Is your house worth 4 times the value of just two years ago? Has Zillow indicated your zestimate is 4 times what is was two years ago? Probably not. You are probably very happy if the value is back to it’s peak in 2007. Well, for some reason, investors think both Zillow.com and Trulia.com are worth 4 times as much as two years ago. In Zillows case, with sales of $300 million and zero profit, the company is now valued at $6 billion and Trulia never having a profit is valued at $2.4 billion. For Zillow to buy Trulia, it will just take paper, that is paper stock. No cash or other value. For revenues to increase they both count on real estate agents to spend more money advertising. As they both move towards agents helping with revenue and profit, they slowly move away from the ‘for sale by owners’. This should strengthen those that help FSBO’s, such as; FSBO.com. Zillow should look at itself and come up with a true ‘Zestimate’.
Archive for July, 2014
The real estate market has been improving yearly since the depths of the financial crisis six years ago. Sales and market values keep going up. Foreclosures keep going down. This weeks headline “Foreclosure activity hits lowest in eight years” with the number of new foreclosure filings dropping again. Remember just 24 months ago, most areas had foreclosed properties sitting on the market for sale, with the prices dropping, which held down your areas real estate market. Look around today, they are mostly gone or none existent. Mortgage rates are still below historical norms and banks are now getting more lenient. The only thing holding back future sales is lack of inventory. Many owners that have refinanced at very low interest rates are staying put. Why walk away from a really low mortgage payment? Many buyers still have a problem qualifying for a new mortgage because of credit score problems. Looking out the next 24 months, more of the same, except interest rates will move up.
Even more stressful than the ‘annual buying supplies before school starts’ is knowing which school your children are attending. Between August 4th to September 8th, most schools will begin classes. That means 4-6 weeks prior to those dates, home buyers will be stepping up their efforts to find the right home. Right now begins that seasonal period. For sellers, be ready. Don’t lose out on a potential, motivated buyer, because once school starts (after Labor Day), the amount of buyers in the market place falls off. I know it’s summer time and you have other recreational things to do, plus the summer heat tends to zap your energy, well, fire up. Don’t miss out. It’s easy to see the slowest five weeks of the year for buyer traffic is between Thanksgiving and January 1st. The busiest five weeks each year is the ‘Back to school home buyers’.
In honor of the USA Soccer team’s match today versus Belgium in the World Cup we will be closing our offices early. The FSBO.com Phone Support will be closed at 3PM. They will open again tomorrow morning at 9AM. Please feel free to use the Customer Service email link at the top of the website to submit any questions and we will get back to you after the game.
So far we have a pretty close race to see who has the best backyard for a BBQ for the upcoming Fourth of July Holiday. Visit our Facebook Page now to place your vote by “Liking” your favorite one.
The backyard with the most likes will receive a $100 Gift Card to Home Depot. Voting will end at Noon on July 5th.
Don’t forget, these homes are all for sale. If you see one you would like to buy simply click on the link to their listing next to the photo. You could be having your own BBQ in one of these backyards by Labor Day!!!