I’m sitting in my basement tonight with my nephew Nicholas watching a Little Feet concert on TV. Nicolas is 16 and hadn’t heard of Little Feet before and he loved them. Experiencing this really made me think of the old and the new. I thought about the good times gone and the good times to come. It was exciting turning a much younger person on to something old school to me. When I was his age I loved Little Feet. So for those of you that haven’t heard of Little Feet you should check them out! Or you will never understand the point of my closing sentences.

So what does this have to do with a real estate blog what so ever? Homebanc. Homebanc filed for bankruptcy this week and pretty much shut the doors. At one time Homebanc was the hottest mortgage company around and they dominated the Atlanta market. They bought life and energy to our market and pretty much ate every body’s lunch that tried to go toe to toe with them as far as mortgages’ went. They did business as a humble giant for years! They were a wonderful company to work with, as well as work for. I‘ve never had a better working relationship with any mortgage company. Homebanc treated my customers as royalty and gave great rates and service unmatched by anyone. I truly hate to see them go. I miss those days of quick easy approvals and on time closings.

You may ask what’s my point to this rambling blog? The older I get the more I love to see the old still being around (Little Feet)and I hate it when the old go away. I loved seeing Little Feet still kicking it. I wish Homebanc was still kicking it. As Little Feet sang “There’s a fat man in the bath tub…. I hear him moan…I hear him moan. It made me think of all my friends at Homebanc! So my friends you now have to put on your Sailing Shoes!! There’s life after Homebanc.

Good luck to all of you.

WHATS HOT!

PRICING DIRECTION: As predicted the market has softened and prices have adjusted downward over the last several months. Many are saying the fed’s will drop interest rates towards the end of the 3rd qtr 2007 to stimulate the housing market. But right now mortgage rates are moving up.

HOMES THAT ARE PRICED RIGHT: This isn’t the 2005 real estate boom times. Forget cocktail party chit-chat. If you want to sale your home you better price it right for the current market. Not what homes in your neighborhood sold for 12 months ago? Sellers have to look at all the recent sales in their market not just one sale that brought top dollar! You’ll most likely make up for any downward price adjustment you took when you purchase your new home in this market.

ONLINE HOME VALUE SITES: I’m finding most of these sites aren’t up to date in th3 Atlanta area. It’s a great starting point if your thinking about buying or selling a home. But if you want accurate information call a professional real estate agent.

HOME OFFICES: Very hot feature for a home. We’ll see an increase in two home offices being in demand. With more and more people working from home commute times and gas prices with keep home offices in demand. I’m seeing more home offices that have built-in cabinets and work areas just like a professional work place. Windows and exterior doors are a huge plus. People will also look for homes located near alternative work spaces that will bridge the home office with places that will charge hourly rentals or monthly fees allowing SOHO’s to meet clients in a professional environment offering technology and privacy.

CAVING: Man and women alike are requiring more dedicated spaces where projects, hobbies or just a place to chill without being disturbed.

DUEL SLEEPING AREAS IN MASTER BEDROOM: Snoring rooms. I’m not kidding here. You’ll see a big demand for these as more are being offered in upscale homes. Snoring rooms are secondary bedrooms or sleeping areas within the master bedroom. People will love these as they are an alternative to the couch or guest bedrooms.

MODULAR BUILDING: I’m surprised we haven’t seen more of this here in Atlanta already. With the rising cost of building a factory production home is the only alternative. Don’t think double wide when I say modular building. Factories will construct panels (A-B-C) for framing that can be used in many different floor plans. The panels will be shipped and deliver to the job site. These panels could have electrical junction boxes, switches and HV/AC heat ducts already installed. The benefits are huge because of cost and time reduction. Quality control will greatly be improved. When finished these homes will look just like an on site stick built homes

SUBSTAINED DESIGN: Sustainable Design is based on three areas; energy conservation, indoor air quality, and resource conversation. Natural forms of energy cannot be ignored any longer. Wind, solar and geo-thermal will be in high demand in the very near future!

CABINETS: Start mixing finishes and counter tops. It was only a short while back when all my clients started wanting granite and maple cabinets in there new home. I told all of my associates that this was going to date homes quicker than avocado appliances. Many of these people kept picking the same granite and cabinet colors. I now have buyer looking at homes saying they already look dated. Oh those millennium years.

