No Brokers Please wishes you and your family a great Labor Day Holiday!
We hope you'll get some time to spend outside to enjoy the beautiful weather and enjoy life. We're taking a break and will be back on Tuesday to continue our assault on the marketplace.
Thursday, August 28, 2008
Wednesday, August 27, 2008
An Example of how the game is played.
Let’s assume there are 3 very similar homes for this example – level of renovation, size, layout, building/neighborhood, etc.
Home A – sold in 3/2008 for $800K by a broker. Not including other closing costs the owner nets $752K.
Home B – is listed in 8/2008 for $825K by a broker. This scenario happens all the time, where sellers price above the comparable level in this market.
Home C – is your home and you’ll be selling on your own without a broker. You do the necessary research and find a comparable sale of $800K which Homeowner A netted $752K after the broker’s 6% commission. From this, you now can list a dominating market price. You decide to list your opening price at $780K – $20K below the last sale, to create a deal for buyers while still netting you more money than Homeowner A.
To highlight the deal you’re offering, whenever Home B is having/planning an open house or event, so do you. This is a great comparison and will give an added boost to your sales effort. Plus, since you’re posting your listing online, you’re getting maximum exposure.
While Home A might sell for more money, Homeowner C will net more money and since they’re under the comparable level, they’ve a greater chance for multiple offers and selling in a much shorter period of time. Also, Homeowner C knows that their home is well priced, so they can be firmer in their negotiations.
Home B will probably remain on the market longer and may even need to lower its listing price to generate offers.
Home A – sold in 3/2008 for $800K by a broker. Not including other closing costs the owner nets $752K.
Home B – is listed in 8/2008 for $825K by a broker. This scenario happens all the time, where sellers price above the comparable level in this market.
Home C – is your home and you’ll be selling on your own without a broker. You do the necessary research and find a comparable sale of $800K which Homeowner A netted $752K after the broker’s 6% commission. From this, you now can list a dominating market price. You decide to list your opening price at $780K – $20K below the last sale, to create a deal for buyers while still netting you more money than Homeowner A.
To highlight the deal you’re offering, whenever Home B is having/planning an open house or event, so do you. This is a great comparison and will give an added boost to your sales effort. Plus, since you’re posting your listing online, you’re getting maximum exposure.
While Home A might sell for more money, Homeowner C will net more money and since they’re under the comparable level, they’ve a greater chance for multiple offers and selling in a much shorter period of time. Also, Homeowner C knows that their home is well priced, so they can be firmer in their negotiations.
Home B will probably remain on the market longer and may even need to lower its listing price to generate offers.
Monday, August 25, 2008
Why selling on your own is possible.
Over the last week or so, since I’ve started this blog, I’ve received many e-mails inquiring about how to sell on your own. Therefore, I decided to answer some of these questions to give the readers a little more perspective to this process. This blog will also give the readers a better understanding in what No Brokers Please is trying to accomplish, for the FSBO in the NYC metro area.
Q) Isn’t selling on your own complicated?
A) No, it’s actually fairly simple. The brokers hardest thing to accomplish in real estate isn’t the selling process BUT getting those new leads of buyers and sellers to work with you. Since, you’ll be selling your property on your own, the hardest part gets eliminated from the selling equation. One advantage of selling on your own is that you can set your own showing or open house schedules. Just make sure you advertise your open house showings to maximize efficiency while minimizing the burden on your daily lifestyle.
Q) How do I get educated/qualified buyers interested in my home?
A) In today’s world, the Internet is the number one resource in real estate. By NBPNY.com banding all the For Sale by Owner (FSBO) listings together per area (NYC, Brooklyn, Queens and Long Island), the FSBO will gain market power and be able to utilize the advantages that larger real estate companies employ.
Q) Don’t I need any kind of specialized training?
A) Training, if any, is very basic and certainly doesn’t coach or train brokers on how to service the sellers needs properly. It’s more gauged on how to use the computer system and to generate more business. In fact, most brokers are just dropped into the marketplace to either sink or swim. As a member of No Brokers Please, you’ll have full access to professional coaching throughout your selling process, simplifying each step to give you a better understanding in what needs to be done to maximize results.
Q) Don’t I need a broker to market or “push” my property?
A) Today, over 90% of all buyers use the Internet to research and pre-shop properties. So, by having a centralized marketing platform (NBPNY.com), proper pricing and a great presentation, you’ll to be able to attract a multiple amount of qualified buyers needed to sell your property.
If your motivated to save a broker’s 6% commission and are willing to put some time and effort in; then showing your property, managing your listing and communicating directly with the buyer is a well worth investment.
Q) Isn’t selling on your own complicated?
A) No, it’s actually fairly simple. The brokers hardest thing to accomplish in real estate isn’t the selling process BUT getting those new leads of buyers and sellers to work with you. Since, you’ll be selling your property on your own, the hardest part gets eliminated from the selling equation. One advantage of selling on your own is that you can set your own showing or open house schedules. Just make sure you advertise your open house showings to maximize efficiency while minimizing the burden on your daily lifestyle.
Q) How do I get educated/qualified buyers interested in my home?
A) In today’s world, the Internet is the number one resource in real estate. By NBPNY.com banding all the For Sale by Owner (FSBO) listings together per area (NYC, Brooklyn, Queens and Long Island), the FSBO will gain market power and be able to utilize the advantages that larger real estate companies employ.
Q) Don’t I need any kind of specialized training?
A) Training, if any, is very basic and certainly doesn’t coach or train brokers on how to service the sellers needs properly. It’s more gauged on how to use the computer system and to generate more business. In fact, most brokers are just dropped into the marketplace to either sink or swim. As a member of No Brokers Please, you’ll have full access to professional coaching throughout your selling process, simplifying each step to give you a better understanding in what needs to be done to maximize results.
