Often I get the inspiration to write from conversations with my clients.  Currently I have listed this beautiful 2/1 on 2111 Forest Circle , and the owner Bob is apparently impressed enough with what I have done so far to share my name with a friend of his who is considering putting his home up for sale.  Thank you Bob!
Anyway, I haven't had an opportunity to speak with this friend of Bob's (which I would welcome), but it looks like he is going the "For Sale By Owner" (FSBO) route. I think this is a big mistake particularly in a buyer's market like we have now.

2111 Forest Circle Orlando 32803

I can think of only a couple of legitimate reasons why someone might choose to "go it alone"their to sell their house.  One would be  and would be if the property was being donated as charity and the other would be a transfer of a home from one member of a family to another who are on friendly terms with each other!  Other than that, I cannot for the life of me think of any other reason why someone would  choose not to use a full time real estate professional- particularly one who doesn't get paid a cent until the property is sold.  

Here are the top rationals  I have heard from FSBO sellers through the years, and my thoughts on each one.

The Living Room- Forest Circle.

•   "I can get more money for my home by selling without a Realtor involved". 

This is simply not so. The typical FSBO home sold for $153,000, the typical salesperson-assisted sold for $211,000 (NAR report, 2010). The difference on average will more than pay for commissions paid to agents used for the sale.  Enough said.

• "Really all I want to do is put a sign in my yard and throw a high number out there to see if I can get it"

 Well it is a whole new world out there.  In the old days, if a seller and buyer both agreed to a price on a property then the banks had a better track record of loan approval regardless of the cost of the home. (part of the reason we are in the mess we are in today).  Even if a FSBO convinces a buyer to put an offer in at a higher price than the house is worth, if the sale is contingent upon loan approval- the house will not appraise and chances are there will be no sale.  A knowledgeable  Realtor has a better chance than a seller of convincing an appraiser of the value of a home based on the "facts".  Also, if an appraisal comes in short, a Realtor will have a better chance of negotiating the shortfall between buyer and seller to try to make the sale move forward.
Besides, buyers are getting wiser.  They are not going to spend money out of their pockets on home inspections, loan applications etc. without knowing that the price of the home was well thought out.  A Realtor can demonstrate to a potential buyer or buyer's agent that the listing price was not pulled out of thin air.

•  "With "discount" fee based brokers I can get my home on the MLS....I don't need a full service real estate company."

 Well this may be true, but getting it on the MLS is no longer the "end all".  For one thing, there are a multitude of websites in which buyers are searching the internet on their own.... places that have nothing to do with the MLS such as Trulia.com, Realtor.com, Zillow.com etc.  Here in our Coldwell Banker office we have a list of hundreds of "web partners" in which a home that I list gets automatically uploaded to many of these sites.....many with "enhanced" listings which would cost an extra fee for a FSBO.   Will a For Sale By Owner spend their time and money to advertise prominently on these websites? Doubtful.  Thus, the pool of potential buyers for their property is greatly diminished. Many fee based brokers get paid up front.  If I list your home, nothing gets paid to my broker until the home sells.

•  "Are you kidding me!  My home is worth WAY MORE than you are telling me! You just want a quick sale."

•  "I don't need a buffer between the buyer and myself....the buyer would prefer to deal directly with me without having real estate agents involved on both sides."

Is it all about location?
Still worth saying "Location, Location, Location?"

As I see it, it is the number one rule in real estate.  If two homes are "created equal", and one is in an area closer to lakes, shopping, schools it would naturally be more desirable than the other yes?
Now if you feel there is still some concern about where the real estate market is headed, then the answer is definitely yes. It is Location, Location, Location.  Big time.

                                                    My listing at 1002 Delaney Park Drive 32806

Such a simple rule but so often overlooked.
You can buy the right home in the wrong location.  You can remodel it, you can change it, you can add to it....but you cannot pick it up and move it somewhere else.  I am basically restating the thoughts and sentiments expressed here but I see examples of this in Orlando everyday.

