As A Buyer, How Can I Use the Principle of Conformity to My Advantage?

Ever go into a neighborhood and notice one or two homes that stuck out like sore thumbs?

One might be whole a lot fancier than the houses surrounding it while the other might be a "dump" in comparison to neighboring properties. This scenario illustrates the real estate principle of "conformity." The primary idea behind this principle is that a house is more likely to appreciate in value if age, size, condition and style are similar to, or conform to, other houses in the neighborhood.

But this principle also extends to buyers. By that I mean that if you make your property a lot "fancier" than others in your neighborhood, you end up limiting potential buyers.

Of course, the opposite is also true. Don't take care of your property, and you'll definitely have fewer buyers looking at it.

Conformity is closely related to two other principles - progression and regression.

In plain English, regression means that high-valued properties often tend to suffer when located close to lower-valued homes.

Progression, on the other, means that lower-valued homes will often see increased value when found amongst higher-valued properties.

This formal principle leads the informal maxim, "Buy the cheapest property on the block!” The higher value of the homes around it will, in turn, make it more valuable.

As A Buyer, How Can I Use the Principle of Conformity to My Advantage?

I've already mentioned one method - buy the least expensive house in the neighborhood! Once you do that, improve it, and you'll get most bang for the buck on your improvements.

Of course, look at such a property carefully first (often called "due diligence"). Spend the money on a real estate appraiser so you get an objective evaluation.

Of course, avoid any homes that need major fixes such as roofs, foundations, siding, plumbing, electrical work etc. The last thing you need is a "money pit" into which you keep throwing dollars and get little or nothing in return.

Be sure to seek out sound properties, ones needing only minor fixes such as painting, cleaning, landscaping, carpets, new appliances, etc.

If you're a buyer interested in real estate investment, purchase a home in a neighborhood that's just beginning a revitalization cycle. That way you can be sure values will appreciate. 

You can also look for under-improved properties such as single family homes which can be converted to residential income or commercial use, especially if such properties lie in the "path of progress;" that is, areas experiencing good growth.

As A Seller, How Can I Use the Principle of Conformity to My Advantage?

As a seller, simply make sure that you maintain your home and lot in line with surrounding properties.

Of course, if you've already done that, then invest in low-cost improvements such as new paint inside and out, landscaping, a professional cleaning job, etc.

If they're in bad shape, you might also want to add new carpets and/or new appliances. 

All these actions will improve the value of the home in the eyes of buyers. 

If you're an experienced do-it-yourselfer, you may want to tackle some improvement projects since they can cost less than half of what professional contractors charge.

However, notice that I emphasized experienced! An amateurish job on, say, cabinets or roofs can actually reduce the value of your home. So, unless you're really, really good at it, leave major home remodeling projects to the professionals.

Want to learn more about buying a home at best value or selling it at maximum value? Then, call me at 402.690.1573 right now or email me at teresa@teamelliott.net!

Why Use the Services of a Real Estate Agent?

This question is often asked, especially by homeowners who consider selling their homes by themselves.

The fundamental first answer to this question is that an experienced realtor is an expert at what he or she does. Through hard work and education, they’ve acquired a set of skills that make the process of home buying and selling a lot easier than it would be by doing it yourself.

So, what are the skills in the set I’m talking about?

Well, for one thing, we have the skill of being the go-between. We’re the people who handle people and calls and separate the “wheat” (real buyers) from the “chaff” (non-buyers) without you ever having to deal with such situations. In Internet terms, we make sure you’re not “spammed” with worthless offers and target real deals for you.We’re also the ones who save you a lot of time by making sure you’re looking at appropriate properties and neighborhoods right from the get-go.

And, speaking of neighborhoods, an experienced realtor will know them inside-out or will know how to find the latest information on them. That means he or she can get you into neighborhoods where the crime rate is low or non-existent, find you ones with great school systems, rising property values, etc.

By the same token, an experienced agent will steer you away from neighborhoods where the trends are downward; that is, rising crime, falling property values, and so forth.

