Way To Go, Historic Kenwood

Congratulations to homeowners in St. Petersburg's Historic Kenwood community. In case you haven't heard, the lovely community of bungalows and cottages has been ranked Number 5 in Cottage Living magazine's 2006 list of the Top 10 Cottage Communities.

The magazine cites the area's Craftsman-style bungalows, old-fashioned hexagonal block sidewalks, social gatherings, red brick streets, and special holiday decorations installed by the famous Kenwood Elves. I'll bet the lovely comunity park and the open front porches of many of the homes helped too!

Here's the full list of Cottage Living's top 10 cottage communities ...
1. First Addition, Portland, OR
2. Bungalow Heaven, Pasadena, CA
3. Willo, Phoenix, AZ
4. Old West Austin, Austin, TX
5. Historic Kenwood, St. Petersburg, FL
6. Albermarle Park, Asheville, NC
7. Del Ray, Alexandria, VA
8. Cottage Home, Indianapolis, IN
9. Bryn Mawr, Minneapolis, MN
10. Five Sisters, Burlington, VT

Congratulations to all the people who have worked so long and so hard to make Historic Kenwood one of St. Petersburg's best neighborhoods.

Oh, by the way ... don't forget to visit my website, www.thestpeterealestatesite.com.

-30-

Should You Renew Your Real Estate Listing?

Let's say you've had your house on the market for months and nobody's bought it. Six months have passed and your real estate listing is about to expire. Most likely that expiration is okay with you because by now you're so upset with your real estate agent that you're ready to fire him anyway.

"Okay," you say to yourself, "the real estate market has slowed and prices are getting lower. Still, in Pinellas County during May there were 1,071 single family homes sold and 481 condominiums. That proves there are still buyers out there!" Given that set of circumstances you have every right to ask why those people bought other properties and not yours. Is it something you did? Or is it the fault of your real estate agent? Or, is it just the market?

Let's take a brief look at each of these things and see why you've had no luck selling, why your listing is about to expire and what you can do to correct the situation and get your house sold.

First, let's look at market conditions. If you read this blog regularly or if you read the newspaper or listen to the news, you already know that the real estate market is softening and that prices are coming down. That's the current market trend and every marketing expert in this country will tell you that you can't swim upstream against a market trend. If people aren't buying all you can do is to be patient and wait for the market to improve. In the meantime, keep your fingers crossed that a buyer will come along. Market conditions are beyond the control of your real estate agent and beyond your control as well.

Next, is it your fault? Well, it might be. This is where you have to sit back and do an honest, objective analysis of your own performance in trying to sell your property. I've seen many instances in which the seller was his own worst enemy in trying to sell the property. Did you price the property fairly given today's market conditions? Or, did you overprice it hoping to make a few extra dollars? Did you offer a high enough commission to provide an incentive for buyer's agents to bring prospective buyers to see your property? Or, did you make the agent cut the commission and take away the selling incentive? Did you take care to maximize your property's appearance and condition so that buyers felt favorable toward your property? Or, did you put it on the market with peeling paint and a yard full of weeds? Were you willing to negotiate in good faith and strive to create a win-win situation with the buyers? Or, did you dig in your heels and refuse to budge? You have to be fair in your analysis of this. If you were the problem, don't blame your agent or the market.

Finally, was it your agent's fault? You need to determine if your agent did those marketing tasks which have proven to be successful in selling properties despite the market conditions. Did you have the proper number of open houses? Newspaper ads? Magazine advertising? Exposure in the Multiple Listing Service? Postcard mailers? Broker open houses? Did your agent use the latest web technology to sell your house? The internet? Customized web site? E-mail exposure? Did he expose your house to other real estate agents and other brokerage firms? Was the commission sufficient to provide an incentive for buyer's agents to show and sell your house? If your home was very expensive -- a million dollars or more -- was your agent able to implement an international marketing plan designed to attract qualified buyers worldwide to your property?

If the marketing program your agent executed comes up short, what can you do?

