All About Realestate

By Lawrence Roberts

Most market participants focus on price action. The price-to-price feedback mechanism largely responsible for bubble market behavior gathers its strength from an awareness of market pricing, and the widespread belief that short-term, past price performance is predictive of long-term, future price performance. It is a fallacy that is often reinforced in the short-term as irrational exuberance takes over in a market, but over the long term, short-term price movements rarely correspond to long-term price trends, and when they do, it is only by chance.

Predicting future prices based on price action is based on the premise that long-term price trends are reflective of fundamental valuations because they represent the collective wisdom of the market. As with all methods of predicting pricing, deviations from the long-term fundamental valuation almost always result in a return to this value. The weakness in this theory is in its failure to provide a causal mechanism.

To note that prices return to long-term valuations without postulating why prices do this provides no mechanism for estimating when prices will return to fundamental value, and it provides no way to determine if there is a significant change to the market’’s valuation to establish whether or not prices will return at all. In short, past price action itself is very limited in its ability to predict future price action. Despite the shortcomings of the methodology, predictions based on past price performance are widely used and often woefully inaccurate.

From 1984 through 1998, national house prices appreciated at a rate of 4.5%. There is a strong correlation between this rate of price increase and observed market prices. There is only one deviation from this rate of appreciation during the period. The effect of the coastal bubble of the late 1980s on national prices creates a small rise from the historic appreciation rate and a sideways drift of prices until values resume their 4.5% annual rise. Since prices consistently match this rate of appreciation, and since prices deviate once from this rate in a prior price bubble and return to it, there is a compelling argument that prices will drop to this level of long-term appreciation and begin rising again. If this proves to be true, national home prices will decline 10% from the peak, bottom in 2009, and return to the peak by 2011. This is the market’’s best-case scenario.

The story for the most inflated markets such as Irvine, California, is much the same as the national forecast. If the 4.4% rate of appreciation seen from 1984-1998 is repeated, then prices will decline 45% from the peak, bottom in 2011 and return to the peak in 2023. Since prices peaked in 2006, this method of price projection shows an 18 year peak-to-peak waiting time: not a comforting forecast for Irvine homeowners.

The key assumption in this analysis is that market prices will resume the rate of appreciation seen from 1984 to 1998. This rate of house price appreciation is 1.4% above the rate of inflation, 1.2% above the rate of wage growth, and 0.7% above the very long-term rate of house price appreciation. House appreciation cannot exceed wage growth forever: trees cannot grow to the sky. People have to earn money to buy a home (unless of course we become a nation of the landed gentry in which real estate is only transferred through inheritance).

House prices outpaced wage growth for two reasons: first, debt-to-income ratios rose as people put higher percentages of their income toward making payments; second, interest rates declined allowing people to finance larger sums with less money. Much of the reason house prices appreciated at a rate in excess of its normal relationship to inflation is due to the gradual decline of interest rates during the period. As interest rates decline, the amount people can borrow increases. If people can borrow more, they can bid prices higher. House prices appreciated at a rate greater than its long-term average due to declining interest rates. If interest rates stop declining (which is likely), or if interest rates begin a cycle of long-term incline, the rate of house price appreciation will be impacted negatively; the drop of prices from the deflating bubble will be deeper, and the date of ultimate price recovery will be much later.

The median sales price measures the general price levels at which buyers are active in the market, but it does not reflect the quality of what is purchased and it does not reflect the price changes of individual properties. The S&P/Case-Shiller indices measures price changes in individual properties through its use of repeat sales in calculation of the index. Market participants are primarily concerned with how their property is changing in price rather than some aggregate measure of the market. The S&P/Case-Shiller index is the best market measure for approximating the price change on individual properties.