And what about the prices of homes? Well, some people believe that we select them for our clients. Not true! We have no way of setting prices. They’re set by the market! However, we can guide you toward properties that fit your individual needs and are comfortably within your price range. Frankly, it’s not in our best interests to put you into a home beyond your means or that’s not right for you. When that happens, we lose clients and money!

So, we’ll do our best to work within your price range and, based on current information (market supply, demand, etc.), we’ll come up with the best negotiation strategy possible. Current information can include cost-per-square-foot of homes, ratios of list-to-sold prices, knowledge of the buyer/seller, etc. All this information is gathered by the agent and used to formulate solid offers.

Another important skill experienced Realtors possess is objectivity. We have the ability to stay out of the emotional process that often occurs with the buying and selling of a home. Instead, we present your case in the best light possible, all the while holding your information confidential from any competing interests.

One realtor skill that’s often not apparent is our ability to network with other service providers (housing inspectors, title companies, etc.) Professionally, we can’t recommend one specific vendor over another. However, we do keep lists of vendors with excellent reputations as well provide references for the vendors. This service allows you to choose the best provides for your particular situation.

Now, here’s one realtor skill that everyone truly appreciates – the ability to handle tons of paperwork! Today, purchase agreements can run 10+ pages, and that doesn’t even include all the state and federal disclosure statements that are required in the current market! Heck, a real estate file can end up being 2-3 inches thick with paperwork these days!

And it’s not only the heavy paperwork handled by realtors; it’s also the attention to detail within that paperwork. It’s their job (or a lawyer’s, depending on the state) to make sure all the information is correct because if it isn’t, it can end up costing the client hundreds of dollars.

So, as you can see, there are many reasons why it’s wise to use an experienced Realtor for the purchase or sale of a home! To find out about the services I haven’t mentioned in this article, contact me today at teresa@teamelliott.net.

Why Interest Rates lncrease Very Soon

Buy That Home Now – Before Mortgage Interest Rates Go Up!

Here's a very important article I'd like to pass on for you.

Jeremy Siegel, Professor of Finance at the Wharton School of Business, and one of the foremost experts on the economy, predicts that “historically rates will move toward normal” in 2010.

Translation: If you want to borrow money to buy a new or existing home later this year, you’re going to pay more! Professor Siegel says that, overall, 2010 will actually be a good year economically – unless you’re a borrower!

The reason is that he believes the Federal Reserve will be forced to raise interest rates because of the improved economy and increased profitability. This action will be taken to keep inflation at an acceptable level.

So, there you have it! By buying now, you can save yourself a heckuva lot of money on a mortgage.

Plus, don’t forget – you can save even more through the government’s Home Buyer Credit Program – up to $8,000 if you’re a first-time home buyer and up go $6,500 if you’re a long-time homeowner buying a new principal home!

P.S. The Homebuyer Credit Program is scheduled to end April 30, so ACT NOW!

Before Buying a Home, Talk to the Neighbors To Determine If the "Neighborhood Value" Is There!

Before Buying a Home, Talk to the Neighbors To Determine If the "Neighborhood Value" Is There!

"Neighborhood value" is the atmosphere of a particular area - the look and feel of the homes and yards and so forth. But, more importantly, it's the "vibe" you receive from the neighbors.

Let's be honest: You can buy the finest home on the planet, but obnoxious neighbors can spoil the whole living experience for you.

Or, it could be the opposite - the neighbors aren't obnoxious; the current owners are. They may have had disputes with their neighbors and created an unhappy climate.

Depending on the nature of the disputes, the neighbors may be glad to see you, or they may be so negative toward the current owners that their attitude may spill over onto you, even though you had nothing to do with the situation! If that's true, then you may want to look at homes in a different area.

But there's also another important reason for you to talk with neighbors; good neighbors can alert you to problems you may not be aware of; for example, basement flooding, termites, leaky roofs, etc.

The Best Way to Evaluate a Neighborhood and Its Value

The best way to evaluate a particular neighborhood is write up a checklist of desirable aspects before you ever enter that neighborhood!

Below, I provide you with typical features (in alphabetical order) to check out. However, you should add as much detail as possible to that list since everyone has different needs and wants.

