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Wednesday, October 14, 2009

Introduction to Real Estate Blogging

With this article, I am launching a new series of informational posts about blogging for real estate professionals, which you will find here on Real Estate and How.I'm seeing several other businesses promoting their blogging services, or their advice, for sale regarding real estate blogging. I wanted to provide you with the same information for free.I've been blogging professionally since 2004, and have published websites going back to 1997. I've been engaged in affiliate marketing since 1999, and have been doing this as my full time career since 2003. So, I think I know something about it.Why Blog?The biggest reason is to build trust with your website visitors. An article written by you, in a first-person perspective, is a great way to break the ice and make your prospective clients feel comfortable.Search engine referrals are also a big reason. Google, Yahoo, and MSN, the top three search engines, seem to spider blog content immediately, often within minutes of it being published. There are also theories that Google gives higher page rank value to blog posts. I'm not sure if this is totally true, or if it has more to do with blog posts being indexed immediately. Either way, there's nothing like a blog to elevate search engine positioning of a website.Syndication of content is another big reason. How would you like to have other websites republishing your content, complete with links back to your website? Better yet, how would you like it to be automated as soon as you post an article? That's what an RSS feed does, and all blogs support RSS feeds.And speaking of automation, that's also what a blog does for you. Once a blog is set up on your website, you don't have to do much else other than write your article and click the "Publish" button. That's it. Perfect for Realtors, right?Will A Blog Cost You More Money?Technically, no. You can launch a blog for free. John Mudd, probably the most successful real estate blogger to date, runs a blog which he pays zero for. (Update, John Mudd has since passed away)However, there are other options that do cost money. Moreover, you may want to contact the person that built or maintains your website to find out about integrating a blog, or linking your website to your blog, or syndicating content from your blog into your website. We'll get to that in the future.Real Estate Blogging 101Real Estate Blogging 101 is my series of articles designed to help you understand what blogging means to your Internet marketing strategy, and how to actually get it done.Visit the Real Estate Blogging archive page to find an index of all articles in this series.Check back to this website regularly for more.

Why Start a Real Estate Blog?

In my Introduction to Real Estate Blogging, I included a section entitled, "Why Blog". I want to expand on that, to give you a further understanding on why you start a real estate blog.Why Start a Real Estate Blog?The main reason is to increase your exposure. The better blogger you become, the more people will take notice of you.But instead of getting more people to notice you, how about getting more people to notice your real estate website? How about getting more people to notice your properties? It can be done.One thing that blogs tend to do better than standard websites is that they attract links, mainly other blogs. Getting links from other sites and blogs is the primary means of improving your position on Google, Yahoo, and all the other search engines.As your blog attracts incoming links and Google page rank, you'll want to distribute that value to your existing website, where you promote yourself and your properties.Why do blogs attract links?It's largely because the general public views blogs as personal, like an informal expression of one's thoughts, a diary if you will. Other bloggers and website users like to comment about someone else's thoughts by linking to that person's blog post, and then rambling on.Consider that there are millions of other blogs out there, many of them personal in nature. These bloggers love to write, and are always looking for something to inspire them. They often use blog search engines like Technorati to help them find interesting blog posts. When they find an interesting blog post, they write their own blog post in response to it, and provide a reference link.Think about your existing real estate website. Are there any pages on this website that other bloggers might something inspiring to write about? Probably not. I imagine your website is strictly business. But what if you added a blog that incorporated something more personal, or with some eye-opening insider information? Now you're giving other bloggers food for response, and reasons to write about you.Blogs as a selling pointA blog is also a great way to give your potential clients an inside look at who you really are. That is, people can read something about you beyond the typical website brochure you already have. By writing a blog, you're providing your clients with an informal resume of yourself.To make this effective, you'll have to put the blog on the homepage of your website. I'd recommend you do this for all the reasons we explained above. In fact, this is what I recommend in order to get the maximum benefit of blogging, put it right on the homepage of your main real estate website. I'll go into this further later on.Listing your properties through bloggingYou could actually publish the details of a property through a blog. You'd have to update this blog post whenever the details change, such as a reprice, or if it gets taken off the market. But, by doing this your properties will get indexed into Google, as well as all the blog search engines too.In fact, you could launch a dedicated blog just for your properties, and another one for your writings. You can have them linked together, or better yet, have them both hosted on your real estate website. A great way to draw more traffic to your site.

