Andrew Wetzel's Musings

October 4, 2019

Selling Real Estate Without Representation: Reward vs Risk

The Philadelphia Inquirer recently ran a Real Estate story that made many people angry.  REALTORS were not involved.  What has happened and will undoubtedly continue to happen is sad and, perhaps, entirely preventable.

The article talked about people buying Real Estate, such as vacant land, from people with a high level of urgency or people with limited information.  The article described many as being poor which adds to the emotion.  The buyers either searched for people they thought would want or need to sell property or responded to owners looking to sell quickly.  In many cases the buyers “flipped” the properties for huge profits, often without making any repairs or little added cost to themselves.  Now the sellers and others are blaming the buyers, saying the buyers took advantage of the sellers.  But did they?

Would I like to have this done to me or someone I know?  Absolutely NOT!  So, what is the answer? Assuming these transactions were not coerced, who is responsible for this?  Whether the sellers were misled about the “market value” or worth of the Real Estate is a separate issue.  What is the seller’s responsibility as far as learning the “market value” of what they want or need to sell?  What should the buyers have done differently?  What is society’s role:  do we want to require a third-party to review and evaluate sales to protect whomever we think “vulnerable”?  That would seem excessive.

Please do NOT misunderstand me:  the article did not accuse the buyers of fraud and I would certainly NOT condone that.  In fact, the buyers say they do a lot of work to put these deals together and provide a benefit to sellers.  Frankly, what we have are two parties with their own interests and motivation as well as two different ideas of property value.  The same thought applies to a sale where both parties are represented by professionals although they would have an added layer of “protection” if their agents performed as we are supposed to.

In Real Estate there have always been a number of “private sales”, meaning there are no agents involved.  About 8% of national transactions do not involve agents although many of these involve parties who know each other.  Sadly, many who buy or sell Real Estate without professional representation come to realize there was a problem AFTER the sale closed and those sales tend to result in lower proceeds even when you consider that the Real Estate fee was not charged.

While the article has several very sad stories, absent fraud, many of these sellers need to look at what they did and what they expected to happen.  They took a risk by not hiring a professional.  Could they really have gotten “top dollar” on their own or did they have the resources to maximize the “highest and best use” of the Real Estate?  Again I ask:  whose job was it to protect and promote their interests?  They had choices, even if somewhat limited, and now they have the consequences of what they did.

While anyone can make the decision to buy or sell Real Estate without an agent, what is the TRUE co$t of trying to save the fee?  If the issue was a matter of time, trying to sell fast usually comes at the expense of profits since the market was not allowed to function properly.  Absent hiring a professional, please, at least pay an attorney to review any documents involved and/ or hire an appraiser to determine the true “market value” of your property.  While doing either may not get you what you think you are due, at least you will know your options.  Certainly do NOT trust random online property valuations and, respectfully, do not rely on friends and family.  Business is business!

In the event there was any fraud or misrepresentation, pursue that through legal channels.

When Real Estate (or anything of value) is involved:  there is no time for inexperience, empty promises or false expectations! 

HIRE WISELY:  We are not all the same!

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August 30, 2019

Have You Really Decided Not to Sell Your House?

I have been helping frustrated owners sell properties that other agents could not sell since 1996.  What does this mean?  I use the multiple listing service to monitor daily residential and multi-family properties.  I look for property listings that might appeal to my buyer-clients, that compete with properties owned by my seller-clients and those which come off the active market without selling.

During the course of any year a number of property listings are canceled or their contracts expire before there is a sale.  Some of these properties will come back on the market with the same agent, perhaps at a lower price, some owners will hire a new agent thinking that will solve any problems they had and a significant number of properties will remain off the market for months or longer!  I always wonder what happened with whatever plans those owners and families had.

While some owners may resort to renting their houses so they can move, many seem to either give up or delay their plans, perhaps waiting for what they think is a better time to sell.  Those looking to buy another home need to know how waiting will affect a purchase.  Either way, the fact is that buyers look at houses all year long and they can only see and buy properties that are on the active market so waiting to try again may be counter-productive, especially in areas that tend to move more slowly.

