Andrew Wetzel's Musings

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!

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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!

Bright MLS Quarter 1, 2019 Housing Report for Delaware County PA

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.

March 25, 2019

Data Integrity: How Accurate is/ was your Property Listing?

Filed under: Buying,Ethics,Hiring an agent,Marketing,Price,Selling,Technology — awetzel @ 5:42 PM

What is “data integrity”?  It means that the data we collect, store and report is accurate.  What do I mean by data?  It could be the status of a property listing (is it available to see and buy? Has it been put under contract?  Has it settled?), the price, the type of property and its features.  I want to relate the importance of accurate data to three different groups of people, all part of a sale.

Let’s start with buyers.  A seller needs a “ready, willing and able” buyer to complete a sale.  Whether a buyer hires an agent to search the MLS or they search online, the expectation is that properties matching what the buyer is looking for will appear in their search results so they can evaluate whether to take the next step or they will not know a house is even available to consider.  If they cannot find it in their search results, they will not see it and they will not buy it.  Even worse, a listing agent may not know there is a fixable error and ask the seller for what may be an unnecessary price reduction which reduces their proceeds and still not make it any easier to find the property in search results.  I have many examples and will share two.

  • Early in my career a buyer identified two possible elementary schools for her daughters to attend. She drove the neighborhood and found a “For Sale” sign on a house, called me for information about the house and asked me to search the area for homes like the one she was fortunate to find.  I found several other houses for the family to consider but the one she saw was not in my search results.  The listing agent had entered the wrong zip code.  Imagine if she had not seen the yard sign and the house had remained on the market unsold.  She would have missed seeing the house they bought and the sellers may have been asked to lower their price.  By the way, the family is in the same house many years later;
  • A frustrated seller called me. His property had been on the market recently and his listing contract expired without a sale.  He called me to see what I could suggest.  I looked up the property, discussed it with him and quickly found a major error:  the MLS showed the house as having a single bathroom.  He said it had two full baths.  People searching for two full baths did not know his house was available even after he reduced his asking price.  This is sad and avoidable.

In addition to limiting the number of available houses for buyers to consider, which could lead to a buyer not seeing their best options, errors will affect a market analysis.  Buyers usually want to know what comparable houses have been selling for before they make an offer.  Houses that are not accurately listed as well as those whose statuses are not correct could impact a buyer’s perception of what to offer, perhaps causing them to lose a sale.

Similarly, a seller looking to price their house according to its location, features and condition may be relying on incorrect or incomplete information.  Their house could sit on the market unsold or they could accept less than they should have.  Over the years I have seen a number of houses not properly reported as being sold.  Instead, the listing contract expired or the agent withdrew it from the market making it look like the property did not sell which is often interpreted as meaning that the price was too high.

The last person this misinformation can impact is the appraiser.  They evaluate selling prices based on reported comparable sales.  They can only rely on what is reported even if it is inaccurate (how would they know?).  In addition to the status, appraisers rely on pictures, features and the public remarks to try to identify the prior sales most like the house they are appraising.  What is the cost of inaccurate information?  If it falsely appears that a buyer paid too much, the process may stop unless the seller lowers their asking price OR the buyer comes up with more money OR they somehow work it out.  Mortgages are based on a percentage of the appraised value so errors matter.

To conclude, data integrity is a BIG deal.  Many of my seller clients were unsuccessful with one or more agents before we met.  Many of their property listings contained at least one error and there were often errors serious enough to prevent a sale.  In many cases I was able to improve their chances simply by adjusting the marketing to enable potential buyers and their agents to actually find their property in their search results.  It is like a “Google search”:  how many inaccurate entries do you see before getting the result you were looking for?  You may give up or never find the best answer for your search.

Today many buyers start their searches on the Internet before contacting an agent which only magnifies the potential damage as they may not be as proficient identifying listings as a professional is.  People rely on our training and our experience which is why a higher percentage of consumers use our services than ever before.  I do not mean this to sound like a commercial but this is what we do.

Of course there are times when price may still be an issue especially if the length of time on the market needlessly scares buyers into thinking there is something wrong with a house.  Either way, a seller should not have to suffer a financial loss because their agent failed to do their job.  In  addition, many of my clients say that they never saw their MLS sheet with a prior agent or searched online to see how their property information looked, if it was even there.  Some said that their agent never gave them a copy of their printout and that may be true as I suspect that many know they have not generated a good listing printout.  Many listing printouts, in addition to being incomplete as far as features, lack pictures or offer only a few bad ones, some taken with cell phones, and have no public remarks section or have a poorly written remarks section that is boring, incomplete or loaded with bad spelling and poor grammar making them hard to read.