- Association fees (if applicable)
- Closeness to parks and recreation for the kids
- Crime rate
- Length of commute to work
- Noisy pets (barking dogs, etc.)
- Property taxes.
- Proximity to busy streets or main thoroughfares.
- Proximity to mall, shops, restaurants, etc.
- Reputation of school district
- Sidewalks and running trails throughout the neighborhood.
- Type of families in the neighborhood, etc.

The list above has all the "objective" features of a neighborhood; that is, you can measure them, for the most part, by facts and figures.

Assuming a neighborhood meets these objective criteria, then it's time to analyze the "subjective" features by visiting the area. Drive through the neighborhood to get an initial look. Do this at different times and on several different days to get a real feel for the area. Assuming you like what you see, you should also get out and walk the neighborhood. You may well see things you missed from the car.

As I suggested earlier, talk to the neighbors to get their opinions of the neighborhood and the property you're considering.

I'd recommend you select a time when they're likely to be outside walking or in their yards (gardening, watering, mowing, etc.). That way, you don't have to knock on their doors and interrupt their personal time.

Since buying a home is such an important decision, you can see that it's vitally important to check both the objective and subjective features of a neighborhood. And, since it's my business to know every one of those aspects, I encourage you to contact me so I can fill you in on the "neighborhood value" of an area you're interested in! Contact me at teresa@teamelliott.net or 402.690.1573.

Happy Holidays from Team Elliott

Just thought I would share a motivational piece I look at everyday. Happy Holidays and see you in 2010!

My Attitude

I Promise Myself:

To be so strong that nothing can disturb my peace of mind.

To talk health, happiness and prosperity to every person I meet.

To make all my friends feel that there is something special in them.

To look at the sunny side of everything and make my optimism come true.

To think only the best, to work only for the best, and expect only the best.

To be as enthusiastic about success of others as I am about my own.

To forget the mistakes of the past and press on to greater achievements of the future.

To wear a cheerful countenance at all times and give every living creature I meet a smile.

To give so much time to my own improvement that I have no time to criticize others.

To be too big for worry, too noble for anger, too strong for fear,

And too happy to permit the presence of trouble.

My Attitude..... Is My Life!

Attention Real Estate Investor - Here Are My 3 Tips to Investing and Selling Success!

You know, you can be the most knowledgeable real estate investor around…the master of every financial “trick” available…and it still won’t matter without the one indispensable skill – the ability to connect with people!

For you, as an investor, it’s vitally important to work well with many different people - buyers, sellers, lenders, realtors, appraisers, contractors, etc. After all, they’re instrumental in helping you achieve your success. Without good relations, your career goes nowhere.

Now, if you’re one of those individuals who feels he or she isn’t blessed with natural people skills, I have some good news for you – you can learn how to deal effectively with anyone inside (or outside) the real estate business!

Here’s all you have to do – learn the practical tips below and then practice them every day! Soon, everyone will consider you the “natural!”

Tip 1: Listen Effectively!

I know, I know…everyone tells you to listen well, but they don’t tell you how to do that! In this article, I tell you exactly how!

• Listen twice as much as you talk! Sometimes we get in such a hurry to make a deal that we forget to listen. Remember, people want to feel that you understand their needs and frustrations. So, replace excessive “yammering” by listening closely and showing interest in clients and others as individuals. Also, remember that this is actually an effective business technique; that is, once you know a person’s needs, you can shape your offer more closely to meet those needs – and a sale is made!
  
  
• Use prompts! “Prompt” is a term for a technique to keep clients and others talking so you uncover their needs. It involves using short phrases like, “Tell me more…Go on…I hear you….Go on…Uh huh,” etc. When you use these phrases, people know you’re listening and want to hear more of what they have to say.
  
  
• Use positive body language! Positive body language techniques include: a relaxed, yet alert posture…making good eye contact…nodding your head…leaning slightly forward…and writing down what people say. Never do the opposite during a meeting or interaction: answer phone calls, read papers, fidget, interrupt, and so forth. This is the height of rudeness and tells clients and others that they’re not important to you. This is a sure way to lose deals and money!
  
