Business related articles from The Plan Collection

Taxes, Monitors and Time Saving Ideas.

2008-03-20T23:13:45Z

It's tax season again. I don't enjoy this time of year because it means meeting with my accountant for several hours and hashing out the past years worth of business. When you have more than one businesses this can get quite time consuming and confusing. It's not that I don't like my accountant, he is a great guy. It's just a pain working out all the numbers to figure out what the goverment is going to take from you. This process was a lot more fun when I was 16 and completely stoked about the $150 return I was getting. When you are self employed, those returns are a distant memory.

Being in the ecommerce industry, I tend to use my computer a lot - like a rediculous amount. Enough that I go through several keyboards before my laptop has to be retired and when the repairman comes out to fix it he says stuff like, "this is the most worn out keyboard I have ever replaced." I'm pretty sure Justin uses his more. Since we use these machines so much, I don't balk as much about spending a bit more to get something nice. Like a 24" ultrasharp monitor that I now wish was a 30". Anyway, while discussing taxes with my accountant, I took the liberty of suggesting some things he might find very useful. For example, he still uses a 17" monitor that takes up half his desk. If he replaced it with a couple of flat panels he could have multiple screens up at the same time and increase his productivity significantly. He spent the whole night maximizing and minimizing screens while I was there. Funny thing is, I was just the same a few years ago. Then I realized I spend a good portion of my life at my machine - It should be a nice one. Speaking of that... I need a new chair.

So as I was thinking of all the things that have made my life easier as i run my business... I thought I'd mention some here. We use several services online that help make things a little easier and keep us more organized. Here are some of my favorites in no particular order:

Gmail - Google's free email service. Lets me set up multiple POP's and download all my email into one easy to use place. Here I can tag my email, search email, etc. Kind of like a web-based outlook, but better in my opinion. Another great feature is it keeps all of your conversations together so if a customer emails you over and over, the complete conversation will be shown even if they email you after you have archived the last email. Because of this we use gmail for our customer service accounts so that no matter which Representative reads the email, they can see all the previous conversation so that they are informed before responding - very handy.

Picasa - Free online photo album, also from Google. We use this in our office so we can share images that we need a lot. Its easy to access, keep things organized. We also use it for personal stuff.

A big Monitor - I mentioned this before so I won't elaborate. So glad I did it. I'm thinking about a second.

A Robust Laptop - Like most entreprenuers, I am on my computer a lot. I used to run two machines, my laptop and one in the office. Keeping my files straight was always a challenge so I just decided one day to get a real nice, reliable laptop and use it at both places. The laptop cost twice as much as my old one, but i take it everywhere with me and I always have my files. When I'm in the office I have a USB hub, so i just plug in my monitor and 1 usb port and I'm up and running on my large monitor and regular sized keyboard. This system has worked great for me.

External Hard Drive - You know your files are critical, so you need to back them up. I have a 500 gig external drive on my server set up to create backups of my accounting files every other day. It's on my hard drive so if my server crashes, I can easily get the files.

Remote Desktop - This one has been very handy for me recently as my daughter has been fighting cancer and I am out of the office a great deal. With remote desktop I can work from anywhere i can get an internet connection. It has it's quirks like most programs do, but still very nice to have and it comes with most versions of Windows.

I could go on and on, but these are some of the main tools that I use every day that make business run a little smoother. Have favorites of your own? Let us know what they are.

Website Design, Simplify Things.

2008-02-13T23:11:46Z

Years ago when I was in school I had the same art teacher for several different classes throughout the day. He taught us a principle that I have heard over and over through the years in different settings. It is the KISS rule wich means: Keep It Simple Stupid. Some of you may have heard this same rule and hopefully try to implement it where you can.

Since the beginning this is a rule that we have tried to implement in our website design; not only on the user interface but even in the complicated lines of website code. The KISS rule is important for several reasons and I will explain why through examples of mistakes that we have made that violated the rule and the result of the violation.

