Selling Your Property Today is Like Childbirth - REALLY!

I tend to attempt to paint a positive picture about our real estate situation that seems counterintuitive or even hype to some. 

My goal however is to persuade buyers to get off the fence by bolsting about the positive strides we're making in our Miami real estate market, to ensure they take advantage of what is available NOW, but which will not last too much longer.  Remember, we've been at this for arguably almost 3 years and in my opinion, we may have 6 months to a year more to go, if that long at all.

You see, overall, and although inventories have continued to rise over the last 6 months, we have also seen a steady increase in the number of sold properties as well as those pending (under contract). 

This has caused our months of available inventory to drop from a high of 57.8 months in January to a low in May of 42.8 months (based on Closed Sales).  This represents a shavings of about 15 months of inventory we no longer have to go through in order to maintain a healthy, ideal inventory level of about 3-9 months.



We also went from a high of 51.5 months of available inventory in December to a low of 27.4 in May (based on Pending Sales).  Almost halved!  Not bad for a market that went supernova and then plunged.

It is true that the effect is that many sellers expect this to mean their property should sell tomorrow at peak 2005 prices.  However, what it really means is - buyers beware. 

If they (buyers) don't get off the fence and start playing soon, the next article they read may report that the market is finally in a recovery stage and that everything is rosy, just as everyone wants it to be.

What this would actually mean for them is that, while waiting for it...they've missed the bottom!

In contrast, when approached professionally and properly presented, a good Realtor should be able to explain and persuade sellers to remain cooperative, keep prices in check and their property staged and in show condition. 

Buyers still rule and the faster they sell, the faster they can become a buyer themselves to take advantage of their next super purchase.

My experience has shown that this helps sellers quickly forget the pain of selling as they enjoy the power of buying in this market.

As a metaphore, I compare it to childbirth (only from what I can gather as a dad but...here it is). 

If it was soooo painful, why have more?  Typically, because the rewards outweigh the pain.  I feel that going from upset sellers to happy buyers have similar long term pleasure points.

The natural childbirth process typically promotes the use of a coach (usually the dad or a significant other), to get through the painful process.  In comes the professional Realtor.

After the delivery, comes the emotional festivity and celebration of the miracle of life.  Isn't it somewhat (even remotely?) similar to how it feels when you first turn the key in the front door keyhole of your new home?

So then, let's get through the process, and let's focus on the intended reward before it's too late.

Let's do this before we have to start paying higher prices and possibly, higher interest rates that will not only increase our payments, but will very likely keep many from affording real estate...again?!

Real Estate Agents Stink!

This is a common complaint I hear from buyers and sellers.  Real Estate Agents Stink! Though most are not quite as blunt, I can most certainly empathize with this view of our industry comrades.

Agent behavior is at times, absolutely abismal.  Do you know that when I'm working with buyers, and YES, I do quite a lot of that, the number one complaint I get is that I'm not showing more properties when and where they (the buyers) want!?

Sellers complain that their homes are not getting shown enough.  The reason for this seemingly incredible compaint is often not the lack of buyers.  Many Agents have listings they do not do any work to promote, to support or to assist in getting shown and therefore, sold.  No wonder there are so many expired listings in the MLS!  I'm guessing poor Agent support is one of the reasons.

Though there are possibly 5 major factors that cause a property to sell (namely, price, market condition, property condition, location & marketing), most are a function of price and availability. 

Making the property avialable in "show" condition for a price that matches and mirrors not only market conditions but more importantly, property condition, are paramount.  Here, sellers/owners are mostly at fault, unless of course, they're simply not heeding their Realtor recommendations.

We cannot control sellers who insist in asking a higher price for this market, refuse to make repairs or maintain the property or even make it readily available for showings. Typically, I will turn away listings offered for sale by sellers in this category.  

We can definitely NOT control the property location or the market, except through price/terms/consecions.

About the only thing Realtors control is marketing strategies which include all activities in support of making the property known to the world and shown when a potential buyer calls, be it via another Realtor or from a sign/ad.

Most sellers do not understand that not having the property in "show" condition in this market or not having the property listed at a price that will cause it to sell are most definitely within THEIR control and noone else's.  Unless of course they're listing with a weak Realtor who is too afraid to tell the seller/owner the truth.  Today, we're in a Price and Beauty contest!  The pretiest at the best price sells first!  Why buy something I need to repair for x price when I can buy this other, prestine property for the same or better price?

Yet, many sellers are falling trap to an Agent's "schpiel" that traps them into thinking they're having the best exposure available by listing the property with this weak agent.  Sometimes they hire the wrong agent because they think they know the agent, it is their own property or a number of other reasons.  One of the reasons for hiring an agent is not because the agent can show they are professionals at what they do and that this is how they earn a living. 

Being the owner/agent is not always a good idea either.  Ever heard of pro-se defendants?  Even if they are attorneys themselves, representing yourself in court in any case where emotions play such a principal role in the outcome is not the best policy.  Even these sellers could benefit from having an expert market their property sale.

