Good news for Poinciana Real Estate. Or is it?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Sold!!! 407-873-2747What’s going on in Poinciana Real Estate?

Inventory is way down. For the first time in about 2 years we have less than 1,000 properties on the market in the Poinciana Neighborhood. We broke the 1,000 barrier about 2 weeks ago. Today there are 932 properties for sale. This is down from 1,100 to 1,200 that we have been averaging for about the last year. 

Closings are way up. February of 2008 we had 21 closings. This February there were 109!! That’s an increase of 500%. 

BUT……values are still declining. The median sales price in December 2008 was $82,000. For February 2009 it is $67,000. That’s almost a 20% decline in values in the last 60 days!!! 

So what gives? Here’s my opinion. 

  • The properties that are selling are REOs (foreclosures) and short sales. In fact more than 85% of the closings are distressed properties.
  • Sales have increased drastically because the prices are so low.
  • Inventory is declining due to all the moratoriums that have been placed on foreclosures.

Banks are NOT foreclosing right now. Which is a good thing because I deal in Short Sales. I listed five in the last week and Buyers are knocking the doors down to see them. Less REOs is a very good thing for me and my Sellers.

I STILL NEED HELP!!!!! 

I hired a new agent yesterday. I gave her five Buyers right away with four that are coming into town over the next 2 weeks to buy. All are Europeans and all have cash. 

I still have 185 Buyers I need to find agents for. We have more Buyers coming in everyday. I just opened a new website to try and accomodate them all.  So if you want to make money AND you don’t mind working……give me a call. I need agents for Buyers looking in Kissimmee, Davenport, Poinciana, St Cloud and S. Orlando. I’m hiring not referring. 

OK that’s what’s on my mind today. What’s on yours? 

CENTRAL FLORIDA REALTOR(r) OPPORTUNITIES

MORE INFO FROM BROKER BRYANT… THE SOURCE FOR CENTRAL FLORIDA REAL ESTATE

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Why do Short Sales?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

BAM! Got me a short sale!! 407-873-2747Yesterday, Janie Coffey and I were invited to participate on a teleconference hosted by Jennifer Allan about short sales. If you didn’t tune inhere’s the replay (Please remember this is copyrighted material so check with Jennifer if you want to use it). 

My portion of the seminar was……..Why do Short Sales? I was fist so please check it out and let me know how I did. I’ve only done two of these seminars so I’m still trying to figure them out. What I learned this week is that I talk too much!!!!

Here’s a very small portion of the transcript.

You’ve probably heard….”Short Sales are difficult and a big waste of time” and ”Rarely do they close and when they do you don’t get paid”.    I

If you believe these statements to be true then one of my goals with this seminar is to prove you wrong.  

  • Listing and selling Short Sales is all about helping Home Owners in your Community salvage their credit.
  • It’s about helping real live people with getting through a difficult time in their lives.
  • It’s about being there for them.

Think of all the people you may have sold homes to over the last few years when the market was booming. If these folks are now struggling don’t you owe it to them to help them out?

If you don’t want to help people and just want to do Short Sales to make a ton of money then do me a favor…..quit reading this post now and just move on.

People are hurting and they need SINCERE agents to help them. OK?   Instead of resisting Short Sales you need to be learning the skills it takes to become the “Go to person” in your community. When a Home Owner needs help they should be calling you. 

You should be attending seminars on Short Sales and reading everything you can get your hands on to increase your knowledge of how Short Sales work. 

The Short Sale process is changing daily. Get into the game. Every time you get a Loss Mitigator on the line…..pick their brain. Call the Lenders and talk to them. Ask them for their “Short Sale Package and Guidelines”. Talk to other agents who are successful at Short Sales. Constantly be asking questions and learning. You’ll never know it all but you can know enough to help.

This current market is full of opportunity for REALTORS(R) who are willing to help and willing to learn.    Home Owners need you. In fact, there has never been a better time for a REALTOR(R) to show their worth. If you have the right skills you can not only help a lot of people but you can also make a lot of money doing it. So get out there!!    

FAQ  #1 What is a Short Sale?
FAQ #2 What is a Hardship and why do I need one? 
FAQ #3 What goes in the Hardship Letter?

