Palm Beach Real Estate and Loans

I've been tossing this idea for an article around for a few days.

Then I came across a post on Miamism written by Rick & Ines that said pretty much what I'd been thinking about.  Hey, great minds think alike!

In the article they present 3 Scenarios, all of which deal with current problems in the Real Estate Industry.

Here is the first one where a potential Client interviews three Listing Agents :

"

•  Agent 1 tells them the truth about the miami real estate market and how they will sell the home for a lot less than they had planned. 
• Agent 2 tells them they will list the property at whatever price they think is right and will recommend reductions as time progresses. 
• Agent 3 tells the buyers that they can get $200,000 more than what Agent 1 said. 

What surprises us is that 9 times out of 10, the sellers will choose agent number 3 – even if that agent is not being realistic, even if that agent will NEVER achieve their goal.   The house ends up sitting on the market for months, it may have a couple of contracts that fall apart because the house simply will not appraise, and the house will end up selling bellow Agent 1’s price.

We have seen this happen so many times that we just roll our eyes and cannot believe that people can be that naïve. We realize that being ethical and truthful is not important to a lot of sellers."

All you have to do is swap Palm Beach for where they said Miami and they are 100% right.

All too often Clients want the TRUTH - but only as long as you agree with them.

Whenever I go on a listing appointment, the most important thing that I bring is called a Comparative Market Analysis or CMA.  It suggests a price for the real estate based on recent sales of similar homes in the immediate area.  We also review what current comparative homes are listed for.

Who do you think winds up with the listing more often then not?  Easy, the Agent who says they can get the highest price.  Even if it's unreasonable and unprovable most Clients' eyes haze over when they hear the highest price and that's that.

I talked to a couple a few weeks ago - their house is currently listed, but the husband asked for my opinion as to why his home had been listed for so long without any takers.  It was easy to see, overpriced by a good $50,000 and if any advertising was done (other than the MLS listing that only had 1 picture) I couldn't find it.  The wife had a fit when I mentioned price and then when I showed them that the average number of days on market in their area was 183 - and they were well over 400 - it didn't bother her 1 bit.  Why? Because her Agent knew "exactly what she was doing".  Besides - "didn't I know how many homes were sold in the area"?!?!? Actually, yes I did.  Since the beginning of 2007 only 3 sold.  Her response - I was wrong because her Agent informed her whenever a neighbors' home sold!!!!  Folks - you don't need MLS access to see what has sold in your area - once the transaction is closed it becomes PUBLIC RECORD and anyone can get the info from the County Property Tax Appraisers Office.  Check things out for yourself.

Besides (just to rant for a bit more) if so many homes were selling, why hadn't theirs?!?

Here's another example: I was asked to come to check out a local condo.  I did my research, talked to my Broker and we agreed that depending on the condition of the unit, it should sell for about $199,000.  The Sellers had a fit!  Obviously we had no idea of what the place was worth!  Basically they wouldn't list for or accept a dime under $600,000.  I asked if they had talked to any other Realtors® - they had already had 3 other companies refuse to take the listing and I was the fourth.  This is an extreme example, but it does happen.

I focus on Palm Beach real estate - one of the busiest people around here is famous for listing homes for whatever the customer wants even if it's outrageous - and it often is!  Do the houses sell?  Eventually they do - after multiple, extreme price changes and they sit on the market for more then double the usual time.  The price that they finally go for is what they could have been listed for in the first place and they would have sold much faster.

Another classic trick that I see in the area is when an Agent takes over an expired Listing after winning over the Owners by INCREASING the listing price!!!  How do people fall for this stuff??  If your home didn't sell for $X in a year's time and prices are going down, what Buyer is going to be stupid enough to spend MORE then what it originally was overpriced for?!?

OK - before this blows up into an full-on Dennis Miller-style rant let me leave you with a question:

- You and your family want to / need to sell your Palm Beach real estate.  You want a professional to help you get it sold as quickly as possible.  Do you listen to me and price it properly so that it will be sold before Spring 2008 or do you give the listing to another agent that promises to get you more money and you wind up having the home on the market for over a year?

2 Other quick things:

• Most of the time Buyers get mortgages to purchase a home - this requires an appraisal and if your home isn't worth what you're asking, there is no loan and no sale.
• At the absolute LOWEST end (from your standpoint!) is my pay.  Realtors® make their money on a percentage of the sales price.  OF COURSE I want to sell it for as much as possible!  But asking too much and never selling the property doesn't do me or you any good.

Please make sure to check out that post on Miamism.com and also Reality Check! and This is NOT How to Price Your Home.

Next - call me and let's get your Palm Beach property SOLD this season.

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