Can Certain ‘Lucky’ Numbers Better Your Selling Chances?

By Melissa Dittmann Tracey, REALTOR(R) Magazine

Great staging can help buyers fall in love with a home, but can some lucky numbers help get them through the front door?

Some numbers may be more lucky than others when pricing a home for sale, according to market psychology. For example, prices ending in “9” can make some buyers feel like they’re getting a deal. So “$149,999” versus “$150,000” may not change the value too much, but it can sound like a better deal to potential buyers. Suddenly, the home is priced in the $140,000 range rather than the $150,000 range.

Fifty-three percent of listed homes that Trulia recently analyzed had a price ending in a “9.” Five was also a common last number.

For unknown reasons, listings were most likely to end in a “9” in several New England areas (like Boston; Hartford, Conn.; and Worcester, Mass.) and in upstate New York (like Buffalo, Rochester, and Syracuse). More buyers looking for a deal in those places, possibly?

However, the perception of a good deal may not matter with higher priced listings. The Trulia study found that more expensive homes were less likely to have a “9” in the price.

“Perhaps sellers think buyers who are ready to spend two million on a home won’t be fooled into thinking it’s a bargain at $1,999,900, and those buyers probably aren’t looking for bargains in the first place,” writes Jed Kolko, Trulia’s chief economist, on a recent blog post detailing the study’s results.

The study of listing prices also found other trends with numbers, like fewer prices containing unlucky “13” in them and some areas of the country betting on lucky number “7” to bring about more sales. For example, Nevada was more likely to have a “7” in the list price than the rest of the U.S. The numbers “777” were three times more likely to appear in the list price in Nevada than anywhere else in the country too, according to the study.

Meanwhile, the “Bible Belt”–covering most of the South–places more bets on the numbers “316” in the list price, possibly a calling to John 3:16, one of the most popular Bible verses. And, ironically, the often associated Satan numbers of “666” are more common in list prices in the Bible Belt too.

In Asian-majority neighborhoods, “8” is a common last digit number in home listings. Eight in Chinese culture is often associated with “prosper,” “fortune” and “wealth,” according to the study.

Have you found any lucky numbers in your area?

Source: “Can Certain ‘Lucky’ Numbers Better Your Selling Chances?” realtor.org (December 17, 2012)

Big Idea 2013: Home Prices Set to Skyrocket

Don’t be surprised if home prices begin to appreciate rapidly. Why? The ratio of homeownership costs to income is at an all-time low, and people are not going to continue renting homes at a monthly cost that exceeds a mortgage payment.

In fact, home prices need to rise 38%, or mortgage rates need to rise to 7.9%, for us to get back to the normal ratio of homeownership costs to income. It doesn’t matter how you define homeownership costs. As long as you use a consistent definition, homeownership is cheap!

Assuming our leaders in DC come to some sort of agreement that keeps the economy growing and interest rates low, which seems like the most reasonable assumption, here is what will happen:

• Investors: Investors and, yes, even flippers will continue to grow in numbers as they realize housing is the best risk-adjusted return on their money.
• Boomerang buyers: Foreclosed homeowners, who are currently renting homes, will come back in droves. In Phoenix, they are paying $1,300 in rent for a home whose mortgage payment would be $1,000. That situation is not sustainable. The Federal Housing Administration and Department of Veterans Affairs have low down payment programs with insurance premiums that push rates near 5.0%. Those payments are still very affordable.
• Entry-level buyers: First-time homeowners, who have been sitting on the sidelines waiting for a sign of the bottom, will hear about price increases in their desired neighborhood and rush to become homeowners.
• Move-down buyers: Empty nesters and retirees, who have plenty of equity in their existing home, will buy a home that is more suitable to their current lifestyle, which may or may not include adult children as well as their aging parents.
• Moveup buyers: The price appreciation that occurred in the last year has already lifted 1 million underwater homeowners above water, and future price appreciation will lift even more.

Don’t listen to the naysayers. They frequently make one or two negative points, many of which are valid, but they don’t understand the big picture.

The Big Picture is:

• Housing is cheap
• People prefer to own
• Get ready for a surge in home prices!

Source: “Big Idea 2013: Home Prices Set to Skyrocket” linkedin.com (December 11, 2012)

Housing in 2013: What’s In, What’s Out

By Jed Kolko

What a difference a year makes. 2012 was the year the housing recovery came to life – with the market now stronger than anyone dared hope for a year ago. Here’s what 2013 has in store.

