Irvine Real Estate Blogger

Is there a place for Open Houses in a real estate agent’s marketing strategy these days? Elaine Carlson, of PalosVerdesSource.com, exploses this issue in her article entitled “Is the Jig Up on Open Houses? There is no short answer.

Open Houses can be a viable, valuable marketing tool under certain circumstances and in particular niche markets. Real estate is after all local, and buyers often like to check out neighborhoods and houses up close and in person without having to commit to using the services of a real estate agents in the beginning stages of their search.

Just as many buyers prefer to view homes first online, anonymously, and educate themselves before actually making contact with a real estate professional, buyers also utilize Open Houses as a way to familiarize themselves with those particular communities in which they may ultimately have an interest in purchasing a home or condo. (more…)

There is light at the end of the tunnel…

It began this spring with whispers and mumblings in the real estate community and blogesphere. Buyers were emerging from their winter doldrums and showing up at Open Houses–at first checking house prices; not commiting, but still demonstrating a measurable interest in real estate.

While the reports from the established media were still cast in colors of May gray, and June gloom, the tweets and twitters from the chorus of real estate agents in their respective local nests were singing a different tune and what a sweet tune it has turned out to be.

Open the curtains, raise the windows, throw open the doors, and inhale the fresh air of a changing season in the real estate market. The flowers are in full bloom and their fragrance fills the air. The birds are singing and a new day is dawning here in Irvine and in the local housing markets around Orange County.

Psst…if you haven’t heard, homes are selling and they are selling in healthy numbers. Active listings down; pending sales up; inventory is rapidly being absorbed–these positive trends continue to emerge in the Irvine, California and Orange County real estate markets.

Irvine and Orange County housing sales reported to the MLS continues to be strong. The past two weeks have seen sales in greater numbers. Inventory continues to fall by an average of about 100 listings per week, compared to increases of approximately 200 listings per week at this time last year. The current inventory in Orange County number 1600 fewer homes than at this time last year. Active listings in Orange County have fallen below 15,000, and the index of how long it would take to sell/absorb the existing inventory at the current rate of sales is at its lowest point since August of 2006. In our local Irvine housing market, we currently have a total of 839 active listings in the Multiple Listing Service. Those homes/condos reported as in Back-Up or Pending Sales (in escrow) number 272 which indicates that it would take only three months to absorb/sell the existing inventory at the current rate of sales.

Buyers have a real opportunity to realize their dream of home ownership at significantly lower prices and favorable interest rates.

• Check out the fascinating oral history (50th Anniversary) of “How the Web Was Won” in Vanity Fair http://tinyurl.com/46tblt #
• “The Medium is the Message”: Meet the world of Web 2.0 Politics.Do you see the correlation here for Real Estate?http://tinyurl.com/5873uv #
• Irvine, CA was named safest city for the 4th year in a row among big cities (w/ population above 100K residents) http://tinyurl.com/5bzcv7 #
• Geez, Inventory in Irvine is down, pendings & back-ups are way up. Does anybody out there here the thunder? #
• Homes for sale in Irvine MLS: (Actives) 844; Pending and Backup Sales (In Escrow) 266; that’s just a little over 3 months visible supply #

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As a veteran real estate agent, the message reverberated loud and clear: “Innovate or Disintegrate,” as Jessica Swesey writes in her fairwell article as a columnist for the Inman News.

If there’s one thing I’ve learned in my years as editor of Inman News, it’s that companies that do not innovate die–or worse, become irrelevant, which is much like being buried alive.

I hope that those in the real estate industry see the changing market as their opportunity to innovate. The Internet, open source, social media, the sub- prime disaster and housing downturn have changed consumers forever. Real estate needs to adapt to these changes.

Those who do not innovate will become irrelevant to these changing needs.

Indeed, real estate agents must embrace the new medium of the Web 2.0 by creating a voice through a network of interactive communication and participation, and by going beyond the static page of a Web 1.0 presence to deliver rich original content and information to the home buying and selling public.

In the 1960’s, Marshall McCluhan, a media analyst, wrote a book from which the title became the common vernacular for the transformative power and influence of the medium of television, still in its infancy: namely, The Medium is the Message.

Every generation has their medium and those who succeed in embracing the medium connect with the people with whom they communicate. In the realm of politics, President Franklin Roosevelt used radio–the medium of the day to connect with the depression-era populace by way of the intimate Fireside chats.

President John F. Kennedy used the new medium of the time, television, to connect with an unprecedented seventy-seven million Americans (over 60% of the adult population,) to win the Kennedy/Nixon Debates in the eyes of the public and ultimately win the Presidency. At the time, CBS news correspondent, Charles Kuralt, declared that “Kennedy’s skill with the medium helped to make television the nation’s ‘new front porch’.”

