Ever wished for a crystal ball so you’d know what’s ahead? That might, or might not, be a good thing, depending on what you want to know…!

On the one hand, having a crystal ball to look into the real estate market could sure help ease concerns for some folks here in the Birmingham and Shelby county areas. Or would it?

Suppose you’re thinking of selling your home. Would you be more inclined to sell sooner, if, say, the ball suggested values would continue to slide in 2010? What if the ball suggested you’d get more if you wait?

I don’t think we really need a crystal ball to know that home values will rise. Nearly every expert out there predicts they will, at some point.

It’s those last three words that are the kicker: At some point.

Hmm. Does that mean in the next three months? Ten months? Two years? This is where having a crystal ball would be pretty handy.

However, crystal balls are about as plentiful as bumper stickers in Alabama supporting the Texas Longhorns. People ask us questions frequently that would pretty much need a crystal ball to answer accurately. “What is my home going to be worth in a year?” would be one such question.

“What will my home sell for if I list it right now?”

Ahh. There’s a question that doesn’t need a crystal ball as badly to answer. We have good resources we can draw upon to come up with a figure that—more times than not—winds up being very close to actual selling price.

The fact is that if your home ’shows nicely’ as Agents like to say, and is priced where we know Buyers will bite, your odds of selling are promising. And, yes, that’s true even in the tough market affecting so many neighborhoods in the Birmingham and Shelby Co. areas as we plow into 2010.

This might sound ridiculously obvious to some, but the ’shows nicely, priced right’ concept is one we’ve seen trip up a lot of people trying to sell their homes. So, not everyone really understands how important this really is. Or put another way, not everyone really ‘gets it.’

During 2009, we represented Sellers who agreed to price their homes where we suggested. Granted, they weren’t always thrilled with the price we recommended. But they swallowed hard and said, ‘okay.’ Why? Because they needed to sell. Helping ease this frustration was their knowledge that—when they turned around to buy another home—they’d be enjoying the opposite side of the tough selling market, getting a very good deal on the home they’re buying.

We also dealt with Sellers in 2009 who disagreed with us. They felt they had a better idea than we did of what their home would would sell for. And guess what happened with their efforts to sell? Nothing. Zilch. Their homes didn’t sell, despite being on the market plenty long enough to sell. I remember several cases where other homes in the same neighborhood as our Clients’ house sold, and in the general price range we had recommended.

There were some cases where our Client’s home never even got an Offer. We always talk about how important it is to listen to what the market is telling us. Let me assure you of one thing: If a home for sale doesn’t even get an Offer, that’s the market talking. It may even be shouting.

I know one thing for sure about trying to get a home sold in this market. You either have to ‘get it,’ or you have to trust your Agent’s advice. Otherwise, your home is probably not destined to sell.

I think the real question that emerges is: How badly do you want, or need, to sell?

Clearly, there are many situations for folks where—regardless of how the market may be performing at the moment—it’s important to sell sooner, rather than later. Some Sellers who contact us tell us they need to sell as fast as possible, and are waiting for us to tell them what to do to make it so.

These are the people we feel confident we can help.

And no, we don’t have a crystal ball to predict the outcome.

But listening to the market and to your Agent go a long way right now, and will most likely mean you can start packing sooner, rather than later.

David

You can have fun and help people at the same time.

That’s what the Oak Mountain Real Estate Network’s annual Christmas Auction, held November 18th in Pelham, is all about:

Despite a tough economy, we had a lot of Agents and people working in affiliated fields participate. When it was all over, the Network had raised nearly $2,200. The Network supports two very worthy causes here in Shelby County: SafeHouse and Family Connection.

Special thanks to Auctioneers Kelly Bishop-Hicks with Allstate Insurance and John Holliman of the Holliman Law Firm, who did a great job!

David

Congress has taken a step many people were watching for, and has extended the $8,000 tax credit for people buying a home for the first time. But the extension also carries a big change that could affect you if you own a home right now and want to buy again.

