IT JUST OCCURED TO ME…

….that I pretty much abandoned this blog, and I should post a link here to my new blog.  So, forget this old thing, and come on over and join me at my Hot New Edmond Real Estate Blog.

Be sure to say HELLO while you’re there, too!

 

Overpriced Listings – The Big Picture

Yesterday I posted about the ill effects of overpricing your home for sale, and I have no doubt that I could never address this topic enough. It’s an ongoing problem that we’ll never be fully rid of, but I hope that by sharing my thoughts on it, I may be able to help a few home owners and agents understand it better.

Case in point; I posted back in May about a homeowner I visited with about his expired listing in the Lone Oak Parke addition. Now for “the rest of the story.” When I initially talked to this homeowner (Mr D), his home had already been on the market for about a year, was grossly overpriced (by about $30,000 after he had already lowered the list price by more than $25K) and he wasn’t at all willing to list it for less. He, of course, had no problem finding an inexperienced agent willing to list the home for him at HIS price again. Well, that listing expired after 150 days, and he listed with yet another agent (the 8th agent willing to take the listing at HIS price).

Now jump forward another 74 days, and Mr D’s home finally closed on 12/14/07 (589 days after he first listed it) at a sales price of $249,900, according to our MLS. Back in May when we talked, I told Mr D that his home would sell for around $244,000. So, he made an extra $5,900 by dictating his price instead of listening to me, right?

Not so fast… what about his carry costs? During the time his home was on the market (and he was living 2,000 miles away paying another mortgage and set of utility bills), Mr D was paying on his $224,000 mortgage each month. He also had the pleasure of paying his electric, gas and water bills monthly. I’ve estimated these expenses (very conservatively) in the chart above.

So, let’s break this down to a net sale, rather than a gross sale. After all, what really matters is what Mr D walks away with after expenses, right? His home sat on the market for a total of about 580 days. From the time I talked to him, to the time he closed on it with his eighth agent, about 220 days had passed. Here’s the breakdown:

In summary, if his first agent had advised Mr D to price this home correctly (and he had listened), and it sold in the then average 70 DOM, he would have netted $238,808 before repairs, closing costs and agent commissions.

Let’s assume he didn’t do that, but a year later he takes my advice and prices it properly, he’d have netted $227,683 before repairs, closing costs and agent commissions ($11,125 less than the previous scenario).

But instead, he did neither, and finally accepted an offer of $249,900, which netted him $200,983 before repairs, closing costs and agent commissions ($37,825 less than if he’d priced it right from the beginning).

Did Mr D’s persistence pay off?

 

Price Your Home Correctly – I Dare You!

Meeting with home sellers in the Edmond and Oklahoma city area almost daily, I have a lot of long discussions about overpriced listings. I even have this discussion with A LOT of local agents. In fact, Jeff Straka and I were just talking about it earlier today.

Why is this such a frequent topic? Well, it’s simple… Overpricing a home is absolutely the biggest mistake you can make in the home selling process, yet home owners and real estate agents do it every single day. Now, if you just really like that pretty sign in your yard, then by all means, overprice your home. But if you’d like to actually get it sold, then take this to heart, PLEASE!

Any home, no matter how ugly, will sell if priced properly. Even with poor marketing and terrible curb appeal, a properly-priced home WILL sell in a reasonable amount of time. Transversely, an overpriced home, no matter how pretty or well-decorated or new or impressive, WILL NOT SELL in any reasonable amount of time. In fact, the odds are greatly against it ever getting sold when it’s overpriced.

I know, I know, many people think “I’ll just try it at this price for 30 days and then lower the price if my dream buyer doesn’t come along.” Well, here’s why that’s a bad (REALLY BAD) idea:

• About 80% of your showings will occur in the first 30 days on the market.
• The majority of those buyers are high-quality buyers (they’re approved and have probably already lost out on another home they loved because they waited to write an offer; they’re ready to act fast on the next house they love) ** Any agent who’s been in the business more than a few weeks has seen this happen
• Most of those high-quality buyers will be under contract on a house (will it be yours?) within the next two weeks, so they WON’T BE BACK after you lower your price.
• That leaves you with the other 20% of buyers, which are the lurkers. They’re sitting back looking for houses that have been on the market a while, so they can swoop in with a lowball offer.
• The longer your home sits on the market, the more it creates a stigma that something must be wrong with it. Good buyers will be scared away from it by the DOM and the “investors” will come out in droves.