DISCLAIMER: I am a Florida Licensed Real Estate Broker. This article is my opinion based on years of experience and the laws of my State. All Sellers are urged to seek competent legal and tax advice. I am NOT qualified to give advice in those areas.  

CENTRAL FLORIDA REAL ESTATE SHORT SALE INFORMATION

Don’t Sell Yourself Short. An E-Book by Broker Bryant. Coming soon!!!

MORE INFO FROM BROKER BRYANT… THE SOURCE FOR CENTRAL FLORIDA REAL ESTATE 

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved   

Making Homes Affordable (MHA) Plan. SHOULD WE BE DOING LOAN MODS?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

HELP ME!!!! 407-873-2747

Hi folks. I guess by now you have read or heard of the Obama Administration’s Making Home Affordable(MHA) plan. Here the three major components. 

 

  • Refinancing options for folks that have been making payments and whose 1st mortgage is no more than 105% of current market value. Example: If the property is worth $100,000 the 1st mortgage must be $105,000 or less. Unfortunately this program will not help many people in my market, Poinciana Florida, since values are down 65% in the last 24 months. In Poinciana the house is worth $85,000 and they owe $200,000+.

 

  • Loan Modifications: Loan Mods are for folks that want to to keep their house who are not able to refinance either because they are not current with their payments or they owe more than 105% of current market value. The loan can be modified by:
  1. Reducing the interest rate. 
  2. Lengthening the term of the loan.
  3. Reducing the principle amount.

 

  • Short Sale Incentives:  The part of this I really like is the $1,500 to help the Sellers move. 

Overall I like this plan. Unless I’m missing something it does seem to be geared towards helping people stay in their homes. It’s also designed to lower foreclosures and give lenders incentives to do short sales or deeds in lieu of foreclosure. And that’s a good thing.

Below are some links so you can read up on this and then come back and let me know what you think. Better yet, write a post, come back and leave a link in the comments of this post. I need your opinions.

HOME AFFORDABLE MODIFCIATION GUIDELINES

MHA HOUSING COUNSELOR Q & A.

MHA DETAILED PROGRAM DESCRIPTION

My question is……Should we as REALTORS(R) be doing Loan Modifiations?

CENTRAL FLORIDA REAL ESTATE SHORT SALE INFORMATION

MORE INFO FROM BROKER BRYANT… THE SOURCE FOR CENTRAL FLORIDA REAL ESTATE 

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved  

 

Central Florida Short Sales, Upfront Fees and Anti-Trust .

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

John MacArthur wrote a post yesterday expressing his disapproval of a Real Estate Company in his area that charges Short Sale Sellers a fee in addition to the commission. John’s opinion is that this is taking advantage of people. I thought his opinion was way off base. But hey…..that’s just my opinion. Go read his post and form your own. 

My question to John was “Is it the fee or the amount of the fee that has you riled?” I asked this question for two reasons. 

1. If it’s the AMOUNT of the fee then I would consider his opinion a possible violation of Sherman Anti-Trust Laws. 

2. I list short sales AND I charge an upfront fee to my sellers. It’s a very reasonable fee and they pay me prior to listing the property. I also charge a commission at time of closing. 

For number one you can do your own homework. 

Here is my explanation of number two. 

I charge an upfront fee because Short Sales are riskier, more time consuming and contingent on the Seller and their Lender cooperating. 

As any good businessman would I charge a small listing fee upfront to help offset my costs and risk. I am certainly not unethical and I am not taking advantage of people in a difficult situation. I am doing everything I can in my power to help them EXCEPT work for free. 

Did you know I pay more for E&O insurance because I list Short Sales? 

Did you know I NEVER reduce the amount of the co-broke if the lender reduces the commission? This is a benefit to my Sellers because Buyer Agents know they will get a FULL co-broke if they bring a Buyer for one of my Short Sale listings. 

I closed on three Short Sales last week. All of my Sellers were very happy that I was able to help salvage some of their credit and get them out of a difficult situation. 

I have only heard of one other broker that charges an upfront fee on Short Sales in my area. I tell my Sellers right upfront that MOST broker/agents will not charge a fee. They pay me anyway. Why? Because I build value. I bring a lot of knowledge and expertise to the table. I have 2 Sellers right now that are Attorneys and even have one who owns a C-21 brokerage. 

