BACK TO OUR OLD HABITS?

My fellow real estate agents have been busy and it is a great thing to see! Unfortunately I am seeing the return of some bad habits. Specifically I refer to showing appointments and lack of feedback. My partner and I are experiencing numerous occurrences where appointments are scheduled and the agent "no shows". We understand if the agent falls behind or the buyer does not like the curb appeal of a home. However the agent needs to remember that our sellers have moved their life around in order to be out of their home for a showing. As a result my partner and I receive the honor of explaining why our sellers left their home and the home was not shown. In the past I have received mix reviews from my fellow agents regarding feedback. Some believe in it and others do not. We ask for feedback in order to give our sellers something, anything, to give them an idea on why their home is not selling. We realize that if an offer is not received the buyers are not interested. However if my sellers can make changes they are willing in order to sell. So here is what I am asking my fellow "professional" real estate agents. Communicate with sellers agents if you are not going into a home or are running excessively late Take a few minutes and give us some feedback.

DON'T CANCEL UNTIL YOU CLOSE!

Your closing is set for a certain day. Everything appears to be progressing normally. Then:::The closing is delayed. I don't know about your part of the country but this happens in our part of Georgia quite frequently. It is usually a financing issue. We had a closing scheduled for a Friday last month. Friday came, my sellers left the home, and the closing was delayed because of financing. We would be closing on Monday. My sellers were frantic. They had canceled their homeowners insurance on Friday and would be without through the weekend. The recent weather added to their fears. Fortunately they had an insurance pro who put their policy back in place. We also had the same issue with the utilities. If you sense any problems ask your sellers to delay canceling their utilities and homeowners insurance.

Crime Statistics and Home Buying

Another first after 8 years in the industry. We lost a contract on a home because of crime in the area. The home was located NE of Atlanta in a very nice neighborhood of homes priced under $200,000. The yards were neat, family activity everywhere, an active HOA, and very nice amenities. The home was a perfect fit and we went into negotiations. While we were in negotiations my buyer went to www.crimemapping.com to check local crime statistics. Even though nothing had happened in the neighborhood, there were incidents within .2 miles of the home that alarmed her. As a single mother, my buyer felt uncomfortable in this area and withdrew her offer on the home. My partner and I were surprised. Frankly we had not seen this situation before. As I talked to the buyer on the phone I sensed her opinion of me was adversarial not an advocate. I admitted that I wanted to look into this situation further before we "killed" the contract. That was not the right thing to say. The buyer had made up her mind. What have I learned: You can never know your buyers enough. Make sure you know there priorities and things that make them uncomfortable. Before I look at homes in any area, I will reference www.crimemapping.com or other crime software. That makes me more of an expert who can confidently work with a buyer. Listen, listen, listen to what your buyers say. Do not second guess your buyers. If they have made up their mind then respect their position. In this case the amount, and types, of crime were enough to deter her from buying. Other people might interpret the data differently. Keep working hard for your buyer! They will appreciate it!

Percentages!

After 8 years, and multiple listing presentations, I can throw out a lot of statistics. In a listing presentation the most important statistic is: How much am I going to receive for my home? In my experience, 90-92% seems to be a general average. However I am going to have to reassess that percentage based on the current market, and the price of homes. This year we have sold two homes in the high $600K price range. They both received 96% and 97% of asking price. Why? •Because the sellers had priced the home below their original purchase price. •Because a sales price at 90% of asking price represents a significant amount of money. (approximately 60K) •Because the market is allowing them to hold out for a slightly higher price. This is also the case with homes priced in the $130,000-$170,000 price range. Of course that is a direct effect of the demand for homes in that price range. So how do I answer that question from the beginning of the blog? How much will you receive for your home? I now dispense with the generalizations and provide the potential seller with more specifics on solds in their neighborhood. This is now allowing us to be a little more precise and realistic. Bottom Line: Provide your potential seller with the most precise numbers possible instead of using a generalized statistic.

Who is Watching the Store?

