Palm Beach Real Estate News

The success of HGTV and the plethora of online information has shifted the ground rules of real estate sales
BY JUNE 16, 2019

Any seller who has not sold a home in the past five years is in for a shock: Everything they thought they knew about selling a home has changed.

Sellers who do not understand the new rules of engagement can easily make costly mistakes and jeopardize their chances of a sale.

3 fundamental changes

These three changes have altered the homebuying and selling landscape forever.

Change 1: The advent of HGTV

Buyers spend countless hours watching HGTV and have developed extremely refined tastes. They know what they want and when they look at homes for sale. They are looking for properties that look similar to what they have seen and liked on TV.

Change 2: The advent of mobile devices and HD internet connectivity

Buyers used to have to visit a home to add or remove it from their short list. No longer the case, today’s sellers have between seven and 10 seconds to sell their home, and those seconds are on a mobile device anywhere on the planet — not in any home for sale.

If a buyer does not like an online listing, they will move on to the next home in a heartbeat and will usually not come back to review.

If they do not like what they see on their device, they will never waste their time visiting in person.

Change 3: The advent of internet real estate sites

Realtor.com, Zillow, Trulia and a host of broker-owned sites have populated the internet with user-friendly websites that provide property data, historical facts, HD pictures, automated valuations, neighborhood and school info, and more.

They have completely removed the need for buyers to visit in person to determine if they like a home. Once a buyer has shortlisted available inventory, they only visit the select few they like.

These three changes have not only revolutionized the way buyers search for and view prospective homes, they have transformed what they buy as well. Historically, there were three groups of buyers:

Top-tier buyers: Willing to pay a premium, this group looked for move-in ready homes that had all the amenities they were looking for.

Middle-tier buyers: Looking for homes in “original” condition, this group hoped to get a decent price and then improve the home over time with sweat equity.

Bottom-tier buyers: This third group were contractors and flippers looking for distressed properties they could buy for 60 percent to 70 percent of retail value.

The middle tier, which historically represented a significant percentage of market sales, is disappearing. More comfortable with tech than construction, today’s buyers are forgoing the middle tier en masse and paying more to obtain move-in-ready homes that look like the finished properties they have seen on HGTV.

This is not simply the consequence of real estate-related technologies. The past few years have seen sweeping societal shifts as homebuyer wannabes, for many reasons, are less willing or even capable of fixing up a home they’ve purchased.

They know exactly what they like when they see it, but have almost no idea how to produce it themselves. The No. 1 question buyers ask about our listings is, “Can we buy the staging?”

With buyers moving away from “original condition” properties they perceive as needing upgrades, homes that appear in the middle tier are being forced down into the bottom tier and need to be priced accordingly. Sellers who do not understand this new reality stand to end up with far less than they imagined.

5 seller myths

With this in mind, here are the top five seller beliefs that are no longer true:

1. I do not need to have the listing agent visit until my home is ready.

Wrong. In reality, the sooner the agent can get in, the better. Sellers, assuming the old rules still apply, might spend money on things that could harm a home’s potential and, conversely, fail to spend money where it matters.

Agents can not only help sellers maximize their potential, but they can also connect them with the trades and other professionals required to do it right.

2. I do not need to upgrade the property for sale.

Since increasing numbers of buyers are looking for move-in ready homes, the more a seller does to get the home to that level, the higher the returns. In an up market, sellers can reap a $2-$3 dollar return for every dollar spent.

In a declining market, they may not get 100 percent back, but they will get a sale. I frequently hear sellers ask, “Why should I upgrade? Won’t the new buyers come in and rip out all the stuff I just put in?”

That is not the right question. A better question is, “What can I do to make my online pictures sizzle to get the highest number of buyers through the front door regardless of what a buyer does once they own the home?”

If a seller can invest $1,000 on carpets and in the process make $3,000, does it matter what the new owner does once they move in?

3. I need open houses to sell my home.

The myth here is that buyers need to visit your home in person to decide whether they like it or not. In the new reality, buyers are visiting because they have already seen the home online and decided it was worth seeing in person.

Open houses simply make it easier for buyers who are already going to visit to actually get in. They also make it easy for the neighbors to come through — which is good because they frequently know someone looking to move into the area.

4. I need many open house signs at multiple key intersections.

Wrong again. Savvy listing agents put out tons of signs because they are free advertising. Buyers who have seen the home online do not need directional signs to find the home. With open houses dates and times syndicating to all the major web portals, buyers simply use the GPS feature in their phones.

As for the neighbors, they will not come because you posted signs at far away intersections. To get them, you want signs close to the open house.

5. If buyers really want my house, they will pay more than market value.

Buyers are not running charities. Due to online AVMs (automated valuation models — think Zestimate), buyers know when a property is overpriced and generally stay away, assuming the seller is unrealistic.

While pricing strategies vary from region to region, most agents know to recommend that sellers price listings close to market realities. As more listings come onto the market, buyers have more choices and migrate toward those they believe represent good values.

Sellers who insist they must net a specific amount, which in turn pushes the price too high, are only kidding themselves.