Menifee Real Estate Blog

One of the problems that real estate professionals face with launching a blog is that they can't attract loyal readers, that is, they only attract visitors in the market for buying or selling a property.The reason why that's an issue is because a real estate professional can't develop a relationship with their audience. Their audience doesn't know them; the audience has only seen their website for the first time, and doesn't visit again.Pat Kitano, who writes the real estate blog, "Transparent RE", describes the same problem in an article here...http://transparentre.com/....hyperlocal-content.aspxSo, I've tried to solve that problem by introducing a "1-2" punch, with the launch of my new real estate blog "Menifee Homes"...http://homes.menifee247.comWhat makes it different than most, is that it's a sister blog to my Menifee news blog, "Menifee 24/7".Menifee 24/7 publishes news and announcements of what's going on my in local community of Menifee, CA. It has attracted a steadily growing audience of local residents. These residents are also very much interested in the real estate market because many of them are home owners in a market that saw a crazy rise in appreciation, and is now seeing a crazy rise foreclosures.By introducing a sister real estate blog, "Menifee Homes", I can use the same audience to build a real estate audience.I recruited a few local real estate agents and brokers to write the content for me. I've given their names, photos, and contact info prominent placement on the blog, and allowed them sign each article they post with their name, contact, and website link.The bottom line is that these real estate agents and brokers are writing to a loyal audience that revisits the blog reguarly to read new content, and are able to establish their own "brand" within the community. I'm able to get a benefit from this because it not only attracts new readers to my Menifee 24/7 blog, but I can also monetize it with AdSense.

Hosting a Real Estate Blog

What's the best way to host a real estate blog?In short...
Register your own domain name (www.mydomainname.com)
Find webspace on a host other than the host your agent site is hosted on
Use a well known blogging platform (Blogger, WordPress, TypePad)One of the biggest reasons for creating a real estate blog, is to help build PageRank to your agent website. Think of it as a tool to create some backlinks to your agent site, in addition to driving some referrals.When Google evaluates all the websites that link to your agent site, it doesn't count every inbound link. Inbound links from sites that are spammish, or where links appeared to have been sold, or sites that have no editorial oversight, are ignored and don't transfer any PageRank to your site.But Google seems to like blogs, particularly those with lots of content, and content that isn't duplicated on other sites. So by creating your own blog, on its own domain name, and on a server other than the one your agent site is hosted on, it's an easy way to get one or more backlinks counted towards your PageRank.The reason why you want to host the blog on its own domain name is because these blogs carry more PageRank value, as opposed to blogs hosted on Blogger's, WordPress', or TypePad's subdomain.The reason why you want to host the blog on a server other than the server your agent site is hosted on, is because this mimics a real life scenario where someone else is linking to you. There's concensus that when two websites are hosted on the same IP address, Google can tell that these two sites are owned by the same owner.Lastly, the reason why you want to use a well-known blogging platform is because Google seems to know these platforms better. I'm convinced that Google prefers blogs from Blogger, because of the fact that Google owns Blogger. But, I know there are many people who will argue that Google plays no favorites.If you don't know how to set up a blog in this fashion, any website design company can do it for you. The company that set up your agent site can do it for you.And you don't need to stop at just one blog. You can set up a blog for real estate matters in your hometown. Another blog for real estate in general. Another blog for just what's going on in your community. Another blog for your personal stuff. Another blog for your hobbies....On each blog, link to your agent site. You don't need to link from your agent site to your blog(s) however. Through an RSS feed, and by pinging Google's BlogSearch, Google will automatically find your blog.When you link to your agent site from a blog, do it from within an article. You can also do it from a "Blogroll" on a side bar, but linking from within an article is seen by Google as having greater value.

Blogger or WordPress - Which?