I understand and empathize with people who feel frustrated by the harsh reality of the Real Estate market.  Any optimism they felt can lead to frustration:  why aren’t people coming to see their house?  Perhaps they had many showings but no one made a good offer.  Many probably wish that family, friends and neighbors would stop asking them questions.  I do have one serious question:  what happens if you do not sell?  If anyone really wants or needs to sell, why not restart the process now or start planning for next year?

I am a full-time agent, a REALTOR®, an Associate Broker, an Ethics Instructor and a Mediator.  I have listed and sold Real Estate in Delaware, Montgomery and Chester Counties and in Philadelphia.  Many properties that sell were “previously listed” and most of them sold only after something was changed with the way they were being marketedPrice is not always the issue.  In fact, many sellers take unnecessary reductions.  For anypreviously listed” property to sell, something must change.

The most effective choices are marketing (meaning “exposure” or awareness of your property: your MLS sheet is your property resume.  How accurately did it represent what you were selling?), pricing strategically and/ or hiring a different agent.  Changing agents can bring a new perspective and a different philosophy that might provide the advantage you need in a competitive market.  What would your last agent do differently this time (other than a price reduction)?  Will doing the same thing over again even with a new agent produce a different result?  Change for the sake of change can be a mistake.  You may be adding days on the market without increasing your odds for success.

Why should you call me?  My background in Client Service Management combined with my Real Estate experience, training, education and knowledge will help me to assist you.  Real Estate is not “rocket science” but it requires a thorough knowledge of the “process” and a proven strategy.  I have a common sense, client-centered approach.  You can learn more about me by listening to my podcasts, reading my blog and by visiting my website.  I have a lot of material available.

Effective marketing allows buyers and agents to find properties like yours in their search results (think “Google search”).  If they could not find your property in their searches, the odds were against you perhaps causing your property to sit on the market!  Many sellers are asked to reduce their price (and their proceeds!) when marketing was THE real problem.  Reducing the price will NOT always solve a marketing problem.  I NEVER ask for a price reduction without justifying it.  Every house has a price at which it will sell; my job is to get my clients the highest price possible.

If I earn the opportunity to work for you, you will receive the highest quality service, attention to detail and effort.  Communication is critical:  my job is to keep you informed so that you can make the best decisions.  Most of my clients never had any ongoing contact with their agent!  I work for my clients.  In addition, I offer the following guarantee that I will do what I promise:  if I don’t, call me to discuss your concerns.  If I cannot satisfy you, you may cancel our listing contract unless your property is under contract with a buyer!

Thank you as always for taking the time to read my blog and/ or listen to this podcast.  Please contact me if you would like to discuss this further.

There is no time for inexperience, empty promises or false expectations!

HIRE WISELY:  We are not all the same!

August 5, 2019

The PAR Listing Contract, Paragraph 13: ADDITIONAL OFFERS

Filed under: Buying,Ethics,Hiring an agent,Marketing,Multiple Offers,Price,Selling — awetzel @ 3:09 PM

I created and am teaching a class on representing sellers from the Consumer Notice through settlement.  As part of my preparation for the class I reviewed the PAR Listing Contract in detail.  I have always questioned two specific statements in paragraph 13 which is titled ADDITIONAL OFFERS.  I have worked around these two statements in my own business and used the classroom as a way to see if other agents agreed with me.  Most did.  Here are the statements and my thoughts.

Line 118 basically says:  “Unless prohibited by Seller, if Broker is asked …, Broker will reveal the existence of other offers”.  While I understand and appreciate that we have to be honest, our primary duty as stated in Article 1 of our Code of Ethics is to protect and promote our client’s interest.  Generally speaking, I am not sure that telling an agent or a buyer that you have an offer on a property really helps the seller especially if the offer is not something they are likely to sign and/ or the buyer wants to avoid what may not really be any viable competition for the property.  The question demands a yes or no answer, not a maybe.  Suppose you have an unopened email or a package that you know contains an offer for a property you have listed.  You may have no idea about the details:  it could be full price or above asking or well below.  There could be contingencies that are unacceptable to your seller client.  Are you supposed to tell others that you have an offer?  Again, you cannot say “maybe”.

