Birmingham Real Estate News & Market Trends

You’ll find our Birmingham blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you!

March 15, 2019

FORMULA FOR SELLING YOUR LUXURY HOME IN 2019

Robert and Jennie, below is the formula that Best of US Homes has developed for selling luxury homes.  If you’ve had difficulty selling your home on Agusta Way in the past and would like to work with us, we’d be happy to assist you in future efforts.  If you’re currently working with an agent and having difficulty selling your home, feel free to share this formula with them.

 

Your home on Agusta Way is a unique home and it will require a unique buyer; you’re not selling a Ford, you’re selling a Ferrari. To find Ferrari buyers, you’re going to have to identify them then market to them. We suggest you start with a video that shows your Ferrari buyers why they need to come to your home and test drive your home.

Identifying your Buyer

A large white buildingDescription automatically generatedThe Numbers: Past sales data indicates that there’s a 58% probability that the buyer of a luxury home will come from the homeowners currently living within a 3-mile radius of the home for sale, a 22% probability that they currently live in Alabama but outside the 3-mile radius and a 20% probability that they will come from out-of-state. We also know that the average home owner lives in their home for an average of six years before considering the purchase of a new home.

Using MLS past sales data, we can identify all the homes that have been purchased within greater Birmingham in any price range or any neighborhood from 2000 to 2013, thus having lived in their homes for over six years. This will produce your Target Market #1 for your home. As an example, this data would produce a list of 24,200 potential buyers for $750,000 to $3,000,000 homes in the greater Birmingham market. That might seem like a substantial number, but it effectively reduced your target market from 460,000 Birmingham households to 24,200.

There are over 3,600 active real estate agents in the Birmingham market, 150 of them sell 96% of the homes priced at $750,000 or more. There’s a 90% probability that an agent other than your listing agent will bring your eventual buyer to your home. These 150 agents are your Target Market #2.

There’s a 22% probability that your buyer will come from outside the three-mile radius but within the state of Alabama and a 20% probability that your buyer will be from out of state, these two groups are your Target market #3.

If you have your home up for sale, there’s an 85% probability that you’ll be in the market for a new home once you sell your current home. There are currently 710 listings in Birmingham for homes valued at $500,000 or more, 603 of those sellers will be in the market for a new home, 362 of them will buy a home within a 3-mile radius of their current home; this is your Target Market #4.

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Posted in Real Estate Advice
March 1, 2019

Millennials who bought homes have regrets

Millennial homeownership has been off to a slow start. Roughly 1 in 3 millennials under the age of 35 own a home as of the end of 2018, according to the U.S. Census Bureau. That’s 8 to 9 percentage points lower than previous generations’ homeownership rates at ages 25 to 34, according to research from the Urban Institute’s Housing Finance Policy Center. Yet many of the younger people lucky enough to own a place still suffer from buyer’s remorse. Nearly two-thirds, or 63 percent, of millennials (ages 23 to 38) say they have regrets about purchasing their current home, according to a new poll of about 1,500 homeowners from Bankrate. 

Only 35 percent of baby boomers (ages 55 to 73) say the same, while about 50 percent of Gen Xers (ages 39-54) cop to some remorse.

The top reason millennials have regrets

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Posted in Real Estate Advice
Feb. 13, 2019

Best of US Homes Birmingham is Building a Team

I’m building a real estate team structure in Birmingham much like that of a law firm; skilled professionals, each with areas of expertise, coming together for the mutual benefit of the team not for the benefit of the team leader.

The benefits of such a structure are as follows.

Each team member will have their strength whether it be neighborhood dominance, price range focus, existing book of business, social media, phone communication, community influencer, or another area of expertise that makes the team stronger.

Each team member will share expenses to promote the team’s efforts.  (website, advertising and promotion, administrative support, tech support)

Team members will provide backup for each other thus allowing team members time away from the business.

Team members will have an Exit Strategy, so when they wished to exit the business the team will buy their business based on a predetermined payout schedule.

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Posted in Real Estate News
Feb. 12, 2019

240 Shades Crest Road

This luxury home at 240 Shades Crest Road was built for $931,000 in 2007 and is now on the market for $750,000.  The current owners have added a 2 BR suite on the second floor making it a 5 BR, 4 BA home.  The home overlooks Oxmoor Valley and the Robert Trent Jones golf course at Ross Bridge.


Watch the Walk and Talk Video

Posted in Market Updates
Feb. 9, 2019

Zillow is Maneuvering to Replace Real Estate Agents & Mortgage Brokers with Artificial Intelligence

What is the real estate world going to look like in two years when buying a home is a three click process driven by Artificial Intelligence.  Can homes be bought and sold without real estate agents, mortgage originators, and conventional title companies? It's all about data and who owns the data. Zillow has data on 110 million homes in the United States, that's as many as 4.6 billion pictures of our homes plus all out tax records. Could Big Data find my next home for me without  another human involved?

 

Watch tis Video and tell me what you think

Posted in Real Estate Advice
Feb. 4, 2019

Zillow will put 60% of Real Estate Agents Out of Business

Zillow is becoming the owner of many homes in the market where they have their Instant Offers program.  They own the largest real estate marketing machine in the US and it appears that their priority will be first and foremost to market and sell the homes that they own or list. It looks like the low end of the real estate markets will soon be owned by Zillow and heavy discounters like REDFIN and the conventional real estate agent will have to find new careers.

 

Watch This Video 

Posted in Real Estate News
Jan. 10, 2019

Marketing to the Smallest Viable Market

The day of mass media is over, the technology driven strategy today is to Market to the Smallest Viable Market the supports your business goals. Decide who you want to do business with and build a marketing program to make your chosen clients aware of you, gain trust in you and then to engage with you. 

Marketing to the Smallest Viable Market

Posted in Real Estate Advice
Jan. 10, 2019

2019 Business Plan

Kerry J Grinkmeyer

2019 – 2021 Business Goals

My goal for 2019 through 2021 is to further establish myself as a residential real estate marketer rather than a listing or buyer’s agent.  I wish to establish myself within the luxury home real estate market ($750,000 and up) as the agent of choice for marketing luxury homes in Jefferson and Shelby counties.  My plan to achieve this position is to be the provider of quality information on market conditions and marketing techniques through my 57 Touch Program.   I will also publish my book, Real Estate 2020 – How to Get Rich Selling Real Estate in the first quarter of 2019.

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Posted in Real Estate Advice
Jan. 10, 2019

Just Listed: Lake Wedowee

A Spanish Hacienda on Lake Wedowee with 633 feet of year-round water on one of the most beautiful lots on Lake Wedowee. The home features a two-story great-room, two fireplaces, a wrap-a-round deck.  The Master Suite is on the second floor with a swinging rope bed overlooking the lake. The lower level, which walks out to the lake, is built for family entertainment.  It has a floating two-story bay dock with lift giving you full access to Alabama’s most beautiful lake.  If you’re looking for a lake property that will become your families “Golden Pond” look no further.

Watch Walk and Talk Video

 

Posted in Real Estate News
Jan. 7, 2019

January 2019: State of Real Estate Market

What does the 2019 real estate market hold for buyers and sellers?  A look at the past ten years of the real estate and stock markets may give us some answers and guidance as to how to position ourselves for the coming years. Marketing is going to be the key and video marketing could make the difference between selling and not selling.

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Posted in Real Estate Advice