Heather Goodwin ~ Shreveport Louisiana Real Estate

Again this month the statistics show that the number of homes that sold this October compared to last is down 15%. Inventory is down over last year which is good, but sales are also down by about the same amount. So there is still about a 6 month supply of homes in the Shreveport market. It seems everybody is concerned with the economy and the housing crisis and rightly so.

Some people are waiting to see what shakes out before they make a move. That may be the wise thing to do. If you are in a position where you really must make a move, Shreveport is on of the best areas to do that. As inventory shrinks even farther, as it may during the holidays, the pendulum begins to swing from a buyer's to a seller's market.

So, I'll repeat what I said last month. Get pre-approved and start house hunting while the selection is good and the rest of the buyers are waiting for prices to go down.

I can find all properties for sale on my own.

This is the third in a series of posts discussing 10 Myths first-time home buyers have about the buying process. The article is in the October, 2008 issue of REBAC's publication, Today's Buyer's Rep.

In response to that statement, I'd really like to say, "No way. You're just kidding yourself if you think you can find all properties on your own." Then I remind myself that NAR research shows that somewhere between 80% and 90% of buyers begin their home search online and we agents are thrilled, because it makes our job easier.

Myth or No Myth?

So, I would call this a half-myth if there is such a thing. Buyers can find a lot of properties online, but unless they're looking at a site that is updated in real time like the MLS, they are going to be running across many properties that are either under contract or already sold. Thus, they'll be wasting some valuable time. And they won't know that until they speak to an agent. :-)

Even if they find a home that meets all their criteria and is still on the market, what's the next step? Right! Call an agent to find out more about the home, see if there are others like it on the market, learn more about the neighborhood, or ask to go see it.

Who Knows?

So, who are they gonna call? If they haven't already spoken to a local agent about their house search, they will most likely call the generic office number on the listing or the agent whose contact information is tied to the listing, better known as the Listing Agent, and you know how I feel about that!

Then There Are the FSBOs

Surely if a buyer is interested in homes for sale by owner, they don't need an agent for THAT! No, they don't, but they're going to run into the same outdated information problem detailed above. Besides that, not all FSBOs put their listings online. Of those who do, they generally just put it on one or two websites. So finding FSBOs online really is hit or miss. (I DO have a way to syndicate FBSO listings to all the major real estate websites, but we all know FSBO sellers don't really want to work with agents, and it's another post for another day).

Let's Analyze This

In the final analysis, I would say #3 is probably not a myth. However, there are three things wrong with the thinking that would prompt such a statement.

1. It is just not the most efficient way to find a house.
2. If you end up working with the listing agent, you're interests aren't being protected as well as they could be.
3. Unless you find a FSBO to buy, you're going to end up working with an agent anyway, so why not go ahead and find one you're comfortable with and trust?

The world wide web is a wonderful place to gather information about the home buying process, but when it comes to searching for a home, find a buyer's agent whose website gives you search results with data coming directly from the MLS. That's the key. Then, the only houses you won't know about are those hot deals that the agents learn about through the office network that sometimes won't even make it to the MLS.

Happy Hunting!

...but it's been verified in the October issue of REBAC's newsletter, Today's Buyer's Rep. I have written about this previously here. When I posted it, I expected to get at least a few comments, especially from Listing Agents who begged to disagree with me. Strangely enough, I didn't get a single comment. Well, it can be a controversial issue. In fact some states won't let you do it. Heck, some brokers won't let you do it. But what agent doesn't love to get both sides of the sale?

In October's issue, REBAC is dispelling the 10 myths that first-time home buyers have about real estate agents and the home buying process. I've already written about Myth #1.

Since you can link above to read the post I've already done about Myth #2, I'll just give it to you in a nutshell here.

The agent who has listed the home for sale (the one whose name is on the yard sign, MLS, flyers, etc.) is not the best person to look out for a buyer's interests.

It's all a matter of the loyalty an agent is required to have to their client. An agent who has listed a home owes their loyalty to the seller. If that same agent gets a call from a buyer to look at that home and takes them on as a client, they also owe their loyalty to the buyer. That's called dual agency and is something to be aware of. To whom will they be more loyal? Can they be equally loyal when the buyer is trying to decide what to offer or during negotiations? Do you see the conflict here?

