<THE REAL Estate TRUTH>
BLOG Written by Justin Pieragostini
LISTEN TO YOUR AGENTS ADVICE
1-24-2020 - 1 year ago I had an offer in on a short sale and I personally knew the seller. I told him that if he didn't accept the offer that the bank accepted already from me- that he instead would probably lose the house to foreclosure and that would greatly effect his credit much worse than a short sale. I begged him to see and understand that I knew what I was talking about and was the professional to listen to and take advice from. He had tenants in the building and felt bad that he needed to tell them it was going to sell. I understood that issue but counseled him that they would have ample time to relocate and move and that this was entirely in his best interests. He didn't take our offer and he was foreclosed on. His credit is now much worse off than if it was a short sale. Moral of the story - Clients trust in us to handle the transaction of the most valued asset they have- LISTEN to us- your professional agents - WE HAVE YEARS OF EXPERIENCE & TRAINING THAT ALLOWS US TO COUNSEL YOU SO YOU ARE MAKING THE BEST DECISIONS! WE KNOW HOW TO ADVISE YOU AND RECOMMEND THE BEST COURSE FOR YOUR BENEFIT!
OVER PRICED LISTINGS
2-15-2020 - OVERPRICED LISTINGS: Often in Real Estate, when negotiating deals- A buying agent would call on my listing and ask if the advertised asking price was mine or the sellers. Professional agents opinion of the price value of a home is based on certain criteria: comparable sold properties within the town and school system, other competition in the market- in other words- similar and comparable homes in that price range, and timing- if there are other homes like this in a certain area or similar style etc. We, as agents, have access to information, data and reports that you as a seller do not have. Furthermore – we have been in these comparable homes and know how they compare to yours. Additionally, we know how buyers perceive homes, how they react to pricing and understand what compromises buyers will think about when placing offers on homes. LISTEN TO US- YOUR PROFESSIONAL AGENTS, BECAUSE WE HAVE EXTENSIVE MARKET KNOWLEDGE ABOUT HOW YOUR HOME COMPARES TO OTHERS IN THE MARKET AND WHAT THE GENERAL SELLING PRICE SHOULD BE. Finally- your home has to pass an appraisal if the purchaser is using a mortgage. That bank appraiser bases his value on the other COMPARABLE SOLD PROPERTIES and needs to substantiate a price in the market. We as realtors use that same method to come up with a recommended list price. If the deal we have is to high-the bank appraisal comes in low and the deal then needs to renegotiated or it dies. We as listing agents all know that you as a seller have an emotional connection to your home. In the market. As a professional Real Estate Agent- we take away that emotional connection to get you the highest and best price we can- THAT PRICE is based on facts, comps, other sold properties and MARKET ACTIVITY- NOT WHAT YOU AS A SELLER FEELS AND BELIEVES ITS WORTH IS.
WHY ARENT THEIR ANY OFFERS
3-12-2020 2020 - WHY ARENT THEIR ANY OFFERS: Often in listing a home at a higher price than what the market accepts and reacts to - a seller will ask us why there are so few showings and no offers. I know the marketing is on spot- my pictures are stunning and my marketing is descriptive and alluring. This happens to me often – and in a recent case- it was a textbook study of market VALUE. I always explain to my seller clients, that a home will sell when the buyers perceive a VALUE in that home and property. That VALUE is reflected by the asking price of the home. Let’s get back to my study: I listed a desirable home in Chappaqua in a sought after neighborhood at a relatively decent price point for the town and school system. We had decent at best showings and all negative feedback. The feedback was consistent that buyers didn’t perceive the VALUE in the property at that price point and there were other competing properties at the same price point that offered buyers better VALUE. After 1 month my sellers agreed to make a price adjustment of about 30k. Well guess what happened? Our showings literally doubled and I immediately received positive feedback from 4 showings and 3 potential buyers possibly submitting an offer. I followed up with each interested agent representing their clients and the next day received 2 offers! This all happened in a 2-week period after 4 weeks of subpar activity. MY SELLER CLIENTS ask me- even when we were higher priced, why wouldn’t we receive offers that were lower? The truth is- that rarely happens- because buyers just don’t see the VALUE of the home at that asking price. Even though they know and believe the house is worth less- it’s the stigma of the NEGATIVE VALUE that the asking price creates. So- we as professional realtors who understand this phenomenon know that reducing the price is actually really just trying to hit a POSITIVE VALUE for a home on the open market- and when that asking price of the home meets the PERCEIVED VALUE- you get a sale! We literally are turning a negative into a positive just by adjusting the asking price to more closely reflect VALUE for that home in the market. It’s a phenomenon that we, as agents, understand and know exists- communicating this to our clients is sometimes difficult. I guess my advice is this: just as you would trust your attorney or doctor that has years of experience and education- trust in our ability to counsel and work in your best interests because we experience so many unique perceptions between buyers and sellers regularly and know what it takes to get a deal!
CAN YOUR HOME ACTUALLY MAKE YOU HAPPY
CAN YOUR HOME ACTUALLY MAKE YOU HAPPY?
How important is your living environment- your location, access to restaurants and resources? It’s actually PARAMOUNT. Real Estate is NOT just about the right layout and style of your home- it’s MUCH more about the emotional connection and intrinsic value of your living environment.
Case study- I had a close personal friend who became a client who owned what I can honestly say was one of the hottest most desirable listings in Pound Ridge at over 1 Million during the Pandemic. While buyers were racing north to find vacation homes and primary residences in the suburbs- this home was a Mid Century Modern that literally everyone was looking for. We had multiple offers and a bidding war on the home which eventually led to the solid deal we accepted.
My seller, while others believed this to be the perfect sunlit and architecturally stunning home, always felt isolated and weary. She Just couldn’t feel at home in her house- to her, it was stark and cold. It was removed from a town location and very private. While others may deem these traits desirable, my client felt dreary.
While in contract to sell this stunner- we found a home for her to buy- traditional in style, with European accents and interior personalization. Bright wall colors with faux painting. Stucco accents and a full stone veneer exterior. Coffered ceilings and substantial custom wood-built ins and trim work throughout. A slate roof with an enormous flat level yard- very close to town train, shops and restaurants. Now THIS was it- her personal style, location and décor right on spot.
We closed on this purchase, and EVERYDAY since when I call her in her new home, she answers the phone with conviction, happiness, and delight. She literally is glowing and smiling more than I have ever seen her before. She thanks me profusely- to that I reply- NOW YOU realize what my WHY is- My purpose, and what drives me. Its your happiness that allows me to feel accomplishment and success. I have literally directly been part of the reason for my friend’s complete happiness and brightened mood.
ABSOLUTELY- your living environment- is your solace, your safety and happiness. It’s the place where you make most of your memories and find comfort in your daily chores and relaxation. Your Living environment- your HOME is the single most important purchase- and you should always focus on this investment as the best kind of medicine that you could ever have a daily dose of. Each person has a different opinion and view of what environment makes them happy- I am only here to deliver on my promise of finding your perfect home!