HOME WIRING: Category 5 or above, data lines and multi line phones are very important in newer homes. Its must have!

HIGH DEMAND: Large kitchens, upgraded appliances, custom laundry rooms, basements or even better a finished basement, custom garages with industrial type flooring, highly finished screened in porch’s with fireplaces, stone patios, rear stairs, pools or room for pools, swim & tennis communities, public schools, custom wall and window treatments, brushed door handles and hinges, mixing different counter tops in the kitchen. Three + car garages, mixed stone, brick and heavy wood exteriors.

WHATS OUT!!

AS IS MARKETING: Buyers see this as a red flag. There is way too much competition out there. Don’t chase buyers away. Also don’t except a contract and inform the buyer their welcome to have a home inspection but you not willing to do anything. Let time take its course.

BUYER OR AGENT INCENTIVES: Free cars, gas credit vouchers, gourmet dinners and Plasma TV’s don’t sell homes anymore. Realistic pricing does!! Cut to the chase and drop the price if incentives are being considered! Agents chasing or steering their clients towards homes with these types of incentives are not looking after their clients best interest in some cases.

ENDLESS OPEN HOUSES: The OPEN HOUSE pendulum has swung the other way. Internet placement is essential. Only 1.5% of the homes in the nation sold because of an OPEN HOUSE. With gas being over $3.00 a gallon people don’t drive around looking at homes like they use to. Keep in mind they can surf the web for about $1.00 a day. Many agents are scared to be alone in an open house. It’s just a dinosaur marketing mentality. Home buyers have moved past OPEN HOUSES I’m just wondering when some sellers will?

FULL PRICE OFFERS: Not in this market. If a home is priced right for the market you can expect to see offers within 2.5% of the true market value. Don’t confuse buyer interest or lookers with a hard written contract from a willing and able buyer. Negotiate every contract presented to you till the buyer signs or walks.

FADING TRENDS BUYER TRENDS: Small bedrooms, lots of glass on upper kitchen cabinet doors, bowl shaped sinks that are mounted on top of a vanity, stainless steel appliances, granite counter tops are starting to fade, oversized front foyer staircases, 2 story great rooms, sponged wall painting, home remodeling projects not done to professional standards, drop ceilings in basements, any brass fixtures or brass shower frames, wall paper, painting old kitchen cabinets, bamboo or laminate flooring.

The new Belmont mixed use development at the corner of Atlanta Road and Windy Hill Road is going to be a premier mixed use community. The old Belmont shopping center is hopefully going to see life again. The Belmont shopping center in the 70’s was one of the hottest shopping centers in the southeast. It set the pace for the malls we have today. I read an article that said Hollywood would open new movies at the old Belmont Shopping Center and would gauge the success of a movie based on the Belmont box office take. It must have been something to see in the day!

It’s a huge piece of property. It’s a sprawling 47.5 acres right in the middle of the hottest growing area in Atlanta, Smyrna GA. Atlanta Road has made major road improvements. Having this new mixed use development right in the middle of Atlanta Rd will have a huge impact on future development extending in both directions up and down Atlanta Road. In time you will be able to start at the Marietta Square and have beautiful buildings and developments all the way to I285. Take a ride today and you might think I’m nuts. For true it’s coming, now is better than later. Nothing is getting cheaper to develop.

The developer Halpert Enterprises has had to jump through a lot of hoops with Cobb County. Halpert is asking for TAD (Tax Allocation District) financing. Cobb County has set June 26 as the tentative date to approve its TAD guidelines. TAD money helps offset some of the expense in developing a project of this proportion. For instance TAD financing was approved for the Jonquil Square development right down the street. This projected needed to build underground parking for 1000 cars at a cost 18 million dollars. You had to have the parking to make this project work. Without the TAD financing the project would still be on the drawing board or an old run down strip center would still be there with half empty store fronts. Why give any developer TAD financing? Because Cobb County will get bigger and better reoccurring long term tax revenues from the new development. It’s a win - win situation for the city of Smyrna and Cobb County. I personally hope Cobb County approves the TAD guidelines that will allow the Belmont project to move forward. Halpert Enterprises is hemorrhaging money as they wait for the commission and school board to approve the project.