First, a mistake we made in the user interface when we first started The Plan Collection. When we first started laying out the structure of our website we analyzed a lot of different ecommerce sites so that we could take the best features (in our opinion) and implement them all into one easy to use website. I think we did a great job with the majority of the user side of the website initially, although we have made several improvements to make it even better these days. The first major mistake we made was actually a common practice back in the late 90s. Most major websites allowed customers to create an account and store their credit card number on file to make purchasing as easy as possible you didnt even have to enter your payment information to check out. We thought it would be a great idea to do this as well, figuring it would give us some credibility by having a sophisticated system. Another neat feature we had was something similar to a wish list (like most major websites also had and still have today). Our wish list was called Favorite House Plans and was an area where users could store their favorite plans so they could return and easily find them in the future. The mistake we made was assuming that people would be comfortable setting up a full blown account just to store their favorites on our website. There were two problems. First, we were not a well recognized website like Amazon.com, Ebay.com or the like. This made people uncomfortable about allowing us to store their card information even though we had taken all the necessary measures to assure that their information was secure. Secondly, we required our customers to enter their payment information to set up an account where they could store their favorite house plans just so they would have it when they decided to make a purchase. The result of this mistake was that we had very, very few accounts being created to store favorite house plans. We were also taking way more orders by phone than on our website so that customers didnt have to enter the information online.

The Fix: Once we realized the result of our design mistake we simplified it and didnt require payment information at all until the customer made a purchase. The result was a lot more orders placed online, and many more customers using our Favorite House Plans feature. Just because something made complete sense to us as users on other websites did not mean it was a great fit for our company. There are many decisions you make as a business owner that if not considered carefully can negatively impact your business even though it works well for others.

This KISS rule also applies to SEO. Recently we received a call from a SEO professional who was trying to sell us his companys services. He promised high rankings on all the various search engines and gave us a link to a website he had recently worked with. His work with this website was a success and it was ranking highly on the search engines under their main terms. There was just one problem that immediately turned me off to the methods he was apparently using to achieve the high rankings: This website was so saturated with keywords that they were trying to target that there was no clear navigation structure. It took me quite a while sifting through hundreds of links to find what I was looking for. The website may have been ranking highly, but who really cares if you cant sell anything because your website is so hard to use. In addition, I think a website saturated with keyword links like this one was (all over the front page with very few images) will have a short lived high ranking in my opinion. Since selling is what most of us are trying to do online, our focus should be finding that fine balance of including enough keywords and information that the search engines will like us, but ultimately providing the most simple and easy to use website that we possibly can.

And finally, the KISS rule even applies to the part of your website that the customers dont see. Search engines like clean coded websites. They dont like pages stuffed with keywords that are invisible to the user, but embedded in the code. Search engines like concise titles for each page and accurate keywords and descriptions. They also like structured pages, appropriately used Meta tags and alt tags. Extensive keyword lists and keyword lists in your tags, titles and descriptions are not ideal. You can and should use keywords in each of these parts of the web page, but you need to give it some thought and do it wisely. This takes a lot of time and effort to accomplish, but it is well worth the time if you are serious about making your website a success.

I could give you many more example of using the KISS rule in your website design but I think you get the basic idea. It is sometimes difficult to simplify your website when you have an enormous amount of content to offer. We recently did a complete redesign of our website applying the KISS rule in several areas. We constantly have to sit back and think of the simplest way to present the content that we have to the user. As a result, what makes the most sense to us (because we are in the industry) is often not the best way to design it. So remember the KISS principle next time you work on a new page or redesign of a specific area on your website and Im sure you will have positive results.

Billionaire Giving Back on Glenn Beck Show

2008-02-03T05:05:41Z

I'm not sure how many of you watch or listen to the Glenn Beck show. I don't watch or listen to either religiously (no offense to Glenn) but I happened to catch a show tonight where he interviewed a man named Jon Huntsman and a couple of doctors that work with him at his Huntsman Cancer Institute. This particular interview caught my attention because right now cancer is something that hits close to home in our family

So Jon Hunstman is sort of a local legend in Utah. He is a man that started out poor as a child and became a billionaire. You know those egg cartons your eggs come in, or the disposable plastic forks, knifes and spoons that you use all the time? Apparently his company invented products like that years ago. I've included the link so that you can read the entire article for yourself. This is a man that basically lost 200 million dollars on a business deal because he had given his word by handshake 6 months earlier and felt it was wrong to re-negotiate when he had already committed to a price. The buyer even wanted to renegotiate. I'm sure there are a lot of people that think he is crazy, but it's very admirable to me that he was so adamant about keeping his word and upholding his integrity that he would not re-negotiate. Later when the buyer passed on he had asked that Jon Hunstman speak at his funeral because he was so impressed with his integrity.