So, by overpricing your home, you simply make the other houses in your area look like more of a bargain, and miss out on the majority (80%) of the potential buyers in your market. Is it really worth it to gamble with the ridiculously low odds that you might make an extra $10K? If you’re even thinking about answering “Yes,” come back tomorrow so I can show you that you’re NOT seeing the big picture!

 

Oklahoma City Real Estate Gets Validation In The Media

Well, it’s been a crazy past few weeks, and unfortunately our blog has suffered as a result (as evenidenced by my incomplete series, Oh, the Places I’ll Go). However, our listings are selling (36 day average) and our buyers are buying. My online absence was a direct result of October being the biggest month I’ve had in a long time, which brings me to my point.

The gloom & doom stories that you’ll find running rampant in the media can easily scare some folks out of buying or selling real estate. While many markets nationally are suffering, or even declining, Edmond real estate keeps chugging along at a steady pace, which just proves that real estate is LOCAL, LOCAL, LOCAL. Anyone who’s read my blog for long knows that I post a lot of statistical data related to our market. I like to give the information and let you decide for yourself what’s really going on and what’s really the best move for you today.

I’ve been just waiting for our local “experts” in the media to figure out that the central Oklahoma market is still very promising, rather than just following the national stories and protraying it as all bad. Well, last night was a pleasant surprise because one of our local news stations finally ran a story focusing just on the Oklahoma City Metro and Edmond real estate market. Here’s the clip; see for yourself:

Yes, you heard right. People are still buying and selling real estate in central Oklahoma! I haven’t been able to post my usual statistical reports for September, simply because they haven’t been published yet for some reason, but I do have some less in-depth statistics to share:

*		Sep-07		Aug-07		Sep-06		1-month change	1-year change
HOMES CLOSED		1411		1926		1577		-26.7%	-10.5%
AVG CLOSING PRICE		$152,753		$155,752		$146,861		-1.9%	4.0%
% CLOSING PRICE TO LIST PRICE		97.86%		98.58%		97.73%		-0.7%	0.1%
AVERAGE DAYS ON THE MARKET		81		72		65		12.5%	24.6%

As mentioned in the news report, homes are taking a little longer to sell than they were a year ago, but the overall values are still going up. Now compare these numbers with some of the coastal markets and see how they fair. I’ll bet homes in those other markets are taking longer than 81 days to sell their homes and many of them are seeing declining values.

Just wait until you see October’s statistics! It’s still a great time to buy and sell real estate in Edmond, Oklahoma City and the rest of central Oklahoma and I give it up to KWTV News 9 for finally coming through with the real story of what’s going on in the Central Oklahoma real estate market. IMO, educating our local public on local issues is the real purpose and should be the real goal of our local media… no sensationalism needed!

Ryan Hukill
REALTOR® Associate

Hukill Group – Paradigm Realty
16211 N May Ave
Edmond, OK 73013
direct.: (405) 802.HOME
fax: (405) 285.8428
ryanhukill@cox.net
www.YourOpenHouse.us
Visit my Blog

 

Cedar Pointe, Edmond – Open Houses this Sunday!

The Hukill Group will be holding two beautiful homes open to the public in Edmond’s highly sought-after Cedar Pointe addition tomorrow (Sunday, September 23rd, 2007) starting at 2pm. These two homes are currently the lowest priced in the neighborhood and are priced to sell. Both are move-in ready and prepped for a quick closing.

Here’s more information on each of these homes:

Cedar Pointe’s NEWEST LISTING! 1800 Fawn Valley Lane

Cedar Pointe Beauty – 2021 Fair Meadow Dr

But, as always, pictures don’t really do any home justice. Come see them for yourself and enjoy some cookies and lemonade… see you there!

View Larger MapRyan Hukill
REALTOR® Associate

Hukill Group – Paradigm Realty
16211 N May Ave
Edmond, OK 73013
direct.: (405) 802.HOME
fax: (405) 285.8428
ryanhukill@cox.net
www.YourOpenHouse.us
Visit my Blog

 

Edmond/OKC Real Estate Statistics for August 2007

While a few markets around the country are seriously struggling and values declining dramatically, the Real Estate market in Edmond, Oklahoma and the overall OKC metro area is still strong. Yes, for the second month in a row I have some slightly declining numbers, however, we’re not yet reporting anything to cause alarm.

The following chart shows the monthly Oklahoma City Metropolitan Real Estate statistics for August 2007 as compared to July 2007 and August 2006.