So, in effect, the agent represents neither client and basically becomes a bystander in the negotiation process. First-time home buyers - ALL buyers - deserve more than this. What they need and deserve is their own agent - a buyer's rep - to look out for their interests in this complicated, but exhilarating process. So they should be sure their agent hasn't listed the house they ultimately want to buy. It's even better if their agent has earned the Accredited Buyer's Representative (ABR) designation which shows that they've received additional training and experienc representing buyers. Shreveport has many agents that have earned this designation, so be sure to ask about it when you're looking at homes for sale. Good hunting.

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You're at Home with Heather
Shreveport and Bossier City, Louisiana Real Estate

Shreveport Home Connection
Coldwell Banker J. Wesley Dowling & Assoc. LLC

Serving your real estate needs in Shreveport, Bossier City, Benton, Haughton, Keithville, Stonewall, Blanchard, and Barksdale AFB

Licensed in Louisiana

An article by a colleague in another state about the highest priced home that has sold in her market made me curious about the luxury homes for sale in the Shreveport area. Needless to say, I couldn't wait to do a little sleuthing of my own. Well, compared to the $17M home that sold where she lives, the $1.45M home that sold in Shreveport and the $1.5M home that sold in Bossier over the past year seem like downright bargains.

Absorption rates for our area combine all homes above the $400,000 range. In September there was a 16 month supply of homes in this price range.

There were 114 homes for sale in Shreveport/Bossier and in August, only 7 homes actually sold . That's over a 16 month supply of homes if no more homes come on the market. However, in August, 19 homes came on the market at $400,000 and up.

But, let's take a look at the higher end of that group of homes. What really would be considered "luxury" homes.

Luxury Home Statistics as of October 30, 2008 - $750,000+

There are 18 homes in this range currently for sale:

• 12 in Shreveport

• 2 in Bossier City

• 3 in Benton

• 1 in Haughton

The highest is $750,000 in Shreveport and the highest priced home is in Benton at a cool $2,000,000.

There is only 1 home currently under contract. That's Cedarcroft Plantation in Greenwood for $995,000.

As far as sales, none of these homes sold during October, and only 5 have sold in the last 6 months. For those sales, the average number of days on the market was 86, with 12 days being the shortest time on market and 195 days the longest. The average sales price was 89% of the average list price.

So, it looks as though if you're in the market for a higher end luxury home the numbers are in your favor during this market correction.

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You're at Home with Heather
Shreveport and Bossier City, Louisiana Real Estate

Shreveport Home Connection
Coldwell Banker J. Wesley Dowling & Assoc. LLC

Serving your real estate needs in Shreveport, Bossier City, Benton, Haughton, Keithville, Stonewall, Blanchard, and Barksdale AFB

Licensed in Louisiana

In these days of economic turmoil, whether you're feeling the pinch or not, Michael Mullin's post about his allowance gives a person food for thought. It is so easy to whip out the credit card to pay for those little lattes and lunches. I consider myself a frugal person, but I must admit that I've fallen into this habit. After all, when you use cash, what happens when you run out of cash? Perish the thought.

Then along comes Debe Maxwell with a challenge to all of us playing here in the Rain. She wonders how many of us could actually get along for a month with a $60 allowance for personal spending. She's not talking about groceries, gas, or other household expenses. She's talking about the money you spend on yourself for lunch out, that to-die-for pair of shoes, or new golf club for you guys.

I'm taking her up on the challenge. Quite smugly, I might add. I think I'll fall far short of spending $60 on myself. But I may be in for a surprise - I recently walked into a dress shop just looking for a pair of pants and left after spending over $400. Whew! At least I got that out of my system before this challenge came up.

Be sure to comment about your experience. Different people will have different weaknesses. Mine happens to be kitchen gadgets and books and.... Well, let's just say I can resist Starbucks, fast food, and clothes. And yes, I've been called weird.

So, here are the rules:

1. Sixty bucks cash. That's it. Anything you spend on yourself must come out of this cash and when you're out of cash, no more spending until December 1.
2. If you live in an area of the country with a higher cost of living, raise the amount, but don't make it easy on yourself.
3. If you have any money left over at the end of the month, find something useful or someone needy to spend it on. So, if you decide to try it again in December, that means no rollover cash. But trust me. You'll feel good about it and what's not to like about that?

So, are you up for it? What things will be begging you to pull that cash out of your wallet?