My suggestion is to discuss the problem in a civil and businesslike manner with your agent. No name calling. No finger pointing. No yelling. Just outline the problems as you see them. Then, ask your agent what he can do to correct the problems if you decide to re-list with him. If you like the answer, give him another chance to sell your house. If he does not offer a suitable solution, list the house with an agent who can bring you a more aggressive marketing program. No hard feelings. Just move on to a new agent with more marketing horsepower.

When the market gets soft like it is now, the key to selling property is the quality of the marketing plan offered by the real estate agent and his broker. If the marketing is weak, your house will sit unsold because prospective buyers won't know it is for sale.

So, before you automtically renew your listing, do a fair and honest analysis. If you determing that the problem is the market, there's little you or anybody can do about it. If you are the problem, change your approach. If your agent's marketing plan is the problem, ask him to fix it or hire a new agent with a more powerful marketing plan.

Oh, by the way ... don't forget to visit my webiste, www.thestpeterealestatesite.com.

-30-

Should You Hire A Broker?

Recently, NBC TV's "Today" show ran a feature on whether sellers should hire a real estate broker to sell their house or become an unrepresented seller -- better known as a FSBO, short for For Sale By Owner.

The reason for the story was that throughout the nation, real estate prices are softening and in many areas the prices are actually going down. On the surface, it would appear that if prices are going down sellers should try to sell without incurring the costs normally associated with a real estate broker in order to net the most money on the sale. Sure, that kinda sounds logical.

What the story on "Today" actually ended up pointing out was that if you want to sell your property for the most money in a softening market, you need to hire a full service, full commission real estate broker.

The program pointed out that the average unrepresented seller (FSBO) sells the property for an average of 10 to 18 percent less than he would receive from a professional real estate broker for a comparble property. So, if your property is listed for a real estate commission of from 5 to 7 percent (which is pretty standard in most markets these days), the real estate agent is likely going to sell your house for a net increase of from 5 to 11 percent more than what you will get for it on your own. So, even after paying the real estate commission, you'll put more money in your pocket by hiring a real estate broker to sell your house. Plus, the real estate agent is going to do all the work and pay for all the marketing costs associated with advertising your property.

The "Today" story featured a man who sold his house FSBO in something like 22 days in a slow market. They had sound bites of the seller bragging about how he saved over 20 thousand dollars by not paying a real estate commission. All three of the people doing the story -- the "Today" show host, the woman from the National Association of Realtors and the man who was president of "By Owner" realty -- pointed out that the seller most likely did not sell the house for its true market value if he sold it that quickly in a slow market. They were all in agreement that he did not get full value for his property.

Despite all the claims from people who have sold their homes as FSBO's, your chances of selling your house on your own as a way to net more money in a flat or falling market are very, very slim. Statistically, you'll net more money by selling your home through the services of a real estate broker. Real estate brokers have the tools, the negotiating skills, the experience and the overall know-how to make it happen for more money. Simple as that.

-30-

Population Growth Is Key To Investing In Real Estate

If you have time to invest in real estate for the long term rather than the quick "flip it" approach we've seen in the last few years, this article will give you some information that may help you retire rich in about 20 to 30 years.

According to a new study just released by the University of Florida, the state's population -- which now stands at about 18-million -- is forecasted to reach nearly 20-million people by the year 2010 (that's only 4 years from now). It will likely reach 25-million by 2025! By 2030, Florida may very well have 26.4-million residents.

All those new residents will need places to live, commercial buildings and industrial centers. That's good news for real estate investors, developers and landlords.

The trick is to know where all these people are going so you can get there first, buy some likely income property and watch your investment grow during the coming years. As it turns out, the good folks at the University of Florida's Bureau of Economic and Business Research have already determined where the growth will be -- and where it will not be, which is just as important. So read on!

In terms of percentage of gain, the fastest growing counties are projected to be Flagler, Sumter, Osceola, Walton, Collier and St. Johns. If that's where the biggest percentage of growth will be, it is logical to assume that the percentage of profit may be best in these counties.