Q) Don’t I need a broker to market or “push” my property?
A) Today, over 90% of all buyers use the Internet to research and pre-shop properties. So, by having a centralized marketing platform (NBPNY.com), proper pricing and a great presentation, you’ll to be able to attract a multiple amount of qualified buyers needed to sell your property.
If your motivated to save a broker’s 6% commission and are willing to put some time and effort in; then showing your property, managing your listing and communicating directly with the buyer is a well worth investment.
Friday, August 22, 2008
How to handle an Appraisal
When you have an appraisal scheduled, you'll need to do a couple of minor things to ensure the best possible results.
1) Have a copy of the first 2 pages of the contract for the appraiser. This will give the appraiser the deal information he needs for his file.
2) Have a floor plan for the appraiser.
3) If available, present some comparable sales (comps) to the appraiser.
These 3 items will help assist the appraiser and make his job a bit easier.
Also, present a clean home that's pleasing to the eye.
1) Have a copy of the first 2 pages of the contract for the appraiser. This will give the appraiser the deal information he needs for his file.
2) Have a floor plan for the appraiser.
3) If available, present some comparable sales (comps) to the appraiser.
These 3 items will help assist the appraiser and make his job a bit easier.
Also, present a clean home that's pleasing to the eye.
Thursday, August 21, 2008
Selling is all about...
Asking the appropriate questions to determine the buyers needs and most importantly, presenting the buyers psyche a mental picture of comfort and tranquility throughout the whole selling and showing process. Psychologically, the key to success will be the buyer’s initial entrance into your home, so make these first few steps count!
1) Once you receive the answers to your first set of questions, it’s important to take the conversation a step further by asking the potential buyer a follow-up question, “Why is that important to you”? The answer to this follow-up question is what the buyer is looking for, in his or her next dream home. Utilize this valuable information to your advantage to explain why your home fits the aspects they’re looking for.
2) Every step of your selling process should be represented at its highest quality, beginning with your Internet page and show sheet. Always display your home in its best light no matter which step of the selling process you’re representing, especially at your home showing. Sub-consciously, you need to show the buyer that your home is of utmost value, validating their choice to come see your home. This type of representation will draw or attract educated buyers, while others who represent themselves in a bad light, tend to remain on the market for longer periods of time.
Remember: Buyers tend to buy off their feelings or that “sense of feel” first, and then utilize logic and reasoning to support their decision. So, create the most pleasant atmosphere possible!
1) Once you receive the answers to your first set of questions, it’s important to take the conversation a step further by asking the potential buyer a follow-up question, “Why is that important to you”? The answer to this follow-up question is what the buyer is looking for, in his or her next dream home. Utilize this valuable information to your advantage to explain why your home fits the aspects they’re looking for.
2) Every step of your selling process should be represented at its highest quality, beginning with your Internet page and show sheet. Always display your home in its best light no matter which step of the selling process you’re representing, especially at your home showing. Sub-consciously, you need to show the buyer that your home is of utmost value, validating their choice to come see your home. This type of representation will draw or attract educated buyers, while others who represent themselves in a bad light, tend to remain on the market for longer periods of time.
Remember: Buyers tend to buy off their feelings or that “sense of feel” first, and then utilize logic and reasoning to support their decision. So, create the most pleasant atmosphere possible!
Wednesday, August 20, 2008
Top 10 – What not to do when showing a home
1) To talk consistently while the buyer is trying to get a sense of feel for the home. Every buyer is different – evaluate the buyer’s need for information by listening closely to what is being asked.
2) To break-off or start telling random stories about your personal items or home décor.
3) To be late for the scheduled appointment.
4) To confine the buyer the freedom to tour the space. The buyer will gravitate to the areas that he or she is most interested in seeing – Use this to your advantage.
5) To give or make up information that you may think is correct. Always provide 100% correct information or just state that you’ll need to research the matter further, to be 100% sure.
6) To take or make cell phone calls during the showing. This shows blatant disrespect to the buyer.
7) To state, “isn’t this great” while the buyer is looking at certain features of the home. Allow the buyers to come to their own conclusions. Ask pertinent questions to educe answers with informational value.
8) To disparage and discredit the competition. Psychologically, this creates a negative mindset in the buyer towards you and it displays bad character on your part.
9) To appear desperate or weak, when offers and negotiations are presented.
10) To lie about current offers on the home. Don’t make up false or fictitious offers in an effort to push buyers.
2) To break-off or start telling random stories about your personal items or home décor.
3) To be late for the scheduled appointment.
4) To confine the buyer the freedom to tour the space. The buyer will gravitate to the areas that he or she is most interested in seeing – Use this to your advantage.
5) To give or make up information that you may think is correct. Always provide 100% correct information or just state that you’ll need to research the matter further, to be 100% sure.
6) To take or make cell phone calls during the showing. This shows blatant disrespect to the buyer.
7) To state, “isn’t this great” while the buyer is looking at certain features of the home. Allow the buyers to come to their own conclusions. Ask pertinent questions to educe answers with informational value.
8) To disparage and discredit the competition. Psychologically, this creates a negative mindset in the buyer towards you and it displays bad character on your part.
9) To appear desperate or weak, when offers and negotiations are presented.
10) To lie about current offers on the home. Don’t make up false or fictitious offers in an effort to push buyers.
Tuesday, August 19, 2008
Marketing for a FSBO - Ideas to Help Buyers and Sellers
Not every marketing resource today is created and established in an effort to save you money. Today’s post will provide extensive and thorough information regarding this topic.
