All About Open Houses: Their Role and How Our Agents Market and Conduct Them Successfully

"Open Houses are especially important for properties that are 'not a drive by.' They are another tool for getting potential customers in the door. I recently had an Open House and almost every potential buyer said 'wow, this house is really nice and was deceiving from the outside.' For my Open House advertising, I use my web site’s Open House page, boston.com, and the Boston Herald. All of these have been very effective. Obviously signage is also important. If the property is large or unique, I have two agents present to control the flow of customers.

I give my sellers as much feedback as possible from the comments of potential buyers. I also provide my sellers with a list entitled 'how to prepare for an Open House'; these are tips and suggestions to make the exterior and interior of the home appealing to the buyers."

Judy Lima
Email: judithlima@comcast.net
Web Site: www.judylima.com
Phone: 978-535-6666

- - -

"There are three types of Open Houses a Realtor can have and I have a different marketing strategy for each of them. The first type of Open House would be for the listing office, which in my case is the RE/MAX Advantage office. This Open House occurs within a few days of first listing the home. The RE/MAX office would take a tour through the home which is commonly known as a “caravan tour.” This allows the office agents to get familiar with the home and preview it for their buyer clients. Normally, I would send out a voicemail broadcast to the office announcing the new listing.

The second type of Open House would be what’s commonly called a “broker luncheon.” This Open House allows me to invite Realtors from across Cape Ann and multiple offices to enjoy a delicious lunch and to preview the home for their buyer clients. I have a database of real estate agent e-mail addresses and present a nice invitation and always cook my now famous Pasta al Forno. Because I’ve been consistent with this delicious meal, I can count on seeing a great turnout (simple strategy)!

The third type of Open House is the most common: a Sunday Open House where the public is invited to take a tour of the home. I use many different avenues of advertising including but not limited to: Realtor.com, Boston.com, the Multiple Listing Service, and of course my own web site GloucesterandRockporthomes.com. I also use print ads and target different newspapers depending on type of home and location as well as target audience. I also send out a broadcast e-mail to most Cape Ann Realtors making them aware of my Sunday Open House so they can send the info along to their buyer clients who may want to attend. Open Houses are a great way to expose a home to the market place!"

Lillian LoGrasso
Web Site: www.LillianLoGrasso.com
Email: lillianlograsso@remax.net
Phone: 978-479-2250

- - -

"We believe Open Houses work very well for the seller and it also helps
prospective buyers make educated decisions. We still think that Sundays
between 12PM and 3:30PM works best. The Open House lasts for approximately 2 hours. We usually perform an Open House when the listing is new and then
perform an Open House on a price change or sometimes when we need to
jumpstart the listing if activity has been weak.

A couple of strategies we use for marketing an Open House are to 1) Promote the listing on Monday for the Open House on the following Sunday. 2) Promote the time of the Open House on your listing via different web sites such as: the MLS (multiple listings service), Realtor.com, Boston.com, your personal web site, and any other site you subscribe to. For instance, we think a great way to drive traffic to Open Houses is to place the time of the Open House on the comment section on MLS. We also place the time of the event as the headline on Realtor.com.

The promotions start on Monday and this helps create some buyer anxiety by the time Sunday comes along. If a potential buyer is interested in the property and sees the property on Tuesday and the property is viewed by 4 other prospective buyers during the week and then the same people come back to Sunday's Open House and also see 20 more prospective buyers in the home then there is a better chance of achieving a higher offer on the home by the time Sunday's Open House is completed because the prospective buyers are not sure who else might place a bid on the home. This process helps create a sense of urgency with the prospective buyer.

We do not make any buyer feel uncomfortable when viewing a home. We ask informal questions and let the prospective buyer dictate the conversation. By having a casual conversation, you can then make clear decisions on what type of buyer they are or are not. If the buyer is serious then we proceed with specific questions and provide market statistics which are derived from our web site. This is a great tool when educating prospective buyers. A couple of soft drinks and snacks never hurt when performing an Open House. Open Houses can be fun and can be very productive for both the seller and the buyer."

Mike and Mary Cotraro (Team Cotraro)
Web Site: www.teamcotraro.com
Email: cotraro@teamcotraro.com
Phone: 978-882-4425

Direction of Mortgage Rates

Hi Everyone,

Here's the latest commentary from our rate lock department:

Not much economic data coming out this week, with the exception of the slighty bearish CPI data released this past Wednesday, which really did nothing to the mortgage markets. The market is off slightly this morning in anticipation of the 5 year treasury note auction.