A few months ago I had a Seller decide one week before closing that he would just let the house be foreclosed on. I had worked for five months on the deal. His Attorney advised him to do this so he would not have Federal tax issues. It was my Seller’s homesteaded property. He was exempt from Federal tax on the sale. His Attorney was wrong and probably just wanted to get the fee for filing bankruptcy. I had zero control over this outcome. I stared charging an upfront fee the very next day. 

I refuse to have my compensation controlled by outside forces. 

Below is what one of my recent Sellers had to say. What say you?  

 

Bryant,

You are amazing! From the bottom of our hearts we want to thank you for this smooth transaction even from across the United States. We are all spread out – David in China, you in Florida, and I am here in California. Even with the distance this transaction did not skip a beat. You did everything on your end and we did whatever you told us to. Your hard work and dedication paid off! You even got us a better deal than what we expected – with the 2nd being forgiven. Your professionalism, patience, persistence, and follow through mentality kept this transaction out of foreclosure and made it into a smooth Short Sale. You are the King of Short Sales! Thank you again for all you did. We wish you and your family the best and keep up the good work.

Sara & David Fisk  

 

 

FAQ  #1 What is a Short Sale?
FAQ #2 What is a Hardship and why do I need one? 
FAQ #3 What goes in the Hardship Letter?

DISCLAIMER: I am a Florida Licensed Real Estate Broker. This article is my opinion based on years of experience and the laws of my State. All Sellers are urged to seek competent legal and tax advice. I am NOT qualified to give advice in those areas.  

CENTRAL FLORIDA REAL ESTATE SHORT SALE INFORMATION

MORE INFO FROM BROKER BRYANT… THE SOURCE FOR POINCIANA REAL ESTATE

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved  

 

Subprime lenders, liars, cheaters and "The Man". Revisited

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Florida foreclosures 407-873-2747

OK you’re going to like this one. First posted March 15, 2007. This was the day the market crashed in Poinciana Florida. Check it out:

 Subprime lenders, liars, cheaters and “The Man”.

Hey, has any one heard about the subprime lending crisis? OK, I guess you probably have. From what I understand, this crisis, we are going through right now, is due to all the low life, lying and cheating Mortgage Brokers that had saturated our business over the last few years looking to pad their wallets with the blood sweat and tears of the working class. They have been working in conjunction with money grubbing REALTORS® who have driven property values to all time highs by coercing the consumer into purchasing above their means. And “The Man” has sat idly by sucking the average Joe dry in increased property taxes while raising insurance rates to subsidizing the super wealthy who want to live on the San Andreas fault and opening the flood gates of evil money to anyone that could breath and sign on the dotted line.

OK, OK!!!!! I’M JUST KIDDING! Maybe?

Anyway, this post is not about who’s responsible and how it all happened, this post is about what we can do to keep our heads above water while the storm passes.

First, let’s start with the easy one, Buyers: If you want a piece of the American dream, here are a few steps you can take, to help you achieve your goal.

  • Save your money. If you are currently renting for $1,000 a month, but want to purchase in the future, then find out how much home ownership will cost you per month, subtract $1,000 and start saving the difference. This will do two things for you. First, it will discipline you to be able to pay the higher price of home ownership. Secondly, it will provide you with a down payment when you are ready to purchase. If you can’t afford to start saving the difference, then you are not ready to purchase a home. Simple.
  • Work on your credit issues. If your FICO score is below 660, you have some work to do. Find a qualified credit counselor, make a plan and stick to it. If you are not able to do this, then you are not ready to purchase a home.
  • Owning a home is NOT an entitlement. It requires hard work and planning. BUT if you are able to put in the effort, you CAN be a homeowner within 24 months. If not, well, I have rental for you. You can pay my mortgage.

OK Sellers, your turn:

  • If you don’t need to sell, then take your property off the market. You will not get “lucky” in this market and you may very well have to “give your house away”. If you can wait, wait. Enjoy your home. Do some gardening and some painting. Make it look fresh and enjoy it. Hey, at least you have a home. Go dish out some food at the homeless shelter and thank God, everyday, for your blessings.
  • If you need to sale, find a qualified REALTOR® and take their advice. In this market it’s all about the price. Look at the bright side, if you have to under sale your house, you should be able to make it up on the buying side. Don’t let this market scare you, just be smart. Houses are STILL selling.