Selling a property in New York City, Queens, Brooklyn and Long Island is uniquely different than any other market across the country. So why would you market your property on a national FSBO website? These national websites have very limited NYC metro area exposure resulting in a very small percentage or even possibly zero qualified buyers, that are actually getting directed to your property. As a NYC resident, you need more specificity for your area. Also, it’s a common strategy for national websites to just place your property listing to as many places in an effort to simulate exposure but the results never show up. By doing this, national FSBO’s websites give the seller that “sense of feeling” that they’re doing so much more – a psychological justification for the price it costs to market on their website. Unfortunately, educated NYC buyers aren’t researching these national websites for their next dream home.
Both The New York Times and Newsday are great supplemental and secondary resources that may help you with your marketing network and campaign. Educated buyers utilize these resources more frequently and offer far better exposure.
In the past, Craigslist was one of the most popular marketing platforms for FSBO but over the years it has lost its effectiveness due to the overload of ads, fake ads and the massive infiltration of brokers. Craigslist still has its advantages but should be used only as a second-level marketing resource.
The general issues For Sale By Owner’s (FSBO’S) have is:
a) a lack of centralized exposure to the right target market
b) understanding the selling and buying process
c) utilizing the tools of the trade in one’s favor
d) the most intimidating issue, the fact that FSBO’s are one person marketing alone
The two major advantages brokerage firms have over the individual FSBO is 1) their centralized marketing platform and 2) their company website. With these advantages, they’re able to market specific listings all at once. The brokerage firm then has the ability and means to branch off this centralized marketing with secondary resources such as The New York Times.
In order for the FSBO to combat these large brokerage firms, a centralized, web-based marketing platform needs to be established to gain these types of advantages that brokerage firms employ. Since FSBO’s are one person marketing alone, it would be beneficial to have an expert in the field of real estate to guide and coach you throughout the whole process of selling your property on your own. Wouldn’t it be nice to have someone to speak to or lean on, who is qualified in all assets of NYC real estate?
We have remedied these issues with No Brokers Please, by creating a unique top-notch website that will band FSBO’s together for power. This unity will give FSBO’s a strong marketing presence for qualified buyers and will establish and create a centralized marketing platform for their properties.
All members will be able to receive professional coaching, when needed, from a Licensed Broker and staff members who have successfully ran their own brokerage business.
Coming September – Soft Launch
(NBPNY.Com)
Selling a property in New York City, Queens, Brooklyn and Long Island is uniquely different than any other market across the country. So why would you market your property on a national FSBO website? These national websites have very limited NYC metro area exposure resulting in a very small percentage or even possibly zero qualified buyers, that are actually getting directed to your property. As a NYC resident, you need more specificity for your area. Also, it’s a common strategy for national websites to just place your property listing to as many places in an effort to simulate exposure but the results never show up. By doing this, national FSBO’s websites give the seller that “sense of feeling” that they’re doing so much more – a psychological justification for the price it costs to market on their website. Unfortunately, educated NYC buyers aren’t researching these national websites for their next dream home.
Both The New York Times and Newsday are great supplemental and secondary resources that may help you with your marketing network and campaign. Educated buyers utilize these resources more frequently and offer far better exposure.
In the past, Craigslist was one of the most popular marketing platforms for FSBO but over the years it has lost its effectiveness due to the overload of ads, fake ads and the massive infiltration of brokers. Craigslist still has its advantages but should be used only as a second-level marketing resource.
The general issues For Sale By Owner’s (FSBO’S) have is:
a) a lack of centralized exposure to the right target market
b) understanding the selling and buying process
c) utilizing the tools of the trade in one’s favor
d) the most intimidating issue, the fact that FSBO’s are one person marketing alone
The two major advantages brokerage firms have over the individual FSBO is 1) their centralized marketing platform and 2) their company website. With these advantages, they’re able to market specific listings all at once. The brokerage firm then has the ability and means to branch off this centralized marketing with secondary resources such as The New York Times.
In order for the FSBO to combat these large brokerage firms, a centralized, web-based marketing platform needs to be established to gain these types of advantages that brokerage firms employ. Since FSBO’s are one person marketing alone, it would be beneficial to have an expert in the field of real estate to guide and coach you throughout the whole process of selling your property on your own. Wouldn’t it be nice to have someone to speak to or lean on, who is qualified in all assets of NYC real estate?
We have remedied these issues with No Brokers Please, by creating a unique top-notch website that will band FSBO’s together for power. This unity will give FSBO’s a strong marketing presence for qualified buyers and will establish and create a centralized marketing platform for their properties.
All members will be able to receive professional coaching, when needed, from a Licensed Broker and staff members who have successfully ran their own brokerage business.
Coming September – Soft Launch
(NBPNY.Com)
Monday, August 18, 2008
Note on Foreign Buyers
Everybody wants to work with them, yet there’s something to consider when entertaining an offer from a foreign buyer. Will they be financing? And how?
From my recent experience working with a foreign buyer, banks weren’t loaning money to any foreign buyers who plan on purchasing properties through an LLC (Limited Liability Corporation). In the past, banks might have considered it but have stopped due to the limited remedies in case of a default. Plus, in today economy credit background checks have become much more stingy.
It’s always in your best interest to check with a mortgage banker or broker on the current situation that a potential buyer would need to fulfill, in order to obtain financing before any sale concerning your property. By researching, you can evaluate any offers in a meticulous manner to determine if the potential buyer has the money for a down payment, closing costs and other liquidity measures.
Note: Always use a REBNY offer form and financial statement to qualify potential buyers credentials.
From my recent experience working with a foreign buyer, banks weren’t loaning money to any foreign buyers who plan on purchasing properties through an LLC (Limited Liability Corporation). In the past, banks might have considered it but have stopped due to the limited remedies in case of a default. Plus, in today economy credit background checks have become much more stingy.