Belmont will be the new downtown Smyrna when finished. The proposal just looks beautiful. It offers lots of green space in proportion to development. This project gets my full support and thumbs up!!! It will bring new life to an old tired mall that was once a great attraction for all of metro Atlanta! Make it happen Cobb County!

Federal Aviation Administration director Marion Blakely announced that Hartsfield-Jackson International Airport will receive a $1 million grant that will fund a 2 year study. It seems it’s going to take 2 years to determine if Hartsfield-Jackson International should be expanded or if we should build another airport somewhere else in the metro area to meet future demand. I’m not sure if you remember but Hartsfields–Jackson International’s last runway expansion was the largest cubic feet of earth (dirt) ever moved in the history of the US to build the new runway. They conveyed across 8 lanes of interstate. It was a mechanical marvel. I know somewhere in the US there is a big hole in the ground from where all that dirt came from.

So I’m taking it the federal government needs to figure out if Hartsfield-Jackson International has the space to expand?? It would seem to me the last runway expansion would have a feasibility study of some kind they could use to quickly figure this option out?? But what do I know?? In Ms Blakey’s opinion, Atlanta, Chicago, Las Vegas and San Diego all have airports in the US that will not meet the demand in the very near future. She claims one of the reasons airline demand will be up is because gas prices will hit $4 dollars a gallon. As I read the article in the AJC I started to think out loud. Gas is going to be $4 a gallon and stamps now cost .41 cents. This isn’t a pretty picture Barry.

Marion Blakely I want you to know at $4 a gallon combined with the fact stamps now cost .41 cents in my household airline demand may be down…..and I FLY FOR FREE!! It’s simply because I can’t afford stamps!! We should be spending money trying to figure out why the US Postal Service can not seem to make ends meet. Has anyone been to a post office lately? Have you looked at the mailing date on mail you receive to see how long it took to get too you?? Something else that’s a little scary is the US Postal Service is now going to print a universal stamp with no set amount on them?? That’s like me asking a person to sign a contract without a purchase price. What we need is runway expansions at US Post offices to meet our immediate needs!!

Honestly, now I’m starting to feel that neither gas prices nor airline travel cost will be my problem. Buying stamps to pay my bills will be!!

Ready or not we’re in the Spring 2007 prime real estate selling season. We’ve all seen the papers and news articles. One day they tell us how bad real estate is. The next day you’ll read how great real estate is in the Atlanta area. Is there a Bubble?? How loud will the burst be?? It’s very confusing and contradicting even to a seasoned real estate professional. Most of the time real estate articles are written by someone like (example) President of the Home Builders Association or the Fannie Mae Chairman. Monthly I receive information from a company called Smart Numbers. They do a very good job. The only down side to the Smart Numbers reporting service is its 60 day old information. This market is changing every 15 to 30 days right now. I love this service because it supplies me with nothing but factual numbers re-capping real estate activity all around Atlanta. My dad used to say “Figures Don’t Lie……Liar’s Figure” Smart Numbers reports the facts each month. I also have to stay on top of the competition and network with other agents with listings in my marketing area. I’ve spoken to more agents in the last 120 days than in 15 years. I find it very refreshing; we share ideas and what’s working and what’s not! Naturally we also discuss the good, the bad and the crazy!!

Smart Numbers has been pretty optimistic about Atlanta’s real estate growth and stability returning to normal by Spring of 2007. But for the month of February 2007 they reported 9.9% fewer homes closed compared to February 2006. This was the 7th consecutive monthly decline in units sold. The fact is we’ve slowed, but we’re not dead. Price is everything right now! My take on things…..re-sale homes are deals, new construction is very expensive and builders have a lot of inventory. Their trying to hold price, but sooner or later many will have to break price because of more supply than demand. Commute times are becoming more important than schools. Properties for sale inside the perimeter are still selling well but many are over priced for what they are. Naturally you have to like the house but you better buy for the properties size and location if you’re purchasing inside I285 north metro. Future tear downs will continue to demand large lots to justify the land and new building cost.

Even with all I read sometimes I just feel like I’m trying to figure out Japanese arithmetic. Most real estate articles are based on Short Term Money, Long Term Money, National Product, Consumer Confidence, Prime, New Startups, Interest Rates, Fuel Cost, Unemployment, War, Elections and now baby births. That’s right we’re not having enough babies!!