  
• Summarize! This is not only a great technique for letting people know you’re listening to them, but it also keeps “motor mouth” individuals in check and stops them from wasting your time and theirs. So, at strategic points in a conversation, you might say, “Kim, what I hear you saying is that you’d like an inexpensive home that’s in a quiet and stable neighborhood and is safe for your kids.”
  
  

Hint: Don’t overdo the techniques I just described above (for example, summarize constantly, prompt all the time, etc. If you do that, you’ll end up being seen as manipulative and turn people off. Instead, fit these techniques into the normal flow of conversation. With practice, you’ll soon be an expert!

Tip 2: Match the Customer’s Language and Speaking Style!

As we all know, people are more comfortable with others who are like them. So, for example, if a person has very high energy and talks fast, you can match those characteristics.

Or, if they’re very deliberate in their speech, then you can adopt those traits as well. Again, don’t go overboard with this technique. If you do, people make think you’re making fun of them and get very irritated.

Also, try to match their dominant style of thinking. For example, some individuals are emotional; some want “big picture” ideas; some are analytical and demand only facts and figures. If you can match their particular style of communication, you’ll connect more easily with them.

Guideline 3: Stress Benefits, Benefits, Benefits!

I know…I know…this is hammered home in every sales course you’ve ever attended.

But, the fact is, sometimes we get so interested in making a deal for ourselves that we forget to stress the benefits for the client, the lender, the contractor or anyone else we deal with in the real estate business.

So, remember to always answer the eternal question of clients and others first, “What’s in it for me?” If you do that to their satisfaction, you’ll make more profitable deals and connections.

And also remember that many needs are common (e.g., save money, make money, get security, etc.), but everyone thinks that their need is unique. So, listen closely and show them that you understand those needs!

Want to talk more about making great connections with people? Contact me today at teresa@teamelliott.net or 402.690.1573 and let’s talk about communication skills.

Attention Home Sellers! – Here's How to Catch the Eye of the Buyer w/ John McMillan

When about 84% of home buyers start their search online, you know you need to have an Internet presence in order to sell your home!

But that presence needs to have a professional appearance! You can’t simply slap up casual photos or boring videos. They won’t do the “sell” job for you. So, here’s some advice on how make your property as attractive as possible on the Internet.

Guideline 1: Hire a Professional Photographer or Find a Realtor Who Uses One!

There’s simply no substitute for high-quality photos of your property, inside and out. And, frankly, most of us just can’t reach the level achieved by a professional photographer. So, use the services of one to make your house stand out.

He or she should take several photos inside and out, highlighting the most attractive features of the home. Of course, get shots done on sunny days and be sure to include photos of the most important areas of the house; i.e., kitchen, a bathroom, dining room and a bedroom.
Then post the best photos (or have them posted) on an easily accessible site. It’s important to have a number of them online since potential buyers will pass over a listing with just one or two photos, feeling that they’re not getting enough information.

Guideline 2: Hire a Professional Videographer or Find a Realtor Who Uses One!

Video tours of your home are a great marketing tool. They’re dynamic and interesting to viewers – if done correctly. Also, such tours are very attractive to younger buyers who are familiar with such sites as YouTube.

I’m not saying you can’t film a video tour itself. In fact, it’s very easily done with YouTube. But, you need to ask yourself, “Do I have the talent for this?”

If you don’t and film a tour, then, frankly, the results can look very amateurish and may well end up turning off buyers who have high expectations of the videos they see online!

So, I recommend working with a professional videographer or with a realtor who has access to one. The money will be worth it. Of course, check out the videographer’s credentials first and ask for samples of their work. They should be able to send you to their own website where those samples are posted or to real estate listing sites on which their work is displayed.

Guideline 3: Work with a Realtor Who’s Knowledgeable about Social Media!

If you’re not familiar with the term “social media,” it refers to free Internet services like Facebook, YouTube, Twitter, etc. where people go online to socialize and get their messages out. A savvy realtor will link your video tour and photographs to all these sites, thus increasing the pool of potential buyers for your property and, again, tapping into a younger audience who may be the ideal customers for your home.

Need to know more about how to make the most of your Internet listing? Contact me immediately at 402.690.1573 and let’s get started today!