Keller Home Adds Granite and Sells in Two Weeks!

Hello there! I hope Thanksgiving was a great holiday for you and your family this year, as I had a wonderful holiday with my family!

Many times when I am taking another listing in and around the DFW Airport, my sellers resist making any upgrades or improvements to their house. 99% of the time they will say something like, “I am not going to install granite counter tops in the kitchen because surely I would not pick the right color for the next buyer.” This is usually followed up by, “Let them do it, that way they get what they want.”

Well the reality is, in today’s very competitive market, buyers have so much inventory to look at that if your home is not at the top of its game, then it will ultimately get passed by for the house that does have the granite and other current updates.

Below is a “Before” picture of a listing of mine that I had in Keller, Tx. You will notice that floors are a pale stain color, the countertops are white Firmica, the backsplash and island are 4 inch glossy blue tiles and the cooktop is old.

Now after being on the market 4 nearly 5 months and the seller getting tired of hearing, “Not enough updates in this home to justify price” or “Kitchen too out dated”, the seller finally took action. She paid just $1400 to have the wood floors resurfaced and darkened which brought the wood floors closer to the “hand scrapped” look that most buyers want in todays market. She then found a granite and tile company that would install all of the new granite, the tumbled tile backsplash, the stainless steel undermount sink, a new faucet, and a cooktop that was bought on Craigslist. Guess how much her total came to? I would have thought $5000 or higher. Many of buyers were likely tallying similar numbers in their heads. Nope… she paid only $3200 for the amazing kitchen remodel! And look at the difference below!

By doing these well needed upgrades (and leaving the asking price alone), the seller did received a contract within TWO WEEKS of the upgrades being complete, she got very close to her asking price and now she is about to move into her new house across town!

It is a competitive market place out there! Don’t fool yourselves seller’s. Your house has to be at the top of it’s game to compete. If not, the price better dramatically reflect the updates that need to be done.

For your real estate needs, comments, questions or concerns…

Kevin Rhodes with Keller Williams Dallas/Fort Worth
832-233-0265
krhodes@kw.com
www.RealtorRhodes.com or www.SalesInYourNeighborhood.com
Research me on Facebook HERE.
View my YouTube Channel HERE.

Shadow Inventory – 10 Years to Unload Foreclosure Inventory?

Good morning. I often talk with my sellers about “shadow inventory”. Shadow inventory is the banks and governments foreclosure inventory that has yet to be released on the market. I have heard some astronomical figures of how much shadow inventory is really out there, but in John Prior’s article titled “Freddie could take more than a decade to unload REO (forecloure) inventory“, the realtity sinks in pretty quickly.

For example, in John’s article he mentions that in the third quarter, over 25,000 foreclosed properties were SOLD by Freddie Mac. Sounds good right? Sold foreclosures means that we are getting them off out of the market, thus we are cleaning up the market, right? Wrong! John goes on to state that in that same 3rd quarter, Freddie Mac repossessed another 24,300 properties. That is staggering!!! And at the end of the third quarter, Freddie Mac had a total of 60,000 foreclosed properties on their books and in their inventory. SCARY!

You know why else that is scary? Because that is just Freddie Mac’s numbers! That does not even factor in banks like Bank of America, Wells Fargo, Chase, etc…

So hopefully you can see why I discuss shadow inventory with my sellers. Seller’s… capture the market that you have now and price your house so that it is COMPELLING, not just competitive. Try to move it quicker, rather than follow your neighborhoods averages thus sitting on the market a much longer time. I say this because if that pent of supply of shadow inventory were to be released into the market at the same time (like a dam breaking), it would be CRUSHING to sellers home values and thus drastically lower what they could sell their home for.

For any real estate questions, comments or needs, you can reach me at:

Kevin Rhodes
832-233-0265 or krhodes@kw.com
www.RealtorRhodes.com or www.SalesInYourNeighborhood.com
Research me on Facebook HERE.
See my YouTube Channel HERE.

September 2011 MLS Activity Numbers are in!

Ok, I admit it. Ever since my early October trip to Hawaii, I have fallen of the blogging wagon. Please forgive me, but Hawaii tends to do that to you sometimes and I was grateful to be there for my buddies wedding!

So know that my fingers have re-connected with my keyboard, and my keyboard is wired into my blog, it is time to pick myself up of the beach, dust the sand and sun off, and get back to BLOGGING!!!

With that said, below is the September 2011 MLS Activity Report for the North Texas Region with talking about pre-owned real estate sales in comparision to the same month in 2010:
North Texas September 2011 MLS Report
North Texas MLS Activity Report September 2011

Allow me to point out some key data… Bedford is doing great in the sales department with a 37% increase, but their average days on the has increased 19% to 74. However, an average of 74 days on the market is not high at all in today’s market. Another town who’s sales are up is Southlake. Their sales were up 29% while their 98 average days on the market stayed about the same as last year. Good job Southlake!

Euless on the other hand appears to be struggling a bit. With sales down 46%, the average home price down 10%, they have work to do. Grapevine is holding steading with thier average days on the market remaining about the same (at 74 days), while their sales numbers were up slight to the tune of 12%. Keller surprised me with a large jum in their days on the market posting an average of 101 days. This number is up 23% (Park Glen was up 30%).

The one that is stumoing me is the Trophy Club data. It shows that the average sales price is down 51%. This must be wrong, as I have sold in Trophy Club and these numbers do not reflect what I know of the community.

Make it a great weekend!

Kevin Rhodes
krhodes@kw.com
832-233-0265
http://www.RealtorRhodes.com or http://www.SalesInYourNeighborhood.com
Research me on Facebook HERE!
Visit my YouTube Channel HERE!