Welcome to the RE/MAX Waters Advantage! Orangeville Real Estate Blog

6 Reasons why your house won't sell

1. Your photos are unimpressive. The vast majority of home buyers start their search for a home on the Internet, your house had better look great in print. Not just nice... downright fabulous.  Today we are considering internet views as a 'virtual showing'... if your house gets past that, then they might (just might) make an appointment to see it in person... We consider that your SECOND showing. Today's buyers are expecting good quality photos (and lots of them... just 1 shot from the street won't cut it!), a virtual tour, maybe even a floor plan, if applicable.

2. It's overpriced. You've got to view your own property as objectively as possible.  Look at the home like a "buyer"... if necessary, go out with your Realtor and view other homes that are priced comparably to yours.  Be objective.  Given the other options on the market (and yes, you DO have to include short sales and foreclosures on your list... your potential buyers are!), would YOU buy your home, over the others on the market?

If no, then you either have to "update" your home to meet or beat the competition... or lower your price to adjust for it.  if you can't afford to sell it for the price, that you KNOW it should sell for, you may want to consider just removing it from the market.

3. It shows poorly. This could mean almost anything... from the barky, barky dog, to the smell of the diaper pail.  Maybe the carpeting is a bit worn, or the woodwork shows a lot of wear.  All things that don't show up on the internet, but whoa.... once you get inside the house... they show up, like a cat-urine-smell on a 95 degree day in New Orleans!

4. You're invisible. Today's buyer comes from the internet, almost exclusively.  Have you (or your agent) simply plopped the property on the MLS, and started praying?  Are you on all the websites...(Trulia, Zillow, Craig's List, Google Base, etc...) all the places that buyers are searching?  If not, you want to be.

5. Your listing is tired and stale on the market. Okay... yes, you overpriced your home initially when you first came on the market 2 years ago.  But since then you have reduced your price almost monthly... constantly chasing the market down.... Now, finally you're truly priced where you should be... but your listing is tired and stale.  Everyone looking for your type of property (ie: 3br/1.1 bath) in your area has already seen it, sometimes twice... and they remember that there was "something" about it that they didn't like... but what they don't remember is... what they didn't like.... was the price.   Time to take the listing off market.  Let it cool off (3-6 months), and bring it back on fresh in the Spring.  Yeah, you'll have 6 mos. worth of holding-costs... but you'll more than make up for it in your purchase price.

btw... Resist the temptation to bring the house back on at a higher price, than when you left the market.  Just "don't do it"!

6. Your house won't appraise. The house looks great... you've finally gotten someone to bring you a bid on your slightly over-priced, but beautiful pied-a-terre.  But the bank appraiser says it's worth $20,000 less than what they've agreed to pay.  Heavy sigh... bite the bullet.... negotiate with them.   If you have to drop the price $20,000 to make it work.... "make it work"... chances are, anybody else trying to buy your house will run into the same problem.

A Letter from a Happy Client

Below is a email I received this morning from Bill Perry who is a client of mine, I had helped him find a commercial space for his woodworking business in Toronto (Leaside area) last October.  Since then Bill and his wife Catherine have now succeed in making Wm Perry Studios into a hands-on project and skill workshops in a well-designed classroom.

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Hi David,

The new digs on Parkhurst are working out well. It's a nice space to work in and it's ideal for seminars.

Catherine's been working on the media for us. Andrea Ford from Chatelaine came to a seminar & reported it on her blog:

http://blog.en.chatelaine.com/tag/wm-perry-studios/

and we just got a page in the new Zoomer (attached).

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August 2009 Canadian Real Estate Update!

Good information on the the real estate front!

Behind the Scenes - How An Agent Prepares for Listing Your Home

De-bunking the myth that "My agent didn't do a damn thing to get my house sold... he just got lucky and now I have to pay him all that money for nothing!"

Since "Luck is what happens when preparation meets opportunity," let's take a peek Behind the Scenes to find out what makes your agent (and you) so "lucky."

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

 

As the curtain opens on this drama, your real estate agent is showing property to out-of-town buyers for the 3rd consecutive day.

Scene 1.  Phone rings...

Caller (You):  Do you handle homes Caledon?

Agent:  Yes I do, how can I help you?

he speaks with you briefly and makes an appointment for later in the week.  Then the agent's attention returns to the buyers he's working with today.  They want to make an offer on one of the properties he showed them, so the next few hours are dedicated to preparing their offer, going over the details with them, and delivering their offer to the listing agent.   The buyers head home to await a counter-offer, and your agent now focuses 100% on your real estate needs!

