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Ask An Ambassador: Knowing Your Market

By
Real Estate Agent with Transaction Alliance 513.520.5305 www.LizTour.com SAL.2002007747

Know your stuff!It's not enough to have a real estate license.  Without the expertise to prove our worth we'll quickly be flashing deer in the headlight looks when a prospective buyer or seller says something about the area that we SHOULD know, but don't.

We might be able to get away without knowing where THE very best pizza is served, but if a buyer or seller is asking details about home sales, trends, and the various forms of real estate data that come our way, we'd better be able to answer or they may be quickly on their way to hiring another agent to take care of their needs.

You'll get questions like:

"Am I being unrealistic thinking I can get X in a home for Y price?"

"Where are the new construction homes?  How much do they cost?"

"What builder is the best?"

"What are the taxes for homes in X?" 

"How long will it take me to sell my home?"

These are all questions that a buyer or seller might expect you to know.

Now we're not saying you HAVE to write market reports, visit builder model homes and get to know the reps, or drive through the subdivisions in your market to get a feel for which ones are well kept and which ones feature five cars up on cinderblocks, but it's certainly not going to hurt.

Frankly one of the reasons (besides it being natural as an engineer) that I like to do market reports is that it tunes me in to FACTS and not perceptions about the market.  At least once a month I'm going to be very calibrated to how many homes are selling, how many are NOT under contract, how quickly they sell and all the fun stuff that comes with it.  And you know how handy it is to be able to be talking to a potential Mason condo buyer and let them know that their are ONLY 38 condos not under contract and only two communities that feature condos that fit their needs?  That's real estate gold!  You just demonstrated your professionalism on the fly, without needing to look up a single thing!

Once you get in the habit, it's pretty routine to stay current. 

And sometimes you need to dig a little deeper to find out what's fact or fiction.

Q:  "Do buyers who go straight to the listing agent in Mason Ohio get a better deal?"

A.  In 2015 buyers who had their own agent paid 95.07% of original list price.  Buyers who used the listing agent or another agent from the listing team?  They paid 95.48%!  So buyers paid more and got less dedicated representation.  Don't think this won't come in handy the next time a buyer calls me and wants to go straight to the listing agent :) 

Knowing you market is critical, and making it clear to area buyers and seller that YOU know your market?  Priceless!

Until next Tuesday, just Ask An Ambassador if you need help!

Liz and Bill aka BLiz 

 

Posted by

Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of Transaction Alliance
Elizabeth Spear, ABR, Ohio License SAL.2002007747

William (Bill) Spear, Ohio License SAL.2004011109  Kentucky 77938
Ask for us by name if you visit the office!

EHO
Bill Direct:  513-520-5305
Liz Direct: 513-265-3004     
Fax: 866-302-8418

MailTo:  Liz@LizSpear.com

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Comments(29)

Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Yes, knowing facts is something that can set us apart from other agents. Your answer above regarding sale/list price for those who used listing agent is interesting. I'm going to see what it is in my area!

May 10, 2016 08:03 PM
JM Padron, CCIM, CCP
THE JMTEAM NETWORK - Orlando, FL
CCIM, CCP, International Commercial Broker

Definitively Numbers are of outmost importance when presenting facts about a market. Buyers are smart and they will know right away when you have not done your homework and that the only thing you have in hand is that boring sales pitch!

May 10, 2016 08:08 PM
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Very well said how important it is to know your market.

May 10, 2016 08:13 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Liz and Bill Spear ,

You are so right. Knowing your market will definitely be impressive to both buyers and sellers. They are looking for agents who have the knowledge of the market and can interpret the data!

May 10, 2016 09:44 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

BLiz

Knowledge about the local market IS what buyers and sellers need from us in order to make informed decision. And we need to be able to interpret what it means for them and their particular situation.

Market reports are far from glamorous but they should be an integral part of the skills, knowledge and experience we offer to consumers

Jeff

May 10, 2016 11:58 PM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

I do four different statistical market report blogs every month and it helps keep me informed about the Gilbert market. I know it sounds crazy but sometimes we can get so busy that we lose the pulse of what's going on so pulling the numbers each month help with that. 

May 11, 2016 01:27 AM
Kristen Correa, Broker
Kristen Correa Real Estate & Reedy Creek Realty Services - Keller, TX
I love coffee & real estate. I am out of coffee!

An engineer?! Not arguing with you... even if you were wrong. Which you would not be...

May 11, 2016 01:30 AM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

B'Liz, let's hear it for the engineers!  My dad was an engineer, and I wish that I'd interited some of his amazing analytical skills - you're lucky to have them.