It is more difficult to use an aggregate appreciation rate on the S&P/Case-Shiller indices because there is no single period where a particular average correlates well with market pricing, plus small changes in the rate of appreciation can make large differences in where the bottom is found. There are two issues to be addressed with any projection of appreciation when there is low correlation to the data: the starting point, and the rate of increase. The S&P/Case-Shiller indices did not start collecting data until 1987, but this date is arbitrary.

The most recent market low was in 1984, and by 1987, there was some detachment from fundamental valuations. The point of origin for the projection of appreciation may more appropriately be below the first data point in 1987; however, to simplify the analysis, the 1987 data point was used as the origin. The 3.3% rate used in the projections was the historic rate of wage growth from 1987 to 2006. Since people finance house purchases with payments made from wages, this is a reasonable rate to use. Another method that can be used is to assume the very long-term rate of appreciation of 0.7% over inflation.

The question then is what rate of inflation should be used. The average rate of inflation from 1987 to 2007 has been just over 3%, but inflation rates have been much higher and more volatile prior to this time. So an argument can be made that 3.7% is a more appropriate number. If this rate is used with the lower origin point to allow for the small degree of house price inflation already evident in 1987, the two support curves differ slightly, but the difference between the two is not significant to the outcome.

Based on projections from S&P/Case-Shiller indices using a 3.3% rate of wage growth as a support level, prices of individual properties will decline 27% from their peak valuations in 2006, finding a bottom in 2011 and reaching the previous peak in 2025. This is arguably the market prediction of most concern to homeowners that purchased during the bubble because it reflects the price change of individual properties like theirs. There is very little comfort in the thought of a 27% decline and a 19 year waiting period until prices regain their previous peak.

The degree of detachment from fundamental valuations in the extreme bubble markets like those in California is truly remarkable, and the decline in house prices will be as unprecedented as the rally that preceded it. Based on projections from S&P/Case-Shiller indices using a 3.3% rate of wage growth as a support level, prices of individual properties will decline 53% from their peak valuations in 2006, finding a bottom in 2011 and reaching the previous peak in 2033. Twenty-Eight years is a long time to wait for buyers in the great housing bubble to get their money back.

About The Author

Lawrence Roberts is the author of The Great Housing Bubble: Why Did House Prices Fall?
Learn more and get FREE eBooks at: http://www.thegreathousingbubble.com/
Read the author’’s daily dispatches at The Irvine Housing Blog: http://www.irvinehousingblog.com/

By Renee Adelmann

If you live in or are visiting San Francisco California, there is no place to visit quite like the South of Market (SoMA) neighborhood. The SoMA, as it is commonly referred to, borders Market Street to the north and northwest, Townsend Street on the south and southeast, the Central Freeway to the west, and the beautiful San Francisco Bay to the east.

The SoMA part of San Francisco isn”t just one homogenous area, but includes several diverse areas. If you”re into baseball, this is home of the AT&T ballpark, where the San Francisco Giants compete in the National League, although the stadium is used for other events as well including concerts, the Monster Energy Supercross, the Emerald Bowl, and a fun-filled broadcasting event of the famous Mavericks Surf Contest.

Apart from sports and big time events, the South of Market neighborhood has a reputation as a place with a vibrant West Coast music scene. There are still many popular bars and nightclubs in this area that have a reputation and history going back three decades when San Francisco had a thriving underground punk, rave, and independent music scene. More recently though, the influx of commercial and residential developments in the SoMA neighborhood has increased rents and changed the face of nightlife slightly to include more upscale restaurants, bars, and nightclubs.

In the SoMA you can still find very high class entertainment to a strong underground, and even the risque if that’’s your thing. One of the most popular neighborhood bars is “The Chieftain,” while there are dance clubs for every preference. If you want something very low tone, then the San Francisco Flower Mart is a nice place to duck your head in and enjoy the smell of flesh flowers which are imported daily from around the globe.

