Houston Real Estate Blog

From the category archives:

Homes Sales

Houston Housing Marketing Parallels with 2002

September 15, 2011

Ted C. Jones, Ph.D.,Senior Vice President-Chief Economist, Stewart Title Guaranty Company and Director of Investor Relations, Stewart Information Services Corporation NYSE-STC, gave a robust presentation at the John Daugherty, Realtors sales meeting last week. He shared his incredible research and foresight on economic predictions for Houston. There were many facts, figures, opinions and observations coupled with great humor.

His real estate and economic predictions have historically been “spot on.” Ted pointed out that the 2011 housing market in Houston is a normal market and parallels Houston’s 2002 market. Ted noted that the best time to buy a home is when an economy is coming out of a down-cycle. He further stated that this coupled with interest rates at an all time low makes it a great time to buy. John Daugherty noted that we are most fortunate to live in Houston.

You can follow Ted’s predictions on his blog at blog.stewart.com.

Ted Jones, Cheri Fami, John Daugherty

Home Buying Tips for Those New to Houston

July 8, 2011

By Azar Fisher

As someone who is not a native Houstonian and who is lucky enough to meet a lot of new movers coming into our city, I see many people who come with perspectives about Houston that are not necessarily accurate. Those moving from cooler climates to warm up are sometimes shocked at how warm July or August can be. The good news is that the winters are a lot warmer too. Another difference many find is the housing market in Houston did not experience near the downturn compared to anywhere in the U.S.

Because the downturn was much more moderate here and now prices have started to appreciate, those moving from areas which were hit harder must adjust their perspective on the buying process. When looking to purchase a home, if you are moving to Houston from almost anywhere in the U.S. you must adjust your perspective to the home buying process. Simply put, Houston has not experienced the downturn that other parts of the country have, and a new mover hoping to come in and negotiate as if they are in Florida or California may be surprised by the response they get.

Many communities in Houston have seen less than a 1% drop in value during the worst of the downturn and now are appreciating. So, a home in Detroit or Las Vegas that sold five years ago for $750,000 is listed today at maybe $500,000 or less. In Houston a home that listed five years ago for $750,000 is likely listing for $750,000 or more today.

Here are three different examples of Houston neighborhoods that are geographically apart and whose communities are each unique enough for comparison. I have chosen 2006 because it is prior to the economic downturn, 2007 because it is the beginning of the downturn and compared the price/sq. ft. to 2010 (most recent data from HAR.com):

Houston Real Estate, Montorse Real Estate, Tanglewood Real Estate, Afton Oaks Real Estate

If we look at the worst of the data, 2007 to 2010, we see that Tanglewood which is an affluent community had a value decrease of only 11%. With Afton Oaks you have a community that decreased in home value by 10% and in Montrose which is close in to the downtown area and is home to many professionals, the value actually increased by 15%. Obviously, Houston has not had the downturn many other areas of the U.S. have experienced.

With that understanding, a home buyer who is new to Houston has to be aware that if you came from a city where it is common practice to offer a huge discount to the asking price (10, 15, or 20%), you will likely not get a response from a seller with that type of offer. In Houston, an offer of $400,000 on a home listed at $550,000 or even $475,000 will most often be seen as a non starter and not taken seriously. Some owners might respond with a reduction of say one to five thousand dollars out of courtesy, but many will not even respond. Not that anyone is being rude, they just know it is not a reasonable offer in this market.

So in coming to Houston and buying a home make sure you have a realtor who provides you sales comparisons on homes in the area you are looking to buy. Armed with this you will be able to come up with a reasonable offer based on what homes are selling for in that neighborhood. Make sure that you set your expectations so that you are a buyer in Houston and not the expectations if you were in a city with a less robust market. If you have questions you may contact Azar Fisher at 713.301.4570 or at 713.561.6612.

One thing for sure is Houston is a great place to live and the economy here is doing well. Take your time, look at the market thoroughly, and…Welcome to Houston – a great place to live.

Houston Real Estate firm, John Daugherty Top Producers Share Their Recipes for Success

May 26, 2011

The John Daugherty sales team, all agreed that last weeks sales meeting was one of the most informative while also being one of the most entertaining that they had ever attended. Daugherty’s four top 2010 Top Producers conducted a “round table” meeting. Cheri Fama, Executive Vice President and Chief Operating Officer asked each to tell a little bit about themselves.

Houston estate agent, Laura Sweeney who is the company’s #1 top producer has been in the business for 13 years. She credited John A. Daugherty, Jr.’s keen sense of what makes a good sales person for her career. John’s sales manager called Laura monthly encouraging her to get her license. Laura said after so many calls, she just could not tell the manager she had not done it yet. The rest is history.

Lisa Kornhauser who is the company’s #2 top producer has been selling real estate in Houston for 10 years. She had 3 children under the age of 3. As a young mother she found she loved attending open houses. When her children began attending school she knew she should become a Realtor because she would be doing something she loved to do, interacting with people.

Richard Ray soared to the ranks of top producer after only 2 short years in real estate. This is the career he has had the longest and is the one he has enjoyed the most. Before becoming a Realtor, Richard handled his own rental properties and remodeled 8 homes. He said with his past experience a career in real estate was a natural next step.

Laura Mayer also soared to the ranks of top producer in a very short period of time. She says her outgoing personality is much better suited to working with people than working on a computer which is what she did when she was in investment banking and private equity.

front row- Richard Ray, Laura Sweeney, Lisa Kornhauser, Laura Mayer - back row - Cheri Fama, John Daugherty

The Daugherty Round Table team was then asked the secrets of their success. Many of their answers illustrated the common thread of success and many of their answers illustrated how individual each person’s approach can be.

Laura Sweeney stressed the importance of staying positive and keeping your own ego out of the deal. She also stressed how important it is to work well with the other agent. Lisa Kornhauser feels the most important key to success is negotiating, the delivery and the presentation. She also cautioned to always remember that one’s clients are paying them. Richard Ray agreed with Laura and Lisa. He said to keep an attitude of service. He said it is really helpful to imagine the negotiations as plays on a chess board and yourself high above it so that you can view it at a distance and do the best job for your client. Laura Mayer stressed thinking outside the box. She feels that many Houston real estate agents are doing the same things to market their listings. She likes to think of creative ways to market her listing in an effort to reach the buyers first.

In closing, Laura Sweeney read a quote her husband printed out for her to bring to the round table discussion. “Success is a matter of hanging on after everyone else has let go.”

Earlier Entries »