Based on sheer number of people, the largest current counties will experience the largest population increases. Miami-Dade is projected to have the largest increase in pure number of people, with a projection of 775,000 more residents by 2030. Broward, Orange, Palm Beach and Hillsborough counties are projected to be among the top as well.

The slowest growing counties -- thus the least likely places for you to invest for real estate growth -- will be Monroe and Pinellas Counties. The reason for this is because both of these counties lack enough developable land to create new, large residential communities and commercial centers. The state's smallest current counties will also suffer from a lack of growth and investment opportunites -- Liberty, Lafayete, Hamilton, Glades and Jefferson Counties each have current populations of 15,000 or less and are projected to grow by only about 3,000 or fewer residents by 2030. Of course, they might be nice places to buy that country estate you've always wanted.

If you're at an age in which you can invest and hold property for 25 years or so, you might want to retain the services of a good local real estate broker in one of the high-growth counties, make a purchase or two, and sit on your investment for a few years and watch it grow. Now would be a good time to finance such an investment because mortgage rates are still pretty affordable. As Will Rogers once wrote, "Don't wait to buy real estate. Buy real estate, and wait."

-30-

Kind Of Odd About The Money

If you read the St. Petersburg Times during the last week (June 11 -17, 2006) you probably noticed three rather interesting little articles. I didn't bother to keep any of the articles, so I can't give you specifics, but here is the "jist" of it.

The first story said that property in Pinellas County was 70-something percent overpriced based on the average income for people living in the county.

The second little story said something to the effect that people living in Pinellas County earn an average wage that is considerbly below average.

The third little article reports that 35,782 households in Pinellas County have a net worth of $1-million or more excluding the value of real estate holdings, that's 8.5% of the population.

What does all this mean? It could mean that employers need to pay people more money so they can own a decent house. It could mean that real estate prices need to be lower and more in-line with the realities of current income in Pinellas. It could mean that wealthy investors have driven up the value of real estate to the point where the "average" wage-earner can't afford much of a house.

It could mean a lot of things. It could mean absolutely nothing. I hope it does not mean that only those 8.5% who are millionaires can afford to buy property.

-30-

Bruss Shoots Himself In The Foot -- Again!

For the second week in a row I've had to take exception to somthing Robert J. Bruss wrote in his wonderful column, Real Estate Mailbag, which appears in the St. Petersburg Times.

This column was headlined "Reduced Commissions Can Backfire On Seller" and it appeared in the June 3rd issue of the paper. Wow, what a great article! Bruss has captured what I and other real estate writers have been saying for a long time -- reducing sales commissions takes away the incentive for buyer's agents to show a property. I've often asked sellers who want me to cut my commission if they want their property shown first or last by the buyer's agents. I know of only one sure-fire way to get it shown first -- offer a fair commission to the buyer's agent.

So, we have a case where I agree with most, but not all, of Mr. Bruss' column. We differ on a point that Mr. Bruss and I have disagreed on in the past -- negotiating commissions. Mr. Bruss writes that he feels negotiating a lower than usual commission is justifiable in only two instances. The first of these he describes as that instance in which a "home's market value is far above typical sale prices in the community." He uses the example of a million dollar home listed for sale in a neighborhood of homes valued at $300,000. In this instance, Mr. Bruss suggests that the listing agent should "offer a reduced sales commission without (the seller) even asking."

No elaboration is given here as to why a discount should automatically be offered, other than the fact that Mr. Bruss seems to believe that high market value automatically means a reduced commission -- an opinion which is not universally shared among brokers.

