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Old 09-29-2007, 04:39 PM
 
Location: Pennsylvania, USA
5,224 posts, read 4,986,458 times
Reputation: 908

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Quote:
Originally Posted by TomMoser View Post
It has clearly turned into a "Buyer's Market". If you are selling and buying a bigger house in the same area, this market may be to your advantage. Here's how:

Home prices are down about 10%. To make the numbers simple, if you are selling a home that last year was worth 500,000 and buying a home that last year was worth 1,000,000, you would only get 450,000 for the home you are selling (a 50,000 "loss"), but you would buy the 1,000,000 home for 900,000 ( a 100,000 "gain"), so you are ahead of the game.

There are effective strategies for dealing with every situation in every market.

The key to selling is price. In today's market you need to get ahead of the curve if you want to sell. Too many sellers are chasing the market down. What I mean by that is they price their homes too high to begin with and then, when no sale occurs, they begin to lower the price in small increments. The market continues to slide, they lower their price again, but never get it to the point where it is priced right.

This is the same thing that many would be buyers did a few years ago. I worked with one young couple who started out saying "Our maximum price is 250,000" when starter homes cost 275,000. Next, their maximum price was 300,000 when starter homes cost 350,000. This went on and on. Obviously, had they alligned themselves with the market to begin with, they would have gained a lot of equity. This same thing is going on with many sellers today, but in the reverse direction and they are going to end up losing a lot more then if they priced their homes correctly to begin with.

Tom is right (I'm a realtor too) . For the most part I have had no problems selling the listing I have because I've had them priced right.

Marketing, though, is very important too. If you have a realtor that will just throw the home on MLS and stick rd yard sign out front and pray that it sells, then that is NOT the agent you should list with. Price captures buyers but that must be coupled with 1) excellent photos of the interior of the home. Especially if you are in a neighborhood that appeals to first time buyers. We are the genx'rs and y'rs that do EVERYTHING and research EVERYTHINg on the interent. If it doesn't have good photos that lets them see the house before they actually go out adn see it,they will skip it and move to the next.

Presentation.. also key! There are two type of homes that are selling at a pretty good pace. People either want to buy a home that is completely updated (within the last 5 years or so) with bathrooms, kitchens etc. or homes that are outdated that need everything (these homes tend to be priced at the lowest.. making them appealing for the first time buyer that sees the potential in making it their own). If your house falls somewhere in between.. meaning that it's very neat, clean but the bathrooms are somewhere between outdated and updated it's priced in the middle of the market. Too high for a person that wants to come in and update and put money into it..but not new enough for those looking to come in and just move right in. . if you know what I mean. I'm not saying to update if you are in the middle, simply stating that you'll need to realize where you are when you are deciding on pricing. Your Realtor should make suggestions on how to "stage" your home.. maybe movign furniture around to make it more spacious..removing pieces of furniture to make the room look bigger and by all means removing any "clutter" .. keep the space as clean and simple as possible. These homes DO sell faster. Give it some curb appeal as well.. neat and clean and if you can add some flowers out front to add color.

But.. be aware.. all the "sprucing" in the world won't sell a house that is overpriced!

Good luck!!
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Old 09-29-2007, 04:58 PM
 
Location: home...finally, home .
8,797 posts, read 21,201,231 times
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I sold my last house in Newsday in less than two weeks . I don't think that I'll be as lucky this time, though. What % are most realtors getting and what are the advantages of having one (as a seller) would you say, Tom?
Also, I am working with a realtor in Portland where I am moving. She sends me listings now and then. WIll I be paying her, do you think? Or is it always the seller who pays the agent?
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Old 09-29-2007, 06:23 PM
 
Location: Pennsylvania, USA
5,224 posts, read 4,986,458 times
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Quote:
Originally Posted by nancy thereader View Post
I sold my last house in Newsday in less than two weeks . I don't think that I'll be as lucky this time, though. What % are most realtors getting and what are the advantages of having one (as a seller) would you say, Tom?
Also, I am working with a realtor in Portland where I am moving. She sends me listings now and then. WIll I be paying her, do you think? Or is it always the seller who pays the agent?
Hi Nancy.. I know you addressed this to Tom.. but I'm an agent and I can answer that for you.