The credit, which was originally set to expire November 30th, now applies to Sales Contracts in place by April 30th, 2010. Homeowners have an additional 60 days beyond then to actually close the sale.

If you currently own your home and have lived in it for five consecutive years, the extension provides for a $6,500 credit if you buy another property by the new deadline. In the current market where so many homes have lost value, this may help Sellers frustrated over not being able to get an Offer for as much as they’ve wanted.

So … either way, the extension is intended to make buying a home more enticing to a larger group of people. That’s exactly why Congress passed the bill, in a continuing desire to stimulate the housing market.

Another point many buyers are not aware of is the fact that you can still qualify for the credit even if you owned a home previously. The government defines a first time buyer as someone who has not owned a home during the previous three years. So, if you owned a home in, say, 2004, but have not owned your residence since then, you would qualify for the first time buyer’s credit.

The tax credit’s extension and expansion, coupled with such affordable deals and financing on homes in the Birmingham and Shelby Co. area really do suggest that—unless you plan to move again soon—you’re much better off owning, rather than renting, and—if you qualify as an existing owner and have been wanting to move—now’s the time.

David

Getting your home sold in Shelby County is taking longer in some communities and less time in others, while prices have dropped, according to October statistics from the Birmingham Multiple Listing System.

The average number of days on market increased in Alabaster and Chelsea, but fell in Helena, Pelham and Calera:

Click here to see a larger version of the Average Days On Market graphic…

Prices continued a downward trend in October, and substantially so, compared to September:

Click here to see a larger version of the Average Sales Price graphic…

How many homes are selling?

Except for Calera, the number of homes sold in October dropped from September. Chelsea saw the sharpest one month drop, while more homes sold in Calera during October than in September:

Click here to see a larger version of the Number of Homes Sold graphic…

Why the uptick in Calera?

Perhaps it’s the large inventory of low cost housing (both new and resale), making for some very attractive deals for first time home buyers, along with the fact that Calera qualifies for USDA financing (which means loans with no down payment required).

I think these statistics are giving us some important messages.

If you’re planning on buying a home, the market is continuing to work very much in your favor in the Birmingham and Shelby County area. Prices have dropped, inventory is in plentiful supply, and loans continue to be very affordable.

If you’re trying to sell, the message these numbers present is that it’s going to take a lot more than just putting a For Sale sign in the yard.

Marketing plays a more critical role than ever, and must be done in innovative ways if your home is to stand out among all the other properties for sale.

Pricing is no less important and will be a huge deciding factor in how quickly you sell, or if you sell, at all (believe me, we have seen examples of both!).

You may also benefit from an informed assessment of your property’s appearance and condition. With so many homes for sale right now, if your property doesn’t sparkle, Buyers will simply move on to another.

These are some very good reasons for trusting the sale of your home to an Agent who’s knowledgeable about the market here in the Shelby Co./Birmingham area and who knows how to achieve success in spite of challenging economic conditions.

David

We just never know who’s going to walk in the door around here.  But I’m not complaining!

It’s always enjoyable and educational to sit and talk with Republican State Rep. Cam Ward, who is a candidate for the Alabama State Senate.

Most Shelby Co. and Birmingham area civic, business and legislative leaders know Cam well, in part, for his track record as a State Representative.  He’s also Executive Director of Alabaster’s Industrial Development Board.

With so many jitters about the national economy, what’s Cam’s take on the economy closer to home here in the Shelby Co. and Birmingham area?

That’s one of the questions we put to Cam, who’s the guest in our latest netcast.

Click the player just below to listen now…

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…or click here to download.

We hope you enjoy … and thanks, Cam, for stopping by!

David Black

“It’s the sluggish economy.”  That’s what I hear a number of Sellers say when their home fails to sell here in Shelby county.  It’s an easy explanation to fall back on.  But is it accurate?  Many more times than not, the answer is no.

If everyone in the Birmingham area deciding to sell completed a simple one page question sheet with two answers, it would really help determine, up front, whether their home is going to sell successfully, and whether it sells sooner, rather than later.