I don't see any logical reason to offer a reduced commission just because a property is listed at a price that is much higher than others in the neighborhood. I know this however, if you have a property that is indeed worth $1-million in a neighborhood of much lesser valued properties, that house is likely way overbuilt for the neighborhood and is going to be very hard to sell. A home like that will demand a massive effort on the part of the listing agent to find a buyer willing to purchase an overbuilt home at anywhere near it's asking price. The amount of time, money and effort required to find a buyer for such an overbuilt (and likely overpriced) property will mean a huge outlay on the part of the agent and broker. Given that set of circumstances, why should the broker offer a discount on the sales commission? In fact, it might be necessary to increase the sales commission in order to enlist the support of other agents to show and sell the overbuilt property -- a sales strategy Mr. Bruss discusses elsewhere in this very article! A commission discount? Sorry, Mr. Bruss, but I can't see it.

Mr. Bruss suggests that the only other time a seller should ask for a commission discount is when the agent helps set the price and, after 30 days on the market, the agent brings in an offer that is far below the asking price. At that point Mr. Bruss believes the agent should discount his commission.

Hogwash! The agent's commission is a percentage of the sales price. If the property sells for far below its asking price, the agent's commission -- as measured in real dollars -- is reduced by exactly the same percentage as the seller's loss as measured against the original asking price. By reducing the commission based on a lower offer, Mr. Bruss would have agents take a double hit -- the percentage loss from the sales price PLUS some kind of additional loss by reducing the commission percentage. So, if you do what Mr. Bruss is suggesting, a low offer becomes punitive for the sales agent and listing broker since they would be penalized twice. If the seller does not like the amount contained in the buyer's offer, the seller should counter it or reject the offer outright. Oh, and what's magic about 30 days? Time on market is often a function of market conditions, not calendar days.

Bang! Another slug in the foot. Too bad. Other than these two points it was a really wonderfully thought-out article that most agents are glad to see.

-30-

Bruss Shoots Himself In The Foot!

The St. Petersburg Times does not have a full time real estate editor that I know of, so each Saturday they run a syndicated column written by Robert J. Bruss. The column is called Real Estate Mailbag and I read it every time it appears and always enjoy it. Sometimes I agree with Robert Bruss' opinions, other times I don't. So, what else is new?

On Saturday, May 27th, Bruss wrote a little article that the Times headlined "Lower Commission Was False Economy". Super article. Really good job, Bob. Those of you who read this blog regularly know that I've been saying that cutting commissions is like cutting your throat in a slow market. I agreed with everything Bruss wrote until his last sentence.

In his last paragraph, Bruss wrote "As the home sales market slows, primarily as a result of rising interest rates, you need the best available agent." Okay, I agree with that; who wouldn't? Bruss continues, "This is not time to be cutting sales commissions or listing with an inexperienced new agent."

I beg your pardon Mr. Bruss, but here we must part company for a minute. Sure, keep the commission up so as to provide a bona fide incentive for buyer's agents, but what's really wrong with listing with a new agent?

I'm not a new agent. I've been in the real estate business since 1994 and hold a Florida broker's license. I'm no newbie. But ruling out new people in favor of "old pros" may not be to a seller's best interests. Many of the new people coming into this field offer sellers enthusiasm and skill sets that some of the older agents just don't have. Many new people have an in-depth understanding of the internet, computer and other forms of needed technology, the ability to prepare collateral materials and websites to help sell the property, and a burning desire to succeed in the face of stiff competition. They bring fresh new ideas to an often stuffy profession. I've seen way too many "old pros" doing the same old things for far too long. Sellers today need new ideas in marketing that will present their property to today's sophisticated buyers and an aggressive approach to real estate that many "experienced" agents have lost if they ever had it to begin with. Frankly, Mr. Bruss, I've seen new agents boldly go where experienced agents fear to tread; and pull it off once they got there!

How 'bout giving new agents a little more credit in your column? Sure, sometimes they goof up. But so do experienced agents. Nobody knows everything. I agree with everything you wrote in that article except your comments about new agents and their implied inability to sell listed properties. Right at that point, I think you shot yourself in the foot. I hope it didn't hurt too much.

