Selling Your Property Today is Like Childbirth - REALLY!

Wenceslao Fernandez Jr, CDPE (Keller Williams Realty Miami Beach) — Mon, 30 Jun 2008 18:08:30 -0500

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!

Wenceslao Fernandez Jr, CDPE (Keller Williams Realty Miami Beach) — Mon, 12 May 2008 12:29:59 -0500

This is a complaint I sometimes hear from buyers and sellers. Real Estate Agents Stink! But why?!?

It is no secret that agent behavior is at times, absolutely abismal. Every profession has them. For example, when I'm working with buyers, and I can't show them property located where they want or when they want to see it, is a problem. This usually happens because I lack the returned calls whem I'm trying to make appointments. So, sellers beware. Choose your agent carefully or your property may not be getting shown.

Sellers also complain sometimes that their homes are not getting shown enough. When the listing turns into an "Expired Listing", these sellers are quick to blame the agent, when if fact, the agent's only fault, may have been to have taken an overpriced listing instead of turning it down.

Here are several factors that typically affect when a property gets shown, or not. Notice that some of these are outside of the Realtor's control...and it is often not a lack of buyers either.

For example, although there are agents who have listings they do little work to promote, there are possibly 5 major factors that cause a property to not sell - namely: price, market condition, property condition, location & marketing. As you can see, some are mostly a function of price and availability, which are entirely controlled by the seller.

Making the property avialable in "show" condition for a price that matches and mirrors not only market conditions but equally important, property condition, are paramount. Here, sellers are at fault if they're simply not following their Realtor's recommendations.

We cannot control sellers who insist in asking a higher price in this market, refuse to make basic rmaintenance repairs or maintain the property clean or even make it readily available for showings. These are the instances in which good agents would much rather walk away than dissapoint the homeowner further when the property does not get shown and consequently, does not sell.

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

About the only thing Realtors do control is the marketing strategies they aggressively implement which include all the activities in support of making the property known to the world and shown when a potential buyer or Buyer Agent calls. For this, make sure your agent is among other things, an Active, Full-Time agent who was sharpenning his/her skills when the market was slow and is positioned to assist you better now that the market is beginning to show signs of improvement.

Today, we're in a Price and Beauty contest! The pretiest property at the best price, sells first! Why buy something for x price that I need to repair when I can buy this other, prestine property for the same or better price? Unless of course, the property that requires all the work is offered according to its condition, at a price that will cause me to take a look, it will just sit there.

Another thing sellers do not know is that often, their property is listed without pictures! Today, more than 80% of buyers do their "house hunting/shopping" online. Unless they take the time to read its description and this description is written well enough to attract them to the listing, often buyers will simply skip over a listing without a picture. Specially when they're first starting out and are trying to get a feel for what's available to them out there.

Insist that your agent takes and publishes as many photos as possible, even video. These ensure higher traffic and a higer probability for showings. If there's a lot of traffic and little to no showing requests, your agent should inform you and seek a price reduction from you, and you should listen.

Similarly, if you're getting showings but no offers are comming through, you may be helping your neighbor sell his/her property first. Perhaps it has already happened. In this case, your Realtor should once again, be asking for a price reduction.

If you cannot afford to sell below a certain number and must sell, it is time to consider other options. A good Realtor can explain these and even encourage you to see an attorney to examine legal options.

However, depending on your situation, you may also qualify for a modification and speaking with your lender should be your very first next step (after speaking to your Realtor).

Make sure you consult a Certified Distressed Property Expert in your area (www.CDPE.com). These agents have prepared themselves to handle all the ins and outs of a distress sale and can guide you through several options you may have.

From Short Sale to Deed-In-Lieu and Foreclosure, a CDPE Realtor like myself can help guide you and determine all the questions to ask yourselves and the professionals whose advise you must seek, such as attorneys and CPAs (to review the possible tax consequences of a distressed sale).

In today's buyer's market, when many buyers are sitting on cash from the sale of other properties or are foreign buyers, the last thing a seller needs is to not have their property shown. This may mean that pricing, access, availability or a combination of these are faulty.

Sellers should also be ready to show the property with short notice, consider electronic or other type of lock-box and anything else that ensures the property gets shown - all the time. In this market, this may also mean the difference between getting the property sold or letting it sit there and expire.

Sellers, remember that a true Realtor is not only a member of a local Board, but they're also members of state association and the National Association of Realtors (NAR), who are subject to a strict Code of Ethics. Only member Agents can use and display the "Realtor" name and logo.

Choosing a powerful, active agent like myself may mean the difference between getting the property sold sooner rather than later, or not.

Though some agents may stink, the ultimate control is in your decision to choose the right agent for the job of selling your home.

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Wenceslao Fernandez Jr, BS, CDPE (Certified Distressed Property Expert), is a member of RAMB, the largest Realtor board in Miami-Dade County. RAMB has affiliations with several countries, allowing your property to be seen by other real estate professionals in other countries. Wenceslao Fernandez Jr is also a member of the Florida Association of Realtors (FAR) and National Association of Realtors (NAR) and a Realtor-Associate with Keller Williams Realty, the #3 largest and fastest growing realty company with offices throughout the USA and Canada. When other companies are consolidating or closing offices, Keller Williams is growing stronger. As a Certified Distressed Property Expert (visit www.CDPE.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. Search properties in YOUR language (13 languages) at http://www.Immobel.com/MiamiRealEstateKing or visit his other blog at http://MiamiRealEstateKing.WordPress.com. You may also follow Wenceslao in Twitter at @RealMiamiEstate or http://www.Facebook.com/wfernandezjr.

Wenceslao's Blog

Selling Your Property Today is Like Childbirth - REALLY!

Real Estate Agents Stink!