A big debate on blogging is often on which platform to use, Blogger or WordPress.I've built up a successful business using Blogger blogs, one of which is the blog you're reading now. They're really easy to set up, free to use, and they seem to get indexed faster into Google.Let me clarify that again, they get indexed faster, I didn't say they get a PageRank boost.Google owns Blogger. There has been much discussion in SEO circles on whether or not Google gives Blogger blogs any extra weight in PageRank. I don't believe so. But does Google give Blogger blogs any other kind of advantage?I think they do, in the form of speedier indexing.Blogger is tied into Google Blog SearchGoogle has its own dedicated blog search engine, "Google Blog Search", and Blogger has a pipeline into it.Blogger provides its publishers with a control setting called, "Let search engines find your blog"... This setting allows you to get your blog indexed by Google Blog Search. By default, it's set to "Yes".This tells me that a Blogger blog and its articles will automatically get into Google Blog Search, instanteously, within seconds. And once in Google Blog Search, it's sure to get into Google Web Search.But the truth is that WordPress blogs can get into Google Blog Search too. It's just that it's not joined at the hip to it. Instead, WordPress blogs have to ping Google Blog Search to get in there.So the question is, how fast is Google's ping service? I don't have the answers to that. But I have done my own tests to get some circustantial evidence.One such peculiarity I often find is that certain extremely popular blogs, such as Gizmodo for example, will have their articles syndicated on other blogs, in full. Many times, Google Blog Search will index the articles on those other blogs, before it indexes the same articles on Gizmodo. Assuming that Gizmodo is pinging Google Blog Search, how is it that its content doesn't show up there before the syndicated content?Bottom LineWhat all this means is that when people run searches on Google Blog Search, they're more likely to find Blogger content before they find WordPress content.And while this does provide Blogger blogs with a small advantage, it's not a significant advantage by any means. The fact is that many WordPress blogs have become very popular blogs. But so have Blogger blogs.I'd wish that more SEO consultants would start a discussion on the connection between Google Web Search and Google Blog Search, to see how the two influence each other.

Writing Good Blog Titles

How do you know what title to use when writing a new blog article?As a rule, you combine two elements:
What keyword/phrase variation do people search for, and
What phrase will lure people into clickingIt's not enough to just pack your keywords into the blog title, and hope that it shows up at #1 on Google's listings. You have to write the title in such a way as to make people want to click on it. To do that, figure out what will make the title SO compelling, that it convinces people to think that your page is the best page.Writing Compelling TitlesA compelling title is a combination of two things;
Providing the right phrase that Google searchers will connect with, and
Not saying too much, so as to create a hint of mystery.In other words, you want your blog article title to sound like it will answer the questions that searchers have in mind, yet be vague enough to make them want to click. Maintaining some ambiguity in the title makes searchers ask themselves, "Hmmm, I think this has what I want, let me check to see if it does".A title that "connects" with Google searchers is one that acknowledges their question. For example, if you searched Google for, "how to write a good blog title", and among the results you saw one that read, "Writing Good Blog Titles", those words immediately acknowledges your question.The "compelling" component is simply keeping the title short enough, so as not to give away too much. That mystery makes people want to investigate.Finding the right keywords and phrasesThis is mostly a matter of using Google's keyword tool, punching in a word or two, and seeing what shows up.When I wrote this article, I entered "blog titles". The results showed me phrases containing those two words, as well related phrases. I simply sorted them by most popular, and then examined the top 10-15 to find patterns.Ideally, you could do everything I outlined above, on every new blog article you write, and maximize your Google referrals.

Real Estate Blogging Ideas

When asking yourself the question, "What should a real estate agent blog about?", here are some ideas...1. Newspaper reactions - Go through the local newspaper (use their online edition), and react to its articles. Write a new blog article telling your readers about a news item you read in the paper, and you can even post a quote from the item, and then provide your response or interpretation.Look for articles that are real estate related, or, find a way a put a real estate spin on an otherwise unrelated article. Do a search for "real estate" on Google News, and look for blogging ideas.2. MLS Updates - Each month gather data from whatever MLS you're linked up with, and publish statistics from the previous month. Show the number of new listings, properties sold, average price, average square foot, price per square foot.3. Strange stuff - Everyone loves to read stories about the strange, odd, and funny. Assuming you're someone who spends some time reading real estate news, and visiting real estate forums, I'm sure you come across funny or weird real estate news. Stuff like this gets people to e-mail your URL to their friends.4. Tips - Tips for sellers and buyers are always good, but the problem with most tips is that they're too short, or not specific enough. Identify one tip, for example the smell of a house when you first walk in, and go in-depth on it, devoting 3-5 paragraphs. 5. Your Properties - It's certainly good to blog each new property you've listed. When blogging a property, use a different title for each one. For example, use the neighborhood as the title, "Wilshire Square Home For Sale". This will create more keyword variation for search engine indexing.6. What's new with you - Write about what you've been doing lately, but try to put a real estate spin on it. You want to keep mentioning "real estate" or "homes" in each blog post to help reinforce your authority as a real estate blog with Google.7. React to other real estate blogs - Maintain a list of real estate blogs and visit them regularly. When you read something that interests you, react to it by writing an article on your blog. Then, include a link to that other blog article. When finished, write to that other blogger, let him/her know that you mentioned them. 50% of the time, they will voluntarily link back, even if you didn't ask for a link.

365 Real Estate Blog Ideas

Ever get writers block when trying to come up with hot topics for your real estate blog? Well, youre not alone, so here is the complete list (so far) of blogging topics for real estate. Just in case you are ever blogged out, you can reach into this bag of goodies and pull out an idea or two that might satisfy the hungry buyer/seller/investor and spark your creativity again. Fear not, this isnt just a list of ideas, I have included a detailed explanation of how to get the most bang for your blogging buck out of these ideas and examples of Realtors and Mortgage Brokers using these ideas.
Were always up for adding to this ever growing list, so if you are a blogging genius, blogging creative and fresh ideas, let us know and wed be happy to include you and your blog in this series.

Real Estate Blogging Ideas Week 1
Real Estate Blogging Ideas Week 2
Real Estate Blogging Ideas Week 3
Real Estate Blogging Ideas Week 4
Real Estate Blogging Ideas Week 5
Real Estate Blogging Ideas Week 6
Real Estate Blogging Ideas Week 7
Real Estate Blogging Ideas Week 8
Real Estate Blogging Ideas Week 9
Real Estate Blogging Ideas Week 10
Real Estate Blogging Ideas Week 11
Real Estate Blogging Ideas Week 12
Real Estate Blogging Ideas Week 13
Real Estate Blogging Ideas Week 14
Real Estate Blogging Ideas Week 15
Real Estate Blogging Ideas Week 16
Real Estate Blogging Ideas Week 17
Real Estate Blogging Ideas Week 18
Real Estate Blogging Ideas Week 19
Real Estate Blogging Ideas Week 20

Learn How To Blog for Real Estate

Ready to start the journey and learn how to blog? Well, RSS Pieces has a sure fire system that will guarantee that your real estate blog is a success. Learn how to select a search engine and reader friendly title, format your text for easy scannng and write to engage readers and incite them to participate on your blog. Just read the following articles posted here and you will be a real estate blogging expert. Once you have the blogging down, be sure to check out our Blog Marketing Series.
Ultimate guide to real estate blogs
Formula for a successful real estate blog post
The lazy man’s guide to real estate blogging
How to avoid the bipolar blog
How to drive local traffic to your blog
Build credibility with tutorial marketing
Traffic driving blog titles
How to write a blog that generates leads
Using links to retain visitors and generate leads
Humanizing your blog for intimacy
Pimp my blog: become a guilty pleasure
Killing me softly with your blog
Predatory blogging
Real estate blog writing 101
Shhh, is your blog full of it?
Is your blog sleeping with the fishes?
Feed your blog to the dogs: attracting niche markets of local readers
Link bait: crazy laws in America
Do you have a stick up your blog?

