IS HOME BUYING SEASON 2013 IN THE BAG FOR NEW ORLEANS? by Wayne D. Lewis, Sr.

Theme: Trying to re-capture missed opportunities from the 2013 Home Buying Season 

If you did not have an opportunity to discuss when the home buying season began in the New Orleans area, please refer to my blog post, entitled: New Orleans and the Home Buying Season © 2013 by Wayne D. Lewis, Sr.[1]

For the sellers and buyers who missed out on the ideal home during the height of the home buying season here in the New Orleans area for 2013, there are still many great buying opportunities.  The question is, how to re-capture those opportunities where both sellers and buyers walk away from the closing table, both feeling as though they acquired the king’s ransom.  We will explore how to re-capture those opportunities, but first, let’s see what were some of the challenges that existed for both sellers and buyers here in the New Orleans area.   

Challenges for Sellers & Buyers-

The reason that the home buying season can be unofficially declared is because (1) the football is  season pretty much over.  While the New Orleans Saints[2] are the team for New Orleans, there are still the playoffs, and the Super Bowl[3] that appear to keep many a home buyer from venturing out into a sea of available homes.  And because this is New Orleans, Mardi Gras[4] is right in there as well, sometimes going into late March, keeping potential home buyers pre-occupied and keeping sellers on edge as to whether their home is going to sell soon.  There are still other challenges that sellers and buyers had to overcome this particular home buying season.  Here are four more challenges to buying and selling a home:

1.      Festivals-The New Orleans area has to be one of the festival driven cultures going.  There festivals to celebrate just about anything including crawfish[5], strawberries,[6] the French Quarters[7] and music [8] to name a few.  While there is no intent to blame any of these festivals for buyers decision not to buy, the competition is undeniable, at best, high in the running.

2.      Mortgage Rates- Going into this season of home buying for 2013, mortgage rates were teetering on going up.  And while they have not risen drastically, it has been enough to cause hesitant buyers to hedge their decisions to make that move to buy their first home. A July 19, 2013 report from Yahoo News, Market Wired inquires as to whether home sales can continue to rise while mortgage rates increase.[9]  Their conclusion is that despite the talk of increase rates, the rates are still historically lower than pre-depression 2008.  But that still may not be a point to be taken off of the table in terms of whether buyers are hesitant.

3.      Flood Insurance[10]-Most recently, Congress has been weighing whether to raise flood insurance rates.  In many cases, if the rates go up, premiums could be as much as $10,000, $20,000, or $25,000 annually.  This could certainly be a deal-breaker for first time home buyers, and no doubt, a deal-breaker for sellers who maybe in flood proned areas.  Add to this, the possibility that existing flood policies may not be able to be grandfathered in going forward, was another important factor that may have affected home buyers’ decisions this home buying season.  Refer to the National Flood Insurance Program for further details.[11]

4.      Back to School!-Whether buyer or seller, whether parents or adult students, school is also an important challenge in buying and selling a home.  From homework, to picking up and dropping off to not only school, but after school activities, buying and selling a home is not necessarily a top priority.  The time period between school generally ending and beginning places an even greater challenge in buying and selling a home.

There maybe other factors beyond the four challenges mentioned above, but these stand out right now.  The question is, going forward, how can buyers and sellers try to re-capture any missed opportunities from the 2013 home buying season, even as 2013 winds down?  Let’s focus on 5 things.

A.    Price-I covered this issue in my last blog (Before You Relist Your Home)[12], actually, I covered Pricing probably in every post in this blog, but particularly, if your home has sat on the market during the home buying season and no one has made an offer, it is very possible, that your home is over priced.  No question about it.  Re-capture a lost opportunity by reducing the price of your home according to the market.  With the unofficial end of New Orleans Home Buying Season, it becomes a more of a buyer’s market, with the industry’s greatest competition isn’t just another home on the market, it’s the distractions or attractions of sports.

B.     Offers-Any offer that is made must be taken with a grain of salt.  If it is a full price offer at this time, still be on guard.  I think a full price offer is great, but we have discussed before how to be on guard when it comes to full price offers. (See: Full Price Offer?-Beware! © 2013 by Wayne D. Lewis, Sr) [13].  Full price offers may hold several surprises, such as total closing costs as allowed by lender (6%), or painting the whole house, or close in 30 days, or void the contract.  Other offers could still be low offers, but under the circumstances where we are in a possible buyer’s market, it would be to the seller’s best interest to counter the offer, reasonably.  Consult your Real Estate professional regarding what would be reasonable.

C.     Showings-Buyers may want to see your home at 7p.m., or 7a.m. They may want to come by in an hour, or come by in a week from today.  If your home has been on the market and had not received any showings, accommodating showings is crucial.  Many buyers aren’t going to be made to order.  It is amazing how many buyers are truly “from out of town” and are looking to buy a home here in New Orleans.  Showings are a necessary part of selling a home, and with the competition of homes that have yet to be sold, or even newer homes coming on the market, it is important to re-capture any missed opportunity to sell your home now that the home buying season will be slowing down.