I just read a fantastic article by Sue Rossi. She’s a 22 year real estate veteran and owner of a ReMax office in Crete Ill. She wrote a very interesting article about the birth rate being a key reason as to why we’re seeing a slow down. She has tracked and recorded the numbers and facts to show it’s not a theory. She says the average age of a 1st time home buyers is now 33. It used to be 25. Some of this change has been because of all the economic reasons discussed above. But the reality is fewer first time buyer’s means fewer people able to sale and move up. Her studies show that birth rates are directly related to slow home sales.

Her research shows, baby boomers – the largest generation in history began in 1946 immediately after WW II. The average age of a person purchasing a home then was 25 years of age. This pattern has held up through 1989, the last year of the baby boomers. So now the dip in home sale is mainly because the birth rates have gone down over the years. Beginning on 1989 Rossi claims homes sales declined for three consecutive years – coinciding with lower birth rates beginning in 1964. The government responded by lowering interest rates. Also older boomers were beginning to move up and sell their homes to younger boomers, who in turn moved up and kept the price’s going up for nearly 15 years. Rossi claims in 1992, this dynamic was in full swing. Sales went up virtually every year, culminating in the record year of 2005. There was huge demand for homes, resulting in record sales for five straight years (2001-2005). Rossi’s records predicted that the first wave of boomers would start retiring and putting their homes on the market in 2006 – at the same time of the baby bust generation (1973 – 1977) would be coming to maturity. The inevitable result: an over supply of homes.

Under Rossi’s theory the market will not come back strong until the “echo boomers” that began in 1978 starts buying homes which will be in about in about four years. How can we speed buyers up? We need government tax incentives to encourage the “echo boomers’ to enter the market to purchase. Lower interest rates. Affordable housing. Green building will appear to this crowd if builders can make it more affordable.

The echo boomers are going to be a great generation to work with. Most of them will do all of their real estate transactions on a PDA cell phone. For all the agents that don’t embrace real estate technology you better get your bags packed. The echo boomers are very hi-tech savvy crowd. They’ll not tolerate an agent that doesn’t embracing technology or lingo. I think real estate is about to get real fun. I’m really looking forward to working with this generation. I never though I’d have to watch MTV to get the 411 on the next group of real estate buyers. I’ll be able to calculate how many ends they want to spend. I understand they’re going to want a really tricked out pimped pad. And I’m their dog to get it done. I’ll be adding “Peace Out” to all my yard signs!!!

On March 11 2007 the Marietta City Council voted to ban all Pit Bulls and Rottweilers from city dog parks, including the dog park at Lewis Park at 475 Campbell Street near Sessions and Radium streets. Pit Bulls and Rottweilers are allowed in Cobb County parks as long as they’re on a leash. But they cannot run free any more in designated dog parks.

I personally have friends with Pit Bulls and Rottweilers. They’re all good dogs. I don’t think you can find a person that will tell you I’m not a pet lover. But as we all know not all pet owners are committed to other human or domestic animal safety. I’ve seen these dogs get into fights and many of the owners (men or women) don’t have the strength to bring the animal back under control once a fight or attack begins. When I read in the paper that a child or older person was attacked and no one could even beat the dogs off of them with pipes or bats just horrifies me to think what they went through. When you see the after pictures they’re very traumatic. Most suffer massive skin and tissue damage. Victims are tossed around like a rag dolls during these attaches. And to beat it all, you cannot shoot one of these animals if their attacking a person by law. I think if a dog is attaching a person and no one can stop the attack….I would have to shoot the animal if I had a gun and suffer the consequences of the law later. As I’m writing this blog I thought about the poor woman that was killed in her Manhattan co-op hallway in New York City a few years back. You may remember the dog owners were two pretty strange attorneys. They obtained the dogs from a person they represented that was in jail at the time of the attacks. Bottom line the lady attorney owner just couldn’t bring the dogs under control once they started attaching this helpless woman. These New York attorneys were convicted and sentenced to jail. I’m sure when they took these dogs they never thought anything like this would ever happen. It’s horrible for all parties. I’ve shown homes that potential buyers loved. But if they see neighbors with barking dogs showing aggression the house is never considered again by that buyer! The home is pretty much condemned as long as those dogs are around.

