman News on public use of the term "MLS":
"Several multiple listing services have passed rules that set restrictions on the use of the term 'MLS' and 'multiple listing service' in member-company names and Web site addresses."
Article 1 ----
Article 2
Is the MLS System Outdated??
There has been alot of talk lately about the implosion of the MLS. The
Press Real blog seems to think that it will happen in
just a few months:
"The new model is getting agent listings (that formerly only appeared on the MLS), for sale by owner’s, and foreclosures all in one easy to shop location. The days of exclusivity for the MLS are coming to a close."
It's an attractive idea to the outsider especially with the birth of so many new easy to use Web 2.0 services like
Zillow,
Redfin,
Trulia, and the like. But when will it take shape?
Unless the individually owned MLS' decide to dissolve themselves... (like that will ever happen)... it may just take some grass roots hard word to make it happen. Sure, site like
Redfin are great for Washington and California. The
Christian Real Estate Network has a site that we are testing:
www.ColoradoListings.net (it lists all of the MLS listings in most of Colorado and the greater Denver area) but will we ever see a comprehensive database of MLS typle listings that are nationwide?? It's hard to imagine.
I for one am skeptical...
Quick Post -- Graph 'History of Home Values'
This is a very interesting graph that shows home values going back to the year 1890 adjusted for inflation.
Vital Questions to pose to your prospective Agent
Here is a great little list of general questions that need to be asked when you are choosing a real estate agent from a
Market Watch Article:
- How many homes in the neighborhood have you sold or helped buyers purchase in the past year?
- For sellers, what will you do to market my home?
- For buyers, what properties will you be showing me?
- Is commission negotiable?
- Is the chemistry there?
- Who do you represent?
- References, please?
A site every RE Agent and Home Seller Needs to Know
I'm really excited about this post... I found a really great website that will be very beneficial to real estate agents and home sellers alike. Here it is:
www.postlets.comThis site will list you on some of the top classified sites for free including:
This should dramitically reduce the time spent listing your property on all the classified sites you can find. Just go to this one site and get it done.
One other thing to note. There are rumors afloat that
Google Base listings are popping up very high in the
Google Rankings lately. You can tell your client that their property will be at the top of Google!
Quick Post -- Number of total Blogs Doubles every 200 Days!!
According to
Technorati's David Sifry: Technorati is tracking 100 times more blogs than it was three years ago, and the blogosphere is doubling every 200 days, and 70 percent of the pings Technorati receives comes from spam-blogs.
a few comments on the benefits of using an agent
The Network was approached a couple of weeks ago, and asked to help edit a Christian book on finances that will be published by Moody Publishers. We were grateful for the opportunity. When asked to write a quick summary on some of the benefits of using a real estate agent, this is what we came up with. I thought I'd post it here...
"The most common way to buy or sell real estate is by using the services of a licensed real estate agent. During the buying process, they can help with showing properties that would otherwise be unavailable without the help and contacts of a licensed agent. But where their services primarily come into play is during the period of negotiation with the seller or listing agent. This is an area that takes a certain level of expertise, and helps defeat mistakes commonly made by buyers that do not have representation such as making an emotionally charged decision.
On the selling side of things, properties that are listed by a licensed real estate agent are presented to a much wider audience through the Multiple Listing Service (MLS), as well as marketed through multiple channels that are not available to the for sale by owner (FSBO) crowd. One of the most important factors in using a real estate agent for buying or selling is having the paperwork done for you. You can drastically reduce your chance of legal action taken against you for a sale gone wrong with the use of a real estate agent that handles these types of documents on a daily basis.
A few facts worth noting: --Buying or selling a home is ranked as the 3rd most stressful event in life only behind death and divorce. Having a real estate agent represent you can drastically reduce the amount of stress in any given transction
--Properties sold with a real estate agent on average sell for 10-15% more than a house sold for sale by owner."
Posted by the Christian Real Estate Network
Most common defects found during home inspection
1) The house has poor drainage
This is the most common problem found by home inspectors. To improve drainage, you may have to install a new system of eavestroughs and downspouts or have the lot re-graded to better channel water away from the home.
2) The house has faulty wiring
An insufficient or outdated electrical system is a common problem, especially in older homes. This is a potential hazardous defect and not to be taken lightly. You may have to replace the entire electrical system, or at least part of it, to bring the home up to today’s standards of safety.
3) The roof leaks
If the ceilings have water damage, older or damaged shingles or improper flashings may have caused it. It’s inexpensive and relatively easy to repair shingles and small amounts of flashing, but if the roofing is old, you may face a much larger expense to replace the whole thing.
4) The house has an unsafe heating system
An older heating system or one that has been poorly maintained can be a serious health and safety hazard. You may have to repair or replace the old furnace. This is a major expense, but new furnaces are more energy-efficient, which will probably save you money down the road. If your heating system is anything but electrical, install carbon monoxide detectors in a couple of locations in the home.
5) The whole house has been poorly maintained
Examples of poor maintenance include cracked or peeling paint, crumbling masonry, broken fixtures or shoddy wiring or plumbing. You can easily repaint a wall, replace a fixture, or repair a brick wall, but makeshift electrical or plumbing situations are serious and potentially dangerous problems. Replace any such wires and pipes.
6) The house has minor structural damage
Minor structural damage means the house is not likely to fall down, but you should deal with the problem before it becomes more serious. Such damage is usually caused by water seepage into the foundation, floor joist, rafters or window and door headers. First you need to fix the problem (a leaky roof for example) then repair or replace any damaged area. The more extensive the damage, the more expensive it will be to repair.
7) The house has plumbing problems
The most common plumbing defects include old and incompatible piping materials and faulty fixtures or waste lines. These may require simple repairs, such as replacing a fixture, or more expensive measures, such as replacing the plumbing system itself.
8) The house’s exterior lets in water and air around windows and doors
This usually does not indicate a structural problem, but rather poor caulking and weather stripping that require relatively simple and inexpensive repairs around windows and doors.
9) The house is inadequately ventilated
Poor ventilation can result in too much moisture that wreaks havoc on interior walls and structural components. It can also lead to allergic reactions. Install ventilation fans in every bathroom if there are no windows and regularly open all windows in your home. To repair damage caused by poor ventilation, you may only have to replace drywall and other inexpensive finishes. If you have to replace a structural element, it will be more expensive.
10) The house has an environmental hazard
Environmental problems are a new growing area of home defects. They include lead-based paint (common in homes built before 1978), asbestos, formaldehyde, moulds and contaminated drinking water. You usually need to arrange a special inspection to determine environmental problems and they’re usually expensive to fix.
Quick Post -- Innovative New Real Estate Sign Design
Here is an interesting new take on
RE signage...
25 Safest & Most Dangerous Cities in the U.S.
Here are the findings for this
12th annual report on the 25 safest & most dangerous cities in the U.S.