Now let’s see………..who did I leave out? Oh I know…REALTORS®!!!

  • Learn your market. You must become an expert at pricing. In this more difficult market, there is no room for Zestimates”. Just thought I would throw that in there. But seriously, pricing is the key in this market. Get it right and your Sellers will love you. Get it wrong and….well, I’ll come behind you and get it right.
  • Increase your listing inventory. Now is an excellent time to increase inventory. The more inventory you have, the better chance you have, of getting some homes sold. It’s also beneficial for your Sellers. Listings attract Buyers. Just make sure your inventory is priced properly and the Sellers need to sell.
  • Increase your advertising budget. For some reason, REALTORS® make the big mistake, of decreasing marketing dollars, when times are slow. Don’t do it!!! Now’s the time to spend some serious bucks to generate those listings and Buyers you need. “But Broker Bryant I’m not making any money” Well, what did you do with all the money you made in 2004 And 2005? Spent it? Rookie!!
  • If you have Buyers that have been pushed out of the market, don’t abandon them, help them with the Buyer steps I outlined above. Get them on a plan and call them every now and then to make sure they are on track. Help them when they are ready in a couple of years. Why not? Are you going somewhere? Real Estate is about building long term relationships. If you haven’t been doing that, now is a great time to start.

And…Subprime Mortgage BrokersMay I please have…two all beef patties, special sauce, lettuce, cheese, pickles, onions on sesame seed bun.

OK, this post is getting too long, so, I’m going to stop here. Folks, maybe the things I just mentioned are harsh but so what? Real Estate and home ownership is not a child’s game. It needs to be taken seriously. So roll up your sleeves put on your work boots and let’s go help some folks get through this difficult market. I know I will. How about you?  

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved  

Beware of the Bank’s Non-Disclosures!!!!

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

Florida Foreclosures 407-873-2747

Hi folks. Lately I have been selling quite a few REOs (banked owned) property. As you know if you deal in these properties the sellers (banks) always offer them for sell in “As Is” condition. No biggie since most of my Buyers are experienced Investors.

“As Is” in Florida means As Is with right to inspect. This means the Buyer normally has 7-10 days to have the property inspected after a contract has been accepted and signed by all parties. If during this inspection the Buyer finds structural or mechanical issues that they weren’t made aware of during negotiations the Buyer can cancel the contract and get their deposit back.

In Florida, a Seller is obligated by law to disclose to a potential Buyer any material defects that the Buyer cannot readily see that affect the value of the property. Banks, no matter what they think, are NOT exempt from this disclosure.

Recently I have been negotiating for a Buyer to purchase a REO property. The property is only 2 years old and has never been lived in. After several counters the Bank has finally accepted our price BUT they want to close in 2 days (impossible) and they will not let the Buyer inspect the property. Can you say RED FLAG!!!!

Anyway, here is the Email I sent to the listing agent:

Hi XXXXX,   I have just left a message  for the buyer. I’m pretty certain he can close the first week in March but I have asked him for a definitive date. The corporate name on the contract is correct.

We will not purchase the property without an inspection period. So the lender just needs to get over that ridiculous request. That property has been sitting vacant for too long and it is very possible that central heat and air are frozen. Also the lighting in the kitchen is all coming out of the ceiling. The buyer is willing to accept “as is” assuming there are no major structural/mechanical issues uncovered during the inspection period.

The seller’s unwillingness to let us have the property inspected tells me they are aware of an issue and are hiding it. They either want to sell or they don’t. No inspection is a deal killer for almost all buyers. Anyway as soon as I hear back from my buyer I will let you know his response. Thanks for your efforts.
*****************************************************************************

Within minutes I received this:

FYI  This homes has a skylight that leaked (flooded from the skylight in the kitchen. It effected all the walls, floors inside area in kitchen, laundry room, living and dinning room area.  The mold has accumulated & there was a terrible blackening of the molding & area around the skylight & fixtures and it began to smell.  I had Solivita do the entire kitchen, ceiling,walls, floors etc to fix it & do the right job. The electrical outlets, wires etc were all replaced & fixed.