Learn How to Market Your Blog

Got a blog that isn’t performing as well as you would like? Well, RSS Pieces has a sure fire blog marketing system that will guarantee that your real estate blog is a success. Learn how to market your blog to search engines, readers and social networks to spike traffic, leads and participation on your real estate blog. Just read the following articles posted here and you will be a real estate blogging expert. Once you have the blog marketing down, be sure to check out our SEO Series.
Ultimate guide to blog marketing
Ultimate guide to branding a real estate blog
Increase blog subscribers with 7 easy steps
Boost traffic by 40% in 1 hour/day
7 day plan to real estate blog success
Are you contagious: viral marketing 101
Plan a blog war for increased traffic
What Madonna can teach you about blogging
Guerrilla blogging: marketing strategy
Rules of commenting for traffic
Do you know the 6 signs of blog death?
Marketing to Google with directories
Using social bookmarks to promote your blog
Online event marketing for real estate blogs
Using celebrity to market your blog: What Anna Nicole Smith can teach you about blogging

Formula for a successful real estate blog post

Formula for a successful real estate blog post
Wouldn't it be nice if you had a sure fire formula for writing killer real estate blog posts that drive huge targeted traffic and search engine interest?
Wouldn't it be nice if you had a sure fire formula for writing killer real estate blog posts that drive huge targeted traffic and search engine interest? I know I would. So, over the past few months, I have been experimenting with my copy writing style and linking formulas to see what gets the best results. I looked at what it takes to interest both people and search engines and came up with a very simple formula that will guarantee readership and search engine placement for your real estate blog. Sounds pretty far-fetched, right? Not really. Now, I'm no copy writing or SEO virtuoso. I simply combined the trusted copy writing formulas newspaper and magazine writers have been using for decades with the key components outlined in Google's own Page Rank algorithm to come up with a combination that has worked for RSS Pieces. Want to learn how you can use this success formula to build traction for your real estate blog, read on.
Anatomy of a killer real estate blog post that drives huge traffic:
Write a keyword rich title that expresses benefits
Open your real estate blog post with a keyword rich and benefit expressing sentence.
Use your keyword or phrase at least 4 times in your post.
Link to at least 3 other websites that will offer readers more information on the given topic.
Link to at least 3 other posts on your own blog that will give more insight on the topic.
Engage readers with a controversial or "how to" article penned in a conversational tone
Format the post with heading tags, bolded text, numbered lists and/or bullet points
Close with a call to action asking readers to subscribe to your blog, contact you, fill out your lead generation tool or search for a home
Select 100% content relevant keywords for your meta data tag
For more copy writing tips, visit http://www.copyblogger.com/copywriting-101/>CopyBlogger
1. Write a keyword rich title that expresses benefits
What a search engine wants: According to the GoogScore algorithm worked out by Randfish, keywords in the title of your post are essential. That means that if your post is about buying condos in Cape Coral, you need to use the terms "Buying," "Condos" and "Cape Coral" in your title.
What people want: People like to be able to easily scan a title and figure out what the article is about. So, instead of coming up with a clever metaphor and play on words, go for the obvious title. Try to include a specific benefit in the title as well. Readers like to know what's in it for them when they read an article. They want to know that the article will in some way make their life easier, faster, better, richer... So, let them know exactly what the benefit of reading the article is. The more specific the title is the more readership it will get.
* Please note - when I say they are essential does that mean startng every single post with Cape Coral Real Estate: Post title here? NO. That looks spammy to me. It means use varyng keywords where appropriate.
Example: How to buy condos in Cape Coral for $50,000 under market value
Example: Has Southwest Florida's real estate market hit rock bottom?
See how those 2 post titles have different keywords and read completely NATURALLY?
Read also: How to write catchy titles that drive traffic
Google's Page Rank Formula
Read also:Google's algorithm cracked
SEOmoz' GoogScore algorithm explanation
Formula: Include at least 2 keywords in your title and 1 benefit
2. Open your real estate blog post with a benefit and keyword rich first sentence
What a search engine wants: Search engines place greater value on the words closest to the top of the page, so you will need to include your primary keywords in the very first sentence.
What people want: The purpose of the first sentence in your article is to make the reader need to read the second sentence. So, coming up with a killer first sentence is key. You need to engage readers with your first sentence by either asking a leading question that expresses the benefits of reading the article or summarizing the key points of your post.

For example:
Wouldn't you just love to buy a luxury condo in Southwest Florida and save more than $50,000?
Learn a Realtors secrets for buying luxury condos in Cape Coral under market value
Read also: Killing me softly with your blog
Formula: Include at least 2 keywords in your title and 1 benefit
3. Engage readers and search engines with emotionally engaging, keyword rich content that contains at least 3 internal and 3 external links
What a search engine wants: All search engines really care about in your posts are keywords and links. So, pepper each post with the keywords you want it to be searchable by and link out to other resource sites that would provide further information on the topic you are writing about. You also want to link to other posts on your own site that might add further value to the topic and keep visitors on your site longer.
Read also: Using links to retain visitors and build traffic
What people want: People want to be emotionally engaged by your post. That means that your post has to either answer an urgent need a readers life or generate strong feelings on a particular issue. So, creating controversy or penning a great tutorial post are the best ways to engage a reader.
Read also: How to create controversy on your real estate blog
Formula: 3 links to reference websites and 3 links to other articles on your own site
4. Format your real estate blog post so that it is easy to scan and uses heading tags and textual formatting to denote which content is most important
What a search engine wants: Search engines use formatting tags like Heading 1, Heading 2, Heading 3, bolded and italicized fonts to determine which words and phrases they should place greater value on when indexing your blog. So, use heading and formatting tags liberally when writing your posts.
What people want: People like to be able to scan over large bodies of text quickly to find what they are looking for. Make the copy easy to read by breaking it up with numbered lists or bullet points. Use a bolder font for topic headings and always include lots of white space. The easier your posts are to read, the more reads they will get. Visitors feel overwhelmed when they are faced with text that seems to go on and on forever, so use formatting techniques to break up the text into easily digestible chunks.
Read also: How to write a killer tutorial post
5. Close your real estate blog post with a call to action and direct readers to your lead generation tool
What people want: People like to be told what to do on the web. It creates comfort and a sense of purpose. So, at the end of each post, guide readers to your lead generation tool, RSS subscription page or back to your website where they can contact you or search for a home. Simply create a 3-5 sentence call to action for each of your target readers. Generally, those will be buyers, sellers and investors. The place a link to your applicable lead generation tool. You'll be amazed how this will improve lead generation on your site.
For example:
Buyers: Ready to start your dream home search? Contact me and I can guide you on finding the perfect home in Cape Coral to suit your lifestyle and needs.
Sellers: Ready to sell your home? Get started by finding our what your home is worth by clicking here.
Investors: Like what you've read here? Well, subscribe and get all the latest news from this blog delivered direct to you RSS reader or email.
Read also: How to write a real estate blog post that generates leads
Read also: How to increase blog subscribers in 7 easy steps
6. Select 100% search engine relevant keywords for your meta data
What search engines want: Search engines don't care about what you want to be searched by, they care about how relevant your content is to the keywords in your meta tag. So, don't guess at what search engines are going to like, use a keyword generator that looks at the content and selects keywords to 100% relevancy. To ensure that the terms you want to be searched for are included in the results, pepper your post with those key terms.
Tool: RSS Pieces Keyword Extraction Tool
To use this tool, select "term extraction" and either enter the url with your content on it or click the body text option and paste your content into the input box, enter 2-3 terms that give the general theme of the content like "real estate" and "buying homes" then click "go."
NOTE: This makes me laugh so I will share it. I recently noticed my competitor coming to my site on a regular basis. Hmmm... wonder what he was doing... Apparently learning how to blog the right way.

Wakulla County Real Estate Report

Wakulla County real estate reporting is sporadic at best here at the Tallahassee Real Estate Blog. I focus my efforts on Leon County, as it is truly the heart of my market area. But every once in a while, I think it is important to see how our surrounding counties are performing in home sales.
This Wakulla County real estate report is happening today because I received a tip through our real estate survey asking that we keep reporting about Wakulla County on a regular basis. I mention this to point out how important your feedback is to determining the direction of what we address in this real estate blog.
So, if you have not taken the opportunity to take our five question real estate survey, please do it now. It takes less than a minute and you can have an impact on what is written about and how our future real estate site looks.
Wakulla County Home Sales Drop 65% From Market Peak
Wakulla County real estate sales appear to be mirroring those in the Tallahassee real estate market. The number of homes sold has dropped 65% since the peak of the market in 2006. Additionally, foreclosures are also on the rise.