D.    Incentives-They should be a last resort, but incentives should be considered in selling your home.  Why would you add incentives if your home is priced right?  You should considered incentives such as a home warranty, or paying a percentage of the homeowners insurance, a termite contract, or even offer to pay a percentage of moving expenses.  Why?  The competition has been greatly increased as the home buying season comes to not only an end, but the issues that we discussed earlier are no less of a concern.  Issues such as mortgage rates, even if they are historically lower, flood insurance premium are on Congress’ table, and of course, football!.  Incentives may not need to be offered, but they maybe asked for.  Be prepared to comply if it financially feasible.  If not, reduce the price of the home, and move forward.

E.     Owner Financing-Mortgage rates and financing are integrally important, but they do have their respective positions in the home buying process.  Just remember that everyone cannot walk their little happy selves up to a lender and apply successfully for a loan. But, that doesn’t mean they don’t have money.  It is possible that interest rates is not their concern.  Some buyers have money, but they have to get past the hurdles of lender requirements.  What if the seller can offer a short term option to do owner financing?  If your listing does not state it specifically, update it and be prepared to entertain the possibility of a 15% -20% down payment, with a 2 year owner financing option and a balloon note to close out the deal.  If all conditions work out well, the seller has taken their home off of the market, and the buyer is in their new home.

Conclusion

The above five options aren’t guaranteed approaches to re-capture missed opportunities.  You may find other ways.  As a matter of fact, you are encouraged to sit down and discuss with your Realtor ® as many opportunities as possible to make sure that your home does not sit on the market for the rest of 2013.  There are still great buying opportunities on the market, but what will make them one of the best opportunities, irrespective of the buying season, is the ability of the buyer and seller to negotiate reasonably, both, making their best offer.

Disclaimer: Information provided here while deemed be from reliable sources, is not guaranteed.  Information here is not intended to solicit the business of any broker or agent.

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[1] New Orleans and the Home Buying Season © 2013 by Wayne D. Lewis, Sr. http://makeyourbestoffer.blogspot.com/2013/01/new-orleans-and-home-buying-season-c.html

[2] New Orleans Saints- http://www.neworleanssaints.com/schedule/season-schedule.html

[3] NFL Super Bowl-  http://www.nfl.com/superbowl/47

[4] New Orleans Mardi Gras- http://www.mardigrasneworleans.com/

[5] Crawfish Festival- http://www.louisianacrawfishfestival.com/

[6] Strawberry Festival- http://www.lastrawberryfestival.com/index.php/en/

[7] French Quarter Festival-  http://www.fqfi.org/frenchquarterfest/

[8]  New Orleans Jazz and Heritage Festival- http://lineup.nojazzfest.com/

[9] Can Real Estate Sales Rise with Higher Mortgage?- http://finance.yahoo.com/news/real-estate-sales-increase-higher-100000288.html;_ylt=AwrNUbDOUfVR91kAkFvQtDMD

[10] Flood Insurance Premium Increase- http://www.fema.gov/region-vi/national-flood-insurance-program-reform-frequently-asked-questions

[11] National Flood Insurance Program- http://www.fema.gov/national-flood-insurance-program

[12]  Before You Re-List Your Home © 2013 by Wayne D. Lewis, Sr.- http://makeyourbestoffer.blogspot.com/2013/07/before-you-re-list-your-home-2013-by.html

[13] Full Price Offer?-Beware! © 2013 by Wayne D. Lewis, Sr.- http://makeyourbestoffer.blogspot.com/2012/10/full-price-offer-beware-by-wayne-d.html

BEFORE YOU RE-LIST YOUR HOME © 2013 by Wayne D. Lewis, Sr.

Theme: Will you be repeating the same approach if you re-list your home for another 6 months?

If you have listed your home for any number of months, with no success in selling, it’s possible that the listing expired. After your home’s listing expires,  you are face with 3 options: Relist, sell it yourself, or just wait awhile.  Chances are that if you listed it once, you will list it for sale again.  But before you re-list your home, consider several factors as to why it did not sell.  Here are some questions for consideration:

1.      Did you price your property above the recommended price of your Realtor?

2.      Did you leave your home at the same price from start to finish of your listing period?

3.      Did you have any showings?  Were there any offers?

4.      Did you receive offers and did not counter by not responding, or totally rejecting the offers altogether?

5.      Did you turn away showings?

Enough questions?  Well, here is one more:  Do you still want to sell your home?

If the answer is “no”, then there is no need to read any further.  But if the answer is “yes” to this question, then the answers to the above questions are more important than just for the sake of conversation.  Let’s review.

If you said “yes” to questions #1, 2, 4, and/or 5, re-listing your home without a strategy or commitment to make some type of change going forward, will only result in your home going through the same motions of sitting on the market.

