My Hero!

I seem to write a lot about the programs on HGTV. Maybe because I am the ultimate HGTV addict and I eat, sleep and drink, all things Real Estate.  HGTV is on at my house until they turn off their light and say “Good Night” to me.  Yes, I am an official junkie and may need “intervention” myself.  HGTV recently gave us a wonderful new show and has introduced to me my new hero…  Mr. Mike Aubrey. I love this man.  He’s to the point, no B.S. … a man after my own heart.  Real Estate Intervention is a new series that focuses on overpriced real estate. His goal is to make the seller see that the market has changed and sometimes not in their favor. 

My Hero, Mr. Mike Aubrey

My Hero, Mr. Mike Aubrey

Mike … please come to my area and hold classes on how to properly price a listing. These classes should not only be for home sellers, but their listing agents. The Class on Brass, see I even named the course for you.

Note to home seller:  We as agents understand that you the home seller wants top dollar for your home. Who wouldn’t?  But when a listing is OVERPRICED for current market conditions, the home sits. Any good buyer’s agent is going to explain to their client the home’s real value based on comparable recent sales before making any offer, if the home even gets shown at all.  If you aren’t getting showings, you may have priced your home OUT of the market.

Today’s home buyers are not stupid, do not underestimate them. They have many tools available to them to that will help them understand today’s market, current comparable sales and property values and with the help of their agent can determine their offer, their “fair market value” offer.

I see it over and over, a home seller lists with the agent who told them what they wanted to hear. The agent gave them the highest list price of all the agents they interviewed only to have their home sit on the market much longer than it should have and usually they end up getting much less.

The newest obstacle I am coming across is the agent that does this, knows they overpriced the property and when an offer comes in, that is near asking price or at asking price, the agent says, “Oh, I don’t want to sell that high because I am afraid of appraisal issues.”   …Huh? … What?!!??  Agents … please tell me I am not the only one who has heard this recently? Is it enough to make you want to …. oh nevermind, I won’t go there.

Believe it or not, I have come across this several times in the last month alone.  Not only is this a disservice to their client, the seller, but very unfair to the buyer who looks at you to explain the listing agent’s tactics because they offered asking price (to maybe) get full seller’s assist (up to 6% of purchase price towards closing costs).  Their offer is countered because it is “too high” … again … huh?

Buy Me .... List Price 1,000,000.00

Buy Me .... List Price 1,000,000.00

And so now the appraisal … it comes in too LOW. Now what do you do? Buyer doesn’t want to over pay for the home, would you? And the  seller doesn’t want to reduce the price because the seller thinks their home is worth more. Both sides are understandable. Your options at this point are to renegotiate the price or the buyer must come up with the difference in cash between appraised value and sales price, if the lender agrees to give the buyer a loan for the overpriced property…. or the deal dies and everyone is unhappy. The buyer lost money for inspections and appraisals and the seller lost a qualified buyer and the home goes back on the market … overpriced and sits. And sits.

The moral of the story is whether you are a home-seller or a listing agent .. please do the market and yourself a favor … please list according to the current market conditions. Current market conditions determine the value of a property. Today’s appraisals are predominantly based on sales (closed, settled transactions) within the past 6 months.  Because so many people today are upside down in their homes, because there are so many short sales and foreclosures, all of this takes its toll on property value.

It’s not something a home seller likes to hear, but thank you Mr. Aubrey for bringing it to the public! My hero!

Contact Kim Schreiner:
Kimberly Schreiner, ePRO, Realtor® PA License RS291767
RE/MAX Affiliates, NE
Kim’s Official Website
Cell 215-510-2149 Office 215-992-1726
Serving Philadelphia, Bucks and Montgomery Counties

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Agents Making a Move .. Switching Brokerages, My 1st Week

Whoa! What an exciting week this has been!  My first week at my new office, RE/MAX Affiliates, NE

Great White Shark

Great White Shark

Having been told over and over (brainwashing?) that the real estate giant, RE/MAX would be like working in a shark tank … I immediately found that to be quite the opposite.  Everyone I have come in contact with thus far has been incredibly helpful to me during my transition. The caliber of my fellow agents alone makes RE/MAX a wonderful place to grow and take my career to the next level.

My new office is bustling and full of experienced agents, so their ads hold true. They all seem to be quite happy with their “home away from home” — I’ve met many “names” that I’ve seen around town and there is even an agent who has been featured on one of my favorite shows on HGTV, House Hunters.  I am surrounded by, in my opinion, the best of the best and I am loving that I have become part of their family. So please allow me to dismiss the first myth … RE/MAX agents are not a bunch of piranhas, they are just really good at what they do.

Brazilian Black Piranha

Brazilian Black Piranha

My new broker, Alan Stasson, has followed through on everything he presented to me during my interview process and then some.  If you are thinking of a move yourself, which is why I started this blog …  there wasn’t much on the net to help me .. be sure to interview with many different brokerages before making a decision!! I highly recommend doing this to see whose personality best meshes with YOURS.  Alan seemed quite genuine and he was not pushy. He allowed me to make the decision to come to his office on my own without hounding me, and without knocking the competition, that impressed me, he didn’t need to knock the competition AND most importantly, the fact that he came highly recommended by OTHER AGENTS.  I found that to be something very important during my search for a new home away from home. The opinion of the people that work under someone holds its weight in gold. He has been available to me whenever a question came about, and believe me there have been many during this transition! Feel free to call him personally and ask, 215-335-6900.

This week I listed my first property as a RE/MAX agent … it is already under contract and I have very happy clients, as they say, it’s the experience that counts! I am off and running and looking back I am wondering why it took me so long to make this move in the first place! I already feel at home in my new place.  Now where is the copier again?

Home Sweet Home

Home Sweet Home

 

Thinking of making a move yourself? Contact me! Whether a home buyer or a home seller (or an agent with transition questions) get in touch with me, I love to help people!

 Kim Schreiner 215.510.2149  REMAX Affiliates NE 215.335-6900

Reality TV and Real Estate

If it weren’t for having a 5 year old, HGTV would be on my television 24 hours a day. Shows like Designed to Sell, Buy Me, Get It Sold, and Hidden Potential  can be great “tools” to ask clients to watch. On shows geared towards sellers, real estate “experts” walk through the property picking out all of the reasons why they feel the home is not selling while the owners sit back, watch, listen and cringe. Typically for about 2,000.00 designers will come in and stage the home. The transformation is amazing sometimes netting a seller thousands in return. While not everyone will have 2000.00 to spend getting their home ready for sale, decluttering a room and a can of paint can work wonders and can completely change the feel of any room.

Other shows like Hidden Potential (which brings an architect along for the ride with buyers through homes they would typically run from upon entering) and shows them the “hidden potential” of the home within the specified budget of the buyer. The show can really help buyers have an open mind and more importantly, vision.

On the down side of reality TV and real estate, some of the things that personally make me either laugh or scream are … how hilarious is it when the agent sits down with the client to write an offer and it’s one piece of paper and they’re done!?! While I am sure they must stay within a specified time frame for the show, this is not true reality TV.  Here in PA, