July 30, 2007
NAR’s 2007 Profile of International Home Buying Activity shows that a quarter of REALTORS® report more international business in 2006 than five years ago. Nearly one in five respondents sold a home to an international client in the past year, and one-third say they believe foreign retirees are an increasingly important market in the United States.
The research explored the characteristics of second-home purchases in the United States made by international clients. Here are six of the top findings, which reveal important trends that will help you tap into the expanding international niche:
- Stronger preference for condos and apartments. In 2006, most international home buyers purchased single-family homes or townhomes, and like most domestic home buyers, they financed their purchase. However, they showed stronger preferences for condos/apartments when compared to U.S. home buyers; 22 percent of international buyers purchased condos/apartments, versus 12 percent of U.S. buyers.
- More pay in cash. Twenty-eight percent of foreign buyers bought their houses with cash, compared to 8 percent of U.S. buyers.
- Purchase pricier homes. The median sales price of homes purchased by international buyers was $299,500, which is significantly higher than the U.S. median of $221,900 during the same period.
- Homes used for vacation, investment. Forty-seven percent of all international buyers purchased homes exclusively for vacation, while 22 percent were motivated primarily by investment. Nearly a third of foreign buyers cited both vacation and investment as reasons for their purchase. International homeowners spent an average of 4.2 months of the year in their U.S. property in 2006.
- Buyers from Mexico most prevalent. A third of all international buyers are from Europe, but buyers from Asia and North America (outside the United States) each represent about one-fourth of the total market. Sixteen percent of all international buyers are from Latin America. By individual country, most buyers come from Mexico (13 percent), the United Kingdom (12 percent) and Canada (11 percent). (See below)
- Florida leads the pack. Foreign buyers purchase homes across the United States, but 52 percent of sales in 2006 were concentrated in three states: Florida (26 percent), California (16 percent), and Texas (10 percent). The South attracted nearly half – 49 percent – of international buyers last year, while 31 percent purchased homes in the West.
Canadian home buyers also headed to the South – 46 percent of them purchased home in that region of the U.S. Thirty-eight percent of buyers from Canada bought a property in the West, 10 percent in the Midwest and 6 percent in the Northeast. Similar to Mexican buyers, Florida was the location of choice well over a third of Canadians purchasing homes in the U.S., and California was the second most popular destination.
The U.S. real estate market is still considered a prime investment opportunity for foreign buyers and a “safe haven” in which to put their money. With the weakened U.S. dollar against foreign currencies, those currencies buy a lot more than in previous years. For example, the British Pound Sterling was worth $1.44 in 2001; by 2004 it was worth $1.83. As of mid-year 2007, the pound was worth nearly $2.00. The Euro has also increased in value against the U.S. dollar. More purchasing power for foreign buyers mean they can afford “more house” – particularly in a stabilizing U.S. housing market.
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Posted by Mike Blaney
July 16, 2007
Writing copy for home ads can be one of the most difficult aspects of marketing a home and finding the right headline is critical to capture the attention of the target market you are trying to reach.
Here are a few to get you going on the right track:
LANDSCAPING
Right out of Better Homes & Gardens
Think Garden!
The War of the Roses
Stop to Smell the Flowers
Made in the Shade
ACREAGE
Own your own Sanctuary
The Great Escape
Country Living at it’s Best
Giving Away the Farm
Read the rest of this entry »
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Posted by Mike Blaney
July 11, 2007
On July 3rd I wrote about the most expensive house for sale in the U.S. only to wake up today and find out I am out of date and $30 million dollars low.
Now a Beverly Hills mansion that once belonged to publishing magnate William Randolph Hearst is on the 
market for $165 million. It is believed to be the nation’s priciest residential listing. The six-and-a-half acre estate has three swimming pools, 29 bedrooms, a movie theater, a disco and separate residence for the security staff.
According to an article in the Independent newspaper, in reality, no single residence has sold for a nine-figure sum before. The record remains the $94m which was paid for the Bel-Air home of the former telecoms mogul Gary Winnick in 2001.
July 12, 2007 - Late Breaking News -The $94 Million record is now toast with a record-breaking sale of a residential property in East Hampton (NY) for $103 million. The new U.S. record sale was supposed to be hush-hush; but, the news was quickly out that Schlumberger Oil fortune heiress Adelaide de Menil and her husband Ted Carpenter had sold the ocean front property to Ron Baron, founder of Baron Funds Investment Company.
AP Aerial view of the property.
Open House Canceled
There will be no open houses for the merely curious. Buyers expressing serious interest will be screened by Mr Shapiro before they are let through the gates. His rule of thumb: spending $165m should not dent their personal worth by more than 10 per cent.
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Posted by Mike Blaney
July 11, 2007
The Luxury Home Council recently released the The 2007 Membership Survey of Luxury Housing Market Trends*
While the survey is excellent and the information useful I thought I might uncover a few secrets here that might change the way I recommend marketing to high end clients, but there were really no surprises.
If you only read the following stats then you will benefit from having the secret of real estate success reinforced; spend your time and money marketing to your sphere of influence:
- 75% 0f Realtors come into contact with a luxury home buyer for the first time through a Referral or recommendation
- 55% of business luxury home business comes from personal referrals
- 70% of luxury home buyers select their Realtor for their integrity and honesty
- 67% of luxury home buyers select their Realtor for their knowledge of the market
Following are selected results from the survey:
Who is buying luxury homes?
40-50 age group (48%)
50-65 age group (44%).
These are the “Baby Boomers” that have reached their peak earning years and are now benefiting from a rising stock market and historically high home prices.
What do they do for a living?
Entrepreneur 51%
Large Business Executive 46%
Medical Doctor 24%
Retired 24%
When the Realtors were asked to select what services luxury home buyers are most interested in receiving from you (you may choose more than one):
Help in finding a home 86%
Help managing the transaction 56%
Expert counsel during negotiation 43%
Advice on purchasing a luxury home 34%
Assistance with paperwork 28%
Help understanding the process 13%
Help locating jumbo financing 9%
(This does not seem any different than regular folks.)
Read the rest of this entry »
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Posted by Mike Blaney
July 4, 2007
Between 2004 and 2006 an average of 476,063* homes changed hands annually through the Multiple Listing Service® of real estate Boards across Canada.
According to the Economic Impact of MLS Home Sales in Canada commissioned by the Canadian Real Estate Association (CREA) and conducted by Altus Clayton- Division of Altus Group Limited for release June 12, 2007, it is estimated that a total of $32,200 in ancillary spending (i.e., spending by purchasers on items other than the actual house and land) was generated by the average housing transaction in Canada. Per transaction ancillary spending varied somewhat by region, ranging from $20,325 in Atlantic Canada to $40,450 in B.C.
(17 of the houses that changed hands)
The total annual economic impact is estimated at $15.3 billion per year. Based on the U.S. having 10 times the population I would bet that $ 153 billion is a fair guess on the impact on the U.S. economy. Stay tuned for more research.
In B.C, the expenditures were broken down as follows:
General household purchases** - $ 1,275
Furniture and Appliances - $ 3,725
Moving Costs - $ 1,650
Renovations - $ 8,750
Services i.e financial, legal, appraisal etc - $ 21,400
Taxes (excluding GST) - $ 3,600
Total - $ 40,450
* According to The Canadian Real Estate Association
**Bedding, towels, lighting fixtures, tools, blinds etc
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Posted by Mike Blaney
July 3, 2007
The most expensive property for sale in the United States is the Hala Ranch, asking price is $ 135 million, located northwest of Downtown Aspen, Colo. The current owner is the family of Prince Bandar bin Sultan, the former ambassador to the United States form Saudi Arabia.
Joshua Saslove, principal of Joshua Inc., which has the sales listing, has received more than 1,000 requests to tour the house since it went on the market last October, but only 11 of them have been granted. To qualify, a potential buyer must be a billionaire.
