Why inflate the listing price?

Real Estate AgentsIn preparation for a listing appointment for a home for sale I spend hours in the evaluation of the property. Often I will do two appointments, one to view the property and to determine if I may want the listing. The second is to give the price suggestion and to sign the documents.

Recently I have been on several listing appointments for real estate and gone thru the routine narrative of pros of what I can offer, what my company – Prudential Network Realty in St. Augustine, Florida – can offer, and a detailing of the marketing plan. In several instances, the owners tell me they have an urgent need to sell. I usually give a range for pricing to include at the lower range more aggressive pricing to price the home more competively and at the higher end a more relaxed pricing for those that have luxury of time. I always write a thank you note for the opportunity.

I knew I was up against a couple of other agents on several appointments. Then I see the properties listed with these other agents but at prices way above the current market value.

I don’t understand how the customer can tell me that they need to sell quickly and somehow they buy a story from another agent that includes a ridiculous price. I have felt so defeated several times. I wonder what the outcome will be. Time will prove which of the below scenarios will result:

1. the sellers will get a “lowball” offer more in line with my recommendation and take it (outrageously priced agent wins)

2. The sellers hold out for a price more in keeping with the current market and will need to relist (outrageously priced agent probably will win relisting agreement)

3. No offers will come in or seller will not take any seemingly low offers and ultimately will need to relist (I may get a second chance)

Is the tactic that some realtors use to overprice homes a good one? Obviously it results in the listing. Does it result in good relations. I hate to revise my strategy. Is this a case where people want to hear want they want to hear?

An Marshall, REALTOR

Prudential Network Realty

Extremely Full Service

www.AnMarshallOnTheMove.com
view my blog

email:an.marshall@prudentialnetworkrealty.com

Can you hear me, …can you hear me now,… or are you to busy listening to your own voice?

I think I listen well. I am quiet, I have eye contact, I nod at regular appropriate intervals. But inside my head, I am chomping at the bit ready for the least invitation to say what is on my mind. My thoughts might be in response to yours, might be offered to negate yours, might concur with yours, but are generally given preferential treatment in my book.

When I ask a customer a question, I get an answer (at least hopefully). But what is the answer that I am hearing and does it match what has been said. The technique of mirroring would be a good technique here. Then if I ask the same question a second or third time (maybe worded differently), the answer gets tweaked. This means the mirroring would get tweaked. Where this back and forth banter of clarification might end could only better me to fulfill their expectations.

This is especially true for the forbidden topic called “money”. “What is your budget?” “What are you qualified for?” “Will you paying cash?” I notice that my upbringing of keeping the family’s business in the family is a disservice to my customer. I am shy when it comes to asking key questions with the feeling that I am intruding into their private matters.

There is an agent in my office who I think is brazen with her questions. She goes probably where she doesn’t have any business but these techniques of question asking pointed questions may actually be leading her to more successful conclusions that help progress the client forward.

Would love to hear what strategies for active listening are used and where you draw the line with asking questions.

An Marshall, REALTOR
Prudential Network Realty
Extremely Full Service
Ranked #1 for Seller Satisfaction, by JD Power & Associates
www.AnMarshallOnTheMove.com
view my blog
email:an.marshall@prudentialnetworkrealty.com

A Magical Community in St. Augustine, FL

Sea Grove is a magical community where the ocean breezes meet the magnificent old trees just blocks from the Atlantic Ocean. It is a new unique coastal village initiated in 2004 andlocated in historic St. Augustine, Florida. SeaGrove is a mixed use community composed of 284 single family homes, 40 Luxury Condominiums, and a five acre retail/office area in the “Town Center”. It was designed to provide an old time feel of a friendly community neighborhood where one can easily walk to the post office, the library, the bank, eat out or shop leisurely at the Town Center. Condos and single family homes are available as well as vacant lots.

The neighborhood is enhanced by the natural features of the site including the salt marsh and tidal creek, several lakes, and majestic oaks. In addition to the natural features, the community is further enhanced by the quality of the architecture of the buildings. The designs for the homes and condominiums in SeaGrove will reflect the traditional styling of Florida vernacular coastal architecture with Key West styling, quaint porches, metal roofs and coastal colors.

Located in the heart of the Neighborhood is the Town Green, a place to picnic, play and relax. The SeaGrove Swim Club is only a short walk away and includes a swimming pool, an open air pavilion, bathrooms, and a boardwalk. The residents also share in the other amenities including walking trails, a boat ramp, and shaded parks.