Bear in mind the questions that we put  to you in this posting.  As much as you, as a seller, believe that buyers will offer less or close to what your home should sell for when you over price it, buyers have their strategy as well.  They often wait for sellers who overprice their homes to reduce their homes to below the market price.  Whether that is the entire six month listing period or a follow up period, buyers are well informed, and are just as patient. 

The usual six month period should not only have showings, but offers.  If it has offers, then there should have counter offers, not just rejections, regardless of how low the offers were.  If the six month listing period does not include showings, or offers to purchase, then the real question becomes, how serious are you, as a seller ready to sell your home?  The window to sell your home closes very quickly once it is listed.   Here is why.

Once your home is listed, there are those who are ready to put an offer on it, if it is priced accordingly.  If not, the most that your home may go through are a number of showings.  During these showings, buyers are assessing how far the listing price is from where it should be, and that is according to the market.  If no offers are being made through a six month period, that means that the window of opportunity has gone to another home. 

A six month listing period is not really necessary if the home is price correctly.  But if another listing period is on the horizon, be sure that between you and your real estate agent, the goal is to sell your home for the price that the market is willing to bear.  Otherwise, your home will sit out another six months, and in essence, loose its viability as a great home to buy.

What should re-listing your home mean?

A.    The price has been reduced by at least 10% to 12%.  For example, on a house listed at $250,000, that has not been gradually reduced over the listing period, that could mean as much as a $30,000 reduction.  While that may sound harsh and a big drop, it could have been less dramatic over the listing period;

B.     Relisting means that the seller is willing to counter the offers made and not reject offers made well below the listed price;

C.     It should mean that showings will increase, and offers are a greater possibility because the price is closer to market value;

Relisting your home may mean too, that you are serious about selling your home, but only if you show those who have been watching your home, from the sideline, or online, that you are open to negotiating. 

So, give it a lot of thought before relisting and discuss with your agent a great strategy going forward, to improve the possibility of selling your home.  Good luck on selling your home.

Disclaimer: Information provided here while deemed be from reliable sources, is not guaranteed.  Information here is not intended to solicit the business of any broker or agent.

MARKETING YOUR DISASTER-IMPACTED HOME © 2013 by Wayne D. Lewis, Sr.

14 Observations and Lessons Learned from 
Post Katrina Home Marketing

Gentilly neighborhood after Hurricane Katrina
(Photo by Wayne D. Lewis, Sr)

It has been nearly 8 years as of this posting since Hurricane Katrina.[1]  Hurricane Katrina’s devastating impact, controversial as to whether she caused the flooding in New Orleans, will still be identified as a procuring cause for the flood that impacted at least 75% of New Orleans.

Hopefully, and I mean this with all my heart, I hope that no one will ever have to go through what we went through from Hurricane Katrina.  But my wish, as we all know, is already too late.  Our neighbors in St. John the Baptist Parish[2] (Issac, 2012)[3], our neighbors in Terrebonne Parish (Gustav, 2008 ) [4] as well as our neighbors of the northeast coast, particularly New Jersey[5] and New York[6], have already been the victims of storm surge in the form of Sandy (2012)[7] that took their homes, destroyed the Boardwalk, destroyed lives, and not to forget a host of other communities that have been affected by various disasters along the eastern and southern coasts of the United States.

 

When I see these types of destructive forces, I get flashbacks from the loss of our home in Gentilly Woods that sustained 3 ½ feet of water, but 8 feet of mold post Katrina.  I also feel a sense of forlornness for others of our family members who suffered great loss due to flooding throughout the New Orleans area.  As a Realtor®, I also shared great empathy with many of our clients, many of whom were unable to rebuild due to a lack of or inadequate insurance, or too much governmental interference, preventing them from getting back into their homes. 

Many of my clients decided to sell their homes.  However, not all of them sold their homes in the same stage of “undress”, if you will.  Some of the properties that were damaged were sold as it-literally-as is.  Some of the homes looked as though the water had just gone down after 4 months.  Wherever the water receded, that was where furniture and other personal items were left, broken, and strewn about their homes. Other homes were gutted to varying degrees.  Some were gutted to where the water stopped; some were gutted of the sheet rock, but they left some items that did not get damaged by the water, but may have had some emotional value down the road.

The bottom line is that the sale of the properties damaged by the storm revealed some important issues that I could not have advise on from prior experience.  I could not advise my clients whose homes were equally, if not more so, damaged as mine, without sharing with my clients what I too had been going through.  I had never sold storm-damaged properties, or flooded properties, or properties with water in the gas lines, or properties that were questionably sturdy, and could have fallen on top of me.  But for those who decided to sell their homes, it was still my responsibility to make sure that they got the best dollar for their homes.  What did I have to work with?  What would I have to work with if, and that’s a big IF, I ever had to sell disaster-impacted properties again?  The question before me then was, how did I prepare anyone to sell their damaged home?  It’s something that we were never trained to do.  All of a sudden, we were rookies, out of our element.    

