Archive for November, 2010

It always surprises me that when I am interviewed for the job of selling a home here in southern Vermont,  that the discussion is limited to price, commission and length of agreement.  Don’t get me wrong – these are very important issues for every homeowner but here are some other discussion points that can help determine who you should hire.

First, here are questions you should ask about the real estate agency:

1)  Where does your company rank in production with other Realtor® firms in your marketing area?  For us, our marketing area includes the towns of Arlington, Shaftsbury, North Bennington, Old Bennington, Bennington, Pownal and Woodford.

2) How does your company handle coverage on weekends and Holidays?

3) How much support staff does your company have, including receptionist, floor time Agent and managers?

4) What is your marketing plan in general and specifically for my home?  Does your company conduct weekend Open Houses, and if so, why are they beneficial or not?

5) What percentage of the sales price is offered by your company for co-brokerage for a customer and buyer brokerage?

6) Do you have a list of print media as well as internet marketing sites that you routinely use and do you have examples for sellers to see?

7) Do you have a website and do you keep it fresh?

8) What are your business hours and how do  you cover the phone lines and the office?

9) What kind of ongoing training do your agents consistently receive?

Now, here are some questions for the Sales Agent:

1) How long have you been in the business?

2) How many homes have you sold in my price range?

3) Do you have letters of recommendation from past clients?

4) What is your policy on staying in touch? What can I count on?

5) When my property is shown will you get back to me as soon as possible but at least within 24 hours with feedback?

6) Will you give me all the information that I need such as checking current pending sales and closed sales as well as increases and decreases in inventory so that I can make an educated decision about my list price?

7) Will you optimize my marketability by helping me stage the home for showing and continue this action via feedback from all showings?

8)   Will I know when my property has been advertised?

Here is an interesting point – it is a well known fact that sometimes agents with no experience excel in their first three years in the business. Why? Because they believe and do all of the necessary steps to find you a buyer and they are assertive and not yet “burned out” or overbooked.  It is not uncommon for a top producer to have an assistant as his or her business grows beyond one person’s capability to be efficient.  Top producers can falter if they don’t have someone to help them with the paperwork…don’t be mislead by the “top producer” who can’t delegate and gets further and further behind.

At Hoisington Realty there are two part-time employees who aid and assist agents in staying in touch with existing clients and setting up appointments. 

As always, personal referrals and the reputation of the company and agent are primary but a little more digging at an interview may save you from an unhappy real estate experience.

At this week’s sales meeting, I was stunned to see in our weekly report that we had put nine properties under contract here in the Bennington area.  Despite a still slow economy it made me reflect on the buyers who committed to homeownership with all of its benefits and put their faith in the future.

Granted, we are not out of the woods by any means but it was reaffirming to see this type of activity at the end of the season.  So…why did the homes that sold rise to the top of a very competitive field of homes and what made the buyers choose these properties in particular.  It begs the question: Is there a formula that some sellers, with the aid of their Realtor, have figured out or is it just the luck of the game?  I’m a firm believer that luck is usually a combination of timing and hard work…you have probably heard the saying “The harder I work, the luckier I get!”  This applies to home sales too.

So let’s look at the group that went under contract.  Here are some interesting facts:  Eight of the nine properties were homes; one was a parcel of land.  All of the residential properties were well priced within their price range and as a group, the final sales prices fell within ten percent of their final list price; the land was within twenty percent of its final list price.  Five of the nine properties fell within the most popular price range within our area and all of the sellers of these properties had recognized market conditions and moved off their first list prices to be as competitive as possible.  Five of the properties sold to people already living in the area and four of those were first time home buyers; three of the purchasers were relocating to Bennington for employment.  One of the residential properties was being purchased as an investment.