I guess what "Location, Location, Location" means might differ somewhat from person to person.  But for many of the clients I have worked with some of the most desirable location features include:

1.   Close Proximity to Oceans, Lakes and Parks

1002 Delaney Park Drive  just one block away from Lake Davis

When you think about it, there are only so many waterfront, water view,  or homes just a short walk to water.  Same goes for parks and recreation facilities.  Limited supply leads to increased demand.

2.   Highly Rated Schools

You might say that this is only important if you are looking for a home and you have school aged children.  But what about when you go to sell?  Your home will probably attract more potential buyers (those with children) if you are near highly regarded schools.

3.   A Smaller Home In A Rich Neighborhood

Better to be a small fish in a big pond as far as resale is concerned in most cases. You really can't lose here.  A smaller home might be an opportunity for someone to gain entry into the neighborhood of their dreams.

4.  Walking Distance to Restaurants and Shopping

In this day and age more people want to feel self reliant.  The idea of being able to stroll to a neighborhood cafe after work would be appealing to many.  Cars do break down you know.

5.   A Safe, Secure, Stable Neighborhood

Well of course you would want to know that if you did decide to stroll to a neighborhood cafe you would feel safe doing so!  Not to mention the security of the home you just walked out of.    Also, is the area of the property consistent?  A home might be considered of greater value in an area of other similarly built homes, as opposed to a mixed usage community- homes near offices or industry.

Other "good" location features might be accessibility to hospitals, public transportation and job.  Take a look at the information on my listing pictured- 1002 Delaney Park Drive in the Lake Davis district, A couple of steps from the front yard and you can see the beautiful lake!

Back to the "two homes created equal" scenario.  Think of a home exactly like this one on Delaney Park Drive except located in an area of high crime, on a busy street, in a depressed area next to a paper mill!  I could go on and on but hopefully you see my point.

In my humble opinion, "Location, Location, Location!" will never change. It should and will continue to be the most important factor when choosing a home, and without a doubt a home in a great location is well worth a premium.

For more information on Location, Location, Location and this lovely home featured please do not hesitate to get in touch with me.

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"Parade of Homes" winner- 1401 Green Cove Road Winter Park

Here is the raw data- it certainly is a mouthful!  If you have any questions or comments feel free to get in touch.

Market Pulse- Orlando Regional Realtors Association January 2011

Someone lives in their house many years and decides it is time to sell.  But before they do they feel the need to add granite to the kitchen, or add a pool, or some other big ticket remodel item.  Why?

Well according to this article from CNN Money,  this expense is most likely not the way to go because it will rarely return any kind of investment for a seller.  A Realtor worth anything would not advise you to take this kind of project on because in many cases you are trying to "predict" what a potential buyer may want. And in many cases, you would be wrong.

Just to be clear, I am not suggesting that you do not do minor cosmetic surgery to get your home "show ready".  Before putting a home on the market for a client, I go through a house and put together a comprehensive list of things that need to be done so that the home will be shown in the best possible light.  But I am referring to painting, de-cluttering, and smaller repairs- not the big renovation.   Pictured is the kitchen from a house I have listed at 1790 Greenwich Ave in Winter Park.  This is a one story house that is one block away from Winter Park Hospital in a very desirable neighborhood with Winter Park Schools.  It is competitively priced at $239,000 and might be perfect for an empty-nester, or a younger family looking for an entry into the area.  All the major "bones" of the house are strong- newer roof, air conditioning etc.  And the kitchen looks great! In this case, I determined with my sellers that a very attractive price point would be most important to potential buyers.


Now take the example of a high ticket granite kitchen update.   First off, a seller may be making a bunch of incorrect assumptions.  Granite isn't the "only game in town" as far as counter surfaces are concerned.  Is everyone a chef? Maybe a potential buyer has no interest in a high end kitchen and does not want to feel like he is paying a premium for one that has recently been installed.  There are all kind of buyers out there- some who want "turn key" homes, others who want to feel they are getting a good deal and enjoy "fixer-uppers".

Oh, and by the way, what are the chances that the seller is going to pick the granite color the buyer has his/her heart set on.....?

Wouldn't a credit be a smarter way to go if a granite kitchen became a negotiating issue with a buyer?  This way, the buyer can get exactly what they want.....and the seller doesn't have to go through the remodeling hassle playing "interior designer" or predict what a buyer wants.