Here are some of the lessons learned, in no set order:

1.      SAFETY-Disaster impacted homes, if they are still standing, are not all equal.  Depending on their condition before the disaster, the structure of any home is maybe subject to its pre-disaster condition.  If the property was subject to roof leaks, or was in disrepair prior to the storm, then the storm just added to the problem.  If it was unstable structurally, then it strongly advised that before entering a property, that the owners obtain a structural engineer report.[8]

Gentilly Home after Hurricane Katrina
(Photo by Wayne D. Lewis, Sr.)

2.      Contractors- (Local or Out of Town Contractors)-Almost instantly, contractors come out of the woodwork after a bad storm or weather event.  Many, but not all, are from out of town.  As homeowners are trying to get their lives back together, contractors make promises to do whatever is necessary, pending the homeowner turn over a nice sum of money, in advance.  It is advisable that unless a homeowner has a personal contractor at the ready, they will need to access two sources for possible reliable contractors to work on their homes:

a.                               The Better Business Bureau [9]- should already be on speed dial.  After Katrina, a lot of Contractors got a bad rap because of other contractors.  Even if you haven’t decided to sell your home, it would help you, as a homeowner, to avoid signing up the first person who presents themselves as a contractor.  Reason:  If the contractor doesn’t pay their bills to their vendors, that may leave lien on your home when you do decide to sell it.

b.                              Contractors Association [10]- The Louisiana State Licensing Board of Contractors provides up-to-date information on those contractors who are properly insured and certified to provide proper service to customers.

3.      Insurance Claims- (Flood Claims, Homeowners coverage, Wind Damage)- If the homeowner has his/her policies, it would be incumbent on them to contact their agent/agency as quickly as possible.  Their agent will have special instructions to follow that may include taking pictures, meeting with a claims adjuster, or insuring that the property is protected from any further damage (cover the roof,  or secure the house itself against further damage, theft, or vandalism.  It is important for the homeowner to place their claim number in a safe place.

4.      FEMA-Federal Emergency Management Agency[11]-FEMA has many obligations prior to, during and after a major disaster.  After Hurricane Katrina they coordinated the placement of 1000’s of mobile trailers that were (un)affectionately called FEMA trailers.[12] They provided an initial stipend to residents who had lost their homes either due wind damage or flooding.  They also provided tarps to help keep homes from further damage from rain and roof leaks.

Pine Village homes after Hurricane Katrina
(Photo by Wayne D. Lewis, Sr.)

5.      American Red Cross[13] - The American Red Cross provided needed meals, clothing and first aid care.  They also provided vouchers for those who needed a place to stay (including hotels and rental properties).  This maybe a good time to mention that all attention should be paid to being safe.  Do not go into areas that have not been declared safe.  Electrical wires could still be hot, water on roads maybe covering up open manholes, or washed out roads altogether.  BE SAFE!

6.       What to consider to do with your disaster-impacted home? Here are some options:

a.                               Gut the home out and leave it as is, pending insurance resolution;

b.                              Gut it out and repair with Insurance proceeds;

c.                               Leave as is (damaged) and sell it to the highest bidder

                                                              i.        be aware of the need to maintain your damaged home by boarding up and cutting                                          the grass; Avoid city code violations;

                                                            ii.         if there is a pool, be sure to drain and/or cover it to avoid injuries and mosquitoes;

d.                              Renovate and keep it

7.      The Decision to Sell-

Gentilly Home flooded after Hurricane Katrina
(Photo by Wayne D. Lewis, Sr.)

The above options can’t necessarily be made in a vacuum.  Given whatever set of circumstances the homeowner is facing, the decision to keep or sell their home needs to be made based on costs.  This in no way suggests disregard to the feedback of family, but the homeowner’s name is in play.  The cost factor could include the cost to rebuild and maintain a home that is likely to be impacted again in the future by a similar set of circumstances as occurred as a result of Katrina.  One of the subsequent costs to be evaluated too, is increased insurance coverage.

8. What should the homeowner be aware of if they decide to sell their disaster –impacted home?  
1. Any outstanding taxes-At what point can the taxes be reduced on the home since the damage on the home;
2. Insurance should be changed from homeowners to a lower risk policy, possibly a builder’s risk policy [14] (consult your insurance provider). This policy may be sufficient if the house is damaged and is not inhabitable;

9. How much do I sell my disaster-impacted home for?  Or, how much is my disaster impacted home worth?

The decision to sell your home after a disaster will be hard enough, but then to come to the realization that it maybe worth far less than it was only days or months ago, will be another challenge for the human spirit.  This is where a licensed Realtor will need to come into play.  It is still recommended that you interview agents to see what perspective and experience they may have with such devastation.  It should not be a determining factor that an agent has or is suffering from the same disaster in order to prove qualified to sell your home.  Experience however, is still extremely important.