	Aug-07	Jul-07	Aug-06	1-month change	1-year change
TOTAL CLOSED	1918	1848	2018	3.65%	-5.21%
TOTAL $ VOLUME	$296,046,237	$282,607,094	$304,046,099	4.54%	-2.70%
AVERAGE PRICE	$154,351	$152,925	$150,667	0.92%	2.39%
MEDIAN PRICE	$129,900	$132,000	$125,000	-1.62%	3.77%
AVG. INT. RATE	6.27%	6.24%	6.64%	0.48%	-5.90%
%SELLING PRICE TO LIST PRICE	98%	97%	98%	1.02%	0.00%
DAYS ON MARKET	73	76	71	-4.11%	2.74%
NUMBER OF LISTINGS	9495	9328	8858	1.76%	6.71%
ABSORPTION RATE	4.95	5.05	4.39	-1.96%	11.33%

As you can see, the total transactions closed and total $ volume is lower than this time last year, however, the average price and median price are still appreciating in comparison. You’ll also notice that, in spite of the current problems in the mortgage industry, the average interest rate is better than that of August 2006.

The other figures are only slightly changed, and the absorption rate and the Days On Market have improved.

In summary, these figures show us that the Oklahoma City metro area Real Estate market and the Edmond Real Estate market are holding steady, despite the wariness of many consumers. With 9,495 homes currently on the market in the metro, and 1,918 sold in August, we currently have a 4.95 month inventory on hand.

In my experience, buyer traffic is very strong right now and with the anticipated drop in interest rates later this week, many more buyers will be out looking this month. If you have any questions about Homes for Sale in Edmond, OK, please don’t hesitate to contact us for a free, no obligation analysis of the current market. In the meantime, you’ll find a wealth of information at our Edmond Real Estate website.

**Based on information provided to and compiled by MLSGateway.com, Inc. covering a period (08/01/06) through (08/31/07). MLSGateway.com, Inc. does not guarantee or is in any way responsible for its accuracy

Ryan Hukill
Realtor ® AssociateHukill Group – Paradigm Realty
16211 N May Ave
Edmond, OK 73013
direct.: (405) 802.HOME
fax: (405) 285.8428
ryanhukill@cox.net
www.YourOpenHouse.us
Visit my Blog

 

Oklahoma Foreclosures Still Lower Than Average

(Here’s another one I posted on Active Rain a couple of days ago, but it’s important and should be shared here)

The buzzword of the year seems to be “foreclosure.” Everywhere you turn, you see news reports, print stories and hear discussions about the rise of foreclosures. I guess maybe the second most used buzzword is “real estate slump.” Yep, both of these terms will stir up massive fear in every home owner and aspiring home buyer.

I know because I see it every day. Those who simply watch the news, without really investigating things for themselves, truly believe the sky is falling. It’s an easy mindset to fall prey to. However, I have better news to share. Maybe you’ve read some of my previous posts about foreclosures in the NW OKC & Edmond area. If you haven’t, you may not have read anything positive about our market.

Fact is, I’ve continually reported and shared very positive foreclosure statistics as well as home sales statistics for Oklahoma County, Edmond, OKC, etc. Here are some more:

Consider this; the national average of foreclosure activity is up 93% over last year. Even with a 16% increase in July over June, Oklahoma is sitting pretty with 43% LESS foreclosure activity than this time last year.

I would guess that a big factor in our lower rate of foreclosures is that our housing is so affordable. Lower mortgage payments should equate to a more manageable budget. Also, we have a very low unemployment rate in Oklahoma. Obviously employment makes it easier to make the mortgage payment.

Whatever the reasons, I’m always happy to report how well the Oklahoma Real Estate market is doing. Come back often for more good news if you find yourself falling into the falling sky syndrome.

Ryan Hukill
REALTOR® AssociateHukill Group – Paradigm Realty
16211 N May Ave
Edmond, OK 73013
direct.: (405) 802.HOME
fax: (405) 285.8428
ryanhukill@cox.net
www.YourOpenHouse.us
Visit my Blog

 

Your Mortgage Broker Suggested What?

(I originally posted this two days ago on Active Rain, but wanted to share it here)

Today was a day like any other Monday (or Tuesday after a holiday) in the world of Edmond Real Estate. I spent the majority of it catching up from the weekend and following up with various clients to set a plan for my week, as well as tying up loose ends on my ongoing transactions and tracking down the daily FSBOs and Expireds.