Bottomw line- if a Realtor suggests a big remodel project before listing your home....get a second opinion from another Realtor.
If your Realtor suggests "don't spend your money on a remodel project to prepare your home for sale" -listen up and be happy!

He probably just saved you a lot of money.

If you look at the right sidebar of this blog ORLANDO REAL ESTATE MATTERS you will see boxes that display listing inventory and pricing trends for most of the neighborhoods in Downtown Orlando as well as Winter Park.   If you have questions on how to interpret this information, or if there is a specific neighborhood that you would like information for that is not listed....just let me know and you shall have it   :)

I was at a listing presentation last week in Winter Park and was asked to explain the difference between the two to my seller. He said it was helpful to him, so I wanted to pass it on to you....

The appraised value of a property is a professional estimate of a property’s market value. It’s based on the recent sales of similar properties, square footage, location, construction quality, and more. An appraisal varies in cost depending on the price and size of the home. Most lenders require appraisals as part of the loan application process.

But don’t confuse the appraisal with market value. The appraised value is a certified appraiser’s opinion of the worth of a home at a given point in time. And it should give you a pretty good idea what your home will sell for. Ultimately, though, your home’s market value is the price a buyer is willing to pay for it. Having your home professionally appraised before putting it on the market is one way to help you and your Realtor determine a fair asking price. There are other methods of determining the value of your home, including a comparative market analysis (CMA) which I can put together for no cost. A CMA compiles information and sales prices from homes similar to yours from your neighborhood that have sold recently. If you are considering putting your home on the market, or if you are interested in knowing what the value is to make a determination of what your next step might be...drop me a line and I can help you. No cost, no obligation.

Whether it be a CMA, an appraisal, or both, we will be able to price your home according to objective measures rather than a gut feeling or a number plucked from the air.

Homes not selling unless they are foreclosures?

Not true.

I just sold a beautiful 2 bedroom home in Thornton Park for $515,000 that closed last Friday. I represented both sides of the transaction. The home was my listing, and I marketed and found the buyers who ultimately purchased the property. This was not a short sale or a foreclosure. The home was on the market over 600 days with a number of different Realtors prior to me....I listed the home and got it under contract in 69 days.

Why?

• Even considering significant price decreases in some markets over the past 18 months, a home purchased several years ago could very likely sell for a profit today.
• While your selling price might be less than anticipated, you very likely can compensate for that on the buying side of the equation in today's market. There are still great deals out there, and interest rates are still hovering around all time lows. Remember, when the market turns...and it will...you may be able to get an outstanding price for your home, but if you will be purchasing another home you will be on the other side of the transaction. You will be scrambling, and probably will be forced to pay a premium for property under those market conditions.
  
• I would remind you of this- While short-term market conditions can fluctuate, housing continues to represent a strong ling-term investment. Since the start of real estate record keeping in 1968, national median existing-home prices rose every year until 2006 - a period that included early recessions and sales decline.
• The market is experiencing a major decline in available home inventory- as short sales and foreclosed properties continue to disappear.
  

It all comes down to this. Homes are selling. The Realtors who are selling homes in this challenging market are doing more than just posting their listing on the MLS, putting a sign on a yard and hoping for the best.
I made this particular sale happen for both buyer and seller by working with the appraiser to explain the value of this property, by utilizing many different media to get the word out to everyone and targeting a very specific set of buyers that would be interested in a home like this. These are just a few of the reasons I was able to sell 27 James Avenue in such a short time, and to get accomplished what the Realtors who had this listing before me--- could not.

If you are considering putting your home on the market, I would welcome the opportunity to evaluate your home and give you my opinions, thoughts and suggestions.....all for free. Just get in touch and I will try to help you anyway I can.

Well if you love modern contemporary architectural style you may have been sitting on the fence waiting for something dramatic to happen with this property...and it has. My listing at 26 S. Lawsona Boulevard has been reduced $50000 to the unbelievable price of $499,000.  Click here to see more and call me soon to preview if you are interested.  This is a motivated seller and he wants it sold quickly.