Take a look at the top of the page and you will see the new Featured Listings category. This will show select listings, including mapping info, pictures and links to their websites. We will also be loading videos onto the featured listings in the next few days.
Category Archives: buyers
Not into the mailbag… Buyers…
- Wednesday, 25 June 2008 07:47
- Written by Lane Bailey
- 0 Comments
I did a series of posts on questions that I get on a regular basis (or interesting enough that they make an impression by getting asked just once). This isn’t one of those. This is the question that most consumers don’t know to ask… and this is part two.
Shouldn’t we just offer X% of the listing price?
Fill in a number… it doesn’t matter. And the answer is NO. The listing price may or may not be based in reality. But, here is the thing… the sellers have an emotional investment in the listing price… generally. And if the house is over-priced, the chances are that even if they were thinking of “negotiating room” they started to think that their home was worth that price. Of course, there are times when they might be frustrated and may sell for 75%, or whatever…
But the bottom line is that the listing price reflects nothing more than one person’s opinion of value (or a few… same difference). Some homes are great deals at the list price. Others are a fools game at half of the price. But, the crucial difference is that in the case of a fairly priced home, the seller is generally easier to deal with and won’t cry about how they are being taken advantage of at every turn. The “heavily discounted” seller will often put up roadblocks at each opportunity.
Simply put, concentrate on homes that are appropriately priced. Base offers on reality, and stop thinking that real estate is a Wal-Mart clearance sale. The basic fact is that in Gwinnett County, right now… homes are averaging above 95% of listing price. And only the homes that are priced right are selling.
Looking for the Gwinnett real estate expert?
- Monday, 16 June 2008 15:24
- Written by Lane Bailey
- 0 Comments
I hate to toot my own horn, but if I don’t, I doubt that my competition will… So, here it goes.
When the AJC needed perspective on Gwinnett real estate…
Their reporter called me. Apparently, I was inescapable… I do write monthly market reports, and I don’t pump sunshine… I tell it like it is. If it is good, I will say so. If it isn’t, I will say so. I do subscribe to the NAR position that all real estate is local, but I don’t try to use that to camouflage a weak market.
Have a link…
Here is a link to the AJC Gwinnett real estate wrap up. The story is well written, and balanced. The market here isn’t all sunshine, and the numbers bear that out. It also isn’t bloodshed… and the numbers bear that out.
Every month I study the numbers. I look at the news and the trends all of the time and try to glean where the market is heading. But, more importantly, I try to make sure that I can back up what I am saying. I hear a lot of people preaching doom and gloom… or preaching that it’s peachy… and they don’t have anything to back it up.
Have another link…
Here is my April/May 2008 market report on my blog. Here is the report on my website. Of course, if you are reading this later in the year, you can always find my most recent report on the front page of my website at GarageHomesUSA. It is usually on a content rotator near the top of the page. If you don’t see it right away… it should be there in a minute.
Thanks for tuning in.
Automatic Valuation Tools
- Wednesday, 11 June 2008 21:36
- Written by Lane Bailey
- 0 Comments
I just added one to GarageHomesUSA.com today. They are great for what they are… as long as the limitations are kept in mind. Here is the direct link. Feel free to wander over in a moment…
AVTs have become all of the rage in the last couple of years. Zillow is the big name, but there are other providers. The basic idea is that one can enter the address of almost any property and get a computer generated valuation.
The great part is that it is easy to quickly find a value for the property.
While looking over a myriad of properties, or thinking of selling a property, getting a baseline estimate is a great idea. Too many people work off of emotions while trying to value a property for sale… theirs or one they might want to be theirs.
The dark side is the accuracy of the valuation.
It might be dead-on accurate. It might be off by 20%… or 50%. It depends on if there are mistakes in the data that is being used for the computer model. Among the things that could be wrong or missing in the data are:
- correct square footage. The computer models are heavily based on square footage. If the tax records are off on that… for the subject OR the comps… the estimation will be off.
- condition. The computer model can’t compare properties based on their condition, because it only sees the prices paid and tax appraisals.
- recency. In smaller neighborhoods, there might not be many recent and comparable sales. That puts the computer in the position of not having enough data to work with.
- location. In many neighborhoods, there might be different sections with homes at different ages or styles. There might also be nearby neighborhoods with similar sized homes that aren’t actually comparable. The computer models may not be able to properly discriminate actual comps from things that might be largely similar, but only on paper.
Of course, as a real estate professional I’m biased, but it really does take a qualified real estate professional that will actually look at the property, and at the comps. That means that a real estate agent doing a CMA, or a licensed appraiser doing an Appraisal. Or both…
Look at several data points. Take off the rose colored glasses and look honestly at the property, size, condition, style, location and any other factors. Look at the CMA and/or Appraisal.
- Are the comps really comparable?
- Are the adjustments reasonable?
- How does the condition compare?
The idea is to find an honest valuation that is reasonable. And, if you are listing a property for sale… don’t just automatically list with the agent that tosses out the highest number. Look at the basis.
So, why did you add the tool to the site?
Simple. It is a useful tool. When used properly, it is very effective. Wrenches aren’t good hammers. You can certainly pound something with one, but that doesn’t mean it will do the job.
Incrementalism…
- Saturday, 07 June 2008 11:19
- Written by Lane Bailey
- 1 Comment
Incrementalism is a concept that a lot of people in the automotive hobby are familiar with… in theory, if not the word itself. So, let me give a definition…
Incrementalism refers to the practice of just changing things a little bit… over time… piece by piece.
This would be opposed to going “All In” or whole hog.