This real estate graph shows us that sales (blue line) are falling, while foreclosures (red area) is rising. For a county that has very few foreclosures occurring in the past, we see the Wakulla County real estate market really starting to get active with foreclosures. The increased foreclosure activity is not surprising, as everywhere else in the State and in the Country is experiencing the same thing.
Wakulla County Average Real Estate Prices Continue To Fall
Just as we see the falling count of home sales in Wakulla, we also see a continual decline of the average real estate prices. The average single family detached home in Wakulla County was once selling for over $180,000, now that number has dropped below $150,000. From peak to trough, that is a drop of nearly 20%.

The red line in the real estate graph above represents condo sales in Wakulla County. These are so few that I do not believe that the data is significantly relevant. Mobile home sales in Wakulla County seem to be rebounding nicely (green triangles on graph), but take a close look at what has/is happening with Wakulla County lot sales.
Wakulla County Lot Sales In The Tank
It appears as if lot sales in Wakulla County exploded in 2005. In the real estate graph below, the red vertical bars represent the number of Wakulla County lot sales each month, while the blue field represents the average lot price each month. The yellow trend line shows the one year average price for a lot in Wakulla County.

Lot sales have declined by 87% since April 2006, with the 24 lots sold each month, on average. The average price of a lot in Wakulla County has dropped from a high exceeding $83,000 to a current low of $26,000, a drop of 69%. The average price of a lot sold in Wakulla County last month was only $9,500!
Because I do not track Wakulla County real estate on a daily basis, I could be missing something. Right now, my biggest concern is that there are more vacant lots that need to be consumed, by a market that does not currently need them. If this is the case, it will have an impact not only on existing developed lots, but also on homes for sale in Wakulla.

Timeless Advice About Getting A Home Mortgage Loan

A recent Wall Street Journal article about the first-time homebuyer tax credit cautions buyers under contract to wait until after closing before purchasing appliances, furniture or similar items on credit. The article notes that some mortgage lenders are running credit reports on closing day, and even an additional credit inquiry (let alone a purchase) may raise a red flag that could require additional documentation and potentially delay closing.
At Century 21 First Realty, we know how important the mortgage process is for more than 80% of our customers, so we thought we would share some insights regarding how lenders view credit to ensure a smoother mortgage experience. I know that when I am a customer for a service that I rarely utilize, I appreciate understanding “how it works” as much as I need to trust the professional with who I am working.
Lenders need to know: can you afford the payment? Before offering a loan, the lender examines debt-to-income (DTI) ratios. If a buyer under contract takes on additional debt, then that could change the ratio—potentially making the mortgage unaffordable. That’s a situation that both lenders and buyers want to avoid. Keeping your total debit-to-income as low as possible makes lenders feel more confident that you can afford the monthly mortgage payment.
Lenders make a loan offer based on 3 to 4 months banking history. By looking at a borrower’s bank statements over several months, a lender has a pretty good idea where the borrower’s money comes from and where it goes. An unusually large withdrawal or deposit before closing may require further documentation, so the lender knows the customer isn’t accumulating additional debt. In other words, a borrower will have to justify his or her recent financial past, so if you are thinking about buying a home soon, start planning now.
Lenders want to know the customer’s track record at paying their debts. That’s where the credit rating comes in. If a new credit report is pulled before closing, it suggests that the consumer may be looking to acquire more debt—and this could jeopardize the affordability of the mortgage. Do not even talk to somebody in an industry that pulls credit reports (like a car dealer) until after your closing. Activity in your credit report might indicate your future inability to repay the loan, so the key is to “lay low” until after closing.
In summary: If you are looking to buy a home (and get a home mortgage loan), then you need to be aware of what the mortgage underwriter is looking at when analyzing your “willingness and ability” to repay the loan. All new activity in your credit history is “bad,” so limiting your financial activity is critical. A buyer’s best bet is to work with a mortgage lender who will take the time to offer professional guidance and explain up front exactly what they need to do to close on time (and then follow that advice!).


