Robert Snowden Zachary Realtor Ken Doss Realty

I reported in the first quarter of this year that home sales had out paced sales during the same period in 2008. Well, after getting off to a fast start, homes sales slowed a little, and are now on pace with sales in the first half of 2008. Through July 2009, a total of 176 homes were sold as compared to 173 during the same period in 2008. However, these numbers still do not compare to the 253 homes sold during the same period in 2007. Because the 2009 and 2008 sales are almost the same, it maybe an indication that the housing slump has bottomed out. The remainder of this year will be interesting as some national prognosticators are projecting homes sales to remain flat through the rest of this year. I tend to agree .

Data Obtained from the Greater Baton Rouge Association Of Realtors.

Some of my clients ask the question, "Robert, should I have this house inspected prior to the purchase?" And nearly 99% of the time, I answer "yes". During the home purchasing process, the buyer is given an option to have the house inspected by a professional inspector. In most cases, the buyer is given 10 days from the signing of the purchase agreement to inspect a home. Many times the prospective buyer will forgo the inspection to save the approximately $300 fee charged by most inspectors. Moreover, the owner reserves a right to not correct the items found in an inspection, thereby making the potential buyer leery of paying the $300 fee.

There are some horror stories associated with home buyers who relinquished the right to have the inspection conducted. A couple recently purchased a house and chose not to have it professionally inspected. One week later, after moving in, they began to experience drainage problems underneath the slab. A simple inspection of the water drainage system would have revealed the problem. Fortunately, in this case, the sellers were willing to correct the problem. The repairs cost approximately $2500. A potential for a lawsuit was looming had not the sellers agreed to fix the problem. I have witnessed inspectors finding electrical problems, appliances that do not work, as well as faulty light fixtures.

In most cases, the sellers are willing to correct problems prior to the close of the sale. So, I strongly urge that the buyers have an inspection conducted, especially for older homes (those built in the early seventies). Many of these homes have drainage systems constructed with cast iron piping which could deteriorate over time. Even if the owners elect not to make the repairs, the contract allows a buyer to opt out of the purchase of the house. Remember $300 dollars is a small price to pay to avoid the pitfalls of later discovering hidden defects.

Well, the 2008 numbers for Zachary home sales are in and the downward trend in sales continues. Home sales in Zachary have decreased for the third consecutive year since 2005 and Hurricane Katrina. As I reported in the 3^rd quarter of 2008, Zachary home sales are now less than pre-Katrina sales. Hurricane Katrina marked a spike in home sales due to an influx of New Orleans residents relocating into the area. Since that catastrophe, things are slowing down and hopefully we are coming to the bottom of the trend. Let's get into the numbers.

Overall Sales

Overall, home sales decreased by 36 percent in 2008 when compared to sales in 2007. Table 1 lists Total Home Sold, Average Price and Average Days on the Market (DOM). As indicated, the average sales price increased, which is interesting considering a decrease in total sales. However, this is good news because it's an indication that home values are holding strongly. The total DOM increased by nearly a month and a half in 2008. Therefore, those people who are looking to sell should expect their home to remain on the market somewhat longer.

Table 1

*Zachary Yearly Homes Sales Comparison
	2008	2007
Total Homes Sold	258	402
Average Price	$233,568	$221,727
DOM	116	77

A Breakdown of Sales

Table 2 gives a breakdown of where the most sales take place. The mid ranged priced homes led the pack with 105 homes, even though it represents a 30 percent decrease from 2007. The homes which sold at less than $200,000 came in a close second. These homes led the pack in 2007 with 188 sales. The number of homes sold in the $400's range doubled from 2007 to 2008 and sales of the $500's homes decreased by nearly half. These are very interesting numbers considering there is a slow down in overall sales. It is an indication that Zachary is attracting middle to upper-middle class consumers.

Table 2

*Zachary Yearly Homes Sales Comparison by Price Range
	Number of Sales(2008/2007)	Average DOM (2008/2007)
Up to $99,999	11/9	63/82
$100,000 to $199,999	96/188	117/64
$200,000 to $299,999	106/152	119/83
$300,000 to $399,999	23/35	130/96
$400,000 to $499,000	16/8	166/163
above $500,000	6/10	39/136

Looking Ahead to 2009

I believe the downward trend we are witnessing locally, is consumer reaction to the national trend. Basically, people are rather apprehensive about purchasing that new home due to fear. However, the job market continues to be strong in the Baton Rouge Metro area and lenders do have money to lend at low interest rates. I received this information from several lenders in the area and based on my experience with clients who purchased real estate in 2008. We must continue to drive the message that all is not doom and gloom in our local markets. Even though the Zachary market has slowed down, home values have remained stable. I believe 2009 will be a pivotal year for the local and national markets. Hopefully, we are at the bottom of the trend and the next time I present this report, we will see an increase in sales.