It’s always in your best interest to check with a mortgage banker or broker on the current situation that a potential buyer would need to fulfill, in order to obtain financing before any sale concerning your property. By researching, you can evaluate any offers in a meticulous manner to determine if the potential buyer has the money for a down payment, closing costs and other liquidity measures.
Note: Always use a REBNY offer form and financial statement to qualify potential buyers credentials.
Sunday, August 17, 2008
Friday, August 15, 2008
Before putting your property on the market
Staging and Preparing your residential space for sale. - Interior
1. Make minor repairs such as: paint walls neutral colors, replace counter tiles, fix leaky faucets, fix doors, etc…
2. Remove oversized furniture that may block pathways. Leave enough furniture in each room to display the room’s purpose - rent a storage unit.
3. Remove clutter into storage unit. Maybe donate it or throw it away?
4. Make your space spotless by cleaning and shining floors, windows, showers, tubs, appliances, etc…
5. Create a fresh aroma by buying fresh flowers, candles or baking cookies.
6. Organize and rearrange all closets and cabinets.
7. Remove any items that will distract the buyer’s attention such as personal items and photographs.
8. Pack up and replace favorite items that you may want to take with you.
9. Most importantly: Disconnect your emotions and feelings towards your space.
Staging and Preparing your residential space for sale. – Exterior (if applicable)
1. Keep sidewalks and driveway clean and clear.
2. Mow the lawn and trim bushes.
3. Wash outside of windows.
4. Plant flowers.
5. Re-paint front door and window edges.
6. Replace outside light bulbs. Make sure your house number can be seen from the street – buyer’s like to drive by properties at night.
Note: If the buyer doesn’t like the exterior, chances are that he or she won’t even make it inside.
It’s a fact that Real Estate buying is all about two things. 1) Preparing and staging your residential space for sale and 2) proper pricing. Anything that might take away from the visual presentation can possibly hamper the sale. Scrutinize your presentation as much as possible. Take a good look of your space at every angle. Put yourself in the buyer’s shoes. Psychology plays a major part in selling, so create a mental picture of comfort and “that sense of feel” the first minute the buyer walks through your front door.
Note: Learn more great ideas on how to create a visually pleasing space, staging and preparing your space from websites such as TLC.com or Hgtv.com or from any of the multiple cable networking channels.
If you own your own property and are in the process of putting your home on the market, I encourage you to have an inspector come in and assess your property. This way you can solve any minor problems before the potential buyer comes. In the long run, you’ll be at more of a risk if the buyer finds an issue. An educated buyer is going to have your property accessed from an inspector he or she has hired, so you might as well be proactive and address any issues beforehand.
1. Make minor repairs such as: paint walls neutral colors, replace counter tiles, fix leaky faucets, fix doors, etc…
2. Remove oversized furniture that may block pathways. Leave enough furniture in each room to display the room’s purpose - rent a storage unit.
3. Remove clutter into storage unit. Maybe donate it or throw it away?
4. Make your space spotless by cleaning and shining floors, windows, showers, tubs, appliances, etc…
5. Create a fresh aroma by buying fresh flowers, candles or baking cookies.
6. Organize and rearrange all closets and cabinets.
7. Remove any items that will distract the buyer’s attention such as personal items and photographs.
8. Pack up and replace favorite items that you may want to take with you.
9. Most importantly: Disconnect your emotions and feelings towards your space.
Staging and Preparing your residential space for sale. – Exterior (if applicable)
1. Keep sidewalks and driveway clean and clear.
2. Mow the lawn and trim bushes.
3. Wash outside of windows.
4. Plant flowers.
5. Re-paint front door and window edges.
6. Replace outside light bulbs. Make sure your house number can be seen from the street – buyer’s like to drive by properties at night.
Note: If the buyer doesn’t like the exterior, chances are that he or she won’t even make it inside.
It’s a fact that Real Estate buying is all about two things. 1) Preparing and staging your residential space for sale and 2) proper pricing. Anything that might take away from the visual presentation can possibly hamper the sale. Scrutinize your presentation as much as possible. Take a good look of your space at every angle. Put yourself in the buyer’s shoes. Psychology plays a major part in selling, so create a mental picture of comfort and “that sense of feel” the first minute the buyer walks through your front door.
Note: Learn more great ideas on how to create a visually pleasing space, staging and preparing your space from websites such as TLC.com or Hgtv.com or from any of the multiple cable networking channels.
If you own your own property and are in the process of putting your home on the market, I encourage you to have an inspector come in and assess your property. This way you can solve any minor problems before the potential buyer comes. In the long run, you’ll be at more of a risk if the buyer finds an issue. An educated buyer is going to have your property accessed from an inspector he or she has hired, so you might as well be proactive and address any issues beforehand.
Thursday, August 14, 2008
The old Argument - Do brokers actually get you more money?
Being a licensed broker, I can answer this question beyond a shadow of doubt. Many brokers will criticize my opinions but I’m excellent at what I do. I’ve over 7 years experience and have continued to prosper yearly based on my abilities and skills in the market.
In today’s age, the Internet provides a mass amount of free information giving the FSBO the ability and resources, to make more money on their own than with a broker. The key number to consider is “net” monies NOT “gross” monies. A broker may be able to get you a higher asking price but when you factor in their 6% commission fee, it generally will net the seller with less money since the seller has leeway on their pricing. (See blog posted on pricing)
The main problem or “trap” a seller falls into, is that they don’t follow the proper way to price their property using the “comps” available to them and completely overprice their property. As I stated within my blog regarding Price vs. Time, price goes down the longer the time the property is on the market. A good majority of brokers have no concept on how to price effectively and will say anything to get a listing – working on a commission based salary usually will bring that out.