If bars and nightclubs just don”t hit the mark, there are still many other attractions that the SoMA has to offer residents and tourists alike. Close to the SoMA are the Yerba Buena Gardens, which allows for a beautiful garden walk in the middle of the city. Additionally, the nearby Sony Metreon offers over 350,000 square feet of family-friendly entertainment including shopping, 9 restaurants, 15 movie theaters, and an impressive IMAX theater.

The SoMA has seen many changes over the last thirty years, and this neighborhood continues to change and evolve, but if history is any indication, then the SoMA will have a lot to offer everyone for years to come.

About The Author

Renee Adelmann is the owner of San Francisco Modern real estate, an architectural real estate firm specializing in modern and midcentury modern homes and lofts in San Francisco. Visit Renee online at http://www.SanFranciscoModern.com.

By Lawrence Roberts

What is a Cultural Pathology? There are certain beliefs if widely held and acted upon by a group of people leads inevitably to collective suffering and personal destruction. The housing bubble was a form of cultural pathology. It spawned a number of beliefs and actions that caused people to lose their houses in foreclosure.

One example of a cultural pathology is demonstrated by the American auto industry. Before the age of imported cars, the American auto industry believed the quality of their product did not matter; people bought their product irrespective of quality. For many years, the industry was successful despite this pathology. This belief allowed offshore competitors to enter the market, build market share, and finally take over the industry. The American auto industry’’s belief system had had a pathologic effect on their business which caused much suffering in Detroit. This commitment to quality in the industry is still suspect, and it may lead to the bankruptcy and destruction of our major automakers.

The best treatise on the pathology of cultural beliefs was George Orwell’’s novel, 1984. In Orwell’’s vision, a totalitarian State had convinced the populace of the following:

* WAR IS PEACE
* FREEDOM IS SLAVERY
* IGNORANCE IS STRENGTH

Although these statements are clearly contradictory, in the story the slogans do make sense to the State. For example, through constant “war”, the State can keep domestic peace; when the people obtain freedom, they become enslaved to it, and the ignorance of the populace is the strength of the State. Just as Orwell’’s Big Brother convinced the populace the above contradictions were true, Californians and other bubble participants have convinced themselves of the following:

* APPRECIATION IS INCOME
* CREDIT IS SAVINGS
* DEBT IS WEALTH

Just as these statements are contradictory and ridiculous, the proof that these statements are believed is that they are reflected in the actions of many homeowners during the great housing bubble. For example, through borrowing against increasing home values, appreciation is turned to income; when people obtain more credit, they spend it like available savings, and a large amount of debt used to finance a large, opulent home makes one wealthy. To many buyers and homeowners during the housing bubble this made perfect sense.

The problem is rooted in a basic misunderstanding of what separates the rich from the poor: the habit of saving. There is an old expression, “the rich get richer and the poor get poorer.” It is more accurate to say the rich save money and the poor spend it: in the end, the rich will have money, and the poor will have none. This is not one of life’’s inequities, but rather one of life’’s simple truths. When the average Joe says he wants to be rich, what he is really saying is he wants unlimited spending power. He wants the ability to spend like the rich people he sees wearing Rolexes and driving BMWs to their mansions. This is why, when given the chance, poor people will emulate the rich by spending beyond their means in order to be rich. Of course, in the process, they spend themselves poor.

The great housing bubble witnessed the widespread acceptance of pathologic beliefs by the populace. The huge numbers of foreclosures that occurred as the bubble deflated are testament to just how pathological these beliefs were.

About The Author

Lawrence Roberts is the author of The Great Housing Bubble: Why Did House Prices Fall?
Learn more and get FREE eBooks at: http://www.thegreathousingbubble.com/
Read the author’’s daily dispatches at The Irvine Housing Blog: http://www.irvinehousingblog.com/

By Al Haneson

If you are like most people, you will need to obtain a loan in order to finance your first house. As you may already know, these types of loans give you many opportunities that wouldn”t be possible without them. When you buy a home, you should understand as much as you can about the process, as well as the questions you will be answering. This way, you”ll be familiar with how things work and you”ll find the entire process to go much smoother.