-30-

Pinellas Real Estate Market Remains Soft In May

I was hoping for a rebound in May, but it was not to be. The real estate market continued its weak performance with a single family absorption rate of only 12.5% as compared to 52.8% for May of 2005. For condos, the absorption rate was a very weak 8.3% as compared to 51.5% for the same month last year. The absorption rate is the inventory turn and is calculated by dividing the number of units sold during the month by the total number of listings in the Multiple Listing Service (MLS).

Single Family Home Listings. At the end of May there were 8,564 homes listed on the MLS, as compared to 7,983 at the end of April. If you're selling, you had much more competition at the end of May than you did at any time in the last five years. For example, in May of 2005, there were only 2,727 single family homes listed for sale in the MLS. If you're a seller, the market has changed 180 degrees from where it was a year ago.

Single Family Home Sales. Sales increased a little in May as compared to April, 2006. In May there were 1,071 single family homes sold as compared to only 918 in April. Still, this was the worst May sales record since May of 2001. In May 2005 there were 1,439 single family homes sold. It appears that there simply are not as many buyers in the marketplace today as there have been in the past few years. The reason for fewer buyers? Higher prices, outrageous taxes, rising mortgage interest rates and expensive insurance premiums. As a seller, you control only one of these items.

Conclusion? If you go back to Economics 101 you will remember that more inventory combined with fewer buyers results in lower prices. If I were a seller now, I'd be ready to look at lower than expected offers and more demanding terms from buyers. Also, if I were a seller, I'd start selecting my real estate agent based on how good his marketing plan was and not on who had the lowest commission rate. A low commission doesn't mean anything if the real estate agent can't find you a ready, willing and able buyer. To do that in this market requires superior marketing -- discount commission places don't offer much marketing savvy, that's why they're discounters.

Condominium Listings. Ugh! At the end of May, 2006 there were 5,804 condos for sale in Pinellas County. At the end of May last year there were only 1,453 condos for sale in the MLS. If you're a condo shopper, you have a huge selection from which to choose. If you're a condo seller, you've got competition like you wouldn't believe -- especially if you're trying to sell an older unit with so many new units now available in Pinellas. I suspect that even remodeled older units are going to be difficult to sell in this market.

Condominium Sales. Only 481 condo/townhome units were sold in May 2006, and that includes sales in all the new developments that are just now coming online in the downtown St. Petersburg area and along the Gulf beaches. For condo sales, it was the worst May in five years! But here's the odd statistic -- the median price for condos in May was $183,900 which is up from the median of $157,200 of May 2005. It appears that condo prices are remaining strong, but I think that statistic may be misleading. We have to keep in mind that many of the new condos and townhomes are very expensive -- some selling in the millions. With a small number of sales in the condo category, it does not take many sales of these expensive condos and townhomes to skew the median price upward. I'd like to see prices for condos and townhomes separated into those properties that are new versus those that are older. My bet is that the older units are selling for a much lower median price, and that the median price of older units is dropping each month. Of course, I have no way to prove it.

Condo Conclusion? It's a great time to be a condo/townhome buyer. You should be able to pretty much write you're own ticket, I think. If you a seller of an older unit, there does not seem to be as much demand and you're going to have to do some very heavy-duty marketing and negotiating to find a buyer willing to pay you're price. Now's the time to be patient, bide your time and hedge your bets. Look at every offer seriously and see what can be negotiated with the buyer.

Those of you who read this blog regularly know that I have hesitated on saying we are in a buyer's market. Well, I guess that I have to come out and admit it, yes, it's now a buyer's market. If you're a buyer, your time has come and things might even start looking better for you later this summer if mortgage interest rates stay reasonable.

If you're a seller, you need to really zero-in on three key issues: price, terms and marketing. Be flexible on your price, negotiate on terms to make the deal close smoothly, and find a top-notch real estate agent who delivers a full service marketing plan designed to find you a qualified buyer. Without the in-depth marketing, your property will sit unsold in this buyer's market. You can't "cheap" your way through a real estate transaction today. Find a real estate agent who know his stuff and pay the full commission. It's your best option.