If a seller prices his or her property smartly with like “comps” and just under similar broker listing prices, they will always net more than working with brokers because their property will be a such a deal. Today’s buyers are very savvy and research in-depth; they know whether a property is a great deal or not.
The main issues for FSBO’s: a) proper pricing, b) providing high quality photos and floor plan, c) executing a marketing plan, d) confidence in showing their own space, and e) handling communications with Co-op boards, if applicable. All these obstacles and issues can be overcome with my advice and coaching.
Brokers aren’t the gatekeepers of information anymore. This allows for more transparency and greater abilities to sell for more money. This is especially true for buyers that recently bought a property and now want to sell after maybe a year or so. As year-to-year appreciation flattens out, it’s almost impossible to break even with broker commission fees and closing costs.
The brokers major advantage is that they band together all of the companies listings into a destination website that generates traffic flow. This in-turn provides brokerage firms with a marketing advantage over a single FSBO, as the FSBO doesn’t have a centralized marketing platform.
Coming Soon! I’m developing a website that’ll mimic the advantages of big brokerage firm websites by banding FSBO only listings together to gather market share and traffic. This website will offer pertinent information on how to sell on your own, while providing professional support when needed.
I don’t think brokers and brokerage firms will necessarily like what I going to provide to the FSBO community but I think this market deserves a choice on how they want to sell their property.
Ultimately, the seller has a choice to either sell on his or her own (which is what No Brokers Please! is all about) or rely on working with a real estate broker.
Note: If you choose to work with a broker, make sure that you do all the necessary research in finding the most valuable one; one that is willing to put your needs ahead of theirs.
In today’s age, the Internet provides a mass amount of free information giving the FSBO the ability and resources, to make more money on their own than with a broker. The key number to consider is “net” monies NOT “gross” monies. A broker may be able to get you a higher asking price but when you factor in their 6% commission fee, it generally will net the seller with less money since the seller has leeway on their pricing. (See blog posted on pricing)
The main problem or “trap” a seller falls into, is that they don’t follow the proper way to price their property using the “comps” available to them and completely overprice their property. As I stated within my blog regarding Price vs. Time, price goes down the longer the time the property is on the market. A good majority of brokers have no concept on how to price effectively and will say anything to get a listing – working on a commission based salary usually will bring that out.
If a seller prices his or her property smartly with like “comps” and just under similar broker listing prices, they will always net more than working with brokers because their property will be a such a deal. Today’s buyers are very savvy and research in-depth; they know whether a property is a great deal or not.
The main issues for FSBO’s: a) proper pricing, b) providing high quality photos and floor plan, c) executing a marketing plan, d) confidence in showing their own space, and e) handling communications with Co-op boards, if applicable. All these obstacles and issues can be overcome with my advice and coaching.
Brokers aren’t the gatekeepers of information anymore. This allows for more transparency and greater abilities to sell for more money. This is especially true for buyers that recently bought a property and now want to sell after maybe a year or so. As year-to-year appreciation flattens out, it’s almost impossible to break even with broker commission fees and closing costs.
The brokers major advantage is that they band together all of the companies listings into a destination website that generates traffic flow. This in-turn provides brokerage firms with a marketing advantage over a single FSBO, as the FSBO doesn’t have a centralized marketing platform.
Coming Soon! I’m developing a website that’ll mimic the advantages of big brokerage firm websites by banding FSBO only listings together to gather market share and traffic. This website will offer pertinent information on how to sell on your own, while providing professional support when needed.
I don’t think brokers and brokerage firms will necessarily like what I going to provide to the FSBO community but I think this market deserves a choice on how they want to sell their property.
Ultimately, the seller has a choice to either sell on his or her own (which is what No Brokers Please! is all about) or rely on working with a real estate broker.
Note: If you choose to work with a broker, make sure that you do all the necessary research in finding the most valuable one; one that is willing to put your needs ahead of theirs.
Wednesday, August 13, 2008
Easy Showing Schedule with Minimal Effort
Generally, the best course of action to minimize showing times while getting results would be to schedule your open house times mid-week after work for roughly 1hr to 1.5hrs and then follow up with one on Sunday for roughly 1.5hrs to 2hrs during the day.
Tip: If you’re aware that a real estate broker is having an open house in your building or on your street, with similar “comps” as your property – mimic the same times in order to feed-off their marketing for free. Brokers advertise these open houses, so there’s a good chance more people in the area will come to yours. Also, by allowing potential buyers to see your property along side a pricier broker’s listing, you’ve the chance to show what a better deal you’re offering which will greatly increase the selling process. (See blog posted regarding pricing ideas).
Always have potential buyers sign in and out and write down their e-mail address when possible. This way you can use these e-mails as a mass campaign, alerting potential buyers what’s happening with your property. This would be a good time to ask them if they know anyone else potentially looking for their dream home. You’ll be surprised that most potential buyers know at least one person who’s currently shopping the market.
I’d also advise on creating an e-mail account and utilizing a cell-phone for contact. Make sure that you tailor your message appropriately to discourage any prospecting calls from real estate brokers, as you want to maintain your sanity through this selling experience.
Tip: If you’re aware that a real estate broker is having an open house in your building or on your street, with similar “comps” as your property – mimic the same times in order to feed-off their marketing for free. Brokers advertise these open houses, so there’s a good chance more people in the area will come to yours. Also, by allowing potential buyers to see your property along side a pricier broker’s listing, you’ve the chance to show what a better deal you’re offering which will greatly increase the selling process. (See blog posted regarding pricing ideas).
Always have potential buyers sign in and out and write down their e-mail address when possible. This way you can use these e-mails as a mass campaign, alerting potential buyers what’s happening with your property. This would be a good time to ask them if they know anyone else potentially looking for their dream home. You’ll be surprised that most potential buyers know at least one person who’s currently shopping the market.