When you look towards a home purchase, you”ll need to fully understand the interest rates. They are never the same and will vary among the different financial institutions, as well as from time to time. The good news is that with the recent crunch in the housing market, the fed has lowered rates to all time records, meaning you can get a great rate and payment now.

In many cases, home loans can change on a frequent basis, with little to no notice. These are known as adjustable rate mortgages. When you buy a home, it is very important that you keep up with the economy. Any change in interest rates for a home loan can either increase or decrease the amount you pay back.

In addition, you”ll also need to understand the terms and the length of the loan. Almost all financial institutions and lenders have a variety of different plans or periods for you to choose from. If you choose a longer period, in most cases your interest rate will drop. You can find this out yourself by using a mortgage calculator. This way, you”ll know how much your monthly or yearly payment will be before you decide to further pursue the loan.

As you probably already know, your ability to pay the loan back is very important. Some lenders require that you keep your loan full term, while others may provide you with the option to pay it off any time you wish. Agreements that give you the option to pay it off early will normally save you quite a bit of money in the end. If you are able to pay your loan off several years early, you”ll save a lot of money in the long run.

Even though the early payoff option is great to have, it can also come back to haunt you if you end up defaulting or getting behind. If you decide to sell your home in the future, the early payoff can haunt you as well. For those very reasons you should always consult with a specialist before you commit to any type of home loan.

For the potential home buyer, the mortgage type you select can be the make or break decision in the entire process. Before you rush out and sign a contract, you should always know what you are agreeing to. You should also look into the company you are thinking of getting the loan from as well, so that you can better prepare yourself when you go through their process of getting everything closed and moving in.

About The Author

Al Haneson blogs about his opinions on, http://lifeandlawns.com

By Renee Adelmann

Mill Valley California has a certain cachet. Over the years it has been home to the rich, the famous, and the infamous. In the ”60s the hippies loved it and, in recent years, the hip love it. Laid back, but sophisticated with a modern edge, Mill Valley remains a hot spot in the real estate market, despite the overall decline in many parts of California.

What makes Mill Valley real estate so desirable to modern homebuyers? Obviously the proximity to San Francisco is a big draw for Mill Valley and, indeed, all of Marin County. Less than 15 miles from the Golden Gate Bridge, Mill Valley is about a 30 minute commute to San Francisco, which is perfect for those who work in the city but want to a quieter pace for their family life. The public schools are excellent, and there is a wealth of outdoor activities for the active family.

Another big attraction to Mill Valley is the mild Mediterranean climate. In the winter temperatures are pleasant and rainfall is abundant - which provides Mill Valley with its beautiful forested areas. In the summertime, temperatures range between 75 and 90 degrees and there is little, if any, rainfall. What’’s not to love about that?

If the natural attributes of Mill Valley aren”t enough, buyers looking for Mill Valley real estate will find some amazing architecture. In addition to condos and traditional style homes, Mill Valley is rich with mid-century modern design. The Strawberry Point area has a very exclusive neighborhood developed by Joseph Eichler in the 1960′’s. These homes, designed by Claude Oakland, are a bit larger than most Eichlers and many feature great views of the San Francisco Bay. You”ll also find homes designed by greats such as Lee Stuart Darrow and Jon Bolles in the Strawberry Point area of Mill Valley.

For the patient homebuyer, Mill Valley homes designed by well-known architects occasionally come up on the market. Soriano, Paffard Keatinge Clay, Daniel Lieberman, Rex Rathbun, and Francis Joseph McCarthy are all modern pioneers who contributed to the richness of Mill Valley architecture in the booming age of modernism that began in the 1940′’s and lasted well into the 1960′’s. More contemporary architectural firms such as Kappe+Du, Endresware, Ohashi Design Studio, and Sheahan & Quandt are also represented in Mill Valley real estate. These custom homes are not large, but they are smart and well designed. The homes do not come cheap, but they can be considered an investment in a work of art in addition to a home.

