Bob Murphy Online: August 2009

Definitely something to think about.

O.K. Here you go football Fans. 

I think I remember some of the things I use to do when I wasn't so busy doing Real Estate.  However this is the first weekend in really several months now when I don't have clients lined up back to back all weekend to either list or look for a home.

It's a break I really need but what the heck am I going to do with it?

If you are a Realtor you really take to heart the old saying Make Hay While The Sun Shines so when you have the opportunity you tend to forget about some of your hobbies and just plain relaxation time.  You don't feel as though you can afford to let an opportunity go by.  Who knows how long the market will be this good, you ask yourself.

The when all of a sudden you hit a blank spot in your calendar you cansometimes find yourself wondering what the heck your gonna do with it.  Oh sure, you can get to the projects around your own home, or some other project you need to get done and have left undone.  But that might not actually feel like the break you need to take.

So you have to reconnect with whatever you use to do back when you weren't working feverishly at Real Estate. 

I don't know about other Realtors but I sometimes have a hard time reconnecting.

I think my problem is I really like working in Real Estate.  I think it might be my hobby as well as my vocation.  How many people get to work at their hobby?  Do you?

Here are some interesting facts I gathered at a recent class I attended with Dick Betts of www.DickBetts.com

• 87% of Home Buyers started using the internet as part of their search process BEFORE they started looking for a specific home.  The other 13% did agter they started looking, but BEFORE they contacted a real estate agent.  Kinda look like your not in the game unless you are heavily invested in the internet doesn't it!
• Internet buyers spent an average of 4.8 weeks doing research BEFORE contacting a REALTOR.  While traditional buyers contact an agent after just 1.7 weeks.  Once again it kinda looks like you need to be heavily invested in the internet if you want to land most home buyers doesn't it!
• Internet Buyers bought a home after spending an average of just 2.2 weeks looking for a home with an agent.  Traditional Buyers spend an average 7.1 weeks before they buy.  Imagine how much more money you might be able to make if most of your clients came from the average Internet Buyer.
• Internet Buyers previewed 6.7 homes on average with their agent while a Traditional Buyer viewed 15.4 homes. It's beginning to look like the Internet Buyer is the best Buyer to work with doesn't it!
• Now here is one you probably won't expect.  The approximate distance between their previous residence and their new residence for Traditional Buyers was 25 miles, for Internet Buyers, it was 242 miles.  Wasn't that surprising!

More facts to come in future Blogs.   If you can't wait you should visit www.DickBetts.com

I just found a place where you can go and sign up for FREE Internet access.  Go to www.junefabric.com and then click on PDA.net.  This will allow you to download software to your laptop and your smartphone so you have access to the internet anywhere anytrime.  There is a small cost to getting set up.  The cost is about $34.00 one time charge.

I had the pleaseure of taking a class today from Dick Betts.  You should check out his websites:

www.dickbettswebservice.com

www.dickbettsnetworking.com

www.dickbettsbranding.com

Dick imparted the foloowing numbers on us:

1. 92% of Internet Buyers found their agents on a web site.
2. 63% found their agent through an Internet Search Engine
3. 0% claimed to find their agent through brochures, flyers, yard signs or mailers to their home.

Do you think you need an internet presence?

1. In 2000, 28% of people surveyed said they used the internet as an important part of their home search
2. According to NAR by 2010, 100% will use the internet as a part of their home-buying and selection process.

In our business (real estate) we are so blessed to have a flexible lifestyle.  Well if we want one that is.  My wife and I spend about all the time we can with our Grand kids.  We have 5.  Four boys and one girl.  One really tough little girl.  We also have another grandson on the way.  He will be our only daughters first. 

I have told my kids before when they say we spoil their kids a little too much.  Much more then we spoiled them.  IN fact according to them they were never spoiled for even as much as one or two seconds.  This coming from kids who went away to college, lived off campus, drove a nice car while at school and never had to come out of pocket for any of it.

I tell our kids when they come off with the too spoiled grand kids stuff that if I could have gone straight to the grand kids and skipped them in the process, that would have been an option I just might have chosen.  I wouldn't of course but it never hurts to keep the kids on their toes.

On a recent trip to the school grounds with two of the grandson's we had a great time.  I'd like share their pictures with you.  How could not want to spend all your time with guys like this?

I hope you get to spent time enjoying life with some of your favorite people.

O.K. Here's the deal.  I realize the market is down and it's a buyers market.  Property values have dropped.  I get that.  But what I don't get is how can an appraiser appraises a property that appraised for more then $232,000.00 in late 2008 and appraise that same property for under $200,000.00 today.  Especially in a market where property values have not dropped much at all.  In fact a market where we are seeing an increase in value overall.  A slight increas mind you but an increase none the less.

Funny thing is the new appraisal came in at exactly the selling price of this property.  In our market the appraiser gets to see the actual purchase agreement before the appraiser does the appraisal.  By the way the sellers agreed to the sale price because they want to move the property fast.  We did.  It was sold in less then 3 days.

In addition I don't believe this home could be duplicated today for less then the prior appraisal.  Therefore the cost approach would show a different value.  The home is barely 5 years old too.

My concern is that because the appraiser sees the selling price a true appraisal is not actually done.  It looks like the appraiser sees the number they need to hit and miraculously it happens to just hit the sale price.  This happens a lot.

So you appraiser out there would you please enlighten me?  How does this happen time and again?

How about you Realtors out there, are you experiencing the same thing?

I just came from a company sales meeting where the topic of the day was "Appraisers" and their Bad appraisals of late.  Seems like everyone wants to blame the appraiser because so many homes are going into foreclosure and then selling later for a lower then actual market value price.

The appraisers didn't create the situation our country is in today related to the Real Estate market.  I'm not sure any one thing caused the problem.  I suppose we are all a little bit responsible for where we are today.

The thing I think everyone at our sales meeting finally realized is that if you want to sell a listing today you darn sure better know what the potential market value actually is TODAY.  Not what it would have been valued a year ago.

Then as the listing agent you need to sit down and explain to your potential listing client what the market is doing today.  Be sure they understand that today and yesterday (a few months back) are two different things.  What it could have brought in the market months back isn't what it will probably bring today.  Even if you could get an offer for yesterdays value it may not appraise in the end.

When the appraisal comes back low you run the risk of scaring away the buyer.  If you haven't informed your seller before hand properly you will no doubt just make them mad and have them question your ability as a REALTOR.  None of these situations are good for anyone involved.

Bottom line is we need to help our sellers understand before hand what the market id doing and be certain they understand how that might effect their individual sale.

If you have a client in the Tristate area of Ohio, Indiana and Kentucky looking for a home loan you should have them call Matt Kennedy of REal Living Mortgage.

Real Living Mortgage is offering a $25.00 Gift Card to a local home improvement store just for leting them take a look at your preapproval or good faith estimate from a non-affiliated lender.

Thjat's pretty cool.

Some restrictions apply I'm sure.

Want more info call:

Matt Kennedy

Real Living Mortgage (a Wells Fargo affiliate)

You can reach Matt at 800-215-6634 or call his cell phone at 513-587-5440.

You can also email Matt at Matthew.Kennedy@RealLivingMortgage.com