Real Estate Sales - Just the Facts

Information Sources Used in Home Search

Real estate agent - 90%

Yard sign - 71%

Internet - 77%

Newspaper Home book/magazine - 37%

Open house - 52%

Builders - 41%

Television - 24%

Relocation company - 16%


For Sale By Owner (FSBO) Statistics Did you know? . . .

the typical FSBO home sold for $198,200 compared to $230,000 for agent-assisted home sales.
FSBO Methods Used to Market Home:

Yard Sign . . . 61%

Friends/neighbors . . . 46%

Newspaper ad . . . 37%

Open House . . . 29%

Internet . . . 17%

Most Difficult Tasks for FSBO Sellers:

Getting the right price . . . 14%

Understanding paperwork . . . 17%

Preparing/fixing up home for sale . . . 16%

Attracting potential buyers . . . 9%

Having enough time to devote to all aspects of the sale . . . 8%

Home Buyer & Seller Statistics Active home search (median):

Number of Weeks Searched - 8

Number of Homes seen -9

Method of Home Purchase: Agent/Broker - 77%

Builder - 12%

Direct from previous owner - 9%

Definitely would use same agent again: 66%

Actions taken as result of using Internet site:

Drove by/viewed a home - 75%

Walked through a home viewed online- 57%

Found agent used to search/buy home - 21%

Prior Living Arrangement Owned previous residence- 46%

Rented an apartment or house - 41%

Lived with parents, relatives or friends- 10%

Source: 2005 National Association of REALTORS® Profile of Homebuyers and Sellers

America's Housing Sector and the Economy

In 2001, existing home prices appreciated at a rate of 6.3%, the largest increase in over a decade. The majority of studies indicate that households spend 30-40% of their disposable income on housing-related expenses. These expenditures assist in supporting other sectors of the economy. Nearly 70% of all tax revenues raised by local governments in the US derive from property taxes. Homeowners contribute roughly 43% of property taxes, and commercial property taxes contribute the remaining 57%. The National Association of Home Builders estimates that the construction of 1,000 single-family homes generates 2,448 full-time jobs in construction and related industries, $79.4 million in wages and $42.5 million in combined local, state and federal revenues and fees.

Source: The Importance of America's Housing Sector to the Economy. On Common Ground, Winter 2003.
In 1995, just 2% of home buyers used the Internet to look for a home. Last year, 77% of home shoppers went house-hunting online, and nearly one-fourth of buyers first found the property they bought on the Internet, according to the National Association of Realtors. Traffic on real estate websites jumped 8% in the past year — double the growth rate of Internet traffic overall, according to comScore Media Metrix.
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Sales Heading Up

Sales Heading Up according to Realtor Magazine! After months of downward movement, residential sales rose 0.4% in November.

The EHS (existing home sales) was 5.0 million ---- this is figured by taking the

month's actual rate of sales, multiplied by 12 and adjusted for seasonal sales difference.

Pending home sales index was 87.6 --- this measures housing contract activity. An index of 100 is equal to the level of activity during 2001, the benchmark year.

These stats seem to be in line with what we are experiencing at Lauralei Propeteries in St. Louis. While everyone says how slow it is, our real estate business have been consistently steady.

Also remember we offer choices most real estate companies don't offer: you can list your home on the MLS for $195 - get exposure for your home and STILL sell your home FOR SALE BY OWNER!

We help you throughout the whole process! From contract to close!

check out our website - we offer the FLAT FEE mls listing, and a discounted 4.7% listing!

lauralei.net

Laura Ludwig

Lauralei Properties, llc

314-503-1186

Energy Saving Home Owner Tips

SAVE ON YOUR ENERGY BILLS THIS YEAR!

I received this handy little sticker pack with my Ameren UE electric bill - one sticker for each month with energy tips:

JANUARY - Open south-facing drapes to allow sunlight in during the day; close them at night.

FEBRUARY - Fluorescent task lightning, rather than overhead, saves energy.

MARCH - 3/9 Daylight savings time begins. Turn the clocks forward one hour.

APRIL - To conserve heat, run exhaust fans for 20 minute at a time.

MAY - Have your AC serviced before running this summer; it will be more efficient

JUNE - Seal up air leaks around your home - keep the cool air in.