Nothing is inexpensive in Mill Valley, but everything is relative. For those who dream of owning a home in Mill Valley but find the designer homes to be a bit too pricey there are other options. In the hills surrounding the town, small cabin style homes sometimes come up for sale. Many of these places have lovely views, a rural feel, and some even have studios. Another relatively cost-effective alternative would be to purchase a tear down and put a prefab in. These days prefabs, also called modular homes, are becoming increasingly popular. They come in many different designs - including modern, are generally not as expensive as building a house “from scratch”, and take less time to construct.

For now the Mill Valley real estate market remains solid and, with such an eclectic background, there truly is something for everyone. Mill Valley has a lot going for it: great location, lovely climate, excellent schools, and interesting architecture. For $750,000 you can get your foot in the door - from there, the sky is the limit!

About The Author

Renee Adelmann is the owner of Marin and San Francisco Modern real estate. You can visit her online and learn more about Bay area real estate by visiting http://www.MarinModern.com.

By Joshua Ferris

New homes are the top tier when it comes to home buying because they afford you the option to customize your home to your liking with upgrades and you get to be the first owner of the home. As the real estate market continues on its path to recovery there are many home builders who are now reconsidering what to include in a new home’’s standard features list.

Many of these newly included standard features previously served as pricey options so new home buyers today are getting the latest in creature comforts without the heavy price tag. Check out seven of the latest new home trends and keep this list handy as you browse new homes to see what’’s included in the builder’’s standard features list.

Granite Countertops and Undermount Sinks in Kitchen and Baths - This premier touch surface of high end homes can be seen on the standard features list of townhouses and other moderately priced properties nowadays. A secondary benefit to granite countertop surfaces is the undermount sink which means you won”t have any sink edges rising up past the countertop creating a very clean, modern look.

Living Room Evolution - Living rooms used to serve as the crucial gathering room but today’’s homeowners tend to gather in the kitchen instead. If builders are using a floorplan that includes a living room you can expect it to offer features unseen in living rooms of the past like ethernet wall ports and home theater system niches to hide home theater hardware.

Solid Wood Front Doors - The cold steel front door is more frequently being swapped out with the vastly more attractive solid wood door. Solid wood doors come in many styles ranging from intricate glass detailed doors to solid wood doors reminiscent of those seen in craftsman home design.

Hardwood Floors - During the middle and late 20th century it was all the rage to have carpeting throughout your home because it was a softer walking surface and kept the floors warmer than hardwood and tile during the winter. Now that radiant floor heating and the demand for low maintenance flooring have become more common it’’s expected that hardwood floors will replace carpeting in high traffic areas like foyers, hallways and family rooms.

Stone Exteriors and Accents - Vinyl siding is very low maintenance and styling options have grown in recent years. Even so, full stone exteriors or stone accented exteriors are hot because they give a more substantial curb appeal to a home and help break up the monotony of some home designs.

Solid Interior Doors - An increasingly popular trend in new home design are solid interior doors. Solid interior doors are different because they create a stronger sound barrier between rooms and are more durable.

Nine to Ten Foot First Floor Ceilings - Feeling cramped inside a home is the number one reason homeowners opt to move up into a larger home. One way builders are countering this concern is to raise ceiling height by one to two feet bringing the total floor to ceiling distance to nine or ten feet. This creates a vastly more open space and the cost to builders is minimal.

Utilizing this list of the seven latest new home trends, many of which can now be found standard in new homes, you will have the distinct advantage of buying the most house for the money and owning a home that will require few, if any, updates should you decide to sell in the future.

About The Author

Joshua Ferris is a new home specialist and has created a valuable resource for home buyers considering the area including his indispensable Monroe, NY real estate guide. For more information about lower Hudson Valley New York real estate please visit http://www.housemeetsowner.com.