The MLS syndicates the information on your listing printout to the major search engines we all know as well as thousands of others.  If the MLS is not done well this only magnifies the problem:  “garbage in; garbage out”.  Your printout is literally like a resume.  So, unless your house is on a well-traveled street exposing your “For Sale” sign to lots of traffic, the MLS and Internet may be the only ways anyone will know you want to sell.  Does that make you feel comfortable?  What is the cost of delaying your plans or being asked to accept less money than you should?  What does your printout look like?

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

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

How Sellers Sell Real Estate: Who is the Typical Seller?

Today I want to discuss the 2018 NAR or National Association of REALTORS Profile of Buyers and Sellers.  The report comes from a survey using 129 questions mailed to over 155,000 home buyers who purchased a primary residence between July 2017 and June 2018.  7191 were returned.  The focus of this podcast will be buyers who sold one home to buy another.  This was a national survey so your market may be quite different.  Real Estate is local:  there is no national Real Estate market so please contact me for information about your local market.

  • NAR has been collecting seller data since 1985 when the typical owner remained in their home for a median time of 5 years. In 2018 that number was 9 years which suggests that buyers may want to think long-term about their investment.  What appears to be a solid investment today may look different later.  Unfortunately, I still see sellers who paid more for their house than it is worth today and that can delay being able to sell it;
  • Sellers between the ages of 18-34 typically sold within 4 years while those over 75 sold after 17 years;
  • The median selling price was 99% of the final asking price. If you are an owner whose house is not attracting serious interest, meaning offers, this is important to know.  Many buyers think they are better at negotiating than they really are and are hesitant to start with their “best offer”.  In a very competitive situation they may not get a second chance.  On the other hand, a buyer may prefer to make an offer on a house closer to its market value to avoid having an appraisal issue or risk losing their second choice to another buyer when their offer on a house expires.  Whether a listing agent should disclose the existence of other offers is debatable but this should only be done when a seller allows it.  In some markets and with some buyers, competition may be welcome.  In others, not so much.  Sellers may also think themselves better at negotiation than they really are so they need good advice from a trusted and respected representative.  Ego can be a terrible thing to overcome.  Last point, showings are nice but they do not guarantee a sale;
  • 13% of houses purchased sold for more than asking price with 26% achieving the asking price and 24% selling for 95% or less than asking price;
  • The typical seller was 55 years old;
  • 68% were repeat sellers while 32% were selling for the first time;
  • 70% who purchased another home stayed in the same state; 16% moved to another region; 14% stayed in the same region but a different state;
  • 44% bought larger homes; 29% bought a similar size; 27% down-sized. The age of the seller strongly correlates with these statistics;
  • 50% bought a newer home than they sold; 28% bought one the same age; 22% bought an older home;
  • 47% spent more than their selling price; 27% spent less;
  • The most common reason for selling was that the house was too small (15%), followed by moving closer to friends and family (14%) and job relocation (13%);
  • 29% of first-time sellers cited size as being too small whereas repeat sellers cited moving closer to friends and family (17%). Selling is an expensive proposition so having to move in the short term because you outgrew a house or simply needed more space can be costly;
  • 91% of all sellers used a Real Estate agent with only 7% being a FSBO. 91% is the highest result recorded despite the presence of the Internet.  The % of FSBOs has steadily declined since 2000 even though the Internet was thought to have helped with exposure;
  • The median selling time for all sellers was 3 weeks. There is a correlation between the % of the final asking price achieved and the length of time it takes to sell.  While it can be a distracting obsession, many buyers look at the “days on the market” as an indicator of a home’s desirability and may avoid homes that are simply over-priced although they have no issues.  Houses that sold within 2 weeks or less achieved 100% of the final asking price whereas houses on the market for 17 weeks or more achieved only 94%.  Keep in mind that many houses are reduced in price to attract attention so looking at the final asking price as compared to the selling price is only one part of the story.  Sellers determine the asking price but buyers determine the value.  If nothing else, easy access to the Internet has allowed buyers to competitively shop meaning they at least know what is on the market although relying on valuation algorithms is risky.  Houses tend to get the most activity within a week or two of hitting the market.  Once the current supply of buyers knows a house is for sale and no one buys it, something has to energize and existing buyer or other buyers have to start their search;
  • 44% of sellers used buyer incentives to attract interest. The top two were home warranties and closing cost assistance.  These are not guaranteed to get the job done and should be discussed at the outset;
  • 64% of sellers were “very satisfied” with the process; 25% were “somewhat satisfied” and 12% were dissatisfied;
  • The overall median selling price was $259,900. Remember that this is a national number.  The median selling price for FSBOs was $200,000; for agent-assisted sales it was $264,900 and for FSBOs who eventually used an agent the median selling price was $227,900.  This clearly shows the advantage of hiring and paying a professional.