Wish I had better news folks, but that's the way it is.

-30-

The 50 Year Mortgage May Be The Answer

This was bound to happen sooner rather than later. With higher prices for real estate, mortgage rates on the upswing and increasing pressure from regulators about exotic mortgages that allow buyers to increase leverage and thus purchase homes which otherwise may be beyond their means, mortgage terms had to lengthen.

I received a flyer from a mortgage company offering 50-year residential and commercial mortgages this past week. It's the first such flyer I've received, although I have known such offers would be coming soon.

Let's not analyze the pros and cons of this too deeply right now. Sure, some will see the 50-year mortgage as the savior to the home mortgage and real estate business while others will find fault in financing a property for half a century with interest. They'll all be making their voices heard in the coming months about this subject. But on the surface such a mortgage might make monthly payements more affordable in the face of high real estate prices and thus bring home ownership closer to people -- especially to younger folks and first time home buyers who are probably struggling right now.

Frankly, if somebody wanted to give me 50 years to pay off a mortgage at a competitive interest rate instead of 20 or 30 years, I'd be more than willing to take them up on the offer. How 'bout you?

-30-

Top Real Estate Mistakes For 2005

In early 2005, we started to hear rumblings that the real estate bubble was about to burst. Some people believed the predictions, others did not, still others simply decided it did not apply to them. Many people went on about their real estate business as if the upward cycle would last forever, not accepting the historical fact that real estate -- like all investment scenarios -- is cyclical. What's in today is out tomorrow. Timing, as they say, is everything.

Based on the theory that you can learn from past mistakes, let's take a look at some strategic errors made during 2005 and see how they can be put to good use in 2006 and 2007.

Buyer Mistakes:

• Too Much Speculation. Far too many buyers purchased property with an eye toward flipping for a fast profit. Most of the time, these were people new to real estate investing who believed property was a sure thing and the way to quick riches. For a few it was! Unfortunately, what these amateurs are now discovering is that during 2005 they purchased property at the top of the market from more experienced investors who were actually exiting real estate in favor of other investment opportunities.
• Too Much Use Of Exotic Mortgage Instruments. An adjustable interest-only mortgage appears to have been the only way for some investors to purchase highly priced real estate during 2005. Many of these people now find themselves in a situation where prices may be declining, mortgage rates are adjusting upward, and payments against principal are non-existent. Coupled with rising costs for property and flood insurance in many markets, and you have a recipe for "foreclosure pie" in 2006. If I were a real estate investor today, I'd start making connections with real estate agents and bankers who can steer me toward foreclosure properties.
• Failure To Recognize Signs Of Problems. During 2005, many property sellers and developers started offering incentives for those who would "buy now". Free maintenance fees, bonus TV's, upgraded kitchen packages, price discounts, agent bonuses and the like are a sign that the market is softening. Incentives have always indicated languishing sales and a cooling of the market. In many areas, especially Florida, I'd look for more of these kind of incentives, especially in the condominium and townhome markets which may be becoming over-developed in markets like Miami, Tampa Bay, and Naples.
• Failure To Read A Newspaper. Too many people who bought property in 2005 apparently did so without reading a newspaper. Now, the buyers are all "up in arms" about the huge increases in property taxes and homeowner's insurance premiums. Both of these items were being discussed in newspaper editorial and business columns in most markets, especially in Florida and in other coastal states. Now, taxation and insurance are on everybody's mind as state taxing authorities, insurance regulators and private insurance companies greatly increase the costs associated with property ownership. Frankly, you were forewarned. If you chose to ignore the warnings and buy property anyway, you have nobody to blame but yourself. To be honest, I think this failure to act on information will increase the rate of foreclosure during 2006 and 2007.