I offer two alternatives for rewording the sentence to be more proactive.  One would be a statement that the agent will not reveal the existence of other offers unless authorized by the seller.  Or it could state that the agent is authorized.  Either way, the statement is plain and simple.  This may be semantics but I like these phrasings better.  The other alternative would be a check box offering the seller the choice to accept or waive disclosing the existence of other offers at the time of signing the listing contract.  When the disclosure is waived the agent would respond by saying they are not authorized to answer the question.  Again, if authorized the answer is an honest yes or no.  In addition, suppose you say yes or no and the circumstance changes, perhaps an offer dies or one comes in.  Does the seller or the buyer’s agent or the buyer expect a real-time update?

At the very least, my hope would be that there is a greater likelihood that a conversation would take place than is probably happening now and that is a good thing.  Too many of my seller clients who have worked with other agents before hiring me have told me that they were negotiating an offer or heard there was interest and then nothing happened.  When I mentioned my concerns to my students I sensed that many never gave a thought to the downside of this:  some buyers run the other way when they hear about competition and line 118 does not differentiate between viable and non-viable offers.  Of course, we have many different business models and if a property is located in a market that thrives on any type of competition, disclose to your heart’s content but one size does not fit all.  We have to know our clients, their circumstances and their local market.

Within the same paragraph, line 120 states that “ONCE SELLER ENTERS INTO AN AGREEMENT OF SALE, BROKER IS NOT REQUIRED TO PRESENT OTHER OFFERS”.  My office policy has always been to present any and all offers and let the seller decide what to do.  Admittedly this may require their seeking legal advice if they like the latest offer even though under contract with another buyer with their having no apparent right to terminate the existing offer without creating a default.  Experience tells me that the grass is not always greener but it is their house!  Either way, the client is the boss and gets to make those decisions.  I advise and they decide.

My questioning this particular statement has a more basic rationale:  when a seller signs an agreement of sale, we are required by MLS rules to change the status within 3 business days.  In addition, our Code of Ethics Article 3 and RELRA require that we disclose the existence of accepted offers.  The keyword is accepted meaning that a contract has been signed.  It is the right thing to do.  Bright MLS offers two status choices:  A/C, meaning active under contract, or PENDING.

A/C technically means that the seller is still allowing showings, presumably as a way to limit the damage should the contract fall through while PENDING stops showings.  Buyers sometimes wonder why and we have to assure them that they have a viable contract although some find this unsettling and it can affect the process.

Many agents, whether it is their thinking or their client’s, use A/C and, while true or not, agents have always complained that agents who use the A/C status often do not allow showings which is a violation of our rules and makes no sense.  That is a separate matter but, given the likelihood of using A/C rather than PENDING, it makes no sense to have the seller agree that we not present any additional offers while we seem to be encouraging them.  I think we either need to change this statement or offer options depending on the MLS status chosen.  Again, let’s force another conversation.  We live in the age of scanning and email with electronic signing.  Real Estate is a people business and yet technology seems to separate us.  Sometimes I see the negative impact of that when I am asked to mediate a dispute or chair a panel hearing an ethics complaint.  The root of many problems is a failure to effectively communicate.

Of course either statement could be modified by changing the contract itself as I am doing or by using an addendum.  The question is whether either happens or is the seller put in a precarious position perhaps by an agent who does not understand the potential consequences.  Given that buying a house is typically the largest purchase someone will ever make and that the process itself is emotional enough even in the best of circumstances, I think we need to better prepare our clients for what may happen and that means making it easier for agents to explain the steps in the process and what may go wrong.  While having a sale fall through can be traumatic, it does not come close to how a buyer or seller feels when the process got in the way of itself.  The damage cannot be easily undone.

I know that no one wants longer contracts but I see these two statements as problematic.  On a related note, our state required property disclosure statement is almost the same number of pages as our state purchase agreement.  That is amazing to me!