These days, Jon Huntsman is spending the fortune that he has built over the years to research and find a cure for cancer. We've been to the Hunstman Center for treatments and it is trueley a state of the art facility. We all need to support a guy like Mr. Hunstman that stands up for integrity and doing the right thing. But even more, I think it would be wise to support his foundation or other cancer research foundations. Here is a man that lived the American dream going from rags to riches - but now he's giving it all back. Researching cancer is expensive, and even a billionaire can't fund it forever. I think if everyone knew what it felt like to have cancer, or be the parent or loved one who has cancer, we'd all be a lot more interested in finding a cure.

You can Donate to the Hunstman Foundation Here

Read or listen to Glenn Beck's Interview with Jon Hunstman Here

Multiple Domain Names Pointing to One Domain

2008-02-01T22:22:39Z

Like many internet businesses ThePlanCollection.com has purchased several domain names that are similar to our main domain name. These include the .net and .org version of our name. This is a good business practice as it helps you protect your company name.

The problem with doing this is that Google can start to think you have schizophrenia. If your .net and .org names point to your website they will obviously serve up the same content as the .com. The problem is that Google doesn’t know that you are just trying to protect your name. Instead it thinks that you are duplicating content.

Because we are using IIS we were able to solve this problem by creating an empty website whose sole purpose is to redirect all domains that are not ThePlanCollection.com to ThePlanCollection.com using a 301 redirect.

I won’t go into detail about how to do it because there are a lot of website that can show you how. Here’s the instructions I used to get it to work.

How to rank high on Google, Yahoo and MSN: Introduction

2008-01-31T19:24:13Z

I thought that title might grab your attention. Wouldn't we all like a simple solution to that problem? We've been working on SEO (search engine optimization) for quite some time at The Plan Collection; well right from the beginning 7 or 8 years ago. Before we even released The Plan Collection 1.0 we did a lot of research on the subject of SEO and thought we had it pretty well figured out. We analyzed all our competitors’ websites, and read whatever information we could find on how to build a website including everything from simplifying the checkout process to using colors that make people feel comfortable and safe. I think we had the assumption - like most people do – that there can’t be that much to it, and we’d start to rank highly soon enough. I mean, we weren’t trying to go up against Amazon.com or anything like that. We took a look at our competition and figured we [in our opinion] were building a better looking, easier to use and better optimized house plan site than anyone had. In a few short months we learned lesson number one about getting your website to rank highly on Google, Yahoo and MSN: I’m mentioning this lesson first because I think it is the most important. Why? Because there is a misconception about internet businesses that I think the vast majority of the population has. When I am in a social setting and am asked what I do for a living I am cautious to say anything more than “We run a house plan business.” Why? Because nearly every time I say “we sell house plans on the internet,” I receive the same response that makes two assumptions: 1. Because it is on the internet, we make a ton of money. 2. We make a ton of easy money while we sleep and enjoy the lifestyle of a retiree during the day. My answer regarding what I do for my livelihood is more often than not, “we run a house plan business.” After many years, the addition of over 17k house plans to the database and all of the necessary updates to those house plans and the website to just keep us running is a lot more work than anyone ever thought. And guess what, an internet business is just like any other business; it will take a lot of work if you want it to be a success. And just like any other business, it is rewarding when it becomes a success. So, without further adieu:

Lesson Number One - There is a lot more to SEO than you see on the surface. We knew it would take a little while for the search engines to find us and like us, but we had no idea how really long it would be. For the first year or so we followed a routine: Research, make some changes, wait and see what happens. Research, make more changes, wait and see what happens. We kept checking all the search engines to see if we could be found. Then we’d re-check our website to see if the checkout process was broken. We couldn’t figure out why the sales weren’t coming in and why it was so hard to get our website to rank highly. Finally after continuing this routine over and over we started to see some results. It took us much longer than we thought before we began to rank well on any of the search engines. We learned a lot of things along the way that we didn’t realize had that much impact in the beginning. Things like file structure, internal linking, external linking, content and continuous new content just to name a few. The persistent research and optimization paid off though and we gained a high rank for most of our most relevant keywords on Google, Yahoo and MSN. Now it’s not going to take everyone a long time to be able to rank highly. There are a lot of variable that can make it more difficult or easier to obtain a good rank. Like how hard your competitors are trying and how many competitors there are. I think there were certain techniques that we neglected initially that we really should have pursued. Since we started another website implementing the same principles we had learned over the years – and some new ones. This website was received well by the search engines and ranked highly right away.