At 56,000 square feet, Hala is bigger than the White House. It operates with a staff of 12 who keep busy with 15 bedrooms and 16 baths. It has a private barbershop and beauty salon just off the master suite and enough space for a party of 450 people.
One drawback is the kitchen is in the basement and outfitted for the convenience of professional chefs. I would miss slipping down to the kitchen to make a grilled cheese sandwich at midnight.
Where does the asking price come from? Saslove estimates that an acre of land in this area is worth $9 million and Hala sits on 95 of them.
By the way the total value of listings on the Joshua Inc web site is $ 486, 890,000 for 23 listings. The other 22 listings average almost $ 16 million each.
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Posted by Mike Blaney
July 2, 2007
There are more than 5 key factors that influence the sale of your home and the order is not as important as considering all of them when you are selling and pricing a home.
You have all heard the most important factor in selling a home is location, location, location, but there are four others to consider.
- Price
- Home Condition
- Market Conditions
- The Realtor
1. LOCATION
The location of a home cannot be changed. The better the location such as a quiet cul-de-sac, backing on to a greenbelt, or a view are more generally considered more desirable. Alternatively, a busy street, nearby power lines, proximity to a commercial or retail business or even too close to a school are often considered less desirable. It is important that you recognize the location and price and market your home accordingly.
2. PRICE
Pricing your home correctly is critical to the sale. The homeowner wants to sell their house for as much money as possible, but if your asking price is too high your
house will only help sell other houses in your area. There are at least three negative outcomes you can expect from overpricing a property:
a. The time your home sits on the market will increase, making buyers think you are more likely to accept a lower offer than the home’s fair market value.
b. You will be missing out on buyers who should be looking at your house, but because it is out their price range they will miss it. This often happens when you price outside of a range such as choosing $ 765,000 instead of $ 749,000.
c. You receive low offers or no offers at all. A higher asking price does not always equal a higher sales price.
The more you overprice a property, the more likely you are to eventually sell it at a price lower than it is
worth.
So how should you price a home? Price your house to attract appropriate buyers for your neighborhood and location. The more buyers that come to see your home, the more they will compete for your house, which will drive your sales price up. Competition will result in receiving offers over and above your asking price. Don’t let Realtor buy your listing by agreeing to sell it for more than it’s worth as it will only be a matter of time before they are back suggesting a price reduction. Read the rest of this entry »
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Posted by Mike Blaney
June 29, 2007
There are probably as many reasons as there are buyers for why some homes don’t sell as quickly as others, but here are what I think are the top 5!
1) Poor Location
Regardless of how much you disguise a poor location in photos and copy, if a house is in a bad location it is generally going to take longer to sell…at any price. Only a certain percentage of people are predisposed to live on a busy street, under high voltage wires or across from a school. The good news is that there are people who specifically look for what might be your negative. Think about who these people might be and focus your marketing at them.
2) Poor Presentation on the Internet
A bad photo on the MLS and/or on the Realtor web site and you have people turning up their noses before they have even seen what a great home you have. If the photo from the street is not flattering use a photo of the best room in the house or perhaps the backyard. Get them to the house and they will fall in love with it..and deal with the front later.
Not all homes were built for flattering front shots and the weather does not always cooperate so there might be a good reason for a less than flattering photo or no photo of the front of the house.
Realtors take note - it’s a sin to let buyers judge a home buy it’s cover. At the very least you should visit it on the Agent’s Tour and judge for yourself. (Thanks to REAgent in Connecticut for this photo. After writing the article I found this web site with bad MLS photos which supports my argument perfectly)
3) The House Is Dirty. Period.
If you think with all of the homes available on the market that people can fall in love with a dirty home you must be dreaming. It is hard enough to get past the old car parked in the garage, kid’s toys all over the front lawn and the 17 dwarf statues, but getting past dirty is probably the hardest of all.
People can get past clutter and a messy home much easier than they can deal with a dirty home.
A dirty home is perceived by buyers as a home in need of repair, when all they often require is some disinfectant. Read the rest of this entry »
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Posted by Mike Blaney