There is no time for inexperience, empty promises or false expectations!

HIRE WISELY:  We are not all the same!

Bright MLS Quarter 2, 2019 Housing Report

Filed under: Buying,Hiring an agent,Price,Selling,Statistics — awetzel @ 3:06 PM

Bright MLS has released their Residential Market Report for single family homes for the second quarter of 2019.  In today’s podcast I will discuss YTD results through June for Delaware County Pennsylvania.  If you would like information about this or any other County in the Delaware Valley, please contact me.

The report compares the current results to one-year ago, same time period.  As with all Real Estate statistics, two things are true.  First, the performance within individual zip-codes can and will vary significantly from the overall County.  Real Estate is local and results can vary from neighborhood to neighborhood and even block to block.  There is no such thing as a “national” Real Estate market so, whether you may be looking to buy or sell, please contact me for details about your areas of interest.  I can provide current information and keep you informed about the evolving market.  Deciding whether it is the right time to sell or buy is a personal decision typically involving a number of variables.  I can provide the knowledge and insight to help you decide what works for you.

My second point is that, unfortunately, all Real Estate statistics involving sold data is stale.  While a sale may be settled or closed today, the real question is when was the offer negotiated?  Typically sales take 45 to 60 days to close so the market today may be different.  Up-to-date information is important!

As far as the statistics, 3310 properties were settled through June with an average “selling price” of $288,887 and a “median” selling price, meaning that half of the sales were higher and half were lower, of $227,564 compared to 3429 settled last year at an average price of $266,570 and a median price of $209,900.  The DOM or “days on the market” for settled properties rose to 61 from 55.  The ratio of the “average sold price” compared to the “original asking price” was 95.7% with the percentage dropping as the days on the market rose.  The “inventory accumulation” remains under 3, which suggests a slight seller’s market overall.  The underlying data shows a wide range of results in all categories among the 49 different municipalities in Delaware County.

We can debate whether averages or medians are more important but what really matters is how your property or one that interests you compares to those appraised and settled with similar location, features and condition.  Appraisers rely on nearby settled properties so average or median pricing loses some validity but may provide insight for both the short term and the long term.

What about the properties that did not sell?  Many came off the market and remain unavailable.  Houses may get showings without generating offers unless buyers think they are priced within the range of their perceived “worth”.  Most property listings whose contracts are canceled or allowed to expire have asking prices considered high for their market and/ or they were poorly marketed, meaning that some buyers may not have even known that a house was available to purchase.  Of course this may well depend on the ratio of buyer and sellers so there is more to this than raw statistics.  If a market has a lot of inventory, some buyers may not be willing to look at houses priced high compared to the rest of the market.  While sellers may be open to negotiating their price, many never get the chance.  I will happy to discuss specifics with you.

The overall economy is doing well with some adjustments here and there.  Pushing statistics aside, what are you planning to do?  Real Estate is generally a long-term investment unless you are looking to fix and flip it or planning to move again.  There are opportunities out there.  As with the stock market, it is very difficult to pick the best time to make a move.  All you can do is get the best available information, determine what is in your best interests and then start the process.  I am a phone call or email away and getting started is easy once you take action.

There is no time for inexperience, empty promises or false expectations!

  Remember:  HIRE WISELY.  We are not all the same!

June 15, 2019

Summer is Coming: What are your Real Estate Plans?

Everyone knows that Spring is the best time to sell Real Estate.  It came and went.  Were you planning to make a move this year?  Every year around June and October I see and hear the same thing again and again and recent history was no exception.  Many sellers take their homes off the market, apparently adjusting their plans:  some delaying them until Fall or next Spring, others perhaps giving up entirely.  That is obviously their choice but I always wonder why so many owners decide to remain in a house they were willing to leave.  Many of those properties remain off the market, unavailable to see and buy.  What is the cost of not selling or delaying your plans?  Let me offer a few thoughts.

