One of the best features of the Clarus Investor® program is the easy-to-read, colorful property analysis report produced by the program. This can be one of the most compelling sales tools you provide to your real estate investor client as they look for an instant snap-shot of a property’s profit potential. The 7-page report is comprised of two summary pages and five pages of supporting charts and graphs. Because the report combines both a text summary and supporting illustrations, a potential client can instantly identify whether or not the property is worth investing in.

Clarus Investor Input Form

Take the time to fill out every field in the Clarus Investor® program to ensure a robust-looking report. For example, you may be inclined to use the “Miscellaneous” field on the Expenses tab as a short-cut to capture all of the expenses incurred in the first year.

Keep in mind that the more information you can add to the program, the more complete your report will look. By adding the appropriate value to each of the aforementioned fields on the Expenses tab, your report will look more complete. Below is the corresponding chart which draws info from the Expenses tab:

Operating Expenses

Notice that in an instant, your client can see exactly where the first year of expenses will be allocated.

For more information about the Clarus Investor® program, please visit www.clarusresource.com.

Haven’t signed-up to use Clarus Investor®?
Click here see if your Association offers Clarus Investor® as a member benefit.

In analyzing your local market conditions, is it easy for you to see which direction market forces have been pushing prices over a set period of time? Well it is now.

The Market Pricing chart in Clarus MarketMetrics® overlays (vertical) median price lines against the Market Size backdrop. Each median line is color coordinated to “match” the histogram that it is associated with.

Market Pricing Chart

 The default time frame for this measurement is the Last 365 days vs. the Previous 365 days. Thus, there is no seasonality involved in the measurement. Shorter time frames are available for “moving” markets. When using these shorter time frames make sure you appreciate which months are included in each and if any “seasonality” might be involved, etc.

The Market Pricing grid provides a lookup table for changes in activity between the two time periods for each price range increment.

Market Pricing Chart - Data View

It facilitates a comparison of what comprised the main property profile during each period, i.e. bedroom and bathroom count, square footage, and lot size. The question to ask is always, “Has the property profile changed over time in this segment, i.e. will I get more or less for my money? How do square footage, lot size and price per square foot compare over the two time periods?” This is very important information to inform you of the dynamics within the price segment.

Mike Muren, an agent at Mackintosh Inc. Realtors in Frederick, Maryland told the FederickNewsPost that he usually spends 2 hours with first-time home buyers in educating them to the process.

Carlyn Lowery, an Associate Broker with Keller Williams Annapolis, sites in her blog that first time-home buyers are the force behind the recent activity in Annapolis, Maryland. “…first time buyers looking to take advantage of an $8,000 tax credit, which was initially due to expire at the end of November.”

Real estate professionals must walk a fine line, educating their consumer with the best tools available (many of which are online) while also positioning themselves as the expert at the center of the transaction.

One of the best ways to do that is to utilize MLS data.

Clarus MarketMetrics® is an online program that generates market and price-point analysis charts and reports derived from MLS data.

Let’s take a look at the Annapolis residential market activity in November 2009 compared to one year ago.

Annapolis Residential Listing vs Sold Price

November 2009 median prices actually went up 9% compared to November 2008. While the median sold price declined 3%. The most interesting aspect is the continuing disconnect between median listing price and median sold price. Sellers and buyers were off by $216,000.

When we drill down to a targeted price range from $400-$450,000,

Annapolis Target Price Range $400-450,000

we can really see the difference in those properties that had price reductions, they took 123 days to close and got $173 per square foot. And then take a look at those without price reductions. The more competitively priced properties sold in 51 days and for 91.7% of the original asking price.

Use Clarus MarketMetrics® to set realistic expectations with first time home buyers. By taking a look at your local market and interested property attributes, it’s sure to cut down market confusion.

Clarus MarketMetrics® reports can be emailed, printed, and saved as a PDF or a JPG. It is available on an individual basis to members of MRIS MLS.

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You’ve created your blog, Twitter® and Facebook® accounts. Now what? Where else can you capture those eyeballs? Connect with your audience through video. With camera phones and recorders being so affordable, videos can happen anywhere and anytime (as many overexposed celebrities can tell you).

Last month during the National Association of REALTORS® conference in San Diego, Clarus REsource® raffled off a Flip™ video camera. Much to her delight, Corona REALTOR® Sharon Koziel of The Western Group won the $300 prize just by signing up for her Clarus member benefit through the Inland Gateway Association of REALTORS®. We’ll check out her progress in future weeks.

Beyond listing presentations and home amenities (if you watch Millionaire Dollar Listing, Madison recently used one of these cameras to capture an ocean view selling point for international buyers), agents can use these to advertise their other skills and market expertise.