So this brings me to another question I am asked in social settings and the title of my post “How do you rank highly on Google, Yahoo, and MSN.” I have had a lot of good friends ask me that whom I’d like to help in their entrepreneurial endeavors. I wish I had an easy, 3 sentence answer. Something really simple and profound – but I don’t. No one does. It’s a lot more complex than we all wish it were. The truth is it took a lot of dedication, research, and late frustrating nights. So my response is our first lesson, “There is a lot more to SEO [ranking highly] than you see on the surface.” Don’t let the first rule get you down. I think to really appreciate the success you have had you first need to experience the trial of getting your business to that point. In addition, the experience of learning all about SEO along the way will benefit your business much more in the long run.

So that’s the first part of several posts I will write about over the next several months. I wish this article could explain everything in a very short and concise manner. And everyone could get high rankings for the website immediately. But, there is a lot more to getting your website to rank highly than most people think. So if you really want to make your website a real success, be dedicated to the cause. I’m starting this series with “there is more to SEO than you think” because it’s important to realize that having an online business isn’t a cake walk. Sure there are stories of people who have struck it big, but very few struck it rich without a lot of work going into their business. If you disagree, tell me about it.

Business Partnerships

2008-01-31T07:02:20Z

Why do people have business partners? There are lots of reasons really. Maybe you need financial backing or assistance, expertise that you don't have, someone to share the workload with. There is a long list of reasons. It is really important to seriously consider who you partner with (if you feel like you need one) before you jump into things. Once a business gets rolling, everyone becomes more and more tied emotionally and financially to the company. Changing your mind later can be a major problem, and likely an expensive one too.

Like most businesses, The Plan Collection requires a lot of work on a daily basis; like accounting, data entry, customer service, record keeping, industry knowledge and experience, advertising and so on that we will call business management. It also requires a lot of technical expertise to develop the kind of software that can make a huge database of house plans work well. The managment end of our business plays an important roll because it sees first hand the needs, shortcomings and successes of the business. However, it can't capitalize on this first hand experience without the help of a good technical partner. I'm lucky to have a partner who is very good at the technical end. I trust him. He knows what he is doing. We share the same vision about our business. At the same time, I think he trusts and respects me and our employees even though we ask the world of him sometimes. Well, he has to. Without everyone in the office we couldn't generate revenue which ultimately helps pay bills. He always tries to implement improvements I suggest (which is pretty much on a daily basis). Some of my requests are simple.. some are technically a Mt. Everest I am sure. It is really important to have this mutual trust and confidence in your partner, and share the same vision and I'll tell you why.

My partner Justin and I have known each other for quite some time and I guess we are what you would call entreprenurial minded. A few years ago the two of us teamed up with another friend and formed the technical end of a partnership with another company. We had big ideas for a new business we were sure would succeed. We soon found that there was a problem in our new partership. Though everyone had good intentions, we [technical end] spent a lot of money developing the idea while the managment/business end didn't share the same vision, excitement, or - unfortunately - the cost. After spending a lot of our own resources and feeling sick about it, we disolved the partnership and took a big loss. We learned an expensive lesson. We jumped into a partnership without clear roles and expectations. Our excitement about a new big idea overpowered our common sense to create a good business plan. It was an expensive lesson that we wished we could have learned for a lot less money.

Recently, I have had to be away from the office much more than I would like due to medical conditions in my family. Really, I'd like to be in the office. Just a normal full day would be great. Unfortunately my mind, and time is occupied mostly with my family's situation and not so much work. As a result I am probably not being the best business partner that I could be. Justin has been very supportive throughout which has reiterated to me the importance of choosing a good partner with valuable skills and mutual respect. This has been very fortunate for me and my family. Done being sappy. And now you see the thought processes that prompted an article about choosing a business partner.

So as you plan out the launch of your new business, remember to choose your partners wisely and make a good business plan. We have had experience in both methods of business start-up and I prefer the well planned, partners well chosen route. But thats just me.

Intricacies of Ecommerce

2008-01-29T18:04:14Z

It's interesting running an ecommerce business. I think it is very impressive to see a small business that can do an excellent job in brick and mortar retail spaces and then dominate in the ecommerce world as well. There are a lot of principles to follow in retail sales but when you enter into the world of ecommerce there are a whole new set of principles. I guess that is part of the fun and challenge for small business owners; to figure out what the principles are for their business and then abide by them well.

Over the years we have learned a lot managing The Plan Collection. There is so much work that goes into running a publishing website like this that most people just don't understand. Seems easy right? Just put up a website, add plans for people to buy and your on your way. Wrong. It's a little more complicated than that. You'll soon find out that maybe what you learned about sales and marketing in a retail setting don't really apply to ecommerce. Sure some of them do, but ecommerce is a different kind of beast.