Fast forward almost half a century, and the political pundits are now attempting to deconstruct Barack Obama’s below the radar successful candidacy for the Democratic nomination for the Presidency.

In Frank Rich’s Op-Ed article entitled, One Historic Night, Two Americas, he points out that “the Obama forces out-organized the most ruthless machine in Democratic politics because the medium of their campaign mirrored its inclusive message.” In other words, they empowered the ordinary citizen rather than relying on the typical top-down hierarchical structure of the past.

“Such viral organization and fund-raising is a seamless fit with bottom-up democracy as it is increasingly practiced in the Facebook-YouTube era, not merely by Americans and not merely by the young.”

Out with the old ways of doing business; in with the new social media.

He goes on to point out the similarities between Hillary Clinton’s and John McCain’s strategies in their respective “cultural tone-deafness” and “stodgy generic web site(s) ” in which their “blogs, video and social networking are static and sparse,” and how both Clinton and McCain repeatedly invoke “I,” in their respective speeches, while Obama’s message invokes the inclusiveness of the “Yes, we can” mantra: speaking to a multi-racial, multi-ethnic, multi-generational inclusiveness–a post boomer, post-partisan inclusiveness that jettisons the baggage of the Me-Generation and embraces the You-Tube, MySpace, Facebook generation. “His [Obama's] vocabulary is so different from that of Mrs. Clinton and Mr. McCain that they often find it as baffling as a foreign language.”

In Rich’s opinion Mrs. Clinton and Mr. McCain see change as “nothing more than a marketing gimmick,” while Obama uses the message of change as a sea-change of all inclusiveness and optimism. “On one side stands Mr. Obama’s resolutely cheerful embrace of the future… On the other is John McCain’s promise of a wise warrior’s vigilant conservation of the past.”

Parallels may be drawn in the real estate industry as real estate agents continue to cling to old ways of the “I’s” instead of focusing on the all inclusive “we” or “you.” Indeed, there are the veteran real estate agents who remain comfortable with the methodologies of the past–reluctant to embrace the new technologies–even the most basic ones in the face of the public’s desire to have a free flow of information available to them when they want it and on their terms.

Others of us are empowered, energized, and willing to embrace the kind of change necessary to educate ourselves as we move toward understanding the new message of inter-connectivity and seek to immerse ourselves in this new medium, resolving to deliver the information that the buyers and sellers desire in an interactive Web 2.0 way.

The real estate agent who seeks to remain vital in this rapidly changing industry needs to evolve and embrace the new message of total transparency with the free flow of real estate information, including real-time market trends and statistics, accurate and available “sold” data, access to real-time mortgage rates, original hyper-local community information, instant chat and instant messaging. We need to embrace and disseminate the information through the new medium of Web 2.0 real estate whether it be in the form of an interactive web site, blog, and other social media, such as Facebook, MySpace, YouTube, LinkedIn, and the newest micro-blogging phenomenon, Twitter.

For those real estate agents who wish to experience the new Medium and Message first-hand from the internet gurus, such as Pat Kitano of TransparentRE, Kevin Boar of 3OceansRealEstate, and Dustin Luther of 4Realz, check out the Real Estate Connect Conference in San Francisco from July 23rd – July 25th. You will be inspired to find your own voice and re-construct your business for the new Web 2.0 real estate community.

We lived in Tucson, Arizona when our children were infants, and, in the desert climate, we socialized around the pool. To ensure that our kids were pool safe, we enrolled them in a program that would help them survive in the event that they fell or found their way into the pool in an unguarded moment. The swim program taught babies 6 months to 6 years old to save themselves in an accidental water encounter. This was a first-step in trying to avert a tragedy.

In the Friday, May 30th edition of the Orange County Register, Michael Mello, in his article entitled “Take Steps for Safer Swimming,” sums it up in a few words: “Three seconds. One inch of water.” This is the time and the amount of water needed for an infant or toddler to drown. A kiddie pool holding water only an inch deep demonstrates all it takes to drown a small, unattended child.”

Were you aware that drowning is the leading cause of death in children under five? Fire officials urge homeowners to install multiple barriers, as well as other safety measures around pools and spas, such as fences with self-closing and locking gates, and net covers. Other approaches to pool safety include the following: adult supervision, barriers, and classes such as swim lessons and CPR.

The U.S. Consumer Product Safety Commission recommends multiple safety measures such as “pool and spa drain covers to help keep children from becoming entrapped and an alarm that will go off after seven seconds if a door to the back yard is opened by a child.”

Even if one doesn’t have children of their own, homeowners need to be mindful that their neighbor’s children can get into their yard, where the pool or spa may not have a cover or a fence.