Home flooded to 2nd floor in Violet, LA after Hurricane Katrina
(Photo by Wayne D. Lewis, Sr)

10. Whomever you choose will as your agent, they will now need to gather comps.  Suffice it to say, that if your home suffered any level of loss close to or equal to the flooding in New Orleans post Katrina, there maybe a shortage of reasonable comps.  The one problem that became an issue during the aftermath was, what was selling, and how close to the seller’s home that that those homes could be used as a comparable home?  Who else was pricing their homes?  What made sense?  What we learned was that despite the fact that a home was damaged, it still had functionality as long as it had 4 walls, and a replaceable roof, not to mention a sturdy foundation.  So it wasn’t a matter of a structure on a lot, where in some cases properties may have sold for lot value, there were other factors that had to be taken into account as well. 

11. Location

Even after Hurricane Katrina, where 1000’s of homes flooded, all over the city, location, location, location was still apparent.  A home in Gentilly still could not be compared to a home that flooded in Lakeview. Nor could a home along Chef Menteur Hwy. and Read Blvd. be compared to a home at Caffin Ave. and Royal St., despite any physical similarities to the contrary.  Despite apparent similarities, the water had not changed the dynamics of the overall location of properties in New Orleans.

Algiers Church after Hurricane Katrina
 (Photo by Wayne D. Lewis, Sr)

12. Financing Challenges

Immediately after a major flooding event, homes will be very difficult to finance.  Many banks and loan companies may not take a chance on homes that were damaged on a large scale.  So, unless a home sells for cash, and it most likely will, then financing will be awhile before it becomes the norm.  Depending on where you are in the decision to sell your home, and if no one else has sold their home in your designated area, you may have to throw a price out there.  If it sells too fast, then you know you may have priced it too low.  If your home sells after 6 or more months, then adjusting the price would be strongly advised throughout the time period and going forward.

13. Pricing, selling and insurance

If insurance has been collected on the house, and your intent is still to sell (consult with your attorney, CPA, or Insurance provider on how that works), the pricing will be a matter of a small profit, all other things considered.  However, it may not matter whether you have collected insurance in the pricing of the property.  But buyers will want to know if you received insurance on your damaged home.  Buyers may want the money that you collected from the insurance company for which they are looking to repair the home.  You may have to negotiate the proceeds of the sale including any insurance that your received, or any other grants that you, as a seller, may have received since the damage to the home

Pricing is relevant here because you may want to sell the house at a price that includes the cost of selling your home in the condition that it is in, even if you received insurance for your loss.  Pricing is extremely important on a disaster impacted home because it can backfire.

East Lake Plaza after Hurricane Katrina
(Photo by Wayne D. Lewis, Sr)

In order to avoid pricing backfire, especially in the absence of viable comps, it maybe best to wait until other homes are on the market in your area.  Putting your home on the market too early after a disaster may result in a greater loss, that can’t be recovered once the property is sold.  If you are among the sellers who rush to sell their homes right after a disaster, you can expect to take a greater hit.  Therefore, it is strongly suggested that you, as a seller, wait 3 to 6 months before putting your home on the market.  After that amount of time, you should have several sales to use as a means of pricing your damaged home.

14. Minimal Repairs

Earlier we talked about gutting a home.  This will be a very important decision in the decision to sell the home.  A home that is gutted could be the difference of approximately $10-20,000, depending on other factors.  Generally, for the cost of a good gut job, $1000-$2500[15], could earn an additional money on the home.  For example, be sure to get a tarp from FEMA to reduce, any further damage to your home in the event of roof damage.  Board up the home to prevent, as much as possible, any vandalism.  Cut the grass and remove any post flooding debris in the yard.  These are seemingly insignificant acts, but they could make a difference when you, as a seller, decide to sell your home.

Home in Gentilly flooded after Hurricane Katrina
(Photo by Wayne D. Lewis, Sr.)

In conclusion-

As I said earlier, I hope that no one, from this point forward, ever have to face what I, my family, and clients have had to witnessed in terms of the disaster we have seen.  But we know the probability is very low of that never happening.  But the best way to be prepared is to get the appropriate insurances.  With respect to flooding, homeowners coverage, or Builder’s Risk, see your insurance provider.  If your home is damaged, be sure to take reasonable precautions to protect your family and you from injury by listening to all public broadcasts, by not venturing into areas not deemed to be safe.  If you decide to have your repaired, be sure to check with the Better Business Bureau, or the Louisiana State Licensing Board for Contractors.  If you decide to sell your home, you may want to wait until there are a sufficient number of homes on the market, or that have sold in order to get the most that you can for your home, but be sure to check with your Realtor. If you need to locate a Realtor, contact the New Orleans Metropolitan Association of Realtors[16], or the Louisiana Real Estate Commission [17] for licensed real estate professionals.  Just be aware that the amount of insurance you may receive on your disaster-impacted home maybe a point of contention when selling your home, so be prepared. Finally, know that we have not covered every possible set of circumstances here, and could never do so in this small a forum.  As always, consult with your respective professionals for a possible course of action to be considered, including but not limited to your Realtor, your insurance provider, your CPA, your medical professional, and/or your attorney, where necessary. 