Northern California REALTOR® Russ Boyd stars in his own monthly market update via YouTube™.

The reports Boyd shows during the end of his show were generated from Clarus MarketMetrics®. Easily exportable charts allowed him to visually explain the differences in the two different markets that the Bay Area is experiencing. And beyond giving his audience the overview of each county, Boyd encourages the public to contact him for additional local market statistics.

Try it out. And if you’re publishing Clarus MarketMetrics® reports in a unique way, let us know about it! clarus@car.org

In keeping with our promise to enhance the software as our users provide input, we’re happy to announce that Clarus MarketMetrics® recently added new features! Two new reports are the Median For Sale Price vs. Median Sold Price chart and the Number of Expired Listings by Month chart.

Median For Sale vs Median Sold Price

This chart shows the median price of properties listed For Sale (a measurement of seller expectations) compared with the median price of properties that have successfully Sold (a reflection of buyer activity) for each month during the time period chosen (1YR or 2YR).

The difference in these two median prices speaks volumes about how buyers and sellers perceive the same set of market conditions. In a balanced market most properties “sell” within 10% of their “final” list price (the one that draws the offer, not necessarily the original price). Thus, when the market strategic price difference is substantially greater than 10% it indicates that buyer and seller expectations are out of balance.

This same month comparison over different years is a popular real estate “yardstick” because there is no “seasonality” involved in the measurement. Thus, any changes that have taken place are primarily due to market “forces”, i.e. the collective behavior of all consumers participating in the market.

Expired Listings Report

This chart shows the number of properties that expired and came off the market each month for the time period chosen. This metric (Number of Expired Listings) is an indicator of the “balance” between supply and demand in the market. When the number of expired listings is increasing over time it is a sign that prevailing market prices have shifted downward; when the number of expired listings is decreasing over time it is a sign that prevailing market prices have shifted upwards. When the number of expired listings remains constant over time it is an indicator that market pricing is in an equilibrium condition.

Check out your local market forces by logging into Clarus MarketMetrics® today!

I don’t know whether it was the recent Halloween holiday, or the fact that I just bought a new home last week, but as I was perusing my daily Google Alerts this morning I ran across a press release that caught my attention. “An American Dream to an American Nightmare…”  explains to its readership that Miami Angel Properties LLC, a boutique firm in Miami, Florida is reaching out to its community through a series of weekly open office workshops to educate on: short sale procedures, buying a foreclosure, real estate auctions, property taxes and investing for the future.

What an awesome idea to entrench your agents into the community by giving free education to their present and future clientele. Okay, I know that this isn’t a completely new concept, but I really liked that they took it a step further and issued a press release surrounding the event. You never know where it will get picked up and continue its viral life (case in point, a blog about market statistics on the opposite coast).

As we’ve spoke about it past blog posts, the days of handing out a simple refrigerator calendar with your glamour shot are gone. People need real information that they can relate to and in a format that they want. Miami Angel Properties is holding all of these sessions in the evening (capturing the all important after-work crowd).

As in many communities, foreclosures, short sales and auction information are in high demand for Miami. We can see from the below Clarus MarketMetrics® report the sold price for single family homes is down 22% from one year ago.

Miami Home Price Continues Decline

If I was running these sessions, I would provide some recent market trends to further solidify my position as a real estate expert. I would also certainly highlight the positive aspects of the market noting that in October, the median actually started up from September.

What’s a person to do if they are living in Miami and they want to know what the real estate market is doing in Southern California? Or perhaps Tulsa, Oklahoma or even Tucson, Arizona? They visit the Cloud of MLS Public Web Sites www.mlscloud.com.

This central site takes public facing MLS (multiple listing service) sites from around the country, making up more than 605,000 agents, and allows consumers – whether they are new home owners, relocations or investors – to search for property. And because it is being done by the Associations of REALTORS® or their MLS, it leverages the power of the agent to market to the consumer.

Beyond the ability to search for real-time listings, consumers, media and other in-the-know types can take a look at the Local Area Market Reports. These monthly statistics chart the local market from a MLS wide perspective, down to the top 50 or so cities within that MLS. Powered by Clarus MarketMetrics®, in a single glance a person can see what has happened to the single-family and condo market month-over-month and year-over-year.

As we scroll through September’s data, it is interesting to note that most of the West Coast median home prices increased from August, while many East Coast real estate markets decreased. For example in Los Angeles, the median home price increased 6.4% to $439,000. And in Washington D.C./Baltimore the median decreased 5.8% to $290,000.