Another thing sellers do not know is that often, these properties are listed without pictures! I for one, do not show or forward listings without pictures to my buyers.  If you're not willing to take the time to take and post pictures that showcase your property, why should I waste my or my buyer's time to show such property?  Hec...often even the property description is not even there or descriptive enough!.   If the property is in poor condition, let me know!  Let me be the judge of what I consider too much work or TLC.

What's worse than not having pictures available for the world to see?  Having the property with an Agent that:

• Keeps office hours from 9-5, Monday to Friday and does not clean their voice mail or return messages left in their or their company voice mail or do not provide an alternate way of getting through to a live person during the weekend.  My cell phone is always available.
• Does not return calls within a reasonable amount of time...in my case...I aim to return calls within 2 hours! Unfortunately, I do not even get calls returned AT ALL from Agents in about 30% of the time.  Even after calling them more than once and leaving other messages!  Abismal!
• Owners who choose flat fee Agents just to get access to the MLS but have no clue or concept on how to properly market the property, handle the calls, handle the showing or any other part of the process.  Selling is not just putting up a sign or placing a listing in the MLS.  There are many other factors to consider, some may even implicate the seller legally if things aren't properly done.  If this is what your agent is doing, it is time to consider a Professional Real Estate Consultant.  Having a Professional Realtor like myself on your team is the number one reason most sellers who list with a Realtor sell faster and for more money.  In our office, we are getting sellers 94% of their asking or list price and getting their properties sold in 94 days (As of April, 2008 for All Property types in MLS areas 22, 32 and 42).  Our closest competitor in our area among the top 15 companies is selling their properties in 106 days, followed by 109 and 114 for the next 3 best.  Some of the major name companies get as little as 87.5% of the selling/list price for their sellers and are taking as long as 191 days to achieve this!  A whopping 3 months longer and 8% less money!  Yet, sellers complain about my 7-9% commission schedule when in fact, they're paying for it in longer sale cycles and lower sold to list ratios, netting less money than if they had sold through me.  This, not taking into consideration the additional 3 month payments, tax proration cost, etc.
• Realtors that do not make it easy for their colleagues who are working with buyers (nowadays, buyers rule!).  As a buyer's agent (though I mostly work with listings, buyers typically call my signs and this is how I generate a bunch of qualified buyers), I call and often get the Realtor in question or have the call returned within a reasonable amount of time.  Many times in minutes.  However, when I try to get their participation in providing showing instructions, I am treated like THEY are doing ME and my buyers a favor by simply having the property available for sale and having returned my call or answered the phone.  They expect me to call other parties to try and get keys or access instructions instead of taking the approach of treating me as an extension of the client/buyer.  For these Agents and the sellers they represent, showing the property implies me jumping through hoops, picking up and returning keys at offices often not even near the subject propety or even not making the property available to view at a time convenient to the buyer (NOT the seller or themselves!).  Obviously, with gas prices skyrocketing and buyers demanding I show more properties, my time is too valuable to be playing this game.  If you want to sell your property and honor your commitment to your seller...come out and meet me there and show the property like you should!  I  bet your seller is expecting nothing less from you in order to get their property sold!

These are but a few of the pet peeves me and my buyers as well as many sellers are encountering these days.  In today's buyer's market, when many of these buyers are sitting on cash from the sale of other properties, or from foreign buyers, the last thing a seller needs is to not have their property shown.  This is the fastest way to an expired listing and to Sellers complaining how Real Estate Agents Stink!

Is this the perception we want to feed buyers and sellers?  Where do we want our business to go from here?  Are we complacent because we're now working a 9-5 J.O.B. to make ends meet and in doing so, are neglecting our business?  Where do we want to be in 5 years when this market is only a bad memory?

Sellers, remember that a true Realtor is not only a member of a local Board, but they're also members of the Florida Association of Realtors (FAR) and the National Association of Realtors (NAR), AND are subject to a strict Code of Ethics.  Only member Agents can use and display the obvious Realtor name or "R". Choosing the right agent means choosing a Professional Realtor. 

However, you need to go one step further.  Ask to work with a Realtor familiar with your area, and who is part of a strong team bringing strong results for their buyers and sellers, themselves and their office.

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Wenceslao Fernandez Jr, BS, CDPE is a member of RAMB, the largest board in Miami-Dade County with over 13,000 members and over 26,000 lisings. RAMB has affiliations with several countries, the most recent being our ability to show our board member listings to potential buyers in Paris, France and the ability for RAMB members to show listings of properties available for sale in Paris, France. Wenceslao Fernandez Jr is also a member of FAR and NAR and a Realtor-Associate with Keller Williams Realty, one of the largest, and growing real estate companies in the USA and Canada.  When other companies are consolidating or closing offices, Keller Williams is growing stronger.  As a Certified Distressed Property Expert (CDPE - visit www.1CDPE.com), Wenceslao Fernandez Jr is able to help sellers, buyers, investors and foreign nationals take advantage of Miami's incredible real estate opportunities.  Specializing in Investment Property, 2nd/Vacation Property and Single Family Homes in and around Miami Beach, Florida.  Find more at www.MiamiRealEstateKing.com.