I’m starting to see more communities and subdivisions banning Pits Bulls, Doberman Pinchers, Rottweilers, Mastiffs, venomous animals & insects, large snakes,etc from living in a building, community or subdivision. The liability is huge for a pet owner if their animal attacks. You stand the risk of losing everything. I recently read that many insurance companies aren’t going to cover home owners liability as they have in the past. If a home owner has a dog which the insurance company has listed as dangerous they will not extend liability coverage if the animal attacks. If the animal bites someone it could cost you everthing. Many communities are enforcing laws requiring the removal of certain animals from a home if located in a community governed by covenants or the homeowner’s will be heavily fined or both. I’m very sorry to say that even if the animal is 35, friendly and blind with no teeth, walks on 3 legs with only 2 currently working he’s leaving or you’re moving with him. I truely hate when this situation happens. I hate we have to discriminate against certain breeds. But I understand citizens concerns. Please email me back a solution! Where do you draw the line? It’s very hard to govern sometimes and not discriminated against the helpless caught in the middle. It tears at my heart! Everytime they show a picture on TV of a dog that just killed someone they look so sweet and innocent too me. Something in me wants to give them another chance.

I’m by no means trying to tell people what kind of pets they should have or like. But I do feel communities have the right to say that certain animals with an aggressive or venomous pedigree shouldn’t live in well populated areas. Anything that can catch me and squeeze me to dead shouldn’t live near me either. I once had a friend that liked snakes. One evening he was bathing his Python in his apartment tub. Somehow he got distracted for a while (you know those crazy snake lovers) and when he came back into the bathroom all he saw was the tail of this 6 foot snake going over the lip of the toilet bowl. The drama and inconvenience he put his apartment building though was unbelievable!! I don’t believe they ever found that snake….I think about that snake every time I pass that building. I would hate to meet Herbie the snake reading my morning paper and not having my pants in the correct running position. You know what I mean!! I had a real estate agent friend duck walking under a old home off Bolton Rd in Atlanta with a home inspector and the buyer one day. Now we have three grown men under a home at the very back end of the house away from the small entry door they entered. Guess whats rapped around the top of a hotwater heater? It’s cooper alright, but it isn’t piping….it’s a big Python. Now I know these are two snake stories. But I find it funny that someone will post a picture of their LOST DOG offering a big reward if found. I’ve never seen a picture of a Big Python Snake stapled on a phone pole saying LOST…CALL IF FOUND. Be a good neighborhood. If you lost your snake please tell your neighbor so they can put the kids and the Yorkshire up! It’s the least you can do! For true….Do you remember a few months back when some lady living in Buckhead was feeding what she thought was a big fat cat that showed up at her house? I was totally freaked out when we were told it was a neighbors escaped exotic Lynx. A neighbor that was a licensed big cat breeder. Why in the WORLD OF COKE do we have any large exotic cat breeders in any part of Fulton County much less in the heart of Buckhead? This cat was appoximately 30 lbs or more. I cannot believe someone in their right mind would issue a licenses for an exotic cat breeder in this type if urban density. Listen it’s a free world but to be breeding large exotic cats within a stones throw of the governors mansion isn’t right!! It’s just stupid to take such a chance!

If you plan on getting a questionable pets I wish you the best and hope you get a wonderful loving animal. But do yourself a favor and check with you landlord or covenants committee first. It may save you a lot of hassle you didn’t expect. I know it would be awful to get a new pet only to be told you have to get rid of it! It very emotional! You need to be aware that your living options will get harder and harder to find if you have certain animals as pets. There are now a lot of animals that urban and suburban Metro Atlanta will not tolerant as part of their community any more. I grew up where all the dogs ran free. They very seldom got into a fight. Once in a blue moon a few dogs would gang up on a cat. They never chased the horses or cattle. We had very few dog attacks, nor were we bitten. Most of the time when a kid was bitten it was because they messed with the dogs food or tried to yank their tail off. Only the slow learners were bitten twice! We had Irish Wolf Hounds, Dobermans, German Shepards, Yorkshires, Labs, Huskies, Hounds and tons of Mutts. They all got along. Even some of the cats hung out with the dogs in my old neighborhood. When I was young if a kid had a snake for a pet he caught it. Most of the time they were of garden variety not boxed and shipped from the Amazon.