For Example, one of the advantages of being in a retail space is that you can [to a certain level] see the reactions of your customers to certain things that you do. You might see it in their faces or hear them comment about it as they come into your store. In the ecommerce world, someone has to be either really impressed, or really disappointed to let you know about it. One of the great things about the internet is it lends us all a cetain amount of anonymity. It's too much trouble to write an email to the company to give them feedback, unless you are very impressed, or very displeased.

So as thousands of people visit The Plan Collection on a daily basis, it's hard to know the experience that all of those users are having. We can ask customers, but few want to be bothered with surveys and rightly so - another benefit of internet shopping is it's relatively hassle free. So how does an ecommerce business determine the user experience? One way is statistics. It's tricky, but by analyzing your website statistics you can see which pages people leave from the most, which pages are viewed the most, how long they stay on your website and more. This morning I was comparing a few different websites that I am involved in to see why people were adding items to their cart, but not making the purchase. We know nothing of the customer, but we can track which pages they had viewed, what items they added to their shopping cart and the page that they left from. So now we can test certain things like simplifying our checkout process, or adjusting shipping rates to see what might be causing customers to bail out after going so far in the checkout process. If we simplify our checkout process and our abandoned shopping cart numbers go down, we can assume that our changes improved the customer experience. It is a difficult and time consuming project, but if done regularly can really help your business. Here at The Plan Collection we review our statistics more regularly and are trying to use the results to improve our website so that we can convert the high traffic that we receive into good user experiences and as a result reach our goal [and the goal of any business] to increase sales. Having said this, we still rely quite a bit on the feedback that we receive from our customers to help us make decisions as we optimize our website. In fact, we often ask people not involved with the marketing of house plans to use our website and give us their critisism so that we can improve the experience for everyone. We have been doing this for the last 7 or 8 years and I imagine we always will. I think it is important to take the results of human feedback and the statistics we collect to make an informaed decision about the changes or improvements we make to the website.

There are many more principles to be learned when jumping into the ecommerce world. Unfortunaly, running a successful website is not as easy as a lot of people think. After starting a website of your own you might actually find that some of the romanticism you felt about an online business is gone. It takes a lot of time and dedication, but like any business it is rewarding when it becomes a success.

Microsoft, Dell and Bono Become One

2008-01-25T19:25:36Z

There are many people that I admire. Some are famous, some smart, some famous and smart and others just genuinely good people. Today I thought I'd mention a few of the more famous and smart variety that are doing some great things in the business world that will have a great impact on the livelyhood of many people.

First there is Bono - front man for an extremely popular rock band called U2. I started to admire him as a fan because like most teenagers I thought their music was cool. Now i'm old - their music is still cool - and Bono has used his celebrity for good causes over the years to make the world a better place. Secondly, there is Bill Gates for obvious reasons. His little company called Microsoft creates products used by nearly everyone and every business that owns a computer - except for a couple of people that use macs. And then there is Michael Dell that created a huge company making computers at reasonable costs. I have owned many Dell computers and have been quite pleased.

So I was reading an article on MSN today about this trio and their efforts to help fight the HIV/Aids epidemtic in Africa. I was already impressed with Bono's Product (RED)idea which generated sales off of products at the Gap, Motorola, and others and donated profits to the cause. In fact I tried to buy some of those products and the demand was so high that they were not available for a long time. Now Microsoft and Dell have teamed up with Bono to produce (RED) computers using a (RED) windows Version. Each computer sold will donate $50-80 to the initiative and sustain someone with HIV/Aids for 3-6 months needed medications. What a great idea it is to develop products people will want to buy anyway and use the proceeds to help those in need. Anyone that gives of their time, abilities or used their business and or resources to help others is admirable to me.

We should all go out and buy some new computers, or other Product (RED) Items. Or, see how you can get involved here..

Article available on MSN, Power of Two by Suzanne Schmalzer.

SELLING YOUR HOME IN THE WINTER

2005-04-30T06:07:00Z

In many parts of the country, selling a home during the winter months can be a challenge. Dreary, cold weather and the end-of-the-year holidays can keep buyers away and heighten fears of your home staying on the market longer than expected.

However, there are a few things you can do to enhance “curb appeal.” And when that happens, buyers will take notice.