The first part of your question : I can not really discuss the % that Realtors get, nor can any other realtor really.. it's against our licensing laws. But.. what I will say is this.With the market conditions changing, it is taking ALOT more time and money to market homes. Commissions will go back and are already headed back to post boom levels... for one, the "discount" realtors are being pushed OUT of the business. Foxtons just announced this week that they are shutting their doors, working with a skeleton crew and may be declaring bankruptcy. Their model CLEARLY doesn't work, not in this market. No service, not enough marketing and follow through by a knowledgeable agent. Basically you were paying them 3% to do the work yourself. AND.. if THEIR model isn't making it the FSBO is having an even tougher time. Even in the hot market it would take a FSBO twice as long to sell their home.. so rather than in 2 weeks it would have taken 4 (in a HOT market) and for less money hands down.. because they werent' getting the multiple bids Realtors were . Now we're looking at more like 6 to 9 weeks (if the home is priced correctly) through a Realtor and so double that for a FSBO.
Then factor in that people shopping for FSBO are usually looking for a "discount" becasue they know the seller isn't paying out a commission (which the comps in the neighborhood already have commission worked into the sale price because the commission comes off the sales price). Most who shop FSBO's are shrewd negotiators.. and it's tough to negotiate with a homeowner directly, as they are emotionally involved in the transaction.

Now.. with a REALTOR there are several benefits. For one, you have a buffer.. someone to mediate the negotiations that's a neutral third party. You have no idea how "upset" each side can get in a transaction when negotiating and how we are in the middle empathizing with each side and are the voice of reason. I can tell you that had I not been in the middle of many negotiations the buyer and sellers would never have come to an agreement ..talk about a Mexican standoff!
The second and the MOST IMPORTANT in ANY market is exposure. The FSBO can not give the home the exposure a REaltor with a good marketing plan (particularly internet wise) can give a home. It's simple.. you need to find 1 buyer.. but it's easier to find your 1 buyer amongst thousands then it is to find your buyer amongst a few hundred. Also.. feedback on WHY your home isn't selling is important and a good agent will follow through with all agents or individuals that came through the home to find out what their thoughts were.... for example..I had a listing with a retaining wall int he back that made the yard seem smaller than it was.. the homeowner learned that this is a problem and together we figured out a solution that we could confront. You WILL NOT get an honest answer from a person walking thruogh your home when they deal with you directly.. it's awkward at best and no one wants to insult the homeowner. You will also know quickly from other agents and buyers if the asking price is right or not by that feedback.
Another important point is that we're now in a market where mortgage pre-approval from teh RIGHT sources along with information from buyers about their credit, etc. is extremely important. It is our job to ask potential buyers what their FICO's are and to speak with the mortgage person directly, if not refer them for a 'second opinino" to a broker we trust. In the shift with tightening restrictionst here were a lot of contracts that ended up NOT closing at the mortgage table becasue the programs buyers were in no longer qualified. We know how to combat that, head off any problems and stay on top of a deal.. and IF a deal starts going south.. we know ahead of time so that we can get it back on the market fast to look for a new buyer.

Important thing is to interview atleast 2 or 3 agents.. look at what services they offer and what their strategies are to make your home stand out more than the others. Dont' always take the Realtor offering the "less" of the commissions because sometimes you get what you pay for. And.. when you do hire a realtor, if they do not keep on top by updating you atleast once a week (even if you had no activity they should e-mail you or call you) then you need to speak up .

Good luck! and i hpe this has helped.. sorry Tom.. I hope I didn't step on toes here...

Oh.. and for your second part.. if you decide to sign a contract with the agent as a "buyers agent" then she works for you. Technically taht means that you are responsible for whatever commission you set, however, agents usually offer out a "Buyer Broker" Commission to agents because they want those agents to show the home as well. Let's say the Buyers Agent commission is 2% that you have signed with and there's a listing offering a 1% Buyer agent commission, then technically you are responsible for the addition 1%.. howver, your agent, when negotiating your offer, will present the offer with "That offer includes the addition 1% buyer broker commission that is not offered" .. because ultimately commissions are worked into the price of the home which is ultimately financed through the buyers mortgage..