By Joshua Ferris

Home improvement can be a tricky subject because it can either require a home equity line of credit just to finish one job or it can be done on a shoestring budget and still look great. Assuming you are pushing for the latter of the two and want to get the most home improvement for every dollar put in here are seven great (cost effective) home improvement tips that are sure to increase the value of your home when you put it up for sale.

Fiber Cement Siding - Fiber cement siding is becoming one of the most popular alternatives to vinyl siding because it inherits all of the attractive features of wood siding with none of the flaws. For example, fiber cement siding is low maintenance, fire and termite resistant and holds paint color for seven to fifteen years.

Add a Wood or Composite Deck - Wood decks tend to generate a better return on investment than composite decking but you can expect wood to be higher maintenance so it’’s worth weighing your options on maintenance versus initial price. Either way, adding a deck to your home will give you additional square footage outside of your home and increase the value of your home among potential home buyers.

New Vinyl Windows - If you have an older home one of the most promising home improvements is in your windows. Replace drafty or aging windows with vinyl windows which are cost effective, look great and are low maintenance.

Minor Kitchen Remodel - Sometimes a home improvement project doesn”t need to be a full scale military project. Updating your kitchen can be as simple as replacing the countertops with a more modern surface like granite, changing cabinets with a moderately priced new set and upgrading your appliances to newer and typically more quiet stainless steel appliances.

Attic to Bedroom Conversion - Wasted space such as an attic can be a great way to expand your home’’s livable space without having to build beyond the home’’s original footprint. One of the most popular ways to convert an attic to living space is by turning it into a bedroom or master suite with bathroom and walk-in closets.

Finish Your Basement - Similar to an attic project, basements also span the width of most of your home and offer up a tremendous amount of space to use. If you have a basement with at least seven feet of floor to ceiling height you should be able to turn the dusty, underused part of your home into a recreation room or guest suite. Every town varies on how extensive they will allow a basement renovation become so check with your local town officials and get the proper permits before starting.

Add Landscaping - Landscaping is super simple and an inexpensive way to increase your home’’s curb appeal dramatically. Although you can go crazy with landscaping your home will benefit most from a walkway to the front door complete with plantings on both sides, fencing in the back yard and plantings that run the length of the driveway.

Home improvement is an exciting journey that will exercise your creative freedom and, with good planning, won”t cost you an arm and a leg to do. Using the list above as a guide you can improve many key parts of your home that will give you a marked increase in your home’’s value the day you put your home on the market.

About The Author

Joshua Ferris is a new home specialist and has created a valuable resource for home buyers considering the area including his indispensable Monroe, NY real estate guide. For more information about lower Hudson Valley New York real estate please visit http://www.housemeetsowner.com.

By Joshua Ferris

Home staging shows your home in the best light possible by making your home look like a model home so taking on the task of staging it yourself can be a big one. The advantages of staging your home are numerous with the possibility of multiple offers and a shorter number of days on the market being just a few of the benefits you could enjoy.

Crank up the curb appeal - When it comes to selling your home the curb appeal, also known as the first impression the buyer will see, is crucial. Clean the exterior of your home by pressure washing the siding, cleaning the gutters to prevent sagging and landscaping the walkway leading to the front door. You don”t have to spend thousands of dollars on landscaping because a few hundred dollars in plants and flowers will go a long way.

Clear away cluttered spaces - Cluttered counter spaces and rooms steal valuable square footage and make home buyers think the rooms are smaller than they actually are. Leave room for only the essential appliances on the kitchen counters and clear away any unused furniture or storage containers in bedrooms, family rooms and home offices.

Add complementary accessories - Staging your home isn”t just about clearing away the clutter because a home that is too bare will make the home seem like it lacks personality. Use accent pieces and accessories that complement each other. For example, a round coffee table will help a living room with large chairs and sofas feel more open and flow better.