Here’s what the question sheet would look like:

It’s amazing how many folks have to learn this most basic rule of real estate.  If you don’t know it, not to worry … you will learn it when you try to sell.

If you choose to make your home as attractive as it can be (yes, that can take some work for many owners), and if you commit to setting a price that piques the interest of potential Buyers, you’re automatically positioning yourself to sell sooner, rather than later.  You’re leading the market.  How do you know if you’re doing this?

By gauging response.  Response is everything.

In the current economic climate, if you get an Offer on your property within 30-45 days of putting it up for sale, you’re doing well.

In the area extending from Hoover in north Shelby county across Pelham, Helena, Alabaster and south into Chelsea, Calera and Montevallo, 2,286 homes are listed for sale at the moment, according to the Birmingham Multiple Listing System.  With all this available inventory, Sellers have competition.

As a Seller, you must make your home enticing to potential Buyers, price-wise and appearance-wise.  If they find it tempting, you will no doubt find yourself signing a Sales Contract soon.

But what if your home has been on the market for, say, a couple of months or more, and hardly anyone has even looked inside?  What if you’ve not yet had a single offer?  The response you’re getting—or lack of it—is the market speaking to you.

Planning to lead the market or chase it? Your decision means whether you will sell sooner or later.

Many Sellers may wind up not liking what they hear.  Oh, don’t get me wrong.  Sometimes I don’t like what I hear a lot when I listen to the market, either.  But, like it or not, it’s valuable input.

The sooner we accept what the market is telling us and adjust accordingly, the sooner we’re likely to see a successful sale.  And if that’s been our goal all along, why prolong getting there?

We know Sellers who, in essence, checked the ‘Lead the Market’ box.  We know this because they got their property sold successfully, and without being on the market a particularly long time.

We also know Sellers who choose the ‘Chase the Market’ option.  They do this by pricing their home higher than is recommended.  Some neglect to take the steps suggested to make their property aesthetically pleasing.

Market chasers pay a price for their decisions.  They may believe they’re going to get closer to their asking price when an Offer finally does come in, but this often doesn’t happen.  Market chasers can expect to have their property remain for sale with few showings for a long time—other homes will no doubt come on the market and likely get Offers and possibly sell before theirs even gets a nibble.

Some market chasers won’t see their homes sell, at all.

In short, Sellers who say they want to sell, but who are actually market chasers, need to be prepared for frustration.

Which box would you check?

David

Here’s yet another reason to show why Shelby county is such a good place to live…

Bark In The Park is one of many events that make Alabaster a popular place to live.

Money Magazine has placed Alabaster,  Calera and Helena in its top 100 Best Places to Live for 2009.

Alabaster’s steady construction and housing markets were noted by the magazine, while Helena gets praise for its housing market, along with cultural activities, scenery, and historical charm.

Calera was cited for its low crime rate and strong community values…

Click here for more information on the article…

Of course, folks who live in these communities already know what a good place Shelby county is to live.  Slowly, but surely, the word is getting out.

Housing inventory is plentiful right now:  There are 366 properties presently available for sale in the Alabaster, Maylene and Saginaw areas, while 524 are for sale in Helena and Pelham (Shelby Co.).

Add interest rates for 30-year fixed loans around the 5.125% range, and it all spells a great opportunity to buy a home in the Shelby county and Birmingham market…

David

Thought we’d take a quick spin through some of the statistics about the Alabaster, Maylene and Saginaw areas of Shelby County, courtesy of the Birmingham Multiple Listing System.

Can you say motivated sellers? The great deals for Shelby Co. and Birmingham area homes for sale continue...

