Monday, October 19, 2009

Believe It Or Not, Your Realtor May Have Some Good Advice!


It seems like in today's real estate market, everyone is an expert except the actual agent they are working with. Not literally, but that is how many buyers and sellers act towards the agent they have hired. With dozens of real estate shows like "House Hunters," "Property Virgins," or "Bought & Sold" (which is now in heavy rotation on HGTV, and stars your friendly neighborhood blogger...ME!), every one seems to know better. But one thing that the general public has to understand is: a reality show is not going to give you the market analysis that a Realtor will. We are hired for a reason, and we have the best of intentions for getting your home bought & sold. All we ask is that our suggestions are taken into account and not brushed aside. On a larger scale, you wouldn't tell a brain surgeon how to operate, would you? You would just trust that he or she had your best intentions in mind. Similarly, a real estate agent is hired for his or her expertise in the field. That is why our advise can go a long way if we are given the chance. Our resume is a perfect way to prove that we are right for the job. For me personally, 17 transactions (and counting) in two years ain't too shabby.

When I go into a listing appointment, I have done extensive research beforehand to come up with the best possible price to get the property sold. In this unfortunate housing market, the best price is not always the most desirable one to the seller. I can completely understand that. When I was shopping around for a condo about four years ago, the exact same condos were on the market for 250k+, and now they are selling for high to mid 100k's at best. It is indeed a depressing situation when the value of your home is almost 100k less than what it once was. But, these are the difficult times we are in. A buyer knows that if someone is selling in this market, it's usually because they have to sell, not because they want to. That being said, it is equally as important as a seller to set the market, not chase it. Price your home perfectly so it will sell quickly, and allow it to dictate the price that other homes will sell at. When I suggest a list price to the seller, he or she usually opts for something higher, and I let them know that being competitive is key! When their neighbor's condo is on the market for less, they better come up with a pretty amazing reason as to why their own condo is priced 20k higher. I then make them aware that if there is no interest after the first 10 days, we must reduce. A property priced too high for too long is missing out on valuable market time. That gives buyers the idea that you are not willing to negotiate, and it turns them away when the 'days-on-market' enter triple digits. When there is no interest in a property for an extended period of time, 9 times out of 10...it's the price. When my sellers who price too high ask me, "Nick, why isn't this selling?" I respond, "It's too expensive." To which they say in return, "Well, I don't want to reduce." I have given them my suggestion and that's the best I can do at that point.

Over the past couple years that I have been working in real estate, I have learned a lot about what to expect during a home inspection. When I go to a listing appointment, I take a long look around at the property and single out things that may be an issue later on down the road. By no means should the home owner take these suggestions personally, but sometimes they do. I try to get them to step outside of themselves and look at their home through the eyes of a buyer. Things that the owner has just been 'living with' are not necessarily what a new owner will be comfortable with. They can either take my suggestions or not, but it's important for me to put everything out on the table. A pre-inspection is usually a good idea before putting a home on the market, because this way the seller can address all inspection issues ahead of time, beat the buyer to the punch, and be ready for a quick closing.

Buyers are often ruthless in this market because they can be, and they know that the sellers need them more than they need the sellers. This is why a smart seller should do the pre-inspection and price their home intelligently, so they are always one step ahead of the buyer from square one. If you want to sell in this market, you MUST be proactive. Selling your home can be a full time job if you are not prepared, and we as Realtors are there to represent you and have your best interest in mind. Believe it or not, we may have some good advice that's worth following ;)

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