For sellers who have not sold a home in recent years, the new rules can be a shock. Ironically, since most sellers are also looking to buy a replacement home, all I usually have to do to change their thinking is to ask them how they are personally searching for homes in their new location.

They walk me through their process, and suddenly, in most cases, they get it.

Carl Medford is the CEO of The Medford Team.

Article image credited to Joe Belanger / Shutterstock.com

Article Link: https://www.inman.com/2019/06/16/5-outdated-seller-beliefs-agents-should-debunk/?unl=3b1c675869f2ef8c0f1c4508b3473a6e04514608&utm_source=referral&utm_medium=email&utm_campaign=sharedarticle 

Posted by Heather Smith on August 15th, 2019 1:40 PM

So you’re thinking about selling your home? I realize you didn’t arrive at this decision lightly, and that you might be nervous or scared. There are so many things that are probably going through your head right now. I’d like to help you by offering some advice, and hopefully putting your mind at ease.

First, do some research.

It’s important for you to understand how much money you can expect to get for your home. We need to be realistic. Unfortunately, checking online sites like Zillow or Trulia isn’t going to give you the most accurate picture of your home’s value. This is why it’s important to sit down with a real estate agent that understands the market and will give you a realistic home value estimate by comparing similar properties that have recently sold in your area.

This meme is pretty funny (and rather sarcastic)… but at the same it illustrates a painful reality.

Discuss your situation.

Discussing your situation with a real estate agent will also help you identify any other aspects of the transaction that you might be forgetting. For instance, there might be something glaringly obvious that could get in the way of a smooth home inspection that you might not be considering… or, on the other hand, a unique feature that your home might have which could help maximize its value. Also, discussing the process with an agent will help you understand how much money you can expect to walk away with after the closing.

Considering braving it alone?

If you’re considering selling your home without an agent, remember that you’re doing so at your own risk. There are quite a few things that can go wrong (many of them legal) which an agent is trained and perfectly setup to handle. Also, do you really want to deal with random strangers showing up at random times throughout the day, wondering whether they’re even qualified to buy a house or if they’re just bored and looking for something to do.

Or said a different way…

Let an agent worry about these things; you’ll thank yourself later.

Pick the right agent.

Working with the right person can mean the difference between a smooth transaction and a less-than-memorable experience. How do you pick the right one?

First, make sure you feel comfortable with the person. You might spend a lot of time with them, so it’s important that you have rapport.

Secondly, if the agent is giving you some inconvenient feedback or information, don’t dismiss them. The best agents will tell you the truth because they understand that setting the right expectations is more important than promising you the world.

Remember, if it sounds too good to be true, it probably is. Lastly, ask as many questions as you need to until you feel comfortable with your level of understanding. The right agent will be patient with you, and will understand just how big of a deal this is.

Don’t stress!

This might be easier said than done, but try to keep things in perspective. Your home is probably your most valuable asset, and the most consequential transaction that you’ll ever work on. But people buy and sell their homes every day, and there’s a very comprehensive system in place that helps facilitate those transactions. Your agent will help guide you through the process and will help you feel at ease. Remember, you’re not the first and you won’t be the last person to feel the stress.

Expect the unexpected.

It would be lovely if I could promise you that everything will go perfectly smooth, but it rarely does. Obstacles almost always come up during a real estate transaction, but that doesn’t mean you should pull your hair out worrying. Agents know there will be bumps in the road, and they’ll also know how to get over them and get your home sold with as little stress for you as possible.

So don’t stress, be realistic, find the right agent to help, and remember that small hiccups are just part of the transaction.

And by the way, feel free to give me a call. ??

Posted by Heather Smith on July 31st, 2019 12:33 PM

Summer has traditionally been the best time to sell a home. Not only do many families take advantage of moving when the kids are out of school, but in climates where winter weather is unpredictable or severe, the warmer months make it easier to be away for showings. With more homes on the market, how can you maximize your potential for a great offer among the options? Fortunately, you can take a few steps to ensure your home stands out from the crowd.

Tips for Selling in Summer

  • Control the Climate – The first thing a buyer will notice when they walk into a home is the temperature. If the weather is warm and humid, it’s critical you keep the home cool. A larger air conditioning bill is a small price to pay for a top dollar offer.
  • Let in the Sun – It might be tempting to close the blinds to save money on air conditioning, but bright, sunny rooms are always more appealing; leave enough open to showcase natural light.
  • Extend Outdoors – Today’s lifestyle includes the outdoor areas and more and more homes feature outdoor living and dining areas. Regardless of your home’s features, maximize the impact of your yard with furniture, BBQs and manicured landscaping.
  • Spring Clean – A fresh, decluttered home with a lighter, seasonal color scheme will be visually appealing to your buyers. Replace dark pillows, linen and accents with softer colors which make the rooms seem larger.

The summer selling season is here. Make sure your home is dressed for success. Welcoming outdoor spaces and bright sunny rooms combined with inviting an air conditioned rooms will ensure you get the best possible offer.

Posted by Heather Smith on July 19th, 2019 12:42 PM

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