Weekly jobless claims were lower by 27,000 than the previous week, dropping from a revised 359,000 to 332,000. But, they are still higher than they were for the majority of last year. The four-week moving average pushed up to 328,000. Just a few weeks ago the average was closer to 310,000. Layoffs in construction and manufacturing have been the biggest causes for the increase. Continuing claims actually fell. However, considering that hiring was slower and the unemployment rate rose in January, it is more likely that many of these people have passed their 26-week maximum for collecting unemployment benefits as opposed to finding work. If overall economic activity does soften, then new claims will be in the mid to high 300K range on a consistent basis within the next two or three months.
Based on the lack of data, there will probably be not much market movement the rest of the week.

John Shea
Vice President
Summit Mortgage
781-224-2809 (office)
jshea@summitmortgage.com

Why is it important to properly price a home when it is first listed on the market?

"There is a very ready, willing, and able group of buyers that will purchase immediately when a home is first listed if it is priced properly from the outset. Sellers cannot fool the buyers anymore in this day in age with a price you would like to ‘try.’ Buyers are very aware of the current market conditions and have all the tools at their fingertips to see if they are getting a good value or not.

If a seller prices their home properly from the outset and has an excellent real estate agent with a great marketing plan, it is always a win-win situation. The real estate agent will market the home to the real estate community and market it as an ‘excellent value!’ This will trigger the real estate agents to call their qualified buyers and make them aware of ‘a deal they just heard about.’

There is a HOT window of opportunity when a home first hits the market to get as many buyers into the home as possible. When a home is priced properly and it’s within this window, a savvy buyer will see it and jump at the chance. If you overprice, and lose this window of opportunity, there is a great chance that you will end up with offers much less than the “excellent value” price that your Realtor suggested. I am very honest with my sellers and last year the properties I listed that were priced right and marketed as ‘excellent values’ all sold with 25 days of first hitting the market. Basically, price it right from day one and you’ll win!"

Lillian LoGrasso
Web Site: www.LillianLoGrasso.com
Email: lillianlograsso@remax.net
Phone: 978-479-2250

- - -

"New inventory attracts the greatest amount of buyers. Buyers, with the advance of technology, are highly informed in regards to price and days on the market. The longer a home is on the market, the less likely it is to achieve the asking price. Homes priced correctly at the onset receive more exposure and offers. The market data indicates homes which must be reduced to attract offers frequently sell for less than what the broker originally suggested as an asking price."

Margaret Belmonte
Web Site: www.margaretbelmonte.com
Email: margaret@margaretbelmonte.com
Phone: 978-927-2737

- - -

"Proper pricing of a home is all-important in the sales process. The first two weeks of the listing are the most important. That is when the current buyer pool will look at the house and the most likely time to get an offer. In the market we are in, an overpriced listing will not generate offers, it will just sit on the market and lose its initial appeal."

Pat Fenton
Web Site: www.patfenton.com
Email: pat@patfenton.com
Phone: 978-524-8717

- - -

"If you are reading this then you know and well understand the power of the Internet! It is important to price your home properly when the ‘For Sale’ sign first goes into the ground because the Internet has given buyers the power to learn all about the current real estate market place. A real estate buyer will know when your listing is truly a NEW listing because they are surfing the net looking for their new home every day sometimes morning, noon, and night! They are circling their favorite neighborhoods just waiting for the new sign to pop!

When a property comes on the market with the wrong price tag, the right buyer for that property might come through the first open house but then watch and wait, willing to gamble for the right price! In this time of cautious financing, no one wants to overpay. The buyer's bank even hires an appraiser to come out and check the value for the bank's investor once the offer is accepted. The Internet buyer knows that there is an increased chance of a price reduction the longer the house stays on the market.

Multiple price reductions are often a flag that the house is over priced out of the gate. Multiple price reductions are setting the buyer up to want to make a low offer to ‘test’ the water. In today's technology powered real estate market, a well-priced house will be recognized! When the listing is fresh on the Internet, it is possible that the right buyer will not only visit the debut open house but also stand in line to make a full price offer! Houses that sit on the market too long get lost in the excitement of new listings and often appear to have something wrong with them."

Andrea D’Amato
Web Site: www.FindYourNewHome.biz

How does a Realtor determine a home’s value?

“A home’s value is determined by looking at similar style and size homes and their features and benefits, then comparing the subject property to them. We look at homes that have sold in the past 3 months and ones currently on the market. In a declining market, such as ours, the subject property needs to be priced below the past solds. The percentage of the reduction is predicated by the current market.”