Scene 2.  Back at the office...

1. Agent sends you a follow-up email to thank you for your call and confirm your pending appointment.
2. Agent searches and finds the public record on your property and takes note of the lot size, finished sq. footage of the house, zoning, assessment amounts, details of last property transfer, your property tax amount, and other relevant information.
3. Agent utilizes Google Maps or other Internet program for (1) a street view of the property and (2) an aerial view of the property which will indicate if the property backs to a major highway or a golf course, if it is on a corner or interior lot, if it adjoins a school or a junk yard... 
4. Agent contacts utility companies to determine the average monthly costs for your property.
5. Agent identifies nearby properties listed in the mls for sale and those under contingent contract and - based on the size, features, condition and location - chooses those most similar to your home.
6. Agent identifies nearby properties listed in the mls that are sold and others that are pending settlement and again - based on the size, features condition and location - chooses those most similar to your home.
7. Agent checks for any Power Of Sale's to determine if any nearby properties are going to be affected regarding their price.
8. Agent checks the public record for recently sold properties in your community so he doesn't overlook any that sold without an agent.
9. Agent maps the selected properties to show their proximity to your home.
10. Agent prints out mls listings for the selected properties and sets them aside with the map to provide you copies or, in some cases, to keep in the file she is building on your property.
11. Agent researches market statistics for the postal code where the property is located and, depending on recent sales activity in the immediate neighborhood, he may also compile market statistics for your specific  neighborhood.
12. Agent calculates the average and median sale price, the average days on market, and the percentage of list price to sold price; he determines how many homes were on the market last month and how many sold so she can calculate the absorption rate; he determines how long homes were on the market before selling last month.
13. Agent does the same for at least three prior months (perhaps more) to identify any trends.
14. Agent creates colorful charts, graphs and tables to provide a clear visual representation of all this data.

Scene 3.  Next morning, in his car and armed with a camera... 

1. Agent takes photos of your property exterior from the street, including close-ups of curb-appeal problems like fungus on the roof, dead shrubs in front, visible clutter in the carport.
2. Armed with the list of six or more nearby properties (see above) and a GPS system, your agent drives past each property and takes notes... perhaps also some exterior photos of these comps.
3. Agent photographs the neighborhood school, playgrounds or tot lots, golf course or beach (if any), community clubhouse (if any), nearby shopping areas or other assets of the area where property is located.  NOTE:  If the day is rainy or overcast, this will require a separate trip on another day.

Scene 4.  Later that day, back at the computer...

1. Agent carefully organizes and reviews all the material collected over the past few days.
2. Agent customizes a written listing presentation for you, merging the comps, graphs, tables, maps and other information specific to your property with "standard" information prepared by the agent at an earlier time.
3. Agent estimates the likely selling price of your property, based on the accumulated information and experience/training.
4. Agent estimates your net proceeds after all closing expenses, based on the accumulated information and experience/training.
5. Agent reviews the finished written product to confirm that it is clear, concise, and easily understandable - you would never imagine how many hours are invested in researching and analyzing these materials, or the expertise required for an accurate and reliable recommendation.
6. Agent binds these materials with a cover sheet and gathers other previously prepared (or purchased) brochures and written materials to give you, as well.

 

Your agent knows that "Luck is what happens when preparation meets opportunity."  His thorough and accurate preparations are a key element in creating this "luck" for you... and the reason you pay him - but not UNLESS and UNTIL he procures a buyer whose terms are acceptable to you.

To be continued...

The Case Of The Disappearing REALTOR®

Sounds like the title to a tantalizing new mystery book, doesn't it?  A book like that might be chock full  of suspense with the characters experiencing emotions ranging from confusion to frustration and a maybe even a dash of irritation.

Too bad that what I'm talking about here isn't fiction.  For far too many home sellers, this mystery is all too real and common.  Every day in our market sellers are wondering "What happened to my REALTOR®?"

I handle a lot of sellers who have had their listings expire from the MLS for one reason or another.  Sometimes it's price, and other times it's lack of attention from the listing agent.  Here's a prime example:

This summer I visited with a seller that had his home on the market for one year with another agency.  His listing had expired and he was interviewing new agents.  A really good move on his part - sellers should talk to as many potential agents as possible to find a good fit for both them and the agent.  A few days after we talked, he called to tell me that he had chosen another agent but that it was a close call.

His house has now been on the market for over 360 days.  When I pulled up the listing history in the MLS, I noticed that the listing had only been touched once over the past year - and that was to extend the listing agreement.  In our MLS, agents input prospects to receive listings as they come on the market - the catch is that if your listing is there BEFORE the prospect is entered by the another agent, the prospect doesn't receive your listing.  So for approximately 10 months, his listing has sat there unattended and has not been populated into the listing cart of ANY prospect after he was listed.