The average days on the market varied with the most expensive home being on the market for the longest time and the quickest sale was made to a first time homebuyer; it was a property that was priced competitively within the most active price range.  Yes, just like the lottery, you can wait to sell by pure luck or you can objectively look at the marketplace and create a plan for success.  That is what we at Hoisington Realty are dedicated to - kudos to our staff that made these sales happen this week!

Bennington is not all that different from any where else in America when it comes to marketing real estate.  It often occurs to me that Fair Market Value is a moving target and that, within a certain range, we cannot pin point it exactly for any property until that property sells. 

With all properties, a Realtor looks at comparable home sales to begin the assessment of value.  Primary in this search is to find sold homes that are as similar to the subject as possible in terms of style, location, condition, square footage and amenities (fireplaces, decks, etc.).  When these similarities can’t be found, adjustments must be made to bring the properties into comparability.  That is the beginning, not the end, of the analysis and here is where Realtors differ from appraisers.  As Realtors, we are concerned with placing your property within a price range that will make you competitive or highly competitive to be sold; we research the active comparables that you will be competing against as well as pending sales that are comparable with your property.

This is an individual discussion with a seller.  Some sellers need to sell immediately and want to be the best buy in their price range and other sellers want to wait and see what happens if they start at the top of their price range, choosing to make price reductions later if the property doesn’t sell.  This can be a dangerous game as the listing gets older as time goes on and there is always a supply of new “fresh” listings coming on the market.  It is surprising, though, how many sellers who are not pressured to sell choose this route over the highly competitive route which has a mucher quicker success rate.  Within a certain price range there can be a 10% varation so most Realtors will accept listings within that assessment. 

There is a clear and absolute definition of Fair Market Value and that is this:  “the price a willing buyer and a willing seller agree upon, neither party being under duress”.  That is the final sales price at closing, not the original list price.  Yes, in rare cases that price is the same but when that happens it is because the seller priced to be the best property in his or her price range and had perfect maintenance, to boot!  All markets revolve around the concept of supply and demand and even within the time your home is on the market that situation can change on a daily, weekly or even monthly basis.  It is also true that a good Realtor will have all the facts that you need to stay on top of this.  Every price range has different supply and demand and it is critical to understand that piece of the equation. 

If you are considering the sale of your home, land or commercial property, give a Hoisington Realty agent a call.  We can help you assess the market and how your property will compete with other properties.  We know our stuff!

Today I was thinking about why some homes sell easily and others sit and sit no matter what you or your real estate company does to make it happen.  There is, above all, the reality of the market which tabulates supply and demand or to put it differently, there are homes stuck in price ranges that have no movement due to too much inventory and too few buyers.  Why this is so is a subject worthy of its own blog and I will get to that at another time.  But for now, let’s assume that there is activity in your price range and you want to know how to move to the front of the line and get sold as soon as possible.

First and foremost, put yourself in a buyer’s position and be critical of how your home looks.  In reviewing home presentation with my sellers, my favorite action points are: curb appeal, fresh interior, no clutter, strategic pricing and a friendly, positive attitude about showing of their home at all times.

Here is a list of negative or passive things that weaken your position; remember, you are competing to be best of kind, every time your home is shown:  no showings on certain days, dogs that need securing, maintenance issues, odors such as smoke or dampness, less than perfect bathrooms and kitchens, cluttered attics, basements, closets and garages, soiled or worn carpets, personal hobbies and photos extensively displayed that distract from the home…I think you get the picture!  Again, back to the buyer who has the opportunity in this market to judge your home against many others – that buyer will be attracted to clean, fresh and simple presentations that allow them to envision their own lifestyle in their next home, not yours.  Don’t forget that your mission is to attract the buyer and receive an offer.  Once you have the offer you gain a measure of control because the ball is now in your court.  Without an offer you are just one of many home sellers sitting and waiting.  Don’t forget that there is no absolute best price for your home.  The market is a fluid entity and can best be determined within a price range, not one intractable price.  Many times it is the negotiation of favorable terms that makes a deal a win-win for both parties, not just the price