It’s still a great time to buy, thanks to some tremendous deals out there (like a 4 Bedroom brick home in Lake Forest, originally $209K, knocked down to $180K, not a foreclosure)…

Single family homes with 3 or more Bedrooms for sale: 345

Number of homes for sale by price:

$100,000-$150,000:  62
$150,000-$200,000:  129
$200,000-$250,000:  58
$250,000-$300,000:  35
$350,000-$400,000:  17
$400,000-$450,000:  5
$450,000-$500,000:  4
$500,000+:   7

Current homes for sale by neighborhood:

Alabaster Highlands:  3
Ammersee Lakes:  0
Apache Ridge:  6
Applegate:  5
Autumn Ridge:  6
Bermuda Lake:  2
Buck Creek:  2
Cambridge Point:  7
Carriage Hill:  2
Cedar Grove:  4
Cedar Meadows:  2
Cross Creek:  6
Dogwood Forest:  1
Grande View:  32
Green Valley:  2
Ironwood:  2
Kentwood:  6
Lake Forest:  29
Lake Lane:  2
Meadow Green:   0
Meadowview:   3
Mission Hills:  1
Navajo Hills:  7
Oakwood Village:  3
Park Forest: 7
Park Place:  3
Portsouth:  5
Saddle Lake Farms: 10
Scottsdale:  2
Shalimar Point:  1
Shelby Farms:  2
Southwind:  2
Stagecoach Trace:  9
Sterling Gate: 29
Stoney Meadow:  4
Sugar Hill:  2
Summer Brook:  6
Tanglewood By The Creek:  3
The Meadows:  4
Weatherly:  21
Willow Point:  1
Windy Oaks:  2
Wynlake:  6

Highest priced property:
$1.3 million, 4BR, 20+ acre estate on Hwy 119

Single Family Home Sales from 4/24/09-5/24/09:  29
Average sales price:  $ 139,470

Thinking about buying or selling in Shelby County?  Give us a call at 205.356.5412 or click here to contact us by e-mail.

We’re ready to help!

Colleen and David

As we start off May, here’s a look at current inventory for the Shelby County and Birmingham areas, as indicated by the Birmingham Multiple Listing Service:

Number of homes available:

Helena & Pelham area (Shelby Co.): 518
Helena & Pelham area (Jefferson Co.): 58
North Shelby/Hoover area (Shelby Co.): 776
Chelsea: 279
Altadena/Cahaba Heights area: 72
Liberty Park/Vestavia area: 492
Alabaster, Maylene & Saginaw area:  382

Calera, Montevallo & Wilton area:  346
Columbiana, Westover & Wilsonville area: 93

Number of homes with 3 or more bedrooms for sale:

Alabaster/Maylene/Saginaw area: 362
Chelsea area:  24

Number of homes with swimming pool for sale:

Alabaster/Maylene/Saginaw area: 116
Chelsea:  24

Bottom line:  There continues to be an excellent supply of homes in a wide variety of styles and price ranges.  The good time to buy rolls on!

David

Here’s a look at current inventory for the Shelby County and Birmingham areas, as indicated by the Birmingham Multiple Listing Service. To help you with an idea of trends, the numbers in parentheses show the count as of March 9th, 2009 (one month ago today):

Single family, town homes and condominiums available:

Helena & Pelham area (Shelby Co.): 519 (521)
Helena & Pelham area (Jefferson Co.): 59 (58)
North Shelby/Hoover area (Shelby Co.): 739 (701)
Chelsea: 298 (324)
Altadena/Cahaba Heights area: 67 (62)
Liberty Park/Vestavia area: 492 (446)
Alabaster, Maylene & Saginaw area: 373 (372)
Calera, Montevallo & Wilton area: 360 (356)
Columbiana, Westover & Wilsonville area: 93 (89)

Number of homes for sale based on current selling price:

Alabaster, Maylene and Saginaw area:
$150,000-$200,000: 132 (131)
$200,000-$300,000: 90 (86)

Helena and Pelham areas (Shelby Co.):
$150,000-$200,000: 169 (166)
$200,000-$300,000: 127 (124)

Helena and Pelham areas (Jefferson Co.):
$150,000-$200,000: 2 (2)
$200,000-$300,000: 22 (21)

Chelsea:
$150,000-$200,000: 82 (99)
$200,000-$300,000: 118 (120)

David