*Data taken from the Greater Baton Rouge Association Realtors

Recently, my church, the New Pilgrim Baptist Church in Zachary, Louisiana held its annual Brotherhood Conference. As the conference date approached, it dawned on me that this would be a great opportunity to empower the men by discussing how the current real estate market is impacting the economy and vice-versa. So, I got excited and had my name placed on the list of presenters for the conference. I was given 20 minutes to address an audience of about 50 men from various churches and organizations in the community.

The Presentation

My 20-minute slide presentation included the following topics: the local and national real estate markets, the government's $700 billion bailout plan, real estate investing and "What Can We Do to Boost the Economy". The presentation was well received by the audience as questions arose concerning available funds for loans, unemployment rates and home refinancing options. I drove home the point that money is available for home loans. Many people are under the false impression that banks are no longer offering money for purchasing homes. I believe this misinformation is based on what we hear in the media concerning the current recession and the assumption that no money is available. I was safe in this statement since the sales numbers show Baton Rouge area home sales have been somewhat shielded from what the rest of the nation is experiencing. In addition, I spoke with a loan officer and they assured me that bond money is still available in East Baton Rouge Parish.

A Marketing Strategy

Prior to the presentation, I provided each participant with my personalized note pad, which has all of my contact information and a picture. I also had plenty of my business cards on hand. Following my presentation, I was approached by three participants who wanted me to either list their home or to discuss investment opportunities in the rental market. I will be attending these appointments within the next week. The most important thing I did was to obtain a copy of the list of attendees that includes addresses and telephone numbers. Each of these attendees will be contacted by me within the week to get other leads and assess their real estate needs. They will also receive a copy of my newsletter.

Seeing the Forest and the Trees

I know that this is not a new strategy, but sometimes we miss the proverbial "forest for the trees." In other words, our web sites and other forms of media used to reach the masses are excellent, but some of our best clients are sitting in our midst. Over the past few years, I have attracted several clients from my church congregation. I make it a point to keep my name and profession in the face of those who are closest to me. I find that it makes them feel special when I offer my note pads/business card and slighted when I do not.

As I sat and watched a 60 Minutes interview with President-elect, Barack Obama and his lovely wife, first lady-elect Michelle, the discussion moved to their first visit to the White House. Michelle said that the 130 room plus mansion is "beautiful and awe inspiring". She went on to say, it is a gift and honor to uphold the beauty of the house.

Well, this is a perfect example of what Realtors want to hear when showing a home; "Awesome" as a potential buyer enters the door. However, this type of response is only garnered through the efforts of the seller; its' challenging, but can be attained. Now granted, most sellers do not have a staff of workers like the White House, but with some early preparation, it is possible.

Perfect Preparation

I am sure Michelle was taken aback by the architecture of the White House, but I can also imagine what she witnessed was a clean, freshly painted and tastefully decorated mansion. As they walked through the famed rose garden, it accentuated the well-manicured lawn. I am sure the Obamas will add their own touch, but they will be able to move-in while exerting little effort to make the mansion just the way they like it.

As I said earlier, most of us do not have a staff of people to clean our homes on a regular basis. Certainly, we cannot depend on the kids. However, it is wise for the seller to consider having the house professionally cleaned, painted and updated to bring in the best offers. I only suggest the seller painting on their own, if they are good at it. Now is not the time to learn. I am sure that the White House is free of clutter and this is a tip that the seller should pay close attention. The staff probably cleans the carpet regularly, along with the marble floors. Leaky faucets and dusty furnishings are probably nonexistent.

Perfect Listing

Realtors love it when they get this type of listing, because it greatly increases the home marketability. In addition, buyers love it when they find "move-in ready" homes. It is a good signal to them that the house is in good condition and the sellers are proud of their home. However, more importantly, they will not have to move in and incur additional fix-up costs. It turns out to be a win-win situation for all parties involved.

Create that "Awesome" Atmosphere

While the Obamas will experience first hand the awesomeness of living in the White House, sellers should make every effort to create this type atmosphere before the showing of their homes. It may cost a little to get your home in "awesome" condition, but the benefits are many.

For the sellers, buyers , Realtors and all other parties involved, the only word that is better than "Awesome!" is "SOLD!"