For example, if your home has been on the market for more than six months, its probably time to change the sales approach. There are several factors that could be reviewed with your real estate agent to determine improvements that can be made. Ask for a reassessment of the sales price; it may be too high for the current market. Also, ask the agent for a new or updated marketing plan and ask for a specific explanation of each activity. Marketing your home goes beyond a few ads in the newspaper and a listing on the Multiple Listing Service (MLS); a good agent will do more to get your home sold.

If your current agent doesn’t respond to your satisfaction, you should contact the real estate broker (the owner of the office) and ask for a different sales agent – or, if you’re no longer under any contractual obligation to the firm, it might be time to change real estate offices entirely.

When setting the asking price through a comparative marketing analysis, compare similar homes sold in the winter months. Many owners set their asking price too high because of comparisons with sales prices during peak seasons. Always try to compare like properties sold at the same time of year.

Once you’ve settled on an asking price, its time to spruce up the interior and exterior of your home. Many real estate agents recommend opening as many curtains as possible to add light and color to rooms. Also, it’s suggested that you keep spring and summer pictures of your home out on tables and in clear view. Photos of your front yard flowers or the backyard shade tree in full summer bloom can help swing many buyers in favor of a purchase.

Staying on top of winter maintenance and chores is another sure-fire way of adding value to your home. A neatly shoveled driveway and cleared walkway can add a nice touch. Make sure the furnace is in good working condition and that the room temperature is kept at a comfortable level. Also, check to see that the basement if dry and sealed from any drafts.

Take yourself on a tour of your home. Start in the basement and work you way through the house. More than likely you’ll see many previously undiscovered cluttered spaces and needed repairs that can turn off potential buyers.

Don’t overload your home with holiday decorations, either. The buyer should have a chance to see you home in its everyday condition.

About The Author

W. Troy Swezey is the author of “SELLING YOUR HOME IN THE WINTER." As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, “REAL ESTATE SECRETS EXPOSED.” http://www.TroyIsMyRealtor.com or mail to: TroyC21@usa.net

HOW TO DETERMINE THE PRICE OF YOUR HOME

2005-04-30T06:04:00Z

Why is it that some homes sit on the market for a year while others sell like hot cakes? Frustrated sellers will blame a bad market, while a good real estate professional will tell you that many times, a slow sale is often attributed to the listing price.

If a home is overpriced, buyers will stay away. But, if the price is competitive with similar homes in the area and “shows” better than the competition, it will have a better chance of being sold quickly.

The secret is perfecting a technique that’s as American as apple pie: comparative shopping.

Although comparing houses with different styles, square-footages and locations is challenging, real estate professionals still feel it’s one of the best methods to use when determining a home’s market value.

A responsible real estate agent will effectively evaluate a home’s worth through a process known as Comparative Marketing Analysis (CMA). Taking a look at assets, such as a swimming pool, bigger than normal living spaces, a fantastic view, adjacent city parks and other attractions, the agent will begin to compare your home with similar properties, called “comparables,” that have sold in the area within the last six months. Typically, the agent is able to recommend a realistic price range that will ensure you top dollar and a reasonably

However, factors such as the amount of time needed to sell your home can alter the agent’s price recommendation dramatically.

Typically, people should check with real estate offices in the community to determine the typical duration that listings are on the market. Sales associates will explain that the marketing “norms” vary with prices and properties. Based on this criteria, the agent feels confident that he or she will be able to sell it for a price that both you and the buyer will be happy with. However, if you’re under time constraints because of unexpected job changes or moving agreements you’ve made on another property, this will narrow your chances of selling the home for top dollar in the market.

Assuming you have sufficient time to market the home, here are a few small steps you and your agent can take to finding the right price for your property.

The best comparisons can be made with similar homes that have been sold within the last 45 days as opposed to the standard six months. Any longer and other factors, such as the economy, could cloud your view of how much your home is really worth.

Another good benchmark is to review the selling prices of homes that have just been sold and are pending closes. Most MLS services provide information on deals pending that most real estate agents should be able to shore with you.

A good rule of thumb before setting a price is to make 20 comparisons of comparable properties within a one-mile radius of your house. Once completed you can feel comfortable that the price you’ve picked is a good gauge of the home’s worth and won’t discourage qualified buyers.

Being open and honest about what you see as the home’s greatest strengths and biggest weaknesses will also help an agent get a better feel for how to best evaluate (or assess) and market your home. Think of your home as if you were the buyer. If your home is listed at the right price, you’re well on your way to a speedy and fruitful sale.