Photo Courtesy of the Orange County Register On-Line, 05/29/08

For further information, please visit the following web sites:

http://www.abcpoolsafety.org

http://www.usla.org

http://www.swimforlife.org

http://www.choc.org/community/safetycenter.cfm

If you’ve watched Sabrina Soto on HGTV’s “Get It Sold”, you know that she takes a home that’s been languishing on the market, makes some changes, rearranges, spruces it up, stages it, and it sells… Even if you haven’t watched the program, a home that is well presented will sell faster.

Take a good look at your home… Is it ready for its debut–it’s entrance–in our current Buyer’s market? Would you buy it if it was for sale? In today’s market, it needs to stand out among the inventory. If not…

Here are some low-cost ideas:

• The Brush-Off: Freshly painted interior and exterior walls in neutral colors are appealing, and tell the prospective buyer that your home has been well maintained. Call your Home Owner’s Association (if you have one) for exterior paint brands and colors. There are several “green” paints–low Volatile Organic Compounds or VOC’s available for interior paint.
• A Place for Everything: Remove clutter from exterior and interior stairways, bedrooms, kitchen and bathroom counters. Observe the one-appliance kitchen rule: just one on the counter, whether it’s your coffeepot, toaster, or food processor. This says there is plenty of cupboard and counter space.
• Counter Proposal: Your kitchen should sparkle and give the impression of plenty of working space. Be sure the faucets don’t drip, and the built-in appliances work.
• It Makes Scents: Borrow a friend’s bread maker if you don’t have one. The smell of fresh bread is almost irresistible, and gives a warm welcome. Do not use floral room sprays; they make the buyer wonder what you’re trying to cover up.
• Take a Powder: Put away shavers, makeup, curling irons, hair dryers, etc. Shine bathroom tubs, sinks, fixtures, and mirrors, and put out fresh towels. The caulking around the tub/shower and grout around tiles should be free of cracks and dirt. A good way to clean the caulk is with a toothbrush and liquid sink cleaner.
• Plenty of Hang-ups: Neat and orderly closets reveal plenty of storage space is available. Dispose of unwanted or unneeded clothing to a favorite charity. Store boxes of files, holiday decorations, etc. in the garage or at a storage facility.
• Beauty by the Yard: Make a great first impression by having the lawn neatly mowed and edged, flowers planted (especially fragrant ones), bushes trimmed, and the yard of free of garden tools and toys (swing sets excepted).
• Doing your Homework: You will rarely recoup the dollars invested in major home improvements just prior to selling your home. Exceptions: upgraded kitchens and baths.
• Take a Good Look at Yourself: Would you buy your home if it was for sale? If not, use these low cost investments that will return greater dividends.

The key to selling your home in a reasonable time frame and maximizing your sales price, especially in today’s market where there are many homes from which to choose, is to prepare your home for sale before its debut. Remove the clutter, the personal effects and paint the walls in neutral colors. Create an environment that can suit many buyer’s tastes. By depersonalizing your home, buyers will visualize your home as their home, and it will be as good as sold.

Photo is Courtesy of HGTV’s “Get It Sold,” by Sabrina Soto

“Sex and the City,” the movie, opened Friday to the tune of $26.9 Million based on the strength of sales by women and their friends (the buzz) resulting in sold out shows.

Your home for sale is the equivalent of an opening–it has to have the right “buzz” to be included on the buyer’s short list. Whether or not you have a successful opening can impact how many dollars you may gain or lose in terms of the sales price of your home. You usually do not get a second chance to make that all important first impression.

Your house for sale has to entice the buyer. If you were meeting a blind date, you would not don an ordinary “house dress,” but rather you might slip into that killer Little Black Dress, and accessorize it, perhaps, with a pair of strappy Manolo Blahnik heels, the latest “it” handbag, and an alluring “come hither” scent–in other words you would be “dressed to kill.” Your house needs to be “dressed to sell,” when a prospective buyer drives up to the front of your home for sale. Does your house have that all important “it” factor?

If not, you would be well advised to obtain a makeover (and it doesn’t necessarily require an extreme makeover) prior to putting your house on the market for sale.

In her article entitled Staging is House Marketing, Marion Duffy aptly points out that “You want your house displayed so as to give shoppers an idea of how your home may fit into their lifestyle. This is staging. Staging sets your house apart from the houses on the rack or the rows of houses.” Indeed, your house needs to appeal to the emotions of the buyer.

In a related article entitled Intuitive Home Finding, Lynne Pope paints a picture of how a buyer perceives their home: “When you think of a home, you look into your heart and you picture it, a picture so clear you feel it in your soul, the place you’ve dreamt about and longed for, ” namely, your Ideal Home. Indeed, your home may well be compared to one’s perception of an ideal soul mate. The image arises from our dreams…Your house is now the star of the Silver Screen: Ready, lights, camera, action!

Photo is Courtesy of StarPulse.com