Buyers Decide Within 8 Seconds Whether They Are Interesed In A Home!

Many of you have seen Barbara Corcoran who is a Real Estate Contributor on NBC's Today Show and I also enjoy her participation on ABC's Shark Tank.  She certainly holds her own with the other "sharks"!

Per Barbara: 

"Buyers decide within 8 seconds whether they are interested in your home."

According to LaNita Cates of Re/MAX Realty of Joliet who said in her blog on Active Rain, "I'm not surprised by this at all. It's the first impression when walking in and hearing "Wow, this is cute" or "Ugh, what is that smell?" This pretty much sums up the next few minutes of the tour of that home.

I always tell my buyers that they will know when they walk in if this is their home or not.  If they aren't feeling it within the first 10 seconds, let's move on.  They never believe me... AT FIRST.  But usually by the 4th house they agree that they know pretty much immediately if they are interested or not when walking in the door.  So buyers pretty much know.  Sellers - remember that! That first impression (or at least the first 8 seconds) can decide whether the buyer is interested in your home."

I agree with this whole-heartedly.  There are a lot of factors that go into the decision to purchase a home.  However, potential buyers make up their mind quickly whether they are interested or not. Besides, curb appeal and staging, embedded house smells will make a buyer scatter faster than you can say "P - U"!

Sellers, it pays to have drapes and carpets cleaned or replaced and minimize "fragrant" cooking practices. Adorn the house with fresh flowers and bake cookies in the oven before home showings if possible.

As I opened the door to my last home purchase, it swung open on a cantilever hinge.  I realized at that moment, I was thoroughly hooked on that house.  The "Wow Factor" overwhelmed me in such a positive fashion that little things were overlooked.  My first impression was that this house was built with custom quality amenities and I wanted to see more! It was if I had put on "rose colored" glasses.  Needless to say, I worked magic to make that house mine.

As we all know, eight seconds is a very short window of time, so concentrate your efforts on curb appeal and the first 8 seconds as you enter the front door before moving through the rest of the home.  Make the buyers want to wear "rose colored" glasses!

You can find other home buying and selling tips on eSedona.biz .

How To Negotiate - 7 Clever Home buying Negotiation Tactics

I am re-posting this from my website in the "Insider Tips" section.  I will include one tip in each blog entry  so that it is easier to digest.

TIP # 1

Get the "Dirt" on the Home Seller


Learn as much as you can about the motivations and situation of the home sellers.  For instance, if they're living in the house and they need flexibility around the closing date, you could offer to be flexible on closing if they move on terms.  In the case of estate properties, take some time to learn about the heirs - where they live, what kind of houses they live in and whether or not they are in legal or financial trouble. It may sound creepy, but most of this information is available for free online once you have the names of the home sellers.  You can also research obits and marriage documents that are in the public domain.  The more you know, the more leverage you have when it comes time to negotiate.

Visit my website at eSedonaHomes4sale.com.  It boasts one of the most comprehensive search engines available and has so many customizable features, you can see exactly what is on the market based on your "wish list".  At "Market Insider" you can also get a Market Analysis, Community Info, Local Schools information as well as Compare Areas.  Just input the zip code for the most current information. It is almost as good as having me siting next to you while you are researching Sedona real estate!  If you need to ask me a question just reach out and call me. My contact information is available on the website as well.

Massive Tax Bill Looming on Horizon For Homeowners Who Short-sell Their Homes

 The picture on the left shows a home that is upside down which is the term used for a qualified principal residence when the proceeds from selling the property will fall short of the balance of debt secured by liens against the property.  Besides ruining one’s credit, the debt that is forgiven is considered regular income and is taxed at the applicable rate.  I call this a “Ghost Tax”.  It is tax on your “income” that you do not have.  It is a paper income gain and the money does not exist to pay the tax.  You have to file a Form 1099-C, Cancelation of Debt with the IRS.  The most common situations where cancellation of debt is not taxable are discussed in detail in IRS Publication 4681. 

To help families who were upside down in their homes get out from under the debt and taxes owed, Congress enacted the Mortgage Forgiveness Debt Relief Act of 2007 (MFDR). The MFDR was enacted on December 20, 2007 (see news Release IR-2008-17).  Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principle residence.  The maximum amount you can treat as qualified principal indebtedness is $2 million or $1 million if married filing separately. 

Here is the kicker, the special relief is in effect from 2007 through 2012. So at the end of the year, this legislation expires unless Congress acts to extend it. 

The current administration is proposing an extension that would apply to any amounts forgiven before January 1, 2015. At that point the government would reassess the market conditions and determine whether an extension is appropriate. As with all financial information, please get with your financial planner, or accountant to see how the law affects you. 

Winter is Heating Up! .... WHAT? !!

I am talking about the Sedona real estate market!  The winter in Sedona is normally a slow season for real estate activity. However, this year activity is heating up! Perspective buyers are showing more confidence this winter then anytime in the recent past.  For instance, January's closings or home sales were the highest we have seen since 2005!

Market Inventory trends are showing a decline from before October 2011. This decline in inventory means that sellers are able to see a stronger selling price than in months past.  Inventory is starting to move and we have seen that some homes are getting multiple offers.

Currently in Sedona the Median Listing Price for single family homes and condos is $549,310. The Median Days on Market is 134.  There are 209 Active Listings of which the percentage of Distressed Listings (foreclosures and short sales) are 11.5% of the total listings. this stats are from http://www.esedonahomes4sale.com/mimarket/zip/86336/ (dated today).

This is the current chart indicating the Sedona zip code of 86336 Market Inventory Trends.

The chart below is for the Village of Oak Creek (VOC) which is usually lumped in with Sedona.

This is a key chart.  As you can see the listing price has dramatically risen and more importantly so has the Median Sold Price.  To some degree, these charts illustrate the supply and demand curve. As the supply falls and demand increases, prices rise.  Of course in this soft recovery of our economy, these figures might reflect a different scenario if the financial markets were not as strong. Another key is the low mortgage rates.  15 year rates are at a record low averaging 3.13% for a fixed rate and traditional fixed 30 year mortgage rates are also under 4%.