JULY - Consider CFSs (compact flourescent) as an alternative to regular light bulbs to save energy

AUGUST - Move large appliances away from thermostats; they will register the heat and run more frequently

SEPTEMBER - Schedule Yearly maintenance on your furnace

OCTOBER - Weather stripping around windows and doors helps conserve heat

NOVEMBER - 11/2 Daylight savings time ends - turn the clocks back one hour

DECEMBER - Plug small appliances into a power strip; turn everything off at once to save watts

Real Estate vs. the stock market

Here are reasons why you get more for your money with a house than the stock market.

****Leverage: with stocks, you put in all your money for a little piece of a company. With a house, you put in a little money to get all of the house.

****Tax benefits: think about the benefits of fixed-rate mortgages, property tax write-offs, interest rate deductions, depreciation.


****Control: With a home, you have control - what you buy, how much you pay, and where you live. You can improve the value with repairs and updates. Stocks are less controlable.

****Lifestyle: With a home, you're purchasing for yourself and your family. The neighborhood you want to be in, the size and style home that fits your needs. And the more wisely you choose, the better off you are.

****Value: Unlike stocks, your house will seldom become worthless. Barring a catastrophe, your home will retain a major portion of its value, even in the worst of times. So don't get stressed out about losing a few percent this year. You'll make it up.

Remember, when you own a home, you own something tangible - if the market looks bleak, you still have a place to sleep. With the stock market if things go really down hill, you can be wiped out

Owning a home is a good investment.

Things to do Before Putting Your Home For Sale

1. Have a pre-sale home inspection. Be proactive by arranging for a pre-sale home inspection. An inspector will be able to give you a good indication of the trouble areas that will stand out to potential buyers, and you’ll be able to make repairs before open houses begin.

2. Organize and clean. Pare down clutter and pack up your least-used items, such as large blenders and other kitchen tools, out-of-season clothes, toys, and exercise equipment. Store items off-site or neatly arranged in the garage or basement. Clean the windows, carpets, walls, lighting fixtures, and baseboards to make the house shine.

3. Get replacement estimates. Do you have big-ticket items that are worn our or will need to be replaced soon, such your roof or carpeting? Get estimates on how much it would cost to replace them, even if you don’t plan to do it yourself. The figures will help buyers determine if they can afford the home, and will be handy when negotiations begin.

4. Find your warranties. Gather up the warranties, guarantees, and user manuals for the furnace, washer and dryer, dishwasher, and any other items that will remain with the house.

5. Spruce up the curb appeal. Pretend you’re a buyer and stand outside of your home. As you approach the front door, what is your impression of the property? Do the lawn and bushes look neatly manicured? Is the address clearly visible? Are pretty flowers or plants framing the entrance? Is the walkway free from cracks and impediments?

6. Take pictures - viewing pictures of your home, both inside and out, can help you pinpoint trouble spots - cluttered areas, paint touchups needed, etc.

7. Stage your home - impression is a strong motivating factor - the cleanliness and decor of your home have a strong impact on most buyers - a clean, pretty home makes the buyer feel that you have maintained the home well including the major systems, like plumbing, electric, etc

8. Try to have your home give off the warm, fuzzy feeling - buying a home is an emotional experience - things like scents and colors enhance these feelings

Home Prices Fell

Home prices fell 0.4 percent nationally in the third quarter, according to the Office of Federal Housing Enterprise Oversight.

That's the first decline after 50 straight quarters of appreciation averaging 1.62 percent per quarter.The decrease in housing prices has only begun to eat into the nearly 13 years of quarterly price gains.

The National Association of Home Builders said in November that only 42 percent of all homes sold in the third quarter were priced low enough to be affordable for families earning the national median income of $59,000.

Should I rent or buy a house?

According to the National Association of Realtors....

It Makes "Dollars and Sense" to buy a home: Over the last ten years, the cost of rental housing in the U.S. has increased an average of 3% per year. The apartment or home that you rent for $750 a month will cost you more than $978 a month 10 years from now. The Federal Reserve Board estimates that homeowners have a net worth almost 36 times more than that of renters.

Other advantages of home ownership include:
*tax advantages
*freedom to make changes to the home
*equity
*stability
*fixed rate loan - payments will not rise over time


There are advantages to renting too:
*can be easier to relocate
*not having to deal with repairs
*no real estate tax
*renter's insurance usually cheaper than homeowners

As a real estate agent, of course my vote is for home ownership, but I can see the arguments for both sides. My biggest argument for owning a home is the stability factor - not having to worry about the landlord making you relocate.


Here are a few home ownership rates - the percentage of Americans that own their own homes:


State 1984 - 2004

Missouri 69.5 % - 72.4 %
California 53.7 % - 59.7 %
New York 51.1 % - 54.8%