I soley put the blame for most dogs behavior on their owners. If you treat your dog as if their your body guard then their not going to understand how great it is to be a dog. Remember to error is human, to forgive is canine!

Atlanta’s growth tops the nation. According to the U.S. Census Bureau, Atlanta was the number one metro area in the country for population growth. Atlanta added more residents between 2000 and 2006 than any other city!

Atlanta’s metro population is now over 5,138,000 as of July 2006. This growth has been great for our real estate market and is one of the major reasons we haven’t had a real estate bubble or significant drop in homes values. The only downside to me has been the increase in our traffic. When I hear someone say to me, Oh you live in Atlanta, I hear the traffic is horrible. How do you deal with it? I usually tell people that the only reason we have traffic is because everybody wants to live here. We have well paying jobs and an excellent quality of life. If you can make appointments between 9:30 am to about 4:30 pm you can move around this city pretty easy. But commute times can be very long for many and it didn’t use to be. Traffic has greatly increased. Commute times are now issues for many living here.

No questions more people will be coming to Atlanta in the future. We need high speed mass transit systems to accommodate our current and future population. As Atlanta grows a lot of people will be forced further away from the city into out laying counties in order to find affordable housing. I feel as time goes by it’s going to be harder to convince someone and companies to move here if they know they have over a 1 hour plus commute to and from work everyday. I feel as county governments see their population increase and as they build their infrastructure for new houses, they also need to have a new job development plan that brings jobs to their own areas and counties so people work and live within a reasonable proximity of each other. I know Cobb County has this sort to strategic plan in place. Not only has Cobb County grown in population but also in job opportunities it had created. This is a very key piece of the puzzle in offering a great place to live with a quality of life others cities will envy.

Atlanta has the best job opportunities south of the Mason Dixon Line if not in the country. I would love to see all surrounding counties work together to accomplish a premier mass transit system.

With the current market conditions real estate agents more and more are being asked to reduce their commission. This is mainly due to the fact homes just aren’t bringing as much as they were a short while back. I totally understand the seller’s position. But on the other side of the coin when the market is good sellers don’t share their profits with agents. Most of the time it’s not a situation where the seller’s home hasn’t appreciated. It’s the fact sellers have taken most or all of the equity out of their homes over the years. Some don’t seem to realize they have made money on their home. This is how they got the 2nd mortgages and equity lines of credit. But for some they’ve simply gone too far and their expectations are based on high appraisals they’ve gotten from refinancing their homes. Very seldom can a real estate professional sell a home for what the refinance appraisal claims its worth. There are several different types of appraisals done in the market and they’re used for different situations. Home equity and refinance appraisals are always higher than what a home could sell for. Don’t ask me why, but it’s the truth!

I cannot tell you how many times sellers say to me that they need ”X” amount of money of their home in order to buy the next home. I think it’s easy to understand what you need…..has nothing to do with what your homes worth. Thus, sellers ask the real estate agent to reduce their commission in order to achieve their desired net at closing. Lets look at this another way. Indulge me for a moment, what if your boss asked you to take a pay cut because he or she is going buy a boat or put a pool in their backyard. What would you think? Doesn’t make sense does it? Are you going to work hard for them under this arrangement?

I know this may sound crazy, but in the current real estate environment this is the time sellers need to pay more in commissions. Yes I said pay more in commissions, not less. Stop taking all the incentive away from selling your home, think for a moment how you would perform in your own personal job if you were financially rewarded for completing a project on time!! Trust me, most real estate agents aren’t knocking it dead as far a pay goes. We have a lot of hidden cost home sellers never see or hear anything about. I suggest sellers focus more on their bottom line and not what the commissions are. I understand you want to walk away with as much cash as possible at the closing table. But that doesn’t always happen by reducing the commission!

Thirteen states have local housing markets, which are appreciating and Housing Predictor projects at least 9 more will be aded to the list by summers end.