I’d also advise on creating an e-mail account and utilizing a cell-phone for contact. Make sure that you tailor your message appropriately to discourage any prospecting calls from real estate brokers, as you want to maintain your sanity through this selling experience.
Tuesday, August 12, 2008
Loans to watch out for when reviewing a potential buyer
Currently, there’s no 90% financing for a loan approximately $650K and above. What does this tell you as a seller? If you plan on selling your property, you’ll need to identify the actual percent the potential buyer has available to put down on their mortgage – that is if they’re going for a “jumbo loan”.
Examples from my past experiences: Two different lofts, one worth 2.4MM and the other 1.3MM, both had potential deals fail because the buyers couldn’t secure financing. The first loft worth 2.4MM, the bank wanted a 25% down payment and the second loft worth 1.3MM, the bank wanted a 20% down payment. On both occasions, the deal failed because a proper financial background check wasn’t performed.
Note: On any potential deal involving a “jumbo loan” above $650K, a seller needs to make sure:
1) That the potential buyer has funds to put down at least 20% AND as the amount of the loan increases, more money to be able to get approved for a larger “jumbo loan”.
2) That the potential buyer has liquid cash available after the down payment or they won’t be able to pass the Co-op board review.
3) That the potential buyer has a solid source of income – many banks aren’t counting the total sum of banking bonuses currently as total income.
In order to feel truly secure with a potential buyers offer, get a pre-approval letter from the bank and a detailed financial statement documenting their income history.
Examples from my past experiences: Two different lofts, one worth 2.4MM and the other 1.3MM, both had potential deals fail because the buyers couldn’t secure financing. The first loft worth 2.4MM, the bank wanted a 25% down payment and the second loft worth 1.3MM, the bank wanted a 20% down payment. On both occasions, the deal failed because a proper financial background check wasn’t performed.
Note: On any potential deal involving a “jumbo loan” above $650K, a seller needs to make sure:
1) That the potential buyer has funds to put down at least 20% AND as the amount of the loan increases, more money to be able to get approved for a larger “jumbo loan”.
2) That the potential buyer has liquid cash available after the down payment or they won’t be able to pass the Co-op board review.
3) That the potential buyer has a solid source of income – many banks aren’t counting the total sum of banking bonuses currently as total income.
In order to feel truly secure with a potential buyers offer, get a pre-approval letter from the bank and a detailed financial statement documenting their income history.
Monday, August 11, 2008
Time on the Market vs Price - Inverse Relationship
It’s in human nature for a seller to feel that their residential space is far superior to other comparables and attempt to try to overprice their residential unit, hoping that there’ll be an uneducated buyer willing to spend or at least make an offer at the asking price - this is a huge misconception. In today’s internet age, buyers are more educated than ever - they’re researching and obtaining valuable information on properties/areas before they “actually start looking.” Therefore, the seller must price correctly from the beginning in order to achieve a maximum profit.
Note: Analysis your asking price every two (2) weeks. Are you having many showings but no offers? Are you getting initial showings but no second looks? These types of issues might be signs of overpricing – start to think about lowering your asking price by 10%.
Whether it’s improper pricing, high mortgage rates or the market – the longer your residential space is on the market the lower selling price you will get. Research “comps” and be aware of all variables to maximize your selling potential.
Utilize the fact that you’re not going to have to pay the 6% brokers commission fee and lower your asking price from the comparable sales of brokers, to create an extremely attractive deal for those educated buyers. In return, you’ll receive multiple offers creating a bidding war between respective buyers rewarding you with more money in your pocket.
Note: Analysis your asking price every two (2) weeks. Are you having many showings but no offers? Are you getting initial showings but no second looks? These types of issues might be signs of overpricing – start to think about lowering your asking price by 10%.
Whether it’s improper pricing, high mortgage rates or the market – the longer your residential space is on the market the lower selling price you will get. Research “comps” and be aware of all variables to maximize your selling potential.
Utilize the fact that you’re not going to have to pay the 6% brokers commission fee and lower your asking price from the comparable sales of brokers, to create an extremely attractive deal for those educated buyers. In return, you’ll receive multiple offers creating a bidding war between respective buyers rewarding you with more money in your pocket.
Thursday, August 7, 2008
Pricing Strategy to blow everyone out of the water!
Proper Pricing is the most crucial step in selling your residential space. Proper Pricing begins with two things: 1) comparing similar property sales within his or her residential area and 2) tracking the market. These two things give the seller, a pricing structure that’s needed to assess the proper market value. These like kind comparable sales can be researched through various websites and pay services. When researching and comparing similar property sales, remember that a majority of these sales went through a broker; so a 6% commission must be factored in, making the sale value listed different then what the seller actually took away from the sale.
With the 6% commission a non-factor with FSBO’s, a prudent strategy is to set your listing price a bit lower than the comparable sales pricing level giving the educated buyer a better deal and the seller a faster sale. By lowering your listing price a bit, you’re setting a market value to your advantage in which no other listing can compete. By utilizing this marketing strategy, you’ll attract more prospective buyers and multiple offers, which in the end could potentially take your sale above your asking listed price.
With the 6% commission a non-factor with FSBO’s, a prudent strategy is to set your listing price a bit lower than the comparable sales pricing level giving the educated buyer a better deal and the seller a faster sale. By lowering your listing price a bit, you’re setting a market value to your advantage in which no other listing can compete. By utilizing this marketing strategy, you’ll attract more prospective buyers and multiple offers, which in the end could potentially take your sale above your asking listed price.
Wednesday, August 6, 2008
Hire a professional or take your own photos?