As of right now that home has been put back correctly & no charge to the bank or to the owner.  I worked very hard to get this home redone.  You know how builders can be. Since the home was never occupied nobody was aware of its condition.
******************************************************************************

Folks, that email was sent to the current agent from the previous agent!!!

The lesson here is to NEVER accept a contract where the Seller will not allow an inspection. It is obvious to me that this Seller was fully aware of these issues. As most banks do, they feel they are exempt from laws that were put in place to protect the public.

It would have been very easy for me to persuade the Buyer to go through with this transaction. It’s a brand new house……what could possibly be wrong? Well how about extensive BLACK MOLD!!!

Watch yourself out there…..the Banks may very well be jeopardizing your lively hood. What say you?

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved  

"I’m Jennifer & I’m a Short Sale Idiot" … are you?

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

The last teleconference went so well I thought I’d give it another whirl. If you are not sure you want to deal with short sales or just need some basic steps on how to work them, you’ll want to tune in. See you on the 7th!!!!

Via Jennifer Allan, Author of Sell with Soul (Sell with Soul):

Okay, I can admit it. I don’t know much about short sales. I know more than I did six months frustrateago because I listed one (that never sold even though I had an offer) and I wrote an offer on a short sale a few weeks ago (to which the agent hasn’t responded – sheesh).

In the Good Old Days, I proudly proclaimed that I had enough business (thank you very much) and had no need to involve myself with short sales or other such nonsense. So by gawd, I wasn’t going to learn anything ‘bout ‘em.

Uh, well, today is somewhat different. If you don’t understand short sales, you’re not really a full-service real estate agent. It’s not the same thing as, say, not understanding land sales or commercial leasing as a residential real estate agent – no, the dreaded short sale is an integral part of a residential real estate business these days, like it or not. (darnit!)

Of course, there are those who say that short sales are a waste of time and have a small chance of success. And that may be true. But it doesn’t mean that you shouldn’t understand them and be able to make that decision for yourself… or commit to yourself to becoming the expert and getting your short sale buyers & sellers to closing!

janieWith that in mind, I’ve invited one of my favorite Active Rainers to share her secrets for selling & closing shorts sales. Following up on the phenomenal success of last weekend’s “Persuasive CMA” teleseminar, on Saturday March 7th, we’ll have another teleseminar workshop where Janie Coffey will join me (and all of y’all) to tell her story and answer our questions about short sales.

Here are some questions I’m expecting answers to:

… who pays the commission and how much?

… what if there is more than one loan?

… how do I know if the SELLER will qualify?

… does the seller have to be behind in their mortgage?

… do you/should you/can you accept more than one offer?

… how should you price the home?

I’ll probably come up with a dozen more, but what are YOUR questions about the process? Any horror (or success) stories you’d like to share? Please do!

To register for the workshop, click here to be whisked away to the registration page…bb

See you on the 7th!

UPDATE!!!! Janie’s got a gu……est…. Fellow Floridian Broker Bryant will be joining Janie on this conference to contribute his short sale strategies – is this a power conference or WHAT???

 

sws

 

 

www.SellwithSoul.com

 

 

p.s. Wanna see me on TV? This just ran last night here in Denver… http://cbs4denver.com/recession/home.staging.sales.2.932147.html 

Interviewing the Seller for Their Listing.

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

My head hurtsOK so today I went through some of my older posts to see if I could find something that may help you in your business. I came up with this one that I wrote back in October of 2006. Hopefully it will get you thinking about how you handle yiour listing agreements. Here goes:

Let’s talk about Seller interviews. Yep, that’s right Seller interviews. when I go on a listing appointment, I know in advance that the listing is mine. why? Because I’m great! Well, maybe in my own mind. But seriously, I have the mind set that if they are calling me to list their home, then they have already made up their mind to give me their business. They could be meeting with other realtors as well, but frankly, I am never concerned about that. Cocky? Probably. But I do know from my years of experience that it is very rare that I will not leave with the listing.