One year ago, I wrote: “Even the best possible 2012 won’t get us halfway back toward normal.” That turns out to be true, but barely: the latest Trulia Housing Barometer, for October, showed us that the market is 47% back to normal. And this year, we launched the Trulia Price Monitor–which revealed back in March that asking prices were on the rise–one of the earliest indicators of the home-price recovery. All in all, the housing market enters 2013 with strong tailwinds, but that could change.

1. OUT: Will Home Prices Bottom? IN: Will Inventories Bottom?  The big question this year was whether home prices had finally hit bottom. We now know the answer is a resounding “Yes”: every major index shows asking and sales prices rising in 2012. The key question in 2013, though, is whether prices will rise enough so that for-sale inventory–which has fallen 43% nationally since the summer of 2010–will hit bottom and start expanding again. The sharp decline in inventory was a necessary correction to the oversupply of homes after the bubble, but now inventory is below normal levels and holding back sales, particularly in California and the rest of the West. Rising prices should lead to more inventory, for two reasons: (1) rising prices encourage new construction, and (2) rising prices encourage some homeowners to sell. The big question for 2013 is whether today’s price gains will continue strongly enough to encourage builders to build and homeowners to sell. Why it matters: more inventory will lead to more sales and give buyers more homes to choose from.

2. OUT: Robo-signing Settlement. IN: New Mortgage Rules. In February 2012, 49 states and five large banks agreed to the $25 billion robo-signing settlement, which funds loan modifications, compensations, and other programs. It was intended, in part, to punish banks for their foreclosure practices, but wrongfully foreclosed-upon consumers received very little money, and some states have diverted their settlement funds from housing toward other purposes. In 2013, the big housing-policy drama will be trying to prevent a future housing crisis rather than dealing with the last one. The Consumer Financial Protection Bureau will announce new mortgage rules in January to define which mortgages are judged to be beyond a borrower’s ability to repay and would therefore trigger legal and financial implications for lenders. These rules will need to strike a delicate balance between protecting consumers from the types of high-risk loans that contributed to the last crisis and giving lenders the incentive to expand mortgage credit. Why it matters: new mortgage rules will determine whether mortgage credit remains tight or finally starts to become more available to people who want to buy a home.

3. OUT: Improving Housing Affordability. IN: Declining Housing Affordability. The huge price declines before 2012 and record-low mortgage rates in 2012 have made owning a home 45% cheaper than renting, according to the Summer 2012 Trulia Rent vs Buy report. In fact, homeownership is more affordable than renting in even the priciest markets–like Honolulu and New York–even without the tax breaks for homeowners. However, now that home prices are rising faster than rents in most of the largest markets, the affordability tide is starting to turn. Furthermore, prices AND rents are rising in many expensive markets, like San Francisco, Miami, and Seattle, reducing affordability for everyone. Rising mortgage rates, which consumers and forecasters expect next year as the economy strengthens, would also reduce affordability in 2013. Why it matters: worsening affordability will put homeownership out of reach for more households–especially in the most expensive markets.

4. OUT: Expanding Refinancing to Stimulate the Economy. IN: Cutting the Mortgage Interest Deduction to Fix the Budget. You might be asking, how are expanding refinancing and cutting the mortgage interest deduction related? Both are housing policies under debate that aim to serve broader economic goals. Refinancing helps stimulate the economy because it gives homeowners more spending money, an Obama priority in 2012. Cutting the mortgage interest deduction, which costs the federal government more than $100 billion annually in revenue, would help narrow the federal budget deficit–and the top economic priority in 2013 is dealing with the federal budget without wrecking the economy (think “fiscal cliff”). Both Democrats and Republicans are considering a cut in the mortgage interest deduction, either through capping overall deductions, lowering the rate at which deductions are taken, or converting the deduction into a credit. Why it matters: reducing the mortgage interest deduction would make homeownership more expensive, which would reduce home values, especially in high-cost housing markets.