Location, location, location is justified here because it is just minutes from Old St. Augustine with cobblestone streets and the historic houses of the nation’s oldest city. SeaGrove is on Anastasia Island – a desirable location because of its proximity to the beach and Intercoastal Waterway. In addition, the City of Jacksonville, one of the east coast’s busiest seaports is also an easy ride.

An Marshall, REALTOR

Prudential Network Realty

Extremely Full Service

Ranked #1 for Seller Satisfaction, by JD Power & Associates

www.AnMarshallOnTheMove.com
view my blog

email:an.marshall@prudentialnetworkrealty.com

www.mcgarveycommunities.com

The New World of Real Estate Appraising

I recently met an appraiser at a sale I had in SeaGrove, St. Augustine, Florida. He mentioned that he enjoys meeting with different offices to share information in a talk he entitles “Appraisers are not the Enemy.” We had him address our office meeting today. This professional was indicating that if there are enough sales in the subdivision, they are not supposed to leave that neighborhood for others. They need 3, of which can be a combination of pending and sold (altho the REALTOR has to be willing to share the price of the pending). If they don’t have the number of comps in the neighborhood, they go back in time. They also need to use at least 2 actives and then a variance of list/sale ratio of what they will sell form.

It takes 6-7 hours of work to do an appraisal (sound familiar?). The appraisers are, as of May 1 2009, rotated in a pool of appraisers. This appraiser said that he has spent years building up relationships with lenders, customers, and vendors and now any newbee appraiser can be arbitrarily “assigned” to the job. Appraisers are no longer even able to communicate with lenders.

If the neighborhood has a lot of foreclosures and short sales, they will need to be included. If there are not a lot, they are to eliminate those as well as “flips”. The price of an appraisal is about $350 altho that fee increases if the property is on navigable water, over $1 mil, or is a very unique home. He also indicated that about 25% of appraisals are currently being done for sales (this is increase from 5% same time last year). All in all, the cost approach has far less weight than the comparative market value, even though this value is usually less than the comparative market approach.

He requested that REALTORs include in the MLS data sheet what is in the back yard (patio, screened lanai, fence) and also what the view is and include photos. An interesting note is regarding GLA – gross living area is not so much if it has heat or AC, but if it conforms to the rest of the home. For example an added Florida room with aluminum roof unlike the rest of the house but has a wall AC unit would not be considered in the total square footage. Hope this is helpful to someone.

An Marshall, REALTOR

Prudential Network Realty

Extremely Full Service

Ranked #1 for Seller Satisfaction, by JD Power & Associates

www.AnMarshallOnTheMove.com
view my blog

email:an.marshall@prudentialnetworkrealty.com

www.accreditedappraislassociates.com

Creative Open House Ideas

I enjoy generating and organizing big events that make a difference. I usually do at least one Open House each weekend in an effort to create exposure for a house I have listed and attract buyers. Frequently, though, these are poorly attended and I am disappointed. Could I combine my goal to market a home with my enjoyment for event planning? I thought of the community open houses, where different real estate brokerages collaborate to hold open the various listings in a neighborhood which can add to the traffic.

The community I wanted to hold open is SeaGrove on Anastasia Island in St. Augustine, FL. It is a unique and beautiful coastal community built by McGarvey Communities initiated in 2004. It has condominiums, single family residences and a Town Center complete with library, post office, specialty stores, and eatery. Built in the primie of the market and because of its unique concept, it was very attractive to investors. For the first couple years, many of the homes sat vacant or were rented out, often to college kids. The 2 builders of “production homes” continued to sell and build on their lots. As they have been nearing their project completion, the prices have become very competitive along with the marketc condiitons. Some of the investors/owners have gone into the foreclosure process. The neighborhood was in need of a “makeover”.

My thinking was to showcase the neighborhood by collaborating with all the businesses and other real estate agencies to hold a giant community event on a Saturday, Valentines Day 2009. SeaGrove – A Community with a Heart showcased activities that related to pamper, health, and passion. Several months of planning and preparation created a day of demonstrations – yoga, painting, belly dance, skin analysis. The library held a book store, wine tastings at the wine store, fun run and blood pressure readings tied into the Valentine Day theme. There were also pet adoptions and various other venues. We had a d.j. highlighting the various hourly activities and raffles to donate money to the Boys & Girls Club and a pet rescue outfit, Goliath & Bebe’s.