9th Ward home after Hurricane Katrina
(Photo by Wayne D. Lewis, Sr)

Disclaimer: Information provided here while deemed be from reliable sources, is not guaranteed.  Information here is not intended to solicit the business of any broker or agent.

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[1] Hurricane Katrina- http://hurricanekatrina.com/

[2] St. John the Baptist Parish- http://www.sjbparish.com/

[3] Hurricane Issac-  http://www.forbes.com/sites/weatherbell/2012/08/26/tropical-storm-isaac-should-rival-hurricane-katrina/

[4] Hurricane Gustav- http://www.nasa.gov/mission_pages/hurricanes/archives/2008/h2008_gustav.html

[5] New Jersey and Hurricane Sandy- http://news.yahoo.com/hurricane-sandy-1-700-event-182934012.html;_ylt=A2KJ2UYI0_NRsQYAdEjQtDMD

[6] New York and Hurricane Issac- http://finance.yahoo.com/news/fear-flooding-hurricane-sandy-still-140000510.html;_ylt=A2KJ2UaP0_NR2yQAnfPQtDMD

[7] Hurricane Sandy-  http://www.huffingtonpost.com/news/hurricane-sandy-2012

[8] Structural Engineer’s Report-  http://www.bedrockfoundation.com/foundation-engineers-report-dallas-tx.html

[9]  Better Business Bureau (BBB)- http://www.bbb.org/

[10] Louisiana State Licensing Board of Contractors- www.lslbc.louisiana.gov

[11] FEMA- http://www.fema.gov/disaster-survivor-assistance  

[12] FEMA Trailers-  http://www.fema.gov/news-release/2007/11/08/myths-facts-travel-trailers

[13] American Red Cross- http://www.redcross.org/

[14] Builder’s Risk Insurance -  http://en.wikipedia.org/wiki/Builder%27s_risk_insurance

[15] Gut prices are based on the amount charged after Hurricane Katrina.  Your circumstances may vary.  You may pay more or less depending on location, urgency, and the amount to be removed from the home.

[16] New Orleans Metropolitan Association of Realtors-  http://www.nomar.org/

[17] Louisiana Real Estate Commission- http://www.lrec.state.la.us/home

Blah-Blah Blah; Yada, Yada, Yada! Your Home is on the Market- Big Deal! © 2013 by Wayne D. Lewis, Sr.

Underlying Question: Why hasn’t your home sold?

Many homeowners get so frustrated when their homes are sitting on the market for months and months, and yet, no sale.  Adding to the frustration, are homes that were listed after theirs were listed and guess what?  The homes sold!  Now, the frustration is ramped up, and homeowners whose homes are still sitting on the market are now looking for a head to be placed on a platter.  Where is that real estate agent?  He or she will do!

 

Why Isn’t My House Selling and How to Finally Get Your House Sold:

 http://freefrombroke.com/why-isnt-my-house-selling-how-to-get-house-sold/

If listed with a real estate brokerage, real estate agents are the natural choice to blame.  Sellers can be held blameless when a FOR SALE sign sets idly in their front yards or attached to the property, and no one has made a reasonable offer.  Add to the frustration the fact that the home’s price has hardly moved.  Sellers can assume some blame here, where applicable.  Properties are often, and understandably, priced at the highest range of comps.  And, in many cases where a seller has acquired an appraisal, the misconception is that the property may sell for the appraised value.  The probability is unlikely, but not a guarantee.

Why Isn't My Home Selling?

 http://www.realtor.com/home-finance/real-estate/sellers/why-isnt-my-home-selling.aspx

For sellers with appraisals, there is a false sense of security.  Buyers are not necessarily moved by appraisals if the home has other issues.  For example, if the home has carpeting, but no buyers are inclined to pay for carpeting.  If, for example, the home has a pool, but buyers are not necessarily moved by a swimming pool.  The market dictates the sale.  And while an appraisal is an accumulation of the market for the last 3 to 6 months, the market is not going to buy a seller’s home, a buyer is.  What’s next?