About The Author

W. Troy Swezey is the author of “HOW TO DETERMINE THE PRICE OF YOUR HOME." As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, “REAL ESTATE SECRETS EXPOSED.” http://www.TroyIsMyRealtor.com or mail to: TroyC21@usa.net

Spec Homes

2005-04-02T22:51:00Z

One of our readers posted the following:

“I am interested in building spec homes in Arizona. I have many questions regarding the spec home industry and have had a difficult time obtaining useful information. Plenty of info on fixers, foreclosures, investment property and such but with regard to building spec homes and the financing, planning construction and selling there just isn't much out there.”

I don't consider myself an expert on spec building, but I have built over 200 homes. Out of the 200 homes I would say 120 of them have been spec homes. I enjoy building spec homes because it is much easier and can be more profitable. However, it can be risky. The best thing to do is start with a good floor plan and build it in a good area. The way to determine if it is a good area is to find out information about the comparibles of the homes that have sold in the area.

Another thing I like to do is get the home plan and lot appraised before I start. I then figure out my building costs and determine if there is enough value in building the home in that area. If there is not enough value DON'T BUILD IT. I did it once and lost $35,0000. Builders like to figure out their costs and then add their profit on top. That is not how value is determined. The value of a home is not created by the builder. It is created by supply and demand.

I like to follow what sells for a higher than usual. If I find that someone paid more for a home in a certain area, I try and get a lot as close to that home as possible. When someone pays too much, it raises the values of surrounding homes. That is always a good thing if you are building a spec home.

Good Luck and Happy home plan Hunting

Lock in your lumber prices

2005-02-27T06:49:00Z

My lumber salesman at Stock Building Supply called me on Thursday to warn me of upcoming price increases. This is good insider information that a good sales rep should let you know. We do enough business with Stock Building Supply that they will lock in the lumber prices on certain homes we have coming up. This little tip will probably save me 10k, or more, in the next month alone. I know a lot of you who look at home plans on www.theplancollection.com are trying to build your own homes. I would suggest that you get to know a lumber salesperson and let them know what you are planning. If you hurry and find a home plan you like, I would get it to several lumber companies and have them do a take-off. That is where they will determine how much lumber you will need. Once you have that, let them know when you will be purchasing this lumber and ask them if they can lock in the pricing for you. Even if you have to buy the lumber before you need it delivered, it will probably be worth it, because it looks like lumber prices are going to climb.

If you are curious if there is a Stock Building Supply near you, check out their web page at www.stockbuildingsupply.com.

Happy home plan hunting

Brick Homes May Cost More To Insure

2004-12-09T01:50:00Z

I thought I would make people aware that the cost to insure a brick home is considerably higher than other materials. The reason is that brick tends not to do very well in earthquakes. Most of the time it just causes cracks in the mortar. However, the best way to fix the problem is to pull all of the brick down and start over. That is why insurance costs are so much higher with a brick home. Nevertheless, most insurance companies will allow you to opt out of the brick clause, which means you can't ever claim brick damage. Many homeowners choose to do this and hope they don't get hit with a big earthquake. If you do have a few unsightly mortar cracks, you can hire a mason to chisel out the mortar and then replace that section. In most instances, that is what the insurance company would have done anyway. Be sure to check with your insurance company for their specific policies.

Be careful when deciding how much house you can afford

2004-12-08T17:11:00Z

I just read a really great article that talks about the current state of mortgages in the United States. In my opinion it is always better to use prudence when deciding how much debt to take on.

Here is a link:

http://moneycentral.msn.com/content/Banking/Homefinancing/P98896.asp

If you want to know what the house price index is in your state check here:

http://www.ofheo.gov/HPI.asp

If you want to know what the house price index is check here:

http://www.ofheo.gov/HPIAbout.asp

Having a Security Blanket (Home Equity)

2004-11-13T17:13:00Z

I recently had a discussion with a man I am building a new home for. With the money he is putting towards his down payment, combined with the good price I gave him, he will have over 20% equity in his new home. I suggested setting up a home equity line of credit. If he closes on the Home Equa-Line at the same time as his long term, it will cost him nothing extra. If he chooses not to take any money out, he will just have a $40 a year fee. This is according to a loan officer at M&T Mortgage www.mandtbank.com

I told him it is important to get it set up, in the event something were to happen to him or his job, he would have a nice safety net. If he were to wait to get it set up, and something happens, he may not have the kind of credit he does now and no bank will give him a home equity line if he misses a few payments. I suggest that people get it set up while they can, but use it as a safety reserve, not for boats or other things.

