A question I generally do not ask. The only times I have asked the question is when the seller has told me prior to meeting that they are going to have to short sale their home. In those cases I have asked upfront. But, otherwise what does it matter what they owe; if anything?
I know some Realtors will be offended by this.. ”THE VALUE OF THE HOUSE HAS NO BEARING ON WHAT THE SELLER OWES” . To many times I hear sellers tell me that the Realtors wanted to know what they owed on the house before they would present a market price. The market price of the house is our best estimate based on the data we have at that time. If a client has the ability to walk away with $50,000 or $5,000 should not matter to us. What should matter is we are giving the seller our best representation as to the value of the house.
A seller told me when they told the Realtor what they owed on the house the Realtor insisted on lowering the asking price down substantially. She felt he was more concerned about how quickly it would sell at a lower price rather than trying to market and sell it for fair market value.
AS we are in the spring selling season and more people are looking to place their homes on the market; I am hearing more and more often from sellers the same statement “You never asked me what I owed on the house?” and I give the same answer. “The value of the home has no bearing on what you owe on the house. If after deducting commissions and other closing related expenses you are not going to receive enough to cover your mortgage or walk away with what you expect; we can discuss options at that point”.
I think in this tough housing market pricing a home fairly from the start will only enhance your ability to sell the house. But pricing it or recommending a strategy based solely on what a seller owes on the house is doing the seller an injustice.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Tuesday, March 15, 2011
Monday, March 14, 2011
Why Do Realtors Have Different Home Values When Doing Listing Presentations?
I have always thought that we all look at the same information. We all look in the neighborhood the home is in or the surrounding area if it is not in a subdivision. So, why do we all come up with different values of what the house should be on the market for?
Well, I concluded after a listing presentation the other day; it depends on how bad someone wants the listing, how hard they are willing to work, and what is fair. The couple I met today had interviewed six different Realtors before I got there. They were interviewing one more after I left. When I got done with my listing presentation I asked if they had any questions for me. What came next shocked me…
They asked how come we (being the Realtors) have come up with differing prices for their house ranging in the $210,000 range all the way to $280,000 range. I had a look of shock when they said that. I have had listing presentations in the past where the couple told me they liked me but the other realtor was willing to list it for more… I do not take over priced listings in this market….it is to hard to get them sold today at fair market value.
They told me that they have not discussed the values with any other Realtors. So, I asked why me? They said you seemed to be the most thorough in your evaluation of the comparable properties and your justification of your pricing falls in line with what we expected when we started this endeavor.
After perusing through the listing market analysis I noticed a trend based on the pricing strategy. The ones that were telling her to list for a higher price excluded key comparable sales that would not support their pricing strategy (and 2 of them sold within the last 60 days). Ones on the other end of the spectrum used limited properties that showed only bank foreclosures and short sales as comparable (this home is not a short sale). Thus that is how they justified the lower end of the pricing spectrum.
A few of us used both and adjusted accordingly. However; I also pulled tax records and other data to support my price….I was shocked to find out that I was the only one of the eight Realtors they had met so far that did that. I also provided them with a market strategy and pricing matrix based on how long it would take to sell their home. I also was the only one that did that.
After spending another two hours deciphering the data and explaining what some realtors left off and others added to justify their price they said they now understood….I walked away with the listing in hand and a client who realized I was looking out for their best interest….not mine.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Well, I concluded after a listing presentation the other day; it depends on how bad someone wants the listing, how hard they are willing to work, and what is fair. The couple I met today had interviewed six different Realtors before I got there. They were interviewing one more after I left. When I got done with my listing presentation I asked if they had any questions for me. What came next shocked me…
They asked how come we (being the Realtors) have come up with differing prices for their house ranging in the $210,000 range all the way to $280,000 range. I had a look of shock when they said that. I have had listing presentations in the past where the couple told me they liked me but the other realtor was willing to list it for more… I do not take over priced listings in this market….it is to hard to get them sold today at fair market value.
They told me that they have not discussed the values with any other Realtors. So, I asked why me? They said you seemed to be the most thorough in your evaluation of the comparable properties and your justification of your pricing falls in line with what we expected when we started this endeavor.
After perusing through the listing market analysis I noticed a trend based on the pricing strategy. The ones that were telling her to list for a higher price excluded key comparable sales that would not support their pricing strategy (and 2 of them sold within the last 60 days). Ones on the other end of the spectrum used limited properties that showed only bank foreclosures and short sales as comparable (this home is not a short sale). Thus that is how they justified the lower end of the pricing spectrum.
A few of us used both and adjusted accordingly. However; I also pulled tax records and other data to support my price….I was shocked to find out that I was the only one of the eight Realtors they had met so far that did that. I also provided them with a market strategy and pricing matrix based on how long it would take to sell their home. I also was the only one that did that.
After spending another two hours deciphering the data and explaining what some realtors left off and others added to justify their price they said they now understood….I walked away with the listing in hand and a client who realized I was looking out for their best interest….not mine.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Friday, March 11, 2011
Providence Spring Elementary School Charlotte, NC. 28277
Providence Spring Elementary School located off Providence Road in the South center of Charlotte is rated as one of the top elementary schools in the state of North Carolina. Housing students from K thru 5; there 36 classrooms are equipped with the latest in technology through the strong support of the parents.
The school has been nationally recognized for it's academic achievements over the years. With almost 100% of ALL students reaching their goals in reading, math and science every year for the past five years. The school has been recognized as a School of Excellence for having at least 90% of it's students met or exceed the goals set forth by the Charlotte Mecklenburg School board in areas of science english and math.
The schools does not lack in technology or helping to provide the young minds of today room to grow. Last year (through extensive fundraising) the remaining classrooms were equipped with smart boards. That now made every classroom has a smart board for teaching. In addition the school through it's fundraisers was able to purchase 2 new computers for each classroom. This is a great job by the PTO and shows the support this school receives form the community and families.
In addition to the academic classes, the students are enriched in the arts as well. Te art studio has a kiln for the kids to use, their is a music room, computer lab and enrichment and talent enhancement availble for the students.
The school is also blessed to have many board certified teachers and former winners of teacher of the year honors on staff. This justs adds to the academic excellence you receive from this school.
When you are looking for a home to buy with children schools are important. ( I know having four myself in the system right now). Providence Spring Elementary School offers so much for our young minds today.
Dave diCecco
Realtor/Broker
www.davedicecco.com
The school has been nationally recognized for it's academic achievements over the years. With almost 100% of ALL students reaching their goals in reading, math and science every year for the past five years. The school has been recognized as a School of Excellence for having at least 90% of it's students met or exceed the goals set forth by the Charlotte Mecklenburg School board in areas of science english and math.
The schools does not lack in technology or helping to provide the young minds of today room to grow. Last year (through extensive fundraising) the remaining classrooms were equipped with smart boards. That now made every classroom has a smart board for teaching. In addition the school through it's fundraisers was able to purchase 2 new computers for each classroom. This is a great job by the PTO and shows the support this school receives form the community and families.
In addition to the academic classes, the students are enriched in the arts as well. Te art studio has a kiln for the kids to use, their is a music room, computer lab and enrichment and talent enhancement availble for the students.
The school is also blessed to have many board certified teachers and former winners of teacher of the year honors on staff. This justs adds to the academic excellence you receive from this school.
When you are looking for a home to buy with children schools are important. ( I know having four myself in the system right now). Providence Spring Elementary School offers so much for our young minds today.
Dave diCecco
Realtor/Broker
www.davedicecco.com
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