So, I go in prepared to have a new listing. I approach listing appointments as an interview, except I’m not the one being interviewed. I am interviewing them to see if they are someone I want to work with and to see if their motivation fits in with what I am trying to achieve. My goal is to have the house priced properly, clean and with easy access. I want to be able to sell the house in 45 days or less. In this more difficult market the sellers have to be in the “need to sell” category. This means they have a set timeframe they must meet and they are willing to price the home so that it will sell during this period. The way the market is right now, the “right price”, could be anywhere from 5%-15% below the most recent sales. 

My interview will include the following questions.

  • Why are you selling?
  • When I list your house today and find a buyer tomorrow, that wants to close in 30 days and take possession, where will you go?
  • Will your house be in “showing condition at all times?
  • If I call you tomorrow and tell you a Realtor is coming by in 15 minutes will the house be ready?
  • Can you leave with 15 minutes notice so the Realtor and his Buyer can take their time and look at the house?

Then I have to address the things I don’t do.

  • I don’t do open houses.
  • I don’t run ads in the newspaper.
  • I probably will not be the one that brings the Buyer into your house.
  • I don’t answer my phone after 8 pm.
  • No, i’m not cheap.

Then to make their day, I will tell them what I will do.

  • I promise to call you constantly.
  • I promise to answer my phone, personally, when you call or return your call within 1 hour.
  • I promise to do everything I can to get your home sold.

Then, assuming they have given me all the right answers during my interview and they have agreed with my pricing strategy, I will let them list with me.

Now folks, when you are reading this it may sound cold and calculated but it’s not. My Seller interview is full of honesty, confidence, knowledge and humor. The point is, do business on your terms. Make sure the relationship between you and your customers/clients is built on understanding and trust. Make sure they know what to expect from you and make sure they know what you expect from them.

When I take a listing, my Sellers and I become a team. The only way for us to be successful is if we are all on the same page. The time to determine this is before you agree to take the listing. Sellers love this. They don’t care about all your awards and marketing techniques. They care that you are on the same page as them and that you are working towards the same goal, which is, selling their home in the shortest amount of time for the most amount of money.

If any one of these areas is in conflict, then don’t be afraid of turning down the listing. There are plenty more properties out there and having a listing with uncooperative Sellers is time consuming, stressful and you will probably not get paid anyway.

So don’t be needy. Be picky. chose your business relationships wisely and enjoy the rewards you will reap.

Copyright © 2009 http://www.brokerbryant.com/ | All Rights Reserved  

Florida Real Esate Broker 407-873-2747Hi folks. Last week I was invited by Jennifer Allen to participate on a teleconference on “How To Price Your Listings Right……With a Persuasive CMA”. The teleconference was awesome and I believe we had close to 1,000 people listen in. Since then I have had numerous emails asking me questions about my CMA. 

Instead of typing the same email response over and over again I thought I’d just post that particular part of my presentation here. So here you go. I hope it helps.

************************************************************

“I’M NOT HERE TO TELL YOU HOW MUCH YOUR HOME IS WORTH….I’M HERE TO TELL YOU WHAT IT WILL TAKE TO GET YOUR HOUSE SOLD.”

Preparing a Persuasive CMA

First, I prepare a standard CMA using the format provided by my MLS. I’m sure you guys know what I’m talking about. You pick the comparable properties and your MLS CMA program will generate a suggested price. I like the presentation that my MLS gives but I rarely agree with their price suggestion. Fortunately I can go in and change it. The biggest draw back of my MLSs CMA is that it only lets me use 19 properties. That’s not enough but it is start. 

I enter my subject property. Then I pick 19 properties that are similar. If my subject is a 1200 sq ft house built in 2004 with no pool then I usually pick comparables that have between 1150 sq ft to 1250 sq ft built from say….. 2002 to 2006 with no pool. I use active, pending and sold listings. 

If I can’t find at least 4 sold properties I will expand my search parameters a little. Ideally I want 5-6 good sold comparables….A few pendings and then the rest are actives starting with the lowest priced. 

The price this MLS CMA generates will be based ONLY on the historical data or sold listings. 

In my market……that is declining so rapidly….. I only go back about 60 days on the Solds. Any sales older than that have no baring on my analysis. My standard MLS CMA will give me some very important information…. 