Sellers

• Greed. Home sellers in 2005 over-priced property in record numbers and by record amounts. After seeing their property sit unsold for weeks and months on end, prices began rolling back as sellers realized that the 2005 marketplace was not the same as it was in 2004. This became more noticeable after June, 2005 in the Tampa Bay marketplace. Realistic prices based on comparables no more than six months old need to return as the basis upon which real estate values are determined. Arbitrary pricing based on ROI's needs to go by-by.
• Failure To Use The Internet. In 2005, over 70% of buyers started their home search on the internet before ever talking to a real estate agent. Sellers who hired a real estate agent who did not include a heavy internet presence in the marketing plan missed a major marketing opportunity.
• Market Savvy. Sensing a market shift beginning in the second half of 2005, buyers became very savvy. Sellers did not. Buyers began knowing the market and the competition for similar homes within their price range. Sellers failed to keep up to date on prices and competitive offerings and became "out of touch" with the marketplace. This lack of market understanding by sellers resulted in homes sitting unsold and sellers actually became the biggest obstacle to selling.

So, what does all this mean? I hope it means a return to some degree of sanity in the real estate market. Real estate for most people is nothing more than home-n-hearth. It's shelter from a storm, you're little piece of the American dream. When real estate becomes a commodity to be bidded upward by speculators for short-term profit, it's true value is somehow lost. Frankly, for the astute investor, 2006 and 2007 will likely be good years as they can take advantage of the mistakes made by others -- and plenty of mistakes have been made. For buyers wanting to purchase a home in which to live and raise a family, 2006 and 2007 should be a good time to make a long-term committment to a property with a realistic financing package. For those wishing to make a quick profit, I think your day may be done for awhile.

-30-

Staging: First Impressions Count

When a buyer drives up in front of your house, they are looking for a reason to not buy it. Hunting for a house has more to do with eliminating properties than finding one that is just "drop-dead gorgeous".

To overcome this problem, real estate agents often talk about "staging" a home. Staging is nothing more than making your house uniquely presentable by highlighting it's best points. Staging allows the prospect to picture his items in your house.

So, since staging is so important here are some good tips on how to stage your house to overcome first-impression negativity ...

• Start the staging process before you put the house up for sale. Packing up some of your stuff as soon as you go on market clears the rooms and makes it easier for buyers to mentally picture their items in your house. Now, don't pack up everything. Just the major items that are not regularly used.
• Clean and simplify each room. For showing your property, it needs to be cleaned from ceiling to floor. Make sure all the lights work. Remove a piece or two of furniture from over-furnished rooms -- either take the furniture to a less furnished room or to off-site storage.
• Select A Focal Point For Each Room. When staging a room, select a primary focal point that will clearly attract the buyer's attention. Use this focal point to stage the buyer's attention within the room. For example, the bed is usually the focal point of the bedroom. Take the computer, sewing machine, stereo system, and overstuffed recliner chair out of the bedroom and store them elsewhere in the house or move them to storage.
• Use The "Rule Of Three" When Accessorizing. Ever wonder why the accessories in a model home always look so good? Reason: The Rule Of Three. Interior designers use the rule this way: something tall, something medium, something low. On a bookshelf, for example, you might want to place a lamp (tall), a plant (medium) and a book (low).
• Be Odor Free. Lately, it seems the rage has been to light scented candles within a home. In such cases, buyers often turn to their agents and say "they may be trying to mask odors in this house. I'll bet there's mildew inside the walls." That's it. They're gone. No offer. Your house should smell clean, and that includes eliminating pet odors.
• We Call It "Real Estate Agent Beige". You may have loved the black wall accenting your collection of photographic prints, but to a new buyer it's too morbid. Your three year old may have enjoyed the bright purple bedroom, but the prospective buyer is an empty-nester looking for a home-office. Before you put it on the market, think about the colors. The best color for a home that's up for sale is neutral. Some kind of beige or off-white that nobody can argue with. If in doubt, paint it neutral.
• What To Do With The Laundry. Make the laundry look larger than it really is by keeping counters and sinks empty. Replace wire hangers with white plastic hangers. Always wipe down the washer and dryer. Never leave unfolded clothes in the laundry.
• De-Clutter Kids Rooms. You can't just say "Oh, this is my son's room" and wish it looked neat and clean. You need to de-clutter them, and hang up all the clothes, sneakers, sweatshirts etc. Move TV's and computers elsewhere.
• Do The Yard. As far as I'm concerned, the yard counts. If you haven't mowed the grass or trimmed the hedge, now's the time to spend a morning outdoors. The yard is the first thing prospective buyers see -- take time to make it look nice.
• Rent A Storage Space. I think it's a good idea to rent an off-site storage space when you put your house up for sale. In it, you can store virtually everything related to de-cluttering your home. Don't fill up your garage or basement with boxes full of stuff -- buyers want to see the garage and basement so they should be presentable too! An inexpensive storage space is just the ticket.