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Old 09-29-2007, 08:02 PM
 
6,764 posts, read 22,012,768 times
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I would say about a year or so, maybe 2, things were buzzing along. Then suddenly everyone from the owner of the local crapshack to people in McMansions got greedy as houses began selling high.

Everyone thought 'Ah!' and where I lived the signs kept going up. As of when we moved (didn't have a house to sell...thankfully) many of those signs were STILL up. Three or four in a row on some streets.
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Old 09-30-2007, 11:47 AM
 
Location: East Northport
3,351 posts, read 9,724,194 times
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To TristansMommy: You may want to adjust your profile to show your real name and indicate that you are a Real Estate Agent. Doing that has helped me get some business.

To Clamboy: Thanks for the plug for East Northport and Kings Park. I like Rocky Point, too. If you will post or send me a private message with your MLS number, I'll try to highlight it to people who are looking in your area.


To Nancy: I'm sending you a private message about commissions. I concur with all that TristansMommy told you.
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Old 09-30-2007, 12:20 PM
 
1,876 posts, read 2,657,640 times
Reputation: 86
Quote:
Originally Posted by TomMoser View Post
To TristansMommy: You may want to adjust your profile to show your real name and indicate that you are a Real Estate Agent. Doing that has helped me get some business.

To Clamboy: Thanks for the plug for East Northport and Kings Park. I like Rocky Point, too. If you will post or send me a private message with your MLS number, I'll try to highlight it to people who are looking in your area.


To Nancy: I'm sending you a private message about commissions. I concur with all that TristansMommy told you.
No problem

You definitely know your area.

I see alot of similarities between Miller Place-Rocky Point and E. Northport-Kings Park.

Many of the couples who have been through have been from out that way and priced out of the Northport area.

Ill PM you

Thanks Tom
Youve been spot on on the money with your market insight too.

C
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Old 09-30-2007, 08:33 PM
 
903 posts, read 3,566,083 times
Reputation: 400
Realtors-hows Dix Hills/Melville doing in this market?
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Old 10-02-2007, 03:10 PM
 
Location: East Northport
3,351 posts, read 9,724,194 times
Reputation: 1337
Quote:
Originally Posted by amyla View Post
Realtors-hows Dix Hills/Melville doing in this market?
About the same as everywhere else. The "move up" houses in the 700-800 range are a particularly tough sell these days, so Dix Hills is pretty stagnant. Parts of Melville where there are less expensive homes are fairing somewhat better. In any town, it's the lower end of the range that are the only homes showing any positive activity, because prices have dropped on some homes to where first time buyers who got priced out of the market are able to get back in.
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Old 10-02-2007, 04:00 PM
 
903 posts, read 3,566,083 times
Reputation: 400
I'm glad that it is becoming easier for first time buyers. When we got married 12 years ago, we took our 15K wedding gifts and savings and used it for a down payment onbeautiful townhouse that cost 140K-such a nice start but impossible for people starting out today.
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Old 10-02-2007, 06:10 PM
 
Location: NY in body, Mayberry in spirit.
2,709 posts, read 2,266,169 times
Reputation: 6441
Tom's advice about staying ahead of the market is absolutely right. I sold and bought in the same area last oct., just when the market started to cool down. Wanting to sell as soon as possible, we priced at a very reasonable amount to attract attention. We ended up with two buyers bidding up past our asking price. I realize that is a lot harder to do now, but if sellers REALLY want to sell, get ahead of the downturn, even if it hurts. Your house just is not worth what it was when you first decided to sell. I see houses for sale that I looked at a year ago. I sold in less than 3 weeks at the same time these houses were listed. If they had been more realistic, they would have moved already.
BTW, to believe that the market is down because the "cons" are in office is one of the silliest things to pop up here in a long time. The market was on fire while those rascally "cons" were in office. Silly liberals. Grow up.
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