It's actually sad, isn't it?

The number one complaint I hear from sellers who have had their listing expire is "My REALTOR® stuck a sign in the yard and disappeared.  I would have lowered my price if they had taken the time to do a market update every few months.  I never heard any feedback from showings, and in the 100 degree summer my house was being marketed with a picture of it with snow on the ground.  What gives?"

I believe that there are some agents out there that think the work stops when you get the listing agreement signed.  That's just not the case.

The gentleman in my example above took all the right steps, he interviewed multiple agents and he didn't pick his agent based solely on price.  So how can home sellers avoid becoming the main character in a bad mystery novel?  Arm yourself with these 10 questions for any agent you interview.

1.  How often will you communicate with me?  How will you communicate with me?  (If you prefer a call and your agent prefers e-mail, hash that out now.  Communication is the foundation for a great team, and you and your agent are a team).

2.  How long do you normally take to return a phone call?

3.  How long do you normally take to respond to an e-mail?

4.  Will you provide me with market updates that compare my house to ones that have closed as well as my active competition?

5.  When the seasons change, will you update your marketing materials?

6.  Will you set me up in the MLS to receive automatic e-mails when something new comes on the market that my home will be in competition with?

7.  Can I deal with you personally when I have a problem, or do I have to go through your assistant?

8.  Will you provide me with a monthly status update about where my home is being advertised?

9.  Even if you can't reach the other agent for showing feedback, would you please still call me and at least let me know that?

10.  Will you change MLS descriptions every few months to give my listing a fresh look?

If you receive an unsatisfactory answer to any of these questions, move on to the next agent.  The seller-agent relationship is not like an employer-employee relationship... it truly is a team effort and you must find an agent that matches your style for your home sale to be a success.

Questions about selling your home?  Stop by Starbucks in Montgomery Village every Thursday from 12 - 1 to have them answered.  I'll be there talking all things real estate - and I'll even buy the latte.

Buyer Representation: Who's Really Looking After YOU?

One of the most misunderstood concepts in real estate involves Buyer Representation.

In fact, I know a lot of REALTORS who don't even get it.

I'll try to break it down as simple as I can...

Normally, when a home is listed, the seller agrees to "co-operate" with any real estate professional who brings a buyer, negotiates the sale, removes the conditions and closes the transaction.

The listing agent works for the seller - that makes sense.

But here's the part people have trouble with...

All the other 20,000 agents in the Toronto area?  They also work for the seller as "sub-agents".  After all, the seller is paying them, so it makes sense that this is the default setting.

In other words, if you emailed me today (out of the blue) asking for information about a home, I would work for the seller.  My sole interest is to protect the seller and get him the highest price and best terms to his benefit.

Even if you're my best friend in the whole world.

Seriously.

UNLESS we agree that I will be your "Buyer Representative".

A Buyer Representation Agreement is something that's done in writing, because everything in real estate is in writing.

Our Code of Ethics says we need to disclose this as soon as possible.  Unfortunately most Realtors don't.

Simply put, this Buyer Representation Agreement says that even though the seller pays me as your Buyer Representative, my legal duty is to ensure YOUR interests are protected as a buyer.  It gives me permission to work for you, and not the seller.

Wait, there's more -- under a Buyer Representation Agreement, it's the duty of your "Buyer Agent" to keep your information confidential, and to make sure that the best price and terms are negotiated for your benefit.  They will tell you the truth about market value, because they are under a contractual obligation to look after your interests.

On the other hand, if there is no Buyer Representation Agreement in place, your agent automatically works for the seller, and they would show you prices that would validate the seller's asking price.  Their job is to protect the seller instead of you.

As you can see, NOT signing a Buyer Agency Agreement could cost you thousands of dollars more than what you might pay with the help of your own Buyer Representative.

The purpose of this Agreement is so that there is understanding, consent and clear boundaries about who's really working for who.

It switches the default setting over to YOUR best interests, instead of the seller.

The agreement can last anywhere from one hour to several years.

Is it a commitment in writing?  Yes it is.  So be sure to ask your representative if they offer an "Easy Exit Guarantee" if you're not happy.

All great businesses offer a satisfaction guarantee, and real estate should be no different.

Needless to say, we have an "Easy Exit Guarantee" in place. :)

This isn't a sales pitch - it's something everyone needs to know who is trading in real estate, now or later.

Here's a blank form if you're curious...