Shuffle furniture so each room has a purpose - Sometimes when you live in a home for a while a room can lose its original purpose because you found a better use for the space. This frequently happens in casual living environments when the dining room becomes an office or catch-all space. Once you have decided to sell your home make sure that each room has a purpose and that the space is clearly defined so home buyers aren”t ticking away dollars for a perceived loss of space.

Finish any deferred projects - Occasionally we all take on projects that end up being far more time or labor intensive than we can handle. Before putting your home on the market be sure to finish all of your “some day” home projects to give your prospective buyers confidence that they are buying a well cared for home. These projects can be as simple as changing out dead light bulbs and as complex as finishing a deck. Either way, they need to be done!

Rent furniture or accessories to fill in empty spaces - Like most people, you live in your house and your furniture may be showing signs of significant wear and tear. To keep your home looking fresh you should consider replacing aged furniture with rented newer looking pieces. You can also rent accent pieces like vases, dishes and more.

Wash your windows and open the shades - Probably the most laborious task on the list, washing your windows on the outside and on the inside will make a big difference in the way your home shows. Clean windows show off the views around your home while showing buyers that you take pride in your home’’s appearance. A win-win all around.

Staging your home by yourself can be a daunting task but knowing where to start and what steps will help you achieve the most benefit from your time invested will increase your chances of selling your home faster and for more money than comparable properties in the neighborhood.

About The Author

Joshua Ferris is a new home specialist and has created a valuable resource for home buyers considering the area including his indispensable Monroe, NY real estate guide. For more information about lower Hudson Valley New York real estate please visit http://www.housemeetsowner.com.

By Mike Parsonage

What makes a successful real estate agent? The top agents treat the whole process of selling real estate as a numbers game. They have developed systems or formulas that work and applied them to all transactions to achieve predictable and consistent results. Improved efficiencies and greater throughput then lead to more sales and greater revenue. It is not really a question of natural ability or a sixth sense, most aspects can be learnt given the right attitude.

The trend is for more of the top realtors to employ assistants to handle the more menial tasks or compensate for skill sets where the realtor has a weakness. This allows him or her to concentrate more on the aspect where they can provide greater benefit i.e. closing the sale. This allows the team to process more transactions and earn more in commissions. Systems are the backbone of these teams and enable all the team members to work together efficiently.

So what is a system? In this instance a system is a set of tasks that fit together to complete a given objective. You can define a system for almost anything. For example you could write a system for making breakfast:

(1) Get the newspaper
(2) Cook the eggs & bacon
(3) Make the coffee
(4) Set the table

In this example you could assign the four tasks to four separate people. Each task could be defined in more detail so that a stranger could perform the task and the end result would still be satisfactory. However, if even one of the tasks is missed or poorly done then the end result will be disappointing.

In real estate the tasks are usually very simple but there are usually a lot of them. Missing some steps due to the pressure of work or just poor discipline can have a drastic effect on the final income. Also, real estate salespeople are generally not renowned for their discipline. They prefer to be more intuitive, outgoing and people focussed. Therefore it is common to have checklists, computer systems or office managers to ensure that all the steps have been completed.

Example : Buyer enquiry system

Enquiries from potential buyers can come from a variety of sources including people simply walking into the office and asking for a specific property. The agent needs to work with each potential buyer and look after their needs. He or she needs to make the buyer feel special and that there is no need to go elsewhere for real estate services. This needs to be done in a proactive but reassuring way. That last thing that should be done is scare the person away by over servicing or being too pushy.

Each agent will develop their own style and will eventually develop a pattern that works for them. A typical system for managing the buyer enquiry might look like this:

(1) Complete a buyer enquiry form. Usually a paper form filled out by the agent whilst talking to the potential buyer.

(2) Conduct a search of possible properties for the buyer.

(3) Take the buyer to inspect the possible properties and sell one of them if possible.