Pat Fenton
Web Site: www.patfenton.com
Email: pat@patfenton.com
Phone: 978-524-8717

- - -

"As a sales broker with 25 years of experience, I consider several avenues to determine price. First, in today’s market, which many still consider uncertain, I consider properties which have sold over a 3-6 month period. These properties typically tell the true story of home values, i.e. sold price to asking price, days on the market, number of price reductions. Sold properties indicate the market reality. I am extremely selective in the properties I choose for comparison, selecting style to style, size to size; I compare 'apples to apples.'

Next I research properties which are currently under agreement. These properties indicate what buyers perceive to be a good value in today’s market. Lastly, I look at what the new property is competing with in regards to price, style, condition, days on the market, number of price reductions. Asking Prices in today's market are what buyers perceive to be the seller's wish, not necessarily true market value. The market and my experience in successful selling in this market suggest only properties which are priced competitively result in a SOLD."

Margaret Belmonte
Web Site: www.margaretbelmonte.com
Email: margaret@margaretbelmonte.com
Phone: 978-927-2737

Direction of Mortgage Rates

Hello again everyone,

I certainly don't expect to be posting about rates every day but I felt it was important to correct the comments I made yesterday. Unexpectedly, rates got better today. Here's the explaination from our rate lock department:

Retail sales in the U.S. stalled last month as cheaper gasoline limited service station receipts anddealerships sold fewer cars. Purchases excluding fuel and autos increased during the month. January sales were unchanged after a 1.2 percent gain in December that was more than previously estimated, the Commerce Department said today in Washington. Sales excluding autos and gasoline rose 0.5 percent after rising 1 percent in December. Shoppers redeemed gift cards and used the savings from lower gasoline prices to buy winter clothing and home furnishings last month. The figures show an economy that's growing at a moderate pace, a description Federal Reserve Chairman Ben S. Bernanke is likely to share with lawmakers when he begins two days of testimony on Capitol Hill today.

The market liked the retail news and MBS's are slightly better than yesterday's prices. However, we do have Bernarke speaking. It should be along then same vain as what we have been hearing. I do not see the market coming off of the little rally this morning.

John Shea
Vice President
Summit Mortgage
781-224-2809 (office)
jshea@summitmortgage.com

Direction of mortgage rates

Hello everyone,

Here's the latest from our rate lock department:


And another record is set. For the last 5, count ‘em 5, years the U.S. has set new trade deficits. The latest was an enormous $763.6 billion, which barely needed December’s $61.2 billion gap to beat 2005’s $716.5 billion. Much of the disparity lies in the cost difference between goods in the U.S. and goods in China. China has managed to keep their currency artificially low against the dollar, as Japan used to do (and still does to a certain extent) in the 80’s and 90’s. This and the fact that they have been making quality products is why China has overtaken Japan since 2000 to become the largest supplier of goods to the U.S.

Members of the Federal Reserve and other government officials in the U.S. have been “strongly” urging China to allow their currency to trade more freely on the open market without intervention. Then, China’s currency (the yuan) would increase in value and close the gap between the cost of goods from China and elsewhere. Firmer U.S. government action is required in order to resolve the situation (assuming the government actually wants to resolve it). But, if the government were to take action, it would cause a spike in inflation, which would then crush consumer spending. Obviously, this would have a vastly negative impact on the economy, which is why the government is unwilling to step in. They would rather see this problem work itself out naturally.

Don’t forget, tomorrow morning at 8:30 ET January’s retail sales data will be released. Based on the limited reaction that we saw in the markets to this morning’s data, it seems apparent that traders are waiting for the sales numbers before making a move. We still expect the numbers to be stronger than forecast, which would have a very negative affect on bond prices.

This all means that if you're thinking about whether to lock or float a rate right now you probably want to strongly consider locking. There's a little uncertainty out there and that's not good for rates.

Please call me if I can help with a mortgage.

John Shea
Vice President
Summit Mortgage
781-224-2809 (office)
jshea@summitmortgage.com

Real Estate Values on the Rise?

Hello everyone,

For anyone who missed it, F0x 25 did a story last night on whether Real Estate Values will be on the rise again soon. Here's a link to view the story:

http://www.myfoxboston.com/myfox/pages/Business/Detail?contentId=2361009&version=1&locale=EN-US&layoutCode=VSTY&pageId=4.1.1



John Shea
Vice President
Summit Mortgage
781-224-2809 (office)
jshea@summitmortgage.com

Thoughts on the current state of the real estate market on Massachusetts’ north shore from RE/MAX Advantage real estate agents

"I think there is more buyer inquiry in January 2007 than there was in January 2006. It seems as though sellers are beginning to adjust to a declined market in regards to pricing of new inventory. There is still an abundance of inventory on the market. Homes which have been on the market for 6 months or longer are now competing with new to the market properties. I think it is a more level playing field for buyers and sellers. It is still a great time to be a buyer and sellers must adjust to market changes in regards to price."