My goal was five hundred people coming into the neighborhood. Altho the day started off with a pouring rain, in the end, the weather turned out well. We raised several hundred dollars for our charities, we had 13 open houses with attendance of more than 40 people signing in at any one of them, and all in all, more than three hundred people attended. Although I did not sell a home that day, I don’t know that one of the other brokerages didn’t. The result I achieved, was the ability to list a home because of the marketing of the event and that one has already sold!

Now, I am looking for the next idea…..

An Marshall, REALTOR

Prudential Network Realty

Extremely Full Service

Ranked #1 for Seller Satisfaction, by JD Power & Associates

www.AnMarshallOnTheMove.com
view my blog

email:an.marshall@prudentialnetworkrealty.com

www.RichmondAmerican.com

www.MercedesHomes.com

Creative & Successful Open Houses

Photography Vendor at Open House 824 Tides End Dr., St. Augustine

I like the idea of open houses as a way of meeting people who may be buying a house either now or in the future. I know the chances of selling the house that is being held open is unlikely, although, I have heard of a few lucky occasions.

My dilemma is how to make the open house attract people. I have tried different days (usually Saturday and Sunday) and different times. I can’t seem to get any pattern – bad weather, good weather, morning, afternoon, etc.

I did coordinate a high end vacant open house with varying artists (soap maker, jeweler, textile artist, Fine arts painter, photographer, etc. held in mid November – a good time for holiday shopping (GoGreen for the holidays). About 125 people came through so the house got some good exposure but the house still sits for sale.

There must be a strategy with attracting the right buyer to the right house for the right mileau. This is t I want to figure out.

An Marshall, REALTOR

Prudential Network Realty

Extremely Full Service

Ranked #1 for Seller Satisfaction, by JD Power & Associates

www.AnMarshallOnTheMove.com
view my blog

email:an.marshall@prudentialnetworkrealty.com

Examining the Costs of Buying Vacant Land

Examing the costs of Buying Vacant Land – Focus on Utilities:

As a general rule, about 25-30% of the funds for your project to build should be in the cost of the land and preparation to build. Land clearing can be a big cost as well as grading. This may be necessary to either bring dirt in, haul some away, or redistribute it to provide the base for the desired home. Costs will likely be higher if you have chosen the “sticks”. The low price of pristine rural land might be offset by supplier surcharges of 10% to drive those long distances. Another consideration – is there a paved road to access the property? Many zoning departments require this before issuing permits. In Florida, it may just be my imagination, but it seems permits are required for every step along the way.

Some questions influencing the costs are how accessible are the utilities and water lines? In rural area, there are issues with the water source. Wells, alone, can run $5,000 or more depending on how deep they have to dig. With the city location, add budget amounts for connectors to and monthly service charges for water and sewer. If sewer is available, what are the costs to hook up to that system? If you need a septic tank, be sure the land can accommodate one. Add on for perk test, drain field, tank, and pump and electric for the tank.

I remember my surprise that there are plenty of “rural” lots in the City of St. Augustine. In St. John’s county, there are impact fees – fees attached to the site if there has not been a structure at that site ever or more than one year ago. These are fees to help cover the county’s costs for police and fire services, parks, public buildings, schools and roads. Depending on the size of the intended structure they can range from $2,500 to almost $10,000.

An Marshall, REALTOR

Prudential Network Realty

Extremely Full Service

Ranked #1 for Seller Satisfaction, by JD Power & Associates

www.AnMarshallOnTheMove.com
view my blog

email:an.marshall@prudentialnetworkrealty.com

http://www.staugustine.com/

Why Buy Raw?

Why buy Raw?
People buy vacant land for several reasons. A homeowner wants to buy for a certain location – on the bluff, on the lake, wants privacy, etc or they want to design and build their dream home.
Investors understand that there is a finite amount of land and eventually it will, over time, likely increase in value.

Buying the land to create a home to live in requires many additional steps vs. a home that is already built. Some of the considerations are (1). Cost to buy the land and prepare it for building, 2. how to access the land (does it have a paved road?), (2.) What are the possibilities with utilities (power, water, sanitation), (3.) Easements and setbacks (land usage requirements for road, sidewalks, utility, shared access, and distances required between property line and home, etc), (4). restrictions around the way can be used (zoning for commercial, farm, residential density, etc.)
An Marshall, REALTOR
Prudential Network Realty
Extremely Full Service
Ranked #1 for Seller Satisfaction, by JD Power & Associates
www.AnMarshallOnTheMove.com
view my blog
email:an.marshall@prudentialnetworkrealty.com