5. OUT: National Housing Policy. IN: “Localized” Housing Policy. There are plenty of national housing issues to deal with, such as the new mortgage rules (see above) and the future of housing giants Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). But many critical housing issues are local and therefore only fixable by city or state governments. Foreclosures are no longer a national problem: the foreclosure inventory is concentrated in states with a slower, “judicial” foreclosure process–like Florida, Illinois, New Jersey, and New York–where some are calling for state-level foreclosure reform. Affordability isn’t a national problem either, but it’s a severe local challenge in San Francisco, New York, and other big, coastal cities, often aggravated by rules that limit new housing construction. Even some national policies, like Fannie Mae’s and Freddie Mac’s guarantee fees and conforming loan limits, are “localized”: they vary geographically to reflect differences in state legal processes or housing prices. It’s a sign of recovery and return to normalcy that the national housing crisis is becoming a range of diverse, localized housing challenges. Why it matters: housing policy will be more tailored to local issues, and less constrained by political gridlock in Washington–so long as cities and states rise to the challenge.

In addition to these national trends, we’re calling out the 10 healthiest housing markets for 2013 in this companion post. Whether 2013 turns out to be exactly what we predict or totally different, we’ll be here to help make sense of it all.

Source: “Housing in 2013: What’s In, What’s Out” builderonline.com (December 19, 2012)

U.S. Home Values Rose in 2012 for First Gain in Six Years

Home values gained an estimated 6 percent in the U.S. this year, the first increase since 2006, as the housing market began to recover from its worst slump since the 1930s, Zillow Inc. (Z) said.

Values have climbed more than $1.3 trillion to $23.7 trillion since the end of last year and probably will continue to rise in 2013, the Seattle-based home-listing service said in a statement. Residential values had declined each year since 2007, with the biggest drop in 2008, when homes lost more than $3.2 trillion in value, Zillow said.

Low interest rates, improving employment and prices that remain almost 30 percent below their July 2006 peak have drawn buyers back into the market. A limited inventory of homes for sale has helped push up prices.

“The housing market really turned a corner in 2012, as historic affordability and sustained investor interest helped keep demand at a boil,” Stan Humphries, Zillow’s chief economist, said in the statement. “As home values rise, and more homeowners are freed from negative equity, we can expect a continued slow transition to a more normal housing environment.”

Sales of previously owned homes jumped 5.9 percent in November from the previous month to reach an annual pace of 5.04 million, the most in three years, the National Association of Realtors reported today from Washington. The median resale price was $180,600, up 10 percent from November 2011.

Permits to build new homes, a proxy for future construction, rose to a four-year high last month, the Commerce Department said yesterday.

‘Virtuous Cycle’

Rising demand is expected to fuel a “virtuous circle”that will drive economic growth, housing construction and price increases, Michael Widner, an analyst with Stifel Nicolaus & Co., wrote in a note to investors yesterday.

Los Angeles added $122 billion in home value this year, the most of any metropolitan area, bringing the value of residences in the region to $1.8 trillion, Zillow said. New York-area values rose $11.1 billion, also to $1.8 trillion, after losing $66.3 billion last year.

Philadelphia was the only metro area of the U.S.’s 30 largest with a loss in value, declining $1.6 billion to $513.4 billion, the firm said.

Nationwide, home values remain down about $5.8 trillion from their peak of $29.5 trillion in the third quarter of 2006, according to Zillow.

Source: “U.S. Home Values Rose in 2012 for First Gain in Six Years“, bloomberg.com (December 20, 2012)

No Foreclosures for the Holidays From Fannie, Freddie

Mortgage giants Fannie Mae and Freddie Mac announced Monday that they will temporarily halt all bank repossessions and evictions beginning in mid-December until Jan. 2, 2013.

The temporary foreclosure suspension goes into effect beginning Dec. 17 and Dec. 19, respectively. The moratorium will not affect the filing notices of default or the scheduling of auction sales.

“The holidays are a chance to be with loved ones and we want to relieve some stress at this time of year,” says Terry Edwards, Executive Vice President of Credit Portfolio Management, Fannie Mae.

Bank of America also recently announced that it is halting foreclosure evictions for the holidays for loans it owns and for those it services for investors. JPMorgan Chase, Wells Fargo, and Citibank have yet to release a statement on whether they’ll follow suit, although they have done so in the past for the holidays.

Source: “No Foreclosures for the Holidays From Fannie, Freddie” realtor.org, December 4, 2012

What New Pinterest Business Pages Mean for Real Estate

Even before Pinterest announced its new business accounts, real estate professionals utilized the site’s aesthetic appeal to market their services.  So first let’s talk about how Pinterest in its originality can benefit real estate agents.