Some owners think they cannot achieve their financial goal so they give up even if only temporarily.  Price is NOT always the issue when a house sits on the market unsold.  I have seen and helped many frustrated owners by simply adjusting the marketing.  I use the term “Google search” to demonstrate this point:  buyers and their agents must be able to find YOUR house in their search results.  Unfortunately many MLS listings are inaccurate or, frankly, so pathetic that people cannot identify all of the houses that match their needs.  Even worse, the listing agent may not realize what is really going on and ask for a price reduction when one is not needed.  How much does that cost?  How does that impact your plans?  Keep in mind that if the MLS is inaccurate, the Internet will likely be wrong as well.  Sellers should look at their MLS printout and search for their own house online!

Buyers are out looking every day of the year, even if only online.  While there is no guarantee that your house will sell if it is on the market, it will not sell if it is not.  If buyers and agents cannot find a house in their search results, they will not know it is available so they will be unable to schedule a showing and it will sit unsold.  Sellers who keep their houses on the market when others do not will increase their odds even though fewer buyers may be looking at any particular time of year.

I fully understand that selling Real Estate can be inconvenient even if a property is vacant.  Agents you do not know bring buyers they may not know (and who may not be qualified to buy) into your house and look at your stuff.  They come when they want, perhaps late, and impose on your lifestyle.  Showings are a must but we can do a better job managing them.  It gets worse if you have a lot of activity with no offers or low offers but showings are a vital part of the selling process.

The two busiest selling times are Spring and Fall.  Of course the reasons people buy their first or next home are varied but these are the best times in terms of inventory level so frustrated sellers often take their homes off the market until the next “best” time comes which is also when they will have the most competition.  Why not start now?

When June arrives many of us assume the market will stop so they think about vacation and wanting to enjoy time with their families.  Many sellers do not want to deal with showings during these months which is a shame because a house can sell any day of the year!

Whether you are thinking about selling for the first time or if you have taken take time off, I encourage not to wait too long to resume the process.  The earlier you start the better.  My suggestion, if you have not already committed to an agent, is to call me so we can discuss the market, your house and your plans.  I will give you honest advice with no obligation.  If you plan to buy another home I can also provide information about areas and houses that may interest you.  All I suggest, respectfully, is that you make a decision that works for you.  I can help you now or in the future, whichever works for you!

HIRE WISELY:  There is no time for inexperience, empty promises or false expectations! 

We are not all the same!

Bright MLS May 2019 Housing Report

Bright MLS has released their Housing Report for single family homes in Delaware County PA covering year-to-date statistics through May 2019.  If you would like more information about this or any other County in the Delaware Valley, please contact me or visit AndrewWetzel.com.

As with all Real Estate statistics, two things are true.  First, individual zip-codes can vary significantly from the County.  Real Estate is local and results can vary from neighborhood to neighborhood and block to block.  There is no “national” Real Estate market so, if you are thinking about buying or selling, please contact me for details about your areas of interest. Deciding the right time to make a move is a personal decision involving a number of variables.  The Internet can provide information and data but I have the experience, training and education to provide knowledge and insight.  I can also provide current information and keep you informed about the evolving market.

Second, all Real Estate statistics involving sold data is stale.  A sale may be settled or closed today but the real question is when was the offer negotiated?  Sale typically take 45 to 60 days to close so the market may be different today.  Current information is important!

As far as the report, 2196 properties have been settled this year with a current average “selling price” of $282,000 and a “median” selling price, meaning that half of the sales were higher and half were lower, of $237,000 compared to 2384 settled last year at a then average price of $260,000 and a median price of $210,000.  Both prices have trended up while the number of settled properties is down 7.9%.  However, the number of pending properties is up 4.7%, suggesting that some buyers delayed making offers or settling them compared to last year.  Inventory levels are much lower than last year which affects demand and pricing.  Again, there is a wide range of results within the County.

Which number is more meaningful, median or average?  We can debate that but what really matters is how your property or one that interests you compares to those appraised and settled with similar location, features and condition.  Appraisers rely on nearby settled properties so average or median pricing loses some validity but may provide insight for both the short term and the long term.