Forecasting Real Estate Market Changes

Forecasting changes in the Tallahassee real estate market is part art, part science, and of course, a whole lot of experience. Knowing the past history of the market (by measuring long-term trends) helps us get an idea of where the market likes to be.
But knowing what current buyer expectations and seller motivations (by working with customers buying and selling real estate) tell us short-term trend expectations. It is when we combine these that the art of the real estate forecast (we hope) is created.

Past History Of The Real Estate Market
If you are a regular reader of the Tallahassee Real Estate Blog, then you have a good feel for the past and recent history of the Tallahassee housing market. We have been reporting this regularly here and there have been no real surprises of late.
Currently, we are in a streak of 39 straight year-over-year declines in residential home sales. We had seen some information from the Tallahassee MLS that made us believe that September could be the first “upward” month in over three years, but unfortunately that did not pan out when we checked the total market results in the home sales that were recorded with the Leon County Property Appraisers office.

Tallahassee MLS Shows Home Buyers More Active
Two housing reports that we track on a daily basis from the Tallahassee MLS demonstrate how current buyer activity is changing. The first real estate graph is the “pending home sales report,” and shows how the momentum of new contracts is changing.

The next graph also comes from the Tallahassee Board of REALTORS® Multiple Listing Service (Tallahassee MLS), and shows the overall supply and demand dynamics of homes in the Tallahassee housing market and surrounding areas. Both real home supply as well as relative home supply are measured over time, showing that both are finally starting to fall.

The Art Of The Real Estate Forecast
So, we know where the real estate market has been, and we are getting signs that the mood of the market is starting to change. How do we convert that to a real estate market forecast?
I think we need to create a baseline of what we feel is a “normal” housing market in Tallahassee. We can then see recent past and present moods in the market to determine if we are “seeking normal” or moving away from normal.

The real estate graph above demonstrates that the average number of homes sold each month during the 1990s was about 380 homes. For the sake of our real estate forecast, let us assume that 380 home sales in Tallahassee is the market “normal” month.
From the graph above, we observe that we soared well above this average in 2002, and stayed above it for more than five years. In order to regain our average of 380 home sales per month, we need to be below this average line for the same number of home sales.
What I see when I look at this graph is a recovery that appears to be about 1/2 of the way over. I think the market will be heading into a slow and steady recovery period beginning at the end of this year, but it will not be back to the 380 homes per month level for another few years.

Montana Real Estate Opportunity

The real estate market in Montana doesn't have huge transaction making it hard to tell about the current situation 'cause it's one of the few state that doesn't make real estate transaction prices a matter of public record.
But obviously it's in the downturn direction as the rest of the country. This may be the chance and opportunity 'cause prices of big amenity ranches about more than half lower than normal. Sales have gone 75% down making prices to be less than half. More detail on the link below.

The Real Truth about Renter's Insurance

Many renters mistakenly assume that they do not need renter's insurance, only to find out the truth when it is too late. Many of them are under the assumption that their landlord's policy will cover them or that the landlord, and not they, would be liable if someone were to be injured while in the rental property. The sad truth is that renters have very few rights in the majority of states, and renters should never assume that their belongings are covered in the event of a disaster or that they have no liability for injury just because it is not their property.
In most states, if someone is injured or if they incur damage to their property while within a rented dwelling, it is in fact the renter, not the property owner or landlord, who is liable for damages. For example, if you have a guest in your rented property and the guest manages to fall or otherwise injure themselves, you may be surprised to find that you, the renter, are liable for the damage. Likewise, if the guest damages some of his or her property in an accident in your rented dwelling, the renter is responsible for the damage to the item. Renter's insurance provides protection against liability in cases of personal injury or personal property damage that occurs in a rented dwelling.
In the case of fire, flood, theft, or other natural disaster, a renter's property is not protected by the insurance coverage that the landlord or property owner carries. Many renters are surprised to find that, after a disaster, they have no recourse to recoup damages caused to their belongings. The only way to have some level of protection is to purchase renter's insurance.
Clearly, anyone who rents a property should have renter's insurance protection. Renter's insurance is quite affordable, and the peace of mind that it offers is well worth the relatively small premiums.