I've got one final comment that comes from many years in the real estate business in Florida, especially in St. Petersburg. Keep closets neat and orderly. I can't tell you how many times I've sold a small house because it had neat, clean, orderly closets. There's an old saying in real estate: "Big closets sell small houses". To make your closets appear big, keep them neat.

So, there you have it. Some good ideas about staging your property. The important thing to remember is that you are de-cluttering so that your property looks larger and so that buyers can more easily picture their items in the house. Remember, buyers aren't buying your house; they're buying their house. Staging makes it easier for them to picture their new home.

-30-

Food For Your Next Open House

Shortly after entering the real estate business in Florida, I listed a waterfront home on Treasure Island's fabulous Isle of Capri. I'm not going to say how long ago it was, but as I recall the asking price was about $195,000 for a three bedroom, two bath waterfront home with a two car garage and family room. Today, I'd guess that home would be valued at upwards of $750,000, perhaps a bit more.

I decided to hold an open house one Sunday afternoon and to serve food as an incentive to get people to visit. I decided to purchase a very large aluminum platter filled with salad from Pepin's restaurant on 4th Street North in St. Petersburg. Along with the salad came a few loaves of brown bread. As I recall, the price for this, including some soft drinks, paper plates, silverware and the like was about $60.00.

The mistake I made was including the fact that I was serving Pepin's salad in the advertisement. Dozens of people showed up -- many of whom had no interest in the house but they sure enjoyed my free salad. They devoured the huge platter of goodies in about 20 minutes. I called an associate who arranged to bring out more salad in about an hour. The second salad also disappeared.

It was at that point that I decided that serving food at an open house was a good idea. Free treats won't sell a house, but they will give propspective buyers a reason to linger, look around more, and ask more questions. It also creates a positive atmosphere for the property.

The other thing I've found out is that serving food can also be a huge hassle if you don't concentrate on ways to make it simple. It can be messy, difficult to manage, and requires clean-up. So, I've simplified my food service activities at open houses in recent years. The easier, the better.

Mark Nash, a writer and real estate associate at Coldwell Banker Residential in Evanston, Illinois, has recently published an on-line article about using food at open houses. He thinks pretty much the same way that I do, so I'd like to pass along some of his tips for using food at open houses ...

• Forget Silverware. Serve finger foods. Silverware complicates the issue. Those circular deli sandwiches from Publix are perfect!
• Think small with cocktail-size plates. You're not serving a meal, just providing a "snack".
• Bottled water is a must. Guests-on-the-go will appreciate the portable pick-me-up -- especially in a warm weather place like St. Petersburg.
• Offer enough, but no too much. Plan for one beverage and three hors d'oeuvres per person. Keep some items out of sight in the refrigerator, just in case you start to run short or have a larger than expected turn-out.
• Select low-maintenance menu items. Visitors should be able to serve themselves. This allows you to concentrate on selling the property, not food service.
• Alcohol is a no-no. Open houses are business events, not parties.
• Cut Down On Clean-Up. Place a waste container in a very visible place adjacent to the food and beverage station.
• Leave The Leftovers. If you're a real estate agent reading this article, leave the leftovers for the owners to enjoy.

So, next time you organize an open house, include some kind of food service. It really can help separate your property from the competition.

-30-