What about the properties that did not sell?  Many came off the market and still remain unavailable.  Houses may get showings without generating offers unless buyers think they are priced within the range of their perceived “worth”.  While sellers set the asking price, buyers determine the value.  If a market has a lot of inventory, some buyers will not even consider houses priced high compared to the rest of the market.  Most property listings whose contracts are canceled or allowed to expire have asking prices considered high for their market and/ or they were poorly marketed, meaning that some buyers and their agents may not have known that they were “For Sale” because they were not in their search results.  While sellers may be open to negotiating their price, they may never get the chance if  buyers do not know their house is “For Sale”.  Of course there is more to this than time permits.  I will happy to discuss specifics with you.

The overall economy continues to do well with some adjustments here and there.  Are you or someone you know thinking about buying or selling?  There are always opportunities out there.  As with the stock market, it is very difficult to pick the best time to make a move.  All you can do is get the best information, determine what is in your best interests and then start the process.  I am a phone call or email away and getting started is easy.

HIRE WISELY:  There is no time for inexperience, empty promises or false expectations!

We are not all the same!

May 11, 2019

Flipping Real Estate: A Different Form of Investing

“Flipping” is a trendy way to “invest” in Real Estate.  TV shows and infomercials advertising FREE SEMINARS are everywhere!   I suspect that many people are making lot$ of money telling others how to flip houses and wonder how many of these “coaches” have done even one flip.

Flipping expands on the old mantra: buy low; sell high and adds a critical “make it or break it” step.  Unless you are lucky and can buy something below market value and then sell it without doing any work, you have to renovate flips to make money.  Therein lies the unknown.  You paid a specific amount and there is likely a ceiling on your eventual selling price:  you have to fill in the blanks!

The old-fashioned way of investing, buying rentals and becoming a landlord, has lost some of its appeal to many for a variety of reasons although there are still opportunities.  Flipping allows you to get in and then get out, hopefully with a return that justifies the investment and risk.  Some flips will be homeruns while others will be singles.  Serious flippers do volume and can handle the ups and downs.  Many stop after trying one.

Flipping is a multi-stage, interconnected AND interdependent process. You have to check all of the boxes to make it work.  Success requires hiring a competent agent to identify, negotiate and acquire opportunities, access to money, the ability to properly evaluate what a property needs to maximize interest, the ability to complete the work in a cost-effective manner, the ability to RATIONALLY assess an eventual selling price and patience if the rehab and/ or the marketing take longer than expected.  If you use your own funding, this may be easier than paying someone else although using an equity loan as some do has inherent risk.

While many have done quite well, others have failed, some miserably.  If you overpay, under-evaluate what is required, overspend on the rehab, over-estimate a selling price and/ or pay too much for your “seed money”, you will have issues.  The market itself introduces a degree of uncertainty so timing is important although not a science.  A number of incomplete renovations always end up on the active Real Estate market looking for someone to finish the job.

This is truly NOT the time for inexperience, empty promises OR false expectations!

HIRE WISELY: we are not all the same.

May 4, 2019

Multiple Offers: To Disclose or Not?

Real Estate offers many opportunities to peer into the personalities of people with whom we work.  Sometimes what we find is not what we expected.  As a professional I have laws and a Code of Ethics to guide me as well as my integrity and value system.  My clients have the same except for the Code of Ethics, of course.  One topic that brings this into focus is that of “multiple offers”, meaning that more than one buyer is actively interested in buying the same piece of Real Estate.

Some buyers are so interested in a specific property and so willing to compete for it with others that they will plunge into the deep end of the pool to do whatever they can to win.  They may start with their “highest and best offer”.  Others, despite being interested, are either risk-averse or perhaps distrusting of others when told there is competition.  Some may wish to avoid competition to prevent over-spending or they may need to meet a deadline for finalizing a move (meaning that they cannot go back-and-forth).