The bottom line is that this can be a very confusing process.  This NOT a retail transaction!  It is typically costly enough without making expensive mistakes.  Unless you do this regularly, I respectfully suggest that you trust a trained, experienced professional.  Whether you want to trust your most valuable asset to someone with little experience or someone who has a long track record is up to you but any professional is likely to know more than an average seller looking to save a few dollars.  I understand that signing a formal contract with someone, even if recommended to you, is quite a leap of faith.  Most of us can offer options to increase your comfort level.  After all, we want to make sure that you “fit” with us as well.

Selling Real Estate is unique compared to most typical purchases:  not only is it much less frequent than other purchases, it typically involves multiple steps, each offering its own challenges.  If you would like to discuss selling or buying or if you have any thoughts about this, please contact me.

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

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

6 Buying, Selling Myths Clients Believe

Filed under: Buying,Hiring an agent,Marketing,Price — awetzel @ 4:41 PM

Today I want to discuss an article posted on “REALTOR® Magazine Online (December 2018).  The article discussed 6 myths about buying and selling Real Estate and I want to add my thoughts to each of them.  The article can be found on my Facebook business page.

Since the Internet inserted itself between the consumer and the Real Estate professional, which is called “disintermediation”, the so-called Internet Empowered Consumer (IEC) has often sought information on their own while delaying contacting a professional.  We humans tend to do that and, in terms of buying or selling Real Estate, it can lead to costly mistakes.  We tend to be drawn to sources that reinforce what we think or which offer pleasant information.  While buying and selling Real Estate is NOT “rocket science”, it typically involves doing basic things to achieve your goal and delaying or failing to manage these steps can derail the best of intentions.  Here are the 6 myths and my comments.

  1. The longer a home has been on the market, the more negotiable the deal is. Prices are what they are.  Sellers have various strategies in mind when attaching an asking price to their property.  Buyers have strategies when making offers.  However, if there is a mortgage involved, the lender will order an appraisal which will consider how a specific property compares to recent sales of similar homes and a loan will either be approved or not.  Aside from any perception about seller flexibility, I would suggest that buyers not avoid a house simply because it has been on the market for a long time.  Do not assume it is a bad house just because it has not sold.  Of course, if it has been under contract and then re-activated there may be something you need to know.
  1. An open house must be part of the marketing plan for a home. While practices may vary, I generally discourage sellers from having open houses because I have heard of too many issues with them.  While they may work, the percentages are low.  I prefer private showings for my buyer clients.
  1. A 30-year fixed-rate mortgage is the best form of financing. The length of the loan should be considered, especially if you have a specific idea as far as how long you plan to own a house but I am more concerned with the interest rate and my client’s comfort with their monthly payment.  A professional lender is better able to advise my client than the Internet and I prefer a face-to-face meeting rather than chatting online.
  1. Overpricing your house leaves room for negotiation. Perhaps true but the bigger concern is whether or not your house will come out in a buyer’s or agent’s search results.  If a prospective buyer can find suitable options at a lower price, even if your house is in their search results, they may never come to see your house or prefer to make an offer on a house that is already more affordable for them.  In the long run, a sale that is financed involves an appraisal so thinking that a buyer will pay above-market may not be the best plan and your sale could fall through.
  1. Online evaluations can give you an idea of home value. The primary tool or attraction of so-called third-party web sites is property listings.  They use them and assorted ancillary tools like property evaluations to attract eyeballs so they can use “views” or “hits” to solicit advertising.  That is how they make their money.  While these sites cost money to operate, I am not convinced that they spend enough on quality information or that they can do everything needed to ever replace human beings.  Much has been written about valuation models and their algorithms and it has largely been negative, meaning that the valuations are too often off the mark. While they may have more relevance in some areas than others, they rely on recorded data rather than recent settled data so the information is stale.  The valuations are also geared towards “average” properties and may be unable to properly evaluate what interests you.
  1. You have to put 20 percent down on a home purchase. There are many programs and many offers involve a seller offering some financial assistance.  A professional can provide advice.  We do far more than open doors and write contracts!

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

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

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