Happy home plan Hunting

The Future of Home Building is Looking Bright

2004-11-12T05:37:00Z

All of the economic indicators and most of the recent articles I have read seem to paint a positive picture when it comes to building new homes. Lumber prices are coming down in a dramatic fashion and the higher price of gas was factored in two years ago.

The bright spot about our economy has been the homebuilding industry. However, the costs have been escalating dramatically over the past few years. Nevertheless, the demand for new homes has been constant. Interest rates have been in the basement for a long time now. As the economy continues to heat up, the interest rates will be raised. The economy is gradually getting better, which means the rates shouldn't jump up all of a sudden. Everything looks favorable for building a new home. Lets get building!

Happy home plan Hunting

Lumber Prices are Declining

2004-10-31T06:42:00Z

Finally, the price of lumber is coming down. For instance, about three years ago, the price of OSB or wafer wood used to cost $6 a sheet. Last year the price shot up to nearly $20 a sheet. However, my latest quotes show that the price at Home Depot was $10.50 a sheet. However, some of the other lumber stores are still trying to make a few extra dollars by charging $13.50 a sheet. Always get current bids, because lumber is a commodity that changes daily.

Good luck and happy home plan hunting

Great Mortgage Rates during election years

2004-07-17T05:01:00Z

Wow, I sure love election years because interest rates generally fall into the basement. That is one reason I firmly belive in a 5-7 year ARM. I found a good article about Adjustable Rate Mortgages on www.nahb.com

Adjustable Rate Mortgages (ARMs)
With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. But with an ARM, the interest rate changes periodically, usually in relation to a specific index such as a cost of funds rate or the Treasury bill rate. Payments may go up or down accordingly. Adjustable-rate mortgages (ARMs) are characterized by the time frame for adjustment, such as 1 year, or 3, 5, 7, or 10 years. Hybrid ARMs have grown in popularity because they may offer a favorable fixed rate of interest for a time, such as 3, 5, 7, or 10 years, after which the loan becomes a 1-year ARM.

Lenders generally charge lower initial interest rates for ARMs and Hybrid ARMs than for fixed-rate mortgages. This makes the ARM easier on your pocketbook at first than a fixed-rate mortgage for the same amount. It also means that you might qualify for a larger loan because lenders sometimes make this decision on the basis of your current income and the anticipated monthly payments for the few year or two. Moreover, if interest rates remain steady or move lower, your ARM could be less expensive over a long period than a fixed-rate mortgage.

Against these advantages, you have to weigh the risk that an increase in interest rates would lead to higher monthly payments in the future. It's a trade-off: you get a lower rate with an ARM in exchange for assuming more risk.

Here are some things to consider with an ARM or a Hybrid ARM:

Is my income likely to increase enough to cover higher mortgage payments if interest rates go up?
How long do I plan to own this home? (If you plan to sell soon, rising interest rates may not present the risk they do if you plan to own the house for a long time.)
Can my payments increase even if interest rates generally do not increase?
What index will be used to adjust the mortgage rate? Ask the lender for a table showing movements in the index over the previous 10 years to see how your mortgage payments would have changed.
How often will the interest rate be adjusted? Every year? Three years? Five years? The longer the adjustment period, the better you will be able to plan your future loan cost.
What is the initial mortgage interest rate? Does it include a special discount or “teaser?” If so, you could face a large increase in your monthly payments when the interest rate is adjusted for the first time.
What is the margin on the interest rate? The margin is the amount that the lender adds to the index rate to calculate your mortgage rate. For instance, if the index rate is 7 percent and the margin is 2 percent, your overall interest rate would be 9 percent.
What limits or caps have been placed on the adjustments? One of the most important items to discuss with your lender is the maximum amount that your mortgage rate can increase in any single adjustment period and over the life of the loan. Find out the "worst case" situation in the event of a sharp increase in your index rate.
Is the loan convertible? If so, is there a cost to convert? Convertibility allows you to change your ARM to a fixed-rate loan at some designated time in the future.
Is there a prepayment penalty? If you sell your house and pay off your loan early, you may be assessed a fee.

These types of loans could be right for you. I think society requires people move around more than they used to. Most of the people we build homes for, move 2-4 years later. I'm sure that the majority of those who moved, thought they would be in their home much longer. Unless you are really sure you are going to be in your home for the long haul; you should look into the ARM.

By the way, rates have fallen 4 weeks in a row. Better hurry!

Happy home Plan Hunting