May 11, 2016 02:18 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Kathy, It's important for us to know the whats and whys for our market.

Cesar, I'll concede that a seller may know some inside info regarding homes for sale in their neighborhood (who's getting moved for a job, who's getting divorced, etc.) and coupling that with what we know can make for a very strong understanding of the competition.

Tony & Suzanne, Not the selfie we want to have :)

Tammy, I seem to keep giving you work :)

Bruce, Thanks!  Always nice to have our market data at the tip of our tongue.

Kat, It took about 1/2 an hour of pulling data (would have been MUCH shorter if my MLS had an Export function), but it bore out what I suspected based on anecdotal observation.  Buyers should hire their own agent.

JM, Although some sellers still want to believe their home is worth X+ more than the market data supports!

Roger, Thanks!

Jeff, Providing the context for the numbers is one of the most critical things we can do.  Is it a good time to buy/sell or not for an individual's circumstances?

Nicole, Perception can be so deceiving.  An agent having a great year (or a poor one) might tend to think the entire market is performing as they see it, when the exact opposite might be true for overall sales.  Those market reports force us to look beyond our own observations.

Kristen, Obviously you recognize engineers are NEVER wrong!! Lol!

Pat, That skill set does come in handy and helps me attract more than my fair share of engineers and accountants as clients :)

 

 

May 11, 2016 02:26 AM
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

Knowledge of one's market set them apart from the crowd. I intend to check the stats of my own neck of the woods regarding buyers who used their own agents vs LA.

May 11, 2016 03:20 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

I've always found this to be true, Liz and Bill Spear ... whether performing my appraising duties or wearing my mortgage hat.  The more information you have at your disposal .. and the better your know your markets, the better and more thorough service you can provide.  Hard to imagine anyone in our industry not sharing this outlook ...

Gene

May 11, 2016 04:18 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi BLiz,
Doing market statistic reports is a great way to become tuned into the facts.  Few agents make the effort.  

May 11, 2016 04:47 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Bill and Liz I agree.  In this business we need to do our homework and be familiar with our market and up to date with the industry.  Buyers and Sellers have so much information available to them on the Internet that we cannot get away with shooting from the hip, we need to know the facts or be made to look foolish.

May 11, 2016 05:58 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Les & Sarah, It would be interesting to see if the difference holds up in other markets.  I excluded new construction, foreclosures, etc., basically only straight consumer sales were allowed to keep it apples to apples.

Gene, It's so critical to know trends too.  Can we push the limits for our sellers?  Should the buyer pay more than list price?  If we know which direction things are going we can make sure our clients are on the winning side of the transaction.

Carol, It's just routine for us at this point.

George, Knowing the facts and being able to put them into context is a great value for our clients.

 

May 11, 2016 06:04 AM
Anita Clark
Coldwell Banker Access Realty ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

It absolutely pays to know our neighborhoods, communities, and areas we service. Good stuff Bill!

May 11, 2016 07:33 AM
John Meussner
Mortgages in AZ, CA, CO, DE, FL, GA, IN, MD, MN, MT, NC, NJ, NV, OK, OR, PA, SC, SD, TN, TX, UT, VA, WI - Fair Oaks, CA
#MortgageMadeEasy Fair Oaks, CA 484-680-4852

Super important to know the market, as many trends are broad, but many are also hyper-local.  Although, I'd argue you place more importance on where the best pizza can be found ; p

May 11, 2016 01:30 PM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

I am so amazed at how many agents do not know the market they are working in. It is crucial in providing the consumer the best service.

Thanks for sharing a great post.

May 12, 2016 07:26 AM
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Numbers can be powerful and they don't lie, but can be used in different ways.

May 12, 2016 07:40 AM
Mike Wong
Keller Williams Realty Southwest - Sugar Land, TX
Realtor: Commercial, Residential, Leasing, Invest

Excellent blog. Being an expert means knowing your market. I am a commercial agent, and I often hear residential agents tell consumers they do commercial as well. So I like to ask them about market rates, occupancy levels, market trends, and just some very basic questions to see if they know the market, or just faking it to get another paycheck. 

May 12, 2016 02:13 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Anita, You just never know when someone is going to have a question for us that is a make or break for whether they work with us.

John, And the answer might be "It depends".  New York style?  Chicago?  Local?

John, Especially when it comes to market trends.  Can't count the number of times we recognized an increasing price trend yet heard "You'll never get that price" from an agent with a low offer, and then we got it with another buyer later.

Olga, No  doubt, the way they're presented can tell two different stories.

MIke, For us, commercial is an entirely different world and we steer clear of it.

May 12, 2016 09:02 PM