 

Why Isn't Your Home Selling?

 http://search.yahoo.com/r/_ylt=A0oG7iCrrelRkwMAKxNXNyoA;_ylu=X3oDMTEyYW11b2tzBHNlYwNzcgRwb3MDNARjb2xvA2FjMgR2dGlkA1FJMDAxXzE-/SIG=12f63cf05/EXP=1374297643/**http%3a//www.904living.com/selling/why-isnt-my-house-selling/ 

 

Seller Options

 

I.                   Has Seller done their homework?  The seller should be willing to do everything that their agent asks them to do to help in selling their home, up to and including:

a.       Improve curb appeal by adding plants and shrubbery;

b.      Remove junk cars from the front lawn

c.       Remove or tack down rubs

d.      Keep grass cut

e.       Organize Closets and cabinets

f.       Keep pets in portable kennels or local kennels

If the seller has followed through with these requests, then maybe, its time for the agent to go-leave, hit the road, Arrivederci (sorry fellow agents, but me included), unless:  The agent has always provided great information, conducted Open Houses, recommended price adjustments, and has always conducted a great number of showings.  If that is the case, the agent stays.  Maybe, the owner needs to go.  No? Okay, Keep the owner, but, here are additional options:

II.                Update Comps-If the comps that were done are more than 3 months old, it could help to update the comps. Also, it may help to visit the comps, get feedback from agents who have sold their properties;

Your Home is not Selling:
http://realtytimes.com/rtpages/20130418_yourhomenotselling.htm

III.             Follow-up on Comments by buyers-see what they said that can be used going forward;

IV.             Pricing-If your home is theeee best house in the neighborhood, or on the block, you maybe up against another challenge.  While many buyers are excited to buy a great home, the best house on the market may not work for them.  Does that mean tone it down, some?  It is a judgment call, but once you have “sold” your home as the greatest investment on the block by virtue of the work you put into or on it, then undoing that perception will be a challenge.  Can you get the rest of the neighborhood to step up? Not likely, but it can’t hurt to try.  Pricing is also a hard egg to crack other homes are selling higher than the subject home, and appear to have more cracks than the Hoover Dam.  Pricing however, must be looked at very closely if the ideal house, is in the ideal location.

V.                Reducing the Price-For one reason or another, many Sellers have a hard time reducing the price of their home.  Understandably, Sellers want the highest price possible for their homes.  No one wants to be taken advantage of.  But Sellers have to look beyond the appraisals; having the best house on the block or in the neighborhood, or the fact that other homes are selling faster or quicker than theirs.  While comps are an indication of the overall market, the real test to selling the family home is what does it say to buyers.  Does it invite buyers? Or, does your home  repel buyers?  Whatever your home says, it has to speak the price that it is set for.

 4 Reasons Your Home Isn't Selling:

http://www.trulia.com/blog/taranelson/2013/05/4_reasons_your_home_isn_t_selling

 

Conclusion: The above options, whether collectively, or individually have to be what’s best for the seller.  Additionally, the house can’t be on the market for so long that it stops speaking to potential buyers in a clear manner.  If sellers aren’t careful, their home will start speaking incoherently.  If not careful, if the home is on the market too long, all buyers will hear is blah-blah-blah; Yada-yada-yada, or what’s the big deal that your home is on the market?

 

It’s time to re-view, or, start fresh, from scratch on the listing of your home.  Don’t pick up where you left off.  Start with a new price because the location is still the same.  Start with a possible incentive that includes appliances, a home warranty, or assistance with 1^st year’s homeowner or flood coverage, with a full price offer.  By changing things up a little, a home that has sat on the market for a while can take on a whole new look, just by the price alone.  Try to help your home speak to the right buyers, otherwise, all your home is saying is:  Blah-Blah-Blah; Yada-Yada-Yada.  Good luck!

 

Disclaimer: Information provided here is deemed to be from reliable sources but is not guaranteed.  Not intended to solicit the clients or agents of other brokers.  Your results may vary.

 

 

EVACUATING YOUR HOME WHILE IT’S ON THE MARKET © 2013 by Wayne D. Lewis, Sr.

10 Things you should consider if you have to evacuate your home during a disaster

 Civil Emergency Message: Hurricane Katrina (2005) :
http://www.youtube.com/watch?v=tkruQZpQ2g8
 

Along the hurricane-prone Gulf Coast, it is important to know the ins and outs regarding evacuation in preparation for a storm.  With an emphasis always on safety, homeowners are encouraged to always follow the instructions of their local authorities.  There will be many things to focus on such as food, water, children, pets, elderly, insurance papers, gassing up, etc., making sure that all of these are sufficient preparations for at least 3 days out.

Resources on Evacuation Planning and Assistive Products:
http://www.access-board.gov/evac.htm#Resources

Evacuating is no inexpensive set of activities for anyone, and doing so should not be taken lightly.  During the hurricane season, said to be between June 1 and November 31, very few things or situations come to an absolute halt, including selling our homes.  During this time period, buyers and sellers are extremely aware of the need for homeowners insurance and flood insurance, now more than ever with the Biggers-Waters Act[1] not too far in the back of their minds.  This latest act by Congress, yet to be fully implemented, will have a tremendous impact on whether buyers and sellers will be able to transfer existing policies between each other.  A very important concern indeed, but how it rates among the many decisions at hand, when it comes to evacuating, is up to each individual family.