Because Pinterest is a visual site, it’s the perfect platform for agents and brokers to advertise their properties for free. Plus, with the ability to add links back to a blog or website, Pinterest can generate serious traffic to individual or company websites. Many Realtors, for example, use Pinterest as a sort of testimonial page by asking happy customers to post photos in their new homes and tag the specific business page.

So let’s dive into what the new business side of Pinterest means for real estate agents looking for a marketing resource. If you have a preexisting Pinterest page, fear not. Personal pages can be converted into the new business format.

The new business site allows for specific business names versus the previously required first and last name. Users will also be able to verify their Pinterest page, much like a verified Twitter account, to identify high-quality sources of content.

Companies, agents and brokers can also add buttons to their own websites to make it easier for visitors to “pin” items on Pinterest (using a “pin it” button) or follow their feeds on Pinterest to increase engagement.

Pinterest also published a set of best practices with examples of ways to utilize a business site. Additionally, marketing guidelines are provided as well. To learn more about converting your personal page to a business page, click here.

Source: “What New Pinterest Business Pages Mean for Real Estate” housingwire.com, November 15, 2012

10 weeks and 10 ways to REignite your business in 2013 – DAY 1

I know that your business plans for 2013 are already in development…right? If not, never fear, we’ve got some ideas for you. From online marketing ideas, social media, new technology to implement, and some fresh perspective,sometimes all it takes are some actionable STEPS, and some resources to read…a library of sorts.  Inspiration comes in many forms and all too often we’re so inspired by new knowledge, it’s hard to actually make it happen! Do you ever have this feeling?

So, for the next 10 weeks, come back to NEXT for a host of new real estate ideas to implement in 2013! They are meant to be quick and easy reads that you can come back to.  Follow along on Twitter for 10 weeks with this hashtag: #10in10

Here we go!

Day 1- You Are What You Publish – REV up your Website or Blog

Content marketing. Content branding. Content curation. Storytelling. These are all buzz words for one thing: Communicating valuable, trustworthy, delightful, informative, compelling media to your buyers and sellers.  Social media is one tool, but adding consistent blogging efforts to your blog and website will continue to attract relevant traffic to your site, long after you hit publish!  Here are some ideas to rev that website up, boost your SEO rankings, and put you back in front of your clients:

1. Take 10 photos of your community.

Go get your camera. Or your phone.Take a nice day and hit the landmarks of your community. Parks, schools, neighborhoods, restaurants, events, art, are all great things to take photos of.

• Edit your photos from your phone in a photo app like Camera+ to bring out color, or crop, or add a nice frame or caption, then add them, one every week to your blog.

• Make sure to optimize your post with keywords, title tags, and bring that photo to life with your words. Remember: Images are the second largest searched media on search engines.

• Post them to your Facebook page in the form of a LINK, to drive traffic back to your blog.

• Post on Instagram with proper #tags of your #community to share with other local photographers.

2. Create an FAQ area on your blog.

Create your perfect client profile. This is your target audience.  Do you work with first-time buyers? Luxury home sellers? Are you a Relocation Specialist? What are the questions that only you can answer?

• Create a top 5 list of frequently asked questions (FAQ) and write a paragraph or two answering their specific questions. Put yourself in their shoes, and speak in their language. Walk them through your best advice, and let them know specifically what you do to make their experience an exceptional one.

• Post those to your blog, one at a time until you have 5 internal links within your site, and a great resource for site visitors. This is a great way to build trust in your brand, by being a resource.

3.  Create a welcome video introduction for your site or blog.

Did you know that the percentage of agents using video for marketing is less than 5%? Here is an opportunity for you to get started and make 2013 the year you start video marketing! I’m not talking about listing videos and virtual tours..I’m talking about using your phone to start producing short videos to add to your site or blog.

• Get the app Videolicious.

• Do your hair and make-up. Put on your professional clothes. Smile.

• Take a few takes from your phone, tablet, desktop.

• Follow the directions on Videolicious, and wa-la…a nicely produced video for your website or blog. Post automatically to your Youtube account, and link/embed it. Optimize the tags and keywords.

This is just a simple option to getting started in video marketing. Creating video emails,sending off quick video messages from your phone to a client, or taking a quick video of a neighborhood to your out of state clients, are all ideas to help you get started. Just go for it.

Source: “10 Weeks and 10 Ways to REignite your business in 2013 – Day 1” inman.com, November 5, 2012