One of my favorite analogies is comparing buying and selling Real Estate to “playing poker”:  each party wants to know more about the other than is readily obvious.  Buyers may want to know whether there is competition for a specific property.  Some people, including licensed agents, may think the answer a matter of courtesy or simply being honest.  However, the PAR listing contract is the governing document.  The language in paragraph 13 (“Additional Offers”) states that “Unless prohibited by Seller, if Broker is asked by a buyer or another licensee(s) about the existence of other offers on the Property, Broker will reveal the existence of other offers”.  A separate matter is whether the actual terms are confidential or not.  Absent a signed “confidentiality” agreement, the terms of an offer should not be considered confidential.

Let’s assume that the word “existence” means written, executable offers and not the mere expression of interest from someone.  If the seller permits this disclosure, the listing agent must say “yes” or “no”:  they have to answer truthfully!  If prohibited from answering the question, the agent must respond with words to the effect that they are not authorized to answer the question.  Is providing knowledge about competition in the seller’s best interests?  How important is the “if asked” aspect?

One of the primary reasons that a seller should hire a professional is to rely on our knowledge and insight.  The Internet and your friends and family may or may not provide a great deal of data and information but a professional can put it all together.  I tell my seller-clients that I assume that I AM PROHIBITED from making this disclosure and discuss my thinking with them.  I may ask them to change that later but I have never had a seller disagree.  Which is more likely:  a buyer will make an offer when they know there is competition OR a buyer will walk away when they do not know?

Taken literally, if not prohibited from answering the question, a listing agent would have to disclose the existence of low offers which may not interest their seller-client.  Does that make any sense?

Unfortunately, many buyer-agents do not even ask if there is competition.  I am told that many listing agents are allowed to disclose the existence of other offers and think it a great strategy but should they disclose that without being asked by the buyer’s agent?  Many buyer-agents do not even make the effort to confirm that a property is still available.  Bright MLS allows listing agents 3-business-days to update the listing status so an “Active” property may not really be available.  Can a buyer be harmed by their not knowing that someone else purchased the property?  At the very least, time was wasted preparing an offer.  Even worse, perhaps their showing should have been canceled!

Strategies may differ but it must be noted that the seller is the boss and makes the decision about disclosing.  An experienced agent can advise but is compelled to abide by their client’s wishes.

There is no time for inexperience, empty promises or false expectations!

Remember:  HIRE WISELY!  We are not all the same.

Bright MLS Quarter 1, 2019 Housing Report

Bright MLS has released their Residential Market Report for single family homes for the first quarter of 2019.  In today’s podcast I will discuss the results for Delaware County Pennsylvania.  If you would like information about this or any other County in the Delaware Valley, please contact me.

The report compares the current results to one-year ago, same quarter.  As with all Real Estate statistics, two things are true.  First, the performance within individual zip-codes can and will vary significantly from the overall County.  Real Estate is local and results can vary from neighborhood to neighborhood and even block to block.  There is no such thing as a “national” Real Estate market so, whether you may be looking to buy or sell, please contact me for details about your areas of interest.  I can provide current information and keep you informed about the evolving market.  Deciding whether it is the right time to sell or buy is a personal decision typically involving a number of variables.  I posted an article on that topic on my web site AndrewWetzel.com that offers several ideas to consider.

My second point is that, unfortunately, all Real Estate statistics involving sold data is stale.  While a sale may be settled or closed today, the real question is when was the offer negotiated?  Typically sales take 45 to 60 days to close so the market today may be different.  Up-to-date information is important!

As far as the statistics, 1099 properties were settled this year with an average “selling price” of $264,674 and a “median” selling price, meaning that half of the sales were higher and half were lower, of $200,000 compared to 1224 settled last year at an average price of $247,389 and a median price of $190,000.  The CDOM or “cumulative days on the market” for settled properties dropped to 81 from 85.  The underlying data shows a wide range of results among the 49 different municipalities in Delaware County.

Which number is more meaningful, median or average?  We can debate that but what really matters is how your property or one that interests you compares to those appraised and settled with similar location, features and condition.  Appraisers rely on nearby settled properties so average or median pricing loses some validity but may provide insight for both the short term and the long term.