Many FSBO sellers make the common mistake of attempting to take photos of their property with a digital camera they have on hand. Unfortunately, a majority of photos turnout bad due to the inexperience, which adds to more questions than answers regarding the property. Posting these photos online is your first impression to the respective buyer. Reflect and depict your property to show its utmost value or you may lose a large percentage of potential buyers.
For approximately $300 - $500, you can hire a professional to shoot roughly 6 high quality photos who’s well experienced in producing the best lighted and angled photos for your particular home. After all, you’ll be saving money by not paying the brokerage commission – why not put a little of that money into the best presentation possible.
Common Mistakes Sellers make with Photos:
1. They take photos at night making the property look way too dark and uninviting.
2. They take narrow and weird angle shots to reflect and depict their property. These types of photos leave the potential buyer thinking that there’s something wrong with the property.
3. They take close-ups of items they might find to be special and unique such as a bathroom vanity or stove. * Shots should be a cohesive picture of the property. Leave specialty items within your description to create a further “buzz”. *
4. They take photos, which depicts their property as messy and unclean. * Clean the place and remove all debris from every shot. Sorry to tell you but nobody wants to see your pants on the bed in the bedroom or your cute and adorable dog in the living room. *
5. They don’t take enough photos. Providing only 1 or 2 photos will make a potential buyer sub-consciously feel that something might be wrong or being hidden. We advise to have a least 6 high quality photos of your property.
6. They mistakenly take photos of themselves in reflective surfaces.
7. They take photos focusing directly too much on light sources in the room, thus washing out the photo making the room feel darker.
Note: There are many other common mistakes but in order to avoid these, we’ve listed below a great company that can provide everything from professional photos and floor plans throughout the Metro NYC area.
http://www.vht.com/
VHT: A professional company that will take photos of your property and e-mail you a link for both web-sized photos and larger ones to be used for direct mailing. Other hi-resolution applications are available, if needed.
BTW: Utilize VHT as a resource to provide you a detailed floor plan also. The more information you provide to a potential buyer the better the property showing will be. Why? Most of their questions will be answered before they get to see the space. Psychologically, they’ll be more focused on the space than any unanswered questions that your online presentation depicted.
Note: Now more than ever, experienced buyer’s research potential properties online. Why not provide them with all the pertinent information upfront, hassle free!
For approximately $300 - $500, you can hire a professional to shoot roughly 6 high quality photos who’s well experienced in producing the best lighted and angled photos for your particular home. After all, you’ll be saving money by not paying the brokerage commission – why not put a little of that money into the best presentation possible.
Common Mistakes Sellers make with Photos:
1. They take photos at night making the property look way too dark and uninviting.
2. They take narrow and weird angle shots to reflect and depict their property. These types of photos leave the potential buyer thinking that there’s something wrong with the property.
3. They take close-ups of items they might find to be special and unique such as a bathroom vanity or stove. * Shots should be a cohesive picture of the property. Leave specialty items within your description to create a further “buzz”. *
4. They take photos, which depicts their property as messy and unclean. * Clean the place and remove all debris from every shot. Sorry to tell you but nobody wants to see your pants on the bed in the bedroom or your cute and adorable dog in the living room. *
5. They don’t take enough photos. Providing only 1 or 2 photos will make a potential buyer sub-consciously feel that something might be wrong or being hidden. We advise to have a least 6 high quality photos of your property.
6. They mistakenly take photos of themselves in reflective surfaces.
7. They take photos focusing directly too much on light sources in the room, thus washing out the photo making the room feel darker.
Note: There are many other common mistakes but in order to avoid these, we’ve listed below a great company that can provide everything from professional photos and floor plans throughout the Metro NYC area.
http://www.vht.com/
VHT: A professional company that will take photos of your property and e-mail you a link for both web-sized photos and larger ones to be used for direct mailing. Other hi-resolution applications are available, if needed.
BTW: Utilize VHT as a resource to provide you a detailed floor plan also. The more information you provide to a potential buyer the better the property showing will be. Why? Most of their questions will be answered before they get to see the space. Psychologically, they’ll be more focused on the space than any unanswered questions that your online presentation depicted.
Note: Now more than ever, experienced buyer’s research potential properties online. Why not provide them with all the pertinent information upfront, hassle free!
Tuesday, August 5, 2008
Facebook group - Too
http://www.facebook.com/group.php?gid=26507576442
Join us on Facebook. We’ve created a new group covering all the same topics as this blog BUT with social networking interactive boards, where users can write/read messages and comments that were made regarding this new marketing platform of selling your property on your own.
Join us on Facebook. We’ve created a new group covering all the same topics as this blog BUT with social networking interactive boards, where users can write/read messages and comments that were made regarding this new marketing platform of selling your property on your own.
How to use comparables or "comps" for proper pricing
The following websites are great resources to research to find like kind comparable sales or “comps” in your residential area to determine proper pricing.
Note: Many websites require a small fee for their services, while others may be free.
Pay Services: Real Quest, Property Shark and Street Easy
Real Quest:
Offers a complete comparable or “comps” service for New York City, Queens, Brooklyn and Long Island.
http://www.realquest.com/jsp/rq.jsp?action=switch&page=main
Property Shark: - 6 Free Reports
Offers a complete comparable or “comps” service for New York City, Queens, Brooklyn and Long Island (Nassau and Suffolk)
www.propertyshark.com
Street Easy:
Offers a complete comparable or “comps” service for New York City, Queens and Brooklyn.
www.streeteasy.com
Free Services: Access New York Department of Finance government affiliated websites.
Offers free comparables or “comps” service (LYTD) for New York City, Queens and Brooklyn.
http://www.nyc.gov/html/dof/html/property/property_val_sales.shtml
Offers free comparables or “comps” service for Long Island (Nassau County).
