Timely Real Estate News…………………………………………………. 16 June 2008
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Dear Friends….
Is that a silver lining we see? Could there be good news for the Real Estate Market on the Horizon?
Good news sometimes comes in small packages. Like in baseball, tracking real estate trends has become an industry, and the slightest of movements in the marketplace get scrutinized.
Sales for the Brentwood Court office in May (where I work) showed another strong month, succeeding May 2007 by nearly 13% in sales volume. June is expected to be another strong month. And our office was in the top 20% of all Coldwell Banker offices across the US. This really speaks well to the strength of our market and office.
Speaking at our sales meeting last week , Betty Graham, President of the Greater Los Angeles Company in Los Angeles, noted that we may be near the end of the current down cycle for the market. “The typical down cycle lasts 36 months, and based on when we started this downward trend (early 2006); we’re now in our 30th month.” She pointed out that on the Westside, we are usually the last in, first out….and we are now beginning to see a stronger market already for mid-2008.
And with our relatively weak US dollar, we are also seeing a lot of foreign buyers who are taking advantage of the strength of their money.
While volumes are still down (as much as 50% in some areas), I don’t want to minimize the market’s weakened condition, but you can definitely feel the upswing in the energy.
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Looking inside a Marketing Philosophy
One of the key indicators that I have used as a barometer for market strength are the number of people attending open houses, and the business that can be generated from them. Across the board in all Westside area, we are now seeing more open houses and multiple offers are on the increase. The general observation I am making and it has been confirmed by a number of people is that the buyers are out there and interested, but they are also holding on to their money a little longer, so it becomes necessary for us (agents and clients) to create compelling situations for them to “shake that money loose”. The trick is to create that compelling reason… and that is where being a and working with a professional real estate agent comes into play.
One of the marketing strategies that is being used to generate offers is the pricing of properties just slightly under their market value. The rational for this is to hopefully generate multiple offers and drive up the price over what the price might have been otherwise. This is a ‘gutsy’ move — sometimes – as a seller in my opinion has to be prepared to” live by the sword and to die by the sword”- in that buyers may not respond to this strategy. Depending on the client’s situation, I have from time to time suggested this marketing strategy for a Seller’s property. So does this strategy work?.. depends.. Here is an example. Every day I run what is called a hot sheet from the MLS which gives me a quick snapshot on what is happening in a number of areas, Beverly Hills, Beverly Hills Post Office, Brentwood, Bel Air, Mar Vista, Santa Monica, Beverlywood, Westwood, Venice, West Los Angeles, Rancho Park Cheviot, and Pacific Palisades. Last week, I noted for two days running that of the approximately Fifteen (15) closed escrows of single family homes in these areas, there were (8) eight that had sold in a very short period of time all over asking price. This is generally an indication that there were multiple offers.
But, again, selecting the right marketing strategy is a function of knowing the market, the neighborhood, and how your property is situated in the selling environment.
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Should you hire a power broker? Take a guess………
Stop for a minute and consider this statistic: 95% of the sales are completed by 5% of the brokers. As legendary New York real estate guru Barbara Cortland remarked on the Today Show last week, why would you “not” hire a power broker, especially in these times. I’ve never seen myself as a power broker, but as one of the top agents (in the top 5% for over 20 years) in the Brentwood Coldwell Banker office, I would agree with Barbara — why not hire me? You can count on my skills and experience bringing success to your transaction
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Cell phones — have your Bluetooth installed by July 1
OK, time to stop procrastinating: Get your earphone! Starting July 1, two new California laws take effect that says you must be using a hands-free device for cell phones if you’re driving a car. And, the second one is that it will be against the law for anyone under the age of 18 to use a wireless device in a moving vehicle. Listen up! I have had one for over a year and really enjoy it and have pretty much gotten over people thinking I am talking to myself when they see my lips moving, but no phone.
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Green Tip and Reminder
Last Saturday I dropped off an old shredder at the recycling center for all electronic equipment at UCLA. It is located on the west side of the campus and very easy to find. It is just off of Gayley and there are plenty of signs. It is open every Saturday from 8:00 am – 2:00 pm. But please do not forget that I will be more than happy to swing by your house and pick up your old electronic equipment as well as your ink cartridges and cell phones for recycling. Please remember that our land fills are filling up very quickly and we all need to do a much as we can to help our wonderful planet
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I also want to thank all of you who thank me for the Schifferline and tell me how much you enjoy reading it. That means a lot to me.