The Katrina Video Congress Didn't Want You To See (2005)  :
http://www.youtube.com/watch?v=epwpnMztkM0

For Real Estate Professionals who have properties on the markets, it is very important that sellers protect their homes during any major weather event.  The stakes increase significantly if and when a homeowner has to evacuate.  And if that isn’t bad enough, the stakes go wild and crazy when a home is under contract to close when lo and behold, an impending storm is headed for the Gulf Coast.  So, with a storm headed for, let’s say for example, the Greater New Orleans area, the homeowner, and the perspective buyer’s investment must be protected as best as possible against the dangers of possible tropical storm or Category 1[2] or an even greater storm.  What can or should a seller do to try to minimize damage to their property in order to keep it at or in better condition should a storm strike?  Below are 10 suggestions that could help homeowner protect their property in the event of a storm, and/or, if they have to evacuate their home while on the market.

Hurricane Katrina: Extreme Video (2005): 
http://www.youtube.com/watch?v=s76Qn7bpCsQ

 Pre-Evacuation Steps to take to protect your home while still on the market:

1.      Remove (FOR SALE SIGNS) or any other signs that indicate your home is on the market- in the event of high winds, signs can be missiles as could any loosely secured item, causing damage to your home, or injuring an unsuspecting neighbor;

 

2.      Contact your Realtor® to let them know that you will be evacuating your home- Your Realtor is very concerned about each of their homeowners’ properties.  On your list of things to do, include your real estate representative of persons and entities that you will not be at home for a foreseeable period.  You may want to advise your real estate professional, that if you are not back by a given time, how to get in touch with you, should the need arises;

Planning for safe and effective evacuations:

http://www.fema.gov/region-iii-mitigation-division/national-hurricane-program#2 

3.      Remove any lockboxes -Lockboxes are indications that your home is possibly for sale, especially if it appears empty.  You may want to ask your agent to re-locate their lockbox to the side of the house where it is less likely to be seen by those with criminal intentions;

 Civil Emergency Message: Hurricane Gustav (2008):
 http://www.youtube.com/watch?v=CqDFvD5R5VI

4.      Remove any flyer boxes-Same as #1;

 

5.      Make sure your agent cancels any showings or Open Houses-While it is unlikely that any showings will be occurring during a storm or an impending storm, you and your agent should be proactive to ensure that any Open House activity is cancelled, and that anyone wishing to see the house during your evacuation preparation, should be advised to reschedule for a follow up visit after the storm has cleared and the house has been assessed for damages;

 

6.      Share with your neighbors that you will be evacuating- Presumably, if you are evacuating, your neighbors are evacuating as well to safety.  If one of your neighbors decides to remain behind, exchange numbers, or emails in the event that something happens and they need to contact you or vise versa about your home while you are gone;

Know your Local Emergency Evacuation Plans & Disaster Communication Plans: 

http://www.readynation.com/Connect/EvacuatingDuringaDisaster.aspx

7.      Protect windows and doors-Board up windows, sliding glass and/or French doors to minimize flying debris from breaking glass;

 

8.      Secure any furniture or potted plants (porch or patios)-Put these items in a garage, tie to a carport, or place inside your home;

 

9.      Do not entertain any requests to show your home without your Realtor-  During the times in which many of us are focused on evacuation preparation, it is possible that we maybe at our most vulnerable.  Possibly interests in your home, in the event of a looming storm is possible, but for the sake of your family, ask the interested party to contact your Realtor to schedule a showing after the storm. If they are interested, they will be back.

 

 

10.  Lock all doors and activate all alarms-Obviously, it goes without saying to lock the doors on your home, especially since you will be gone for 3 days.  But, even the most simplest things we do forget.  When putting the alarm, you should consider putting on “away”, unless a pet is going to be left behind.

Lagniappe:

11.  Obey all federal and local warnings on evacuations- No information in this post shall be considered as overriding any information or instructions from your local authorities or your listing Realtor®.  For further information, consult with your personal Realtor.

 

Hopefully, this information helps you and your Realtor to take reasonable steps to protect your home in the event you may have to evacuate.  There is no guarantee that any of the above suggestions will work.  Your circumstances may vary, but just being mindful of the many things that you, as a homeowner should be aware of, could help you protect your home in such an event.  Hopefully, you never have to use this information.

Emergency Evacuation Planning – Are You Prepared?

 http://offgridsurvival.com/emergencyevacuationplanning/

Not an intent to solicit the clients or agent of any other broker.  Information provided here, while deemed to be from reliable sources is not guaranteed.  Wherever needed, you are encouraged to seek legal advice as this is not intended to be legal advice.

 

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[1] Biggers-Waters Act- http://www.floods.org/ace-files/documentlibrary/2012_NFIP_Reform/2012_NFIP_Reform_Act_ASFPM_Summary_of_Contents.pdf

[2] Hurricane Categories- http://gohsep.la.gov/hurricanerelated/HURRICANECATEGORIES.htm