For those MLS that have yet to create a public-facing site, they can still have a market report added to MLS Cloud as long as they provide the data to Clarus MarketMetrics®. It is free to generate a report and certainly free to consumers and prospects who connect in the Cloud! Email clarus@car.org for more information.

The Mortgage Market has been relatively steady during this recent increase in home sales over the last few weeks.

Rates have remained in the mid to low five’s and been showing no real indication of moving in the short term.

However! There have been some changes – Fannie Mae is getting tougher on Mortgage Insurance, Credit Scores and Income levels! In an internet document the mortgage backer discussed changes to its level of risk. Fannie Mae set December 11, 2009 as its “effective date” for the changes.

Guideline changes are summarized, below:

• Minimum credit score requirement raised to 620
• Total debt-to-income levels may not exceed 45 percent, except by exception
• Loan-level pricing adjustments for loans with “minimum” PMI coverage.

Loan-level pricing adjustments are specific fees assessed for specific risks. Based on the current lender guidelines, if your credit score is low, or if you’re doing a cash-out refinance or if you live in a condo and have little equity, you’ll pay an extra fee to Fannie Mae for your mortgage. This adjustment has been around since April 2008 and has been modified 9 times since then!

 With levels of inventory falling and home sales increasing now is definitely looking like the last chance to get a great home at a great price as the economy and market start to recover.

By utilizing Clarus MarketMetrics® users can run reports on the median home prices and many other report options pulled directly from local MLS data, results can then be sorted and distributed to clients and/or  posted online. Clarus MarketMetrics® allows users to target to a specific zip code for their report and in some cases a map code or even a school district.

Please contact us for more information on our Real Estate statistics products and visit our FAQ section for a little more on what we do.

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With the market being the way it has been people have stayed away from investing in real estate – however the times are changing and people are realizing the value in buying an investment home again.

The process can be stressful, but agents are now able to show their clients a great selection of homes which are now more affordable than ever.

Real Estate investing can work for many people – providing that some rules are followed:

1. Own your own home first – as a buyer don’t try to stretch yourself to fast!

2. Get Educated! Learn about the real estate market – even maybe get your states Real Estate license! This will help you understand more about the process of purchasing an investment home.

3. Get In The Professionals – From constrators to real estate agents, you need to know how you can get the most from your investment

4. Learn your target market – are you going after singles, families or retirees.

5. Develop an exit strategy – learn where to draw the line and create a proper business plan!

By following these simple rules you can help build your own investment portfolio with the right foundations. Agents can use this information to help explain how to invest in a property and make it profitable.

By utilizing Clarus MarketMetrics® users can run reports on the median home prices and many other report options pulled directly from local MLS data, results can then be sorted and distributed to clients and/or  posted online. Clarus MarketMetrics® allows users to target to a specific zip code for their report and in some cases a map code or even a school district.

Please contact us for more information on our Real Estate statistics products and visit our FAQ section for a little more on what we do.

Subscribe to our blog using our RSS feed. (Click here!)

Obtaining a mortgage in any market can be a stressful and difficult.

However the Federal Reserve has written a great handy guide with 5 key things for consumers to think about when shopping for a loan.

1. Don’t take on more than you can handle – over stretching yourself financially is not a smart move, always think long term and try to predict the unpredicable!

2. Shop Around – As friends and family for recommendations on a good loan officer or broker who they have worked with. Personal recommendations are often a great way of ensuring you feel comfortable with the person you are dealing with. Also it can help you get the best deal on a loan.

3. Understand all costs – If you are not sure what all the fees are for, then ask! If you have a great broker they will be willing to help. Your real estate agent may be able to answer some questions for you too – they can also be a great resource in helping to locate the right mortgage professional for your circumstances.

4. Learn the benefits and risks involved with the product – Fixed rates are back in fashion again, however adjustable rate mortgages (ARMS) work for alot of people. Understand what you are getting in to!

5. Ask for advice – Show family and friends the offer you have, talk with them and see what they think – their input could help save you thousands if they know of a better option for you!

With the mortgage market recovering from the recession there are some great loan products coming back to the market – with affordability so great it is no wonder many people are realizing their dream of owning their own home.

By utilizing Clarus MarketMetrics® users can run reports on the median home prices and many other report options pulled directly from local MLS data, results can then be sorted and distributed to clients and/or  posted online. Clarus MarketMetrics® allows users to target to a specific zip code for their report and in some cases a map code or even a school district.

Please contact us for more information on our Real Estate statistics products and visit our FAQ section for a little more on what we do.

Subscribe to our blog using our RSS feed. (Click here!)