I hope the title would grab your attention. Here is a quick story: We have new clients in Atlanta. As they look at a home with us they continue to have their Las Vegas home up for sale. The home in Las Vegas is a new property, in excellent shape, and priced to sell. After 7 months in a busy Las Vegas market, not one offer. Priced lowered, not one offer. Our clients frustration continued to increase. We finally asked them about the home in Las Vegas, and more importantly, what their agent is telling them through feedback. Their agent has not been in touch with them at all. He does not answer their emails and does not send them updates. So my partner and I look into the situation. We go to Realtor.com to see what the home looks like in order to suggest a course of action. We were shocked to see the presentation online. Half of the pictures were so small that you could not see them. they were horrible. More importantly: THERE WAS A VIRTUAL TOUR OF A DIFFERENT HOME ON THEIR LISTING! The virtual tour of the other home showed a run down home in horrible condition. We worked with our clients and had them withdraw their ONE YEAR LISTING AGREEMENT (the agent got a one year listing agreement). Of course it took a while because the broker would not respond to request for help. We now have them in the hands of a new agent. Two thoughts: For my fellow agents: Pictures are the most important component of marketing and selling a home. We cannot cut corners. We owe our clients top quality, professional pictures for their home. We also need to send our clients links to their home on various websites so they can see the presentation. For my home sellers: You need to be more proactive with your agent. In an initial listing presentation ask the agent to show you other listings they have as they appear on the internet. Also ask them about all of their marketing in great detail. Once you sign an agreement with an agent, demand that the agent send you your home as it appears on the internet. At the same time periodically go on the major websites and see your home and its appearance. Bottom line: Everybody needs to be more proactive.

LOCAL,LOCAL, ALL MARKETS ARE LOCAL

The real estate euphoria continues. Here is an excerpt from the National Association of Realtors: "February pending home sales flattened with limited buyer choices, but remained at the second highest level in nearly three years, according to the National Association of Realtors®." No doubt we are busy in the Atlanta area but you need to break down "Atlanta" into smaller segments to get the truest sense of the local market. Th60 e Atlanta area alone comprises between 8 and 14 counties depending on who runs the statistics. Here is my example: February home sales for 8 counties in the North Atlanta Metro Area: Average list price $432,000 Average sale price $247,000 Average days on the market 71 February home sales for Forsyth County. This county is 30-45 minutes north of downtown Atlanta: Average list price $383,000 Average price sale price $280,000 Average day on the market 85 February home sales for Dawson County. This county is 45-60 minutes north of downtown Atlanta: Average list price $413,000 Average sale price $220,000 Average days on the market 112 My neighbohrood Chestatee It is a Lake Lanier community with a golf course one hour north of Atlanta in Dawson County. Average list price $504,192 Average sale price $309,250 Average days o the market 174 Where am I going with this? There is a home listed in the Chestatee neighborhood or $699,000. The home has been on the market, up and down, for three years. The home has been lowered to the current price. We put an offer on the home last month. An offer that dictated a counteroffer. The listing agent is located about 35 minutes south of the neighborhood in area with a buiser market. He told his buyers to counter by lowering the price by $4000. He said the market is great for sellers, and houses are selling very quickly. Do you know that the listing agent had never been to the neighborhood? (his partner had). Moral of the story: When the media says Atlanta is booming and is a sellers market, the buyers need to know more. They need us to break down the market into very specific areas in order to educate them to the fullest. Markets are truly local!

I Want it All Including the Cat!

Real estate transactions are becoming increasingly complex. Put together a contract, add financing contracts, inspection reports, appraisals, and the paperwork adds up. This was a first for The Wells Team: We received an offer on a home in North Georgia. Under Special Stipulations they added the following sentence: Home sold completely furnished! The alarm bells went off! Our seller did not know how to react. All of the furniture? Including the dishes? The silverware? The garden gnomes? The cat? Needless to say that makes it a very complicated transaction. First let me clarify this point. This was the primary home for my sellers. Not a vacation home. Selling a vacation home turnkey is pretty common. This was not. My sellers were trying to place a quantitative amount to all of the furnishings. It is hard to figure out how much a used leather couch is worth on the open market! There were also items that they wanted to take to their next home. To sell some of these items at "used furniture" prices and buy the same item new continues to complicate the decision. Here is my advice very simply: When your buyer wants furniture in a home have them buy the home first then negotiate the furniture separately with the seller. And if you want the cat please negotiate that after we close on the home!