  • Price per sq footage sold. 
  • Price per sq footage for the pendings. 
  • The median and average sold prices.

This is data that I need to help me arrive at the right price……but it‘s not enough. 

Why is it not enough? 

Well, mainly because Buyers use price as one of their major search parameters. They probably will not walk into a Century 21 office and say we are looking for a home between 1150 and 1250 sq ft built between 2002 and 2006. 

What they will say is we need at least a 3 bedroom home with a minimum or 1100 sq ft and we are qualified for $100,000. The REALTOR® will put these search parameters in the MLS and get a list of suitable properties. THIS is the list that my property needs to be on and it needs to be in the top 5 best priced properties. 

Preferably the best priced. 

Now if you did a search like this you may have homes show up that are quite a bit larger than the subject. If the Buyer can buy a 4 bedroom home with 1600 sq ft for the same price as my 1200 sq ft home which one do you think they will buy? Usually the larger one.  

My listing has to be better priced. 

So, in addition to the standard MLS CMA I have to do a print out of ALL active pending and sold listings in the same price range as the subject property. 

The price range I use is the price the MLS CMA report generated. This print out will also give me the average and median price per sq footage. 

Now I’m getting close to being able to arrive at a price. 

Next, I have to pull up the entire community, zip code or whatever area your subject is in. Hopefully, you have been limiting your search areas for the 2 earlier reports as well. Anyway, whatever area you are using, go ahead and pull up ALL of the properties. Again you are using actives, solds, pendings and are looking for the sq footage….median and average. 

Set the 3 reports side by side and study the sq footage prices. 

  • Do you see a trend? 
  • Are the figures similar? 
  • Is the sq footage price on the pendings lower than on the solds? (If so…..that means you are in a declining market and need to place more weight on what’s UNDER contract (pending) and on what’s active instead of what has already sold). 

If you take the average price per sq footage of the pending sales and multiply it by the sq footage of your subject does it line up with what has sold? 

  • Where does it fall on the list of active listings? 
  • Is it in the top 5 best priced? 
  • How much lower would it need to be to be the best priced property? 

Do you understand what I’m doing?

 

I’m taking the ENTIRE market, as a whole, and deciding where my potential listing needs to be priced in order to SALE!!! 

I’m NOT looking for value I’m looking for price.

Because…..my purpose for preparing a CMA is NOT to find out what a property is worth but to arrive at what it will take to get it sold.

Make sense?

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Every Picture Tells A Story Don’t It? (Rod Stewart)

Posted by admin December - 31 - 1969 - Wednesday ADD COMMENTS

As most of you know by now my market area is in the pits. Foreclosures and Short Sales abound. Property values have plummeted almost 65% in the last 24 months. Properties that sold for $350,000 can now be had for as low as $100,000 in some areas. Deals are every where.

Since I specialize in selling Short Sales and Foreclosures business is booming. I have so many Buyers wanting to “purchase a deal” that I can’t get to them all. 

“More business than I know what to do with.” I can’t even count how many times I have said that in the last couple of months. It sounds like a REALTORS® dream doesn’t it? 

Well let me tell the other side of the story. 

I spoke to a beautiful young couple last week that I have known for several years. They have always seemed so happy. They called me because they are now getting a divorce. Loss of jobs and financial hardship have taken their toll. Instead of sticking together and fighting through these difficulties they have been overcome with stress. They relieve the stress by fighting with each other. In about 4-6 months their home will be a “deal” for some lucky Investor……… 

Florida Foreclosure

A potential Seller called me this week. Very nice person. We had a long conversation about what needed to be done to avoid foreclosure on their property. Then the conversation started getting really dark. This person was crumbling under the stress of losing their home. They told me, a complete stranger, that two days ago they tried to commit suicide and were considering it again. I immediately had to call for intervention. This property will probably be another “deal” in the near future…….. 

While driving around today I took this picture. Another deal. 

Florida Foreclosure

I wonder what the story is. Do you?

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About us

I am a licensed real estate Broker in the state of Florida. My opinions on real estate have been formed from my experiences and 15 years of working in the business. My opinions are in line with Florida Real Estate laws and the REALTOR(R) Code of Ethics. Your State’s laws may differ. So do your own homework before implementing any of my business practices into your business.