Georgia
Mississippi
Texas
Utah
Arkansas
Alabama
North Carolina
Tennessee
Louisiana
Idaho
New Mexico
South Caroline

OPEN HOUSES – WASTE OF TIME

MSN Real Estate ran an online article March 25 2007 about OPEN HOUSES. For years I’ve personally felt OPEN HOUSES simply don’t work. The MSN article supports my position and even suggest having OPEN HOUSES on multiple weekends can even hurt your homes strength in the market. I know of recent incident where an open house brought in a person that wasn’t interested in buying a home at all. They were just looking (nosey neighbor). This person ended up being someone that gossips a lot and felt she needed to talk about this home that was for sale. She ran into and told several good potential buyers her personal thoughts about the property. This is what we consider bad viral marketing. This is not at all what you want to happen when your selling a home!! With out the open house this would have never happened. OPEN HOUSES open the doors to more problems and security issues than contracts to sell. I feel the same about agent caravans and luncheons. All of these marketing approaches are as old as a dinosaur. They do not work, they only make the seller think the agent is doing something to sell their home. They’re doing something alright….and it’s WRONG!! There’s no question marketing homes for sale has changed for ever. You’ll find very few high volume real estate agents that embrace or support these marketing practices. If they do they’ll send a new agent or an agent that is willing to try anything to get their business going.

Why don’t OPEN HOUSES work any more? The Internet!! Approximately 80% of the home buyers now shop for homes on line, after they see a virtual tour they know if they want to see a house or not. No one seems to have the time anymore to ride around trying to find a home by looking at OPEN HOUSES. It’s just not an efficient way to find a new home. It’s so 90’s!!

With over 80% of the home buyers shopping for their new homes on line I find it totally amazing how many home sellers list with real estate agents without any internet presents. If a real estate agent shows you a template site his or her broker gave them ….that web site is pretty much useless. You couldn’t find that site if you tried for days doing searches on the major internet search engines. Almost all of these broker/agent template sites don’t even have a domain name. They don’t work at all for internet exposure. Why would a seller list with an agent they cannot find on the internet? Agents have to have personal web sites with domain names and content that gets the site ranked high up on the main web pages like Google, Yahoo and MSN. Agents have to invest in web placement. It’s not cheap for internet placement. Technology scares the heck out of most real estate agents and spending any marekting money scares them even more. I find it amazing how many agents don’t add more than one picture to their FMLS listings and other free websites. I’m surprised how many real estate agents don’t even add virtual tours. Yet they will sit for hours in a house on Sunday praying someone will come and buy that house. A Virtual Tour takes 5 minutes to order and reaches tons of people.

This year alone Re/Max invested over 50 million into REMAX.com. RE/MAX.com is now the 5th largest real estate web site and climbing daily. That’s an amazing accomplishment in one year. RE/MAX is a global company. There simple isn’t anyway for any of Atlanta’s small boutique brokers to compete on a local, national or global level as far a internet marketing goes. Again 80% of the home buyers are looking for homes on the web. Why would sellers ever want and OPEN HOUSE?? If you look at the facts why would anyone put forth the effort when you only stand a 2% chance of being successful. That’s just just a plain waste of time?

I’ve always embraced cutting edge technology. My personal web site will get over 70,000 hits this month. My pro-active internet marketing campaign brings in 10 to 20 prospects a week. My other pro-active marketing campaigns allows me to communicate with 50 to 75 new people a week. These aren’t cold calls. These are people looking to buy or sell real estate. With my internet marketing campaigns my average listings get approximately 300+ people a month taking a virtual tour of any given property. The average suburban OPEN HOUSE gets maybe 3 to 4 people any given Sunday if lucky. Now would rather have 2 to 4 people coming on Sunday or 75+ people a week looking at your home? I think we know the answer here!!

The facts are consumer sentiment about open houses has dropped drastically over the years. So when you decide to sell your home. Ask agents what type of web marketing plan they have. Hire an agent that has a pro-active marketing plans and drip markketing campaigns in place. Oh by the way, make sure the agent even has a marketing plan in place!! The agents with pro active marketing campaigns sell homes faster and for more money everyday of the week! Pro active marketing is not putting a OPEN HOUSE sign with balloons on the street…..not by a long shot!!! Agent luncheon’s, agent caravan’s and open houses are PASSIVE SELLING!! If PASSIVE SELLING methods are the way you want to go then save yourself some money! Hire a cater and a home sitter, not a real estate agent!