What about the properties that did not sell?  Many came off the market and remain unavailable.  Houses may get showings without generating offers unless buyers think they are priced within the range of their perceived “worth”.  Most property listings whose contracts are canceled or allowed to expire have asking prices considered high for their market and/ or they were poorly marketed, meaning that some buyers may not have known that a house was even available to purchase.  Of course this may well depend on the ratio of buyer and sellers so there is more to this than raw statistics.  If a market has a lot of inventory, some buyers may not be willing to even look at houses priced high compared to the rest of the market.  While sellers may be open to negotiating their price, many never get the chance to do so.  I will happy to discuss specifics with you.

It is worth noting that the weather, despite minimal snow, was somewhat harsh early in 2019 which slowed activity although that has changed in many markets.  The overall economy is doing well with some adjustments here and there.  Pushing statistics aside, what are you planning to do?  Real Estate is generally a long-term investment unless you are looking to fix and flip it.  There are opportunities out there.  As with the stock market, it is very difficult to pick the best time to make a move.  All you can do is get the best available information, determine what is in your best interests and then start the process.  I am a phone call or email away and getting started is easy once you take action.

There is no time for inexperience, empty promises or false expectations!

Remember:  HIRE WISELY.  We are not all the same.

April 24, 2019

Why is the Initial Marketing Time so Critical?

Your house just hit the market after weeks of planning and cleaning and dreaming about how it would all turn out!  Would you get full price, any unusual requests or conditions, would you be able to find a new home that made leaving your present home easier to handle?  Everything seemed possible.

Then NOTHING HAPPENED!  The market essentially yawned.  What does this mean?

Even though getting your home on the market created so much anticipation and disruption in your life, let’s look at the other side of the equation.  You dipped your toe into an already churning market with however many prospective buyers already looking and evaluating and making decisions.  Whether you are in a buyer’s market or a seller’s market, there is a good chance that you will not see every prospect looking for a house like yours but you would like to see as many as possible.  Of course there is no way to know how many are looking right now so let’s take a broader look at what is possible.

How many buyers will enter the market tomorrow?  How many have already decided to make an offer on a specific house or are currently negotiating one?  How many have given up, deciding to wait for whatever reason?  You may be able to appeal to any of these, including buyers already “under contract”, as long as they like what you have and they have a way to end their current process.  However, your listing MUST be able to be found in their search results or they will not even know it is For Sale.

Let’s go back to my original point.  I would argue that the current number of prospective buyers is greater than the number who will enter the market in the next few weeks.  So, if none of them makes an offer, what do you do?  Perhaps some will come to see your house and do nothing.  They could change their mind later if they were getting their finances in order and/ or evaluating the overall market before taking action.  Or not.  Perhaps one of more will make overtures that could become promising if your agent knows how to handle that opportunity.  Or not.  The real question is how long do you wait before taking action to increase your odds for succeeding?

You can wait for the market to re-form or you could attempt to hook a buyer already looking but not committed to a house.  How do you do that?  If you are satisfied that your house is being properly marketed, meaning that, other than the price, it will come out in the proper search results, the price has to be a concern.  If you think that your competition has more to offer than your house you could wait until they all get contracts.  Of course, new competition will present itself.  It always does.

Patience is a wonderful thing and I respect sellers who are patient but, at some point, unless a seller decides to remain in their present home, something has to change.  You cannot keep doing the same thing over and over and over again.  A seller has two controllable variables:  the agent they hire and their asking price.  Sometimes changing agents is good as it provides a different perspective.  Changing your price requires a strategy and it may affect your overall plan, especially if you are buying another house.

A price reduction has to accomplish one of two things:  it either has to motivate a buyer who knows about your house but has not made an offer OR it has to re-position your house to a new group of buyers.  Pricing is important and taking a reduction just for the sake of taking one, especially if marketing is THE real problem, only serves to lower your proceeds and perhaps impact your options.

There is no time for inexperience, empty promises or false expectations!

Remember:  HIRE WISELY!  We are not all the same!

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