(4) Gauge the buyer reaction to the properties and build a profile for the kind of property that will be suitable.

(5) Enter the buyer details in the client database and schedule a trail of follow up actions based on the assessment of the buyer and his or her likelihood of purchasing in the next few weeks.

(6) Same day. Send a letter thanking the buyer and providing details of the properties seen and confirming the preferred property features for future searches.

(7) Every week. Call the buyer and discuss the details of other properties coming onto the market. Try to arrange some more inspections.

(8) Every month. Send a copy of the office newsletter.

(9) Every three months. Send a copy of the suburb profile with updated sales and new listings during the period as evidence of sales activity.

(10) Every three months. Visit the buyer and discuss how he values your service and whether he wishes to continue. You may then decide to change his details and the nature of your follow up campaign based on his comments.

Typically the system would be setup for a set period. For instance if a person wanted to buy a new investment property sometime in the next 12 months then you would probably assign a system based on 12 months duration. Then there would be a set number of follow up actions required, each with its own date etc. A system like this simple example would have 78 distinct actions that need to be completed.

When done well, these follow up systems build a trusted relationship between the clients and the agent. That in turn leads to a strong referral business.

Many real estate agents manage an area, or farm, consisting of over 500 people as potential sellers. Sometimes up to 2,000 people. The number of long term potential buyers, depending on the market, could be in the hundreds at any one time. Therefore it is apparent that a successful agent soon builds up a large list of daily actions and must be extremely efficient to stay on top. Writing the details in the diary is simply not going to provide the follow up necessary.

Systems, tools and effective teams are the way forward in real estate sales today.

About The Author

Mike Parsonage has worked with real estate Agents for over ten years helping them to develop their business through database development and systems development. He has a collection of great books on his website http://www.AvroBooks.com that will help you do the same.

By Christine Harrell

The housing market today presents an interesting opportunity for buyers. There are more houses available than buyers in most markets, which means if you are looking for golf course homes, you will have to answer some questions to narrow the field. One of these important questions is whether to select a new or existing home. Both choices carry advantages that may or may not suit your situation.

Existing Golf Course Homes

As you drive up to some homes that currently exist on the real estate market, one common theme you will notice from the start is the mature neighborhood. Infrastructure such as roads and utilities are all well established. You will not have to tolerate the construction of new homes elsewhere in the neighborhood.

The yards of existing golf course homes also display the benefit of being well established. You don”t have to wait years for saplings to mature or lay all of the ground-work for a new deck or flowerbeds if you don”t want to. You can improve on what is already there to add even more curb appeal to your home.

Since added perks often come with the purchase of existing real estate, you don”t have to put in the time, work, and expense to install them. These could include luxury items such as pools, finished basements, saunas, garages, and other items that can make your home much more enjoyable.

New real estate

With new golf course homes, you can have all of the features and options added that you would like to have from the start. Everything from the size of the rooms, flooring, countertops, and closets all match your lifestyle and needs. This eliminates the hassles of starting renovations and repairs when you move in. Many people also find it easier to become comfortable in the home.

New homes should not require repairs, but if they do, the builder’’s warrantee will cover all of the costs associated with the repairs and renovations. You also know what has gone on in the house so there should be no surprise damage. Everything including the plumbing, electrical, and basic construction will be up to current building codes.

Builders put up new units in new neighborhoods with new roads, utility lines, and amenities, which eliminates many of the hassles associated with those that have been around for an extended period. Since the home doesn”t have any landscaping, you have a clean slate that makes it easy for you to create the yard you have always wanted.

Both existing and new Jackson Hole real estate and homes across the country have unique benefits whether you are considering an apartment, a condo, or a detached house. You dilemma is deciding which option you prefer — the convenience and comfort of existing golf course homes, or the freedom to create what you want right from the start.

About The Author

Author is a freelance copywriter. For more information on golf course homes, visit http://www.tetonsprings.com.