Tip: Just put in the house address you are interested in and select comparable sales tab.
http://www.nassaucountyny.gov/mynassauproperty/main.jsp
Note: You need to access the individual town’s assessor website for free comparables or “comps” for Suffolk County.
Examples – Using comparable sales or “comps” to obtain like kind comparables.
Apartment – Compare residential units that have sold in the building within the same “apartment line” as your apartment.
Ex: You own residential unit “5A” – the best comparables come from “A” line apartments with the same layout as yours. Researching in this matter is the only way to get a “true” or accurate price and will ensure proper pricing of your residential area.If no comparables exist, the seller should then utilize “comps” from inside the building in other “apartment lines” that are similar to his or her residential unit – such as its features and exposure.
Fact: Researching comparables inside the respective building is the most proficient method to ensure proper pricing as each building has its own selling “power” and selling price determined by many factors.
Researching comparables outside a respective building is an inefficient method due to various differences in buildings and selling levels that are “outside” the comprehension on how “comps,” relate.
Also: Always remember to factor in the condition of the apartment, as this is vital aspect to ensure proper pricing. Analyze all aspects and details carefully.
Ex: You own residential unit “5A” - upgrades need to be made to your kitchen and bathroom. After researching, unit “6A” was in great condition and had the exact same layout as yours when it sold for $600K last month. In order to properly price your residential unit effectively today, you need to discount these upgrades off the $600K asking price. Get an estimate in writing from a local contractor to determine what this discount should be
Townhomes and houses – Compare similar styles, location areas and property sizes.
The most precise comparable for proper pricing would be a residential space with similar styles and property sizes on the same street. Pay close attention when researching comparables. Did this property have renovations done? Additions?
In some instances, the seller might find comparables very similar to their townhome or house after researching online but is unable to find any information regarding the “condition” of the property when sold.
Tip: 1) Research who sold the property last. 2) Create a free e-mail account either with Yahoo or Google – Just provide your name during sign-up. 3) E-mail the respective person and ask if he or she can provide some detailed information regarding the property.
Note: Many websites require a small fee for their services, while others may be free.
Pay Services: Real Quest, Property Shark and Street Easy
Real Quest:
Offers a complete comparable or “comps” service for New York City, Queens, Brooklyn and Long Island.
http://www.realquest.com/jsp/rq.jsp?action=switch&page=main
Property Shark: - 6 Free Reports
Offers a complete comparable or “comps” service for New York City, Queens, Brooklyn and Long Island (Nassau and Suffolk)
www.propertyshark.com
Street Easy:
Offers a complete comparable or “comps” service for New York City, Queens and Brooklyn.
www.streeteasy.com
Free Services: Access New York Department of Finance government affiliated websites.
Offers free comparables or “comps” service (LYTD) for New York City, Queens and Brooklyn.
http://www.nyc.gov/html/dof/html/property/property_val_sales.shtml
Offers free comparables or “comps” service for Long Island (Nassau County).
Tip: Just put in the house address you are interested in and select comparable sales tab.
http://www.nassaucountyny.gov/mynassauproperty/main.jsp
Note: You need to access the individual town’s assessor website for free comparables or “comps” for Suffolk County.
Examples – Using comparable sales or “comps” to obtain like kind comparables.
Apartment – Compare residential units that have sold in the building within the same “apartment line” as your apartment.
Ex: You own residential unit “5A” – the best comparables come from “A” line apartments with the same layout as yours. Researching in this matter is the only way to get a “true” or accurate price and will ensure proper pricing of your residential area.If no comparables exist, the seller should then utilize “comps” from inside the building in other “apartment lines” that are similar to his or her residential unit – such as its features and exposure.
Fact: Researching comparables inside the respective building is the most proficient method to ensure proper pricing as each building has its own selling “power” and selling price determined by many factors.
Researching comparables outside a respective building is an inefficient method due to various differences in buildings and selling levels that are “outside” the comprehension on how “comps,” relate.
Also: Always remember to factor in the condition of the apartment, as this is vital aspect to ensure proper pricing. Analyze all aspects and details carefully.
Ex: You own residential unit “5A” - upgrades need to be made to your kitchen and bathroom. After researching, unit “6A” was in great condition and had the exact same layout as yours when it sold for $600K last month. In order to properly price your residential unit effectively today, you need to discount these upgrades off the $600K asking price. Get an estimate in writing from a local contractor to determine what this discount should be
Townhomes and houses – Compare similar styles, location areas and property sizes.
The most precise comparable for proper pricing would be a residential space with similar styles and property sizes on the same street. Pay close attention when researching comparables. Did this property have renovations done? Additions?
In some instances, the seller might find comparables very similar to their townhome or house after researching online but is unable to find any information regarding the “condition” of the property when sold.
Tip: 1) Research who sold the property last. 2) Create a free e-mail account either with Yahoo or Google – Just provide your name during sign-up. 3) E-mail the respective person and ask if he or she can provide some detailed information regarding the property.
No Brokers Please! - Welcomes you....
Today marks the beginning of my blog and support to all the For Sale by Owner’s (FSBO’s) of New York City, Brooklyn, Queens and Long Island trying to sell their properties on their own. Having worked in the Real Estate industry for many years as a licensed broker, I’ve grown tired of the BS that an everyday broker brings to the table. I felt by creating a website specifically for the NYC metro area FSBO, I could really assist owners by offering them expert advice on a very misunderstood step in selling their properties on their own. The main reasons I got into Real Estate was my love and passion for Real Estate and most importantly, the joy of helping future owners find their dream homes. To some degree, this gets lost as you truly understand and see how most brokers go about their business in selling Real Estate.
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