Some time early in the afternoon though, I made a call to a client and friend of mine that’s looking into buying a fixer. We had gone out over the weekend and looked at a home that he and his wife are quite interested in. I won’t go into all the details, but basically, it’s a very nice piece of property that needs quite a bit of updating to really be the home they want to raise their kids in, so of course the discussion has come around to the possiblity of buying well below value and borrowing against any equity to fund the desired upgrades. The buying below value doesn’t seem to be a big obstacle, and I had advised him to call “his mortgage guy” today to find out if they had any programs available that might allow them to get the project money they want. Long story short, the mortgage guy tells my friend, we’ll call him Mr D, that there’s no way he can get them into any such program that wouldn’t cost him an arm and a leg in interest. He then goes on to suggest to Mr D that, even though there are some legal issues involved, he may want to see if the seller would agree to a higher list price, then give Mr D back some cash after closing, in an agreement outside of the purchase contract of course. Can anyone say RED FLAG?

Here in Edmond, we recently had a MEGA-Agent (one of the largest names in our local market) locked up for this very thing. She, the appraiser, the buyers and the sellers are all in deep doo-doo after being caught running a cash-back scheme which defrauded the lenders and drove up property values in Edmond’s prestigious Oak Tree addition. The agent is currently serving time in federal lock-up and has lost her license forever. I’m pretty sure the appraiser and the sellers are also serving time.

With this case being so fresh in our heads, it’s mind-boggling to me that anyone in the Edmond real estate market would even consider this as an option, much less actually suggest it to a client. Normally, I’d lean toward giving the benefit of the doubt and wonder if this guy just didn’t know what he was actually suggesting, but he directly verbalized to Mr D that there would be “some legal issues involved,” as if that somehow clears him of any wrongdoing if Mr D actually goes through with it. What if Mr D and the seller had shady (or just ignorant) agents representing them? Could they not find themselves in a major predicament down the line, simply because they were misinformed (or uninformed)? The shady and/or ignorant agents certainly would.

After explaining the ins & outs of this scenario to Mr D, and that I would never be a part of such a transaction, it was clear that he truly didn’t realize it was such a big deal, which furthers the possibility of being misled and unknowingly getting into a sticky situation had he been unrepresented, or simply represented by a less-ethical agent. At that point, he made it clear that he’s not any more interested in orange jumpsuits than I am.

This whole series of events raises a few issues and questions for me.

• First, it further validates the reasons a home buyer should never go it alone. No matter how intelligent and savvy (Mr D and his wife are both) you, the buyer are, assuming you know all the ins & outs is just plain foolish. Find an ethical, honest, experienced professional to protect you from such pitfalls. We even have insurance to cover ourselves, but the best part is, it doesn’t cost you anything to be represented. The seller pays that commission.
• Secondly, it obviously gives me a heads-up about this particular mortgage broker. I can assure you that I will never be a part of any transaction with this clown. But more importantly, it raises the question of how I should handle this instance. Who holds these guys accountable? I don’t want this donkey burying some other unsuspecting consumer with his ludicrous advice. Furthermore, it makes every one of us in this industry look bad. Why do consumers have such a poor opinion of REALTORS and Mortgage Brokers? Very simply, because of scum like this guy. So where do I go from here with the information that he’s just a tad crooked?
• Lastly, it makes me wonder how many agents and mortgage brokers out there don’t understand that this IS WRONG! I know I’m in the minority (around here) of those agents who actually read the contracts we sign and keep up with every bit of industry-related news I can get my hands on. I hold my continuing education in very high regard and my ethics even higher! But what about all the agents with a part-time mentality who simply do the minimum it takes to get licensed and only work a dozen or so transactions each year? I can clearly see where it would be easy for such an agent to miss the fact that his practice is FRAUD.

Yep, just another exciting day in the life!

Ryan Hukill
REALTOR® Associate

Hukill Group – Paradigm Realty
16211 N May Ave
Edmond, OK 73013
direct.: (405) 802.HOME
fax: (405) 285.8428
ryanhukill@cox.net
www.YourOpenHouse.us
Visit my Blog

 

Hello world… New Edmond, Oklahoma Blog!

I was accidentally introduced to the world of blogging back in January of this year, during a several day span of icy roads and bad weather which kept me inside without much to do. While “surfing,” I somehow stumbled across ActiveRain and was instantly hooked into the idea of sharing my knowledge of the Edmond Real Estate market with anyone and everyone who might be interesting in reading what I have to say.

Active Rain has been a great platform for me to learn about blogging and to build some great relationships with other professionals around the country, but I’ve always felt that there should be a more local platform to reach folks right here in Edmond, Oklahoma, or to reach those thinking about moving here. So, with that in mind, I’ve decided to start another blog here and look forward to finding a whole new group of readers. I hope you’ll share with me your thoughts and ideas on Edmond, Oklahoma, not just about real estate, but about whatever’s on your mind that affects our local marketplace. Edmond is a great place to live and we all have a place now to voice our opinions, our excitements, and our disappointments.