Margaret Belmonte
Web Site: www.margaretbelmonte.com
Email: margaret@margaretbelmonte.com
Phone: 978-927-2737

- - -

"Based on the inventory currently on the market now, which is over 5,000 more homes as compared to last year at this time and with anticipation of an increase in property coming on the market for spring, I see no change in the direction of prices in our declining market. If interest rates go up, the price decline will be even deeper.

I see no change in this price direction until our inventory does a drastic decline and I see no signs of this happening in the near future. Therefore, pricing in this market is all important."

Pat Fenton
Web Site: www.patfenton.com
Email: pat@patfenton.com
Phone: 978-524-8717

- - -

"Here is the latest on the streets of Beverly, MA as it pertains to single family housing with a price range between 260 and 460. The new year sparked a ton of interest with potential buyers looking to purchase a home in 2007. Potential buyers have increased dramatically with over 40 people at some of our open houses in a 2 hour window. This is positive for sellers, however the buyers can be patient and will make sure they are getting the best deal possible. Sellers need to do the extras on the home while preparing it to sell, otherwise the house will not achieve its full value or worse will not receive any offer.

The market appears to be stabilizing with inventory not being as large as it has been in the past. 2007 is a good year for buyers as many sellers understand the market has come down and are willing to still sell their property. Many buyers are still cautious and are constantly watching the market as well as keeping up with the latest trends in housing. 2007 should be slightly better than 2006 based upon the number of potential buyers looking so early in 2007. It appears that we may have a productive spring market if sellers listen to professional real estate agents and not listen to their friend who sold their house two years ago and received a large sum of money. Like the great Kenny Rogers sings about, 'You got to know when to hold ‘em and know when to fold ‘em.'"

Mike Cotraro
Web Site: www.teamcotraro.com
Email: cotraro@teamcotraro.com
Phone: 978-882-4425

- - -

"A positive change in the perception of our current Cape Ann market can be gauged by comparing the number of under agreement (UAG) properties now vs. the same time last year. It's what I like to call 'the pipeline.' I'm happy to say that in Gloucester, the number of UAG single families is up from 2 to 20 (+900%), condos from 5 to 14 (+180%) and multis from 0 to 3 (+300%).

Buyers last year were afraid to buy because many were worried about a 'bubble': 'if I buy it today, it might be worth substantially less in the very near future.' According to the current number of under agreement properties, those fears have all but disappeared and, once again, real estate is going 'under agreement' and selling. And, as most of us in the trenches said, 'There is no bubble. The market will correct, but not drastically.'"

Kenny MacCarthy
Web Site: www.kennymaccarthy.com
Email: kenny@kennymaccarthy.com
Phone: 978-758-0983

Direction of Mortgage Rates

Hello Everyone,

Here's the current commentary from our rate lock department:

The market after a brief rally in the morning sold off as profit takers came in and sold the market off. This caused most investors who priced early to post a revised rate sheet.

Most of the weeks economic numbers have been neutral to slightly bullish overall, the pinnacle of course was the Fed's statement holding things steady and not changing their inflation expectation. This has a calming effect on the market which I believe will work into the market in the form of a short term rally.

Even though January nonfarm payrolls were considerably weaker than anticipated (111k vs. 206k in December), there were +99k in revisions to the last four months. This means the three-month moving average on nonfarm payroll gains basically held steady at +171k. The private service sector produced 90k jobs in January after averaging +194k in the prior three months. The manufacturing sector continued to lose jobs (-16k vs.-18k previously)-the seventh consecutive decline.

The rest of the employment report was softer. Manufacturing aggregate hours were down 0.8% in the month, pointing to soft production and a declining capacity utilization rate. Overall hours were down 0.1% and set the quarter up for a weak start in terms of GDP, which we have pegged at just under 2%. Average hourly earnings are now more consistent with the employment cost index, up just 0.2% in January after a 0.1% downward revision to +0.4% in December. Over the last year, earnings are up a reasonable 4%. We think the Fed is likely to be happy with this situation.

Translation: We're thinking rates will be steady to slightly down in the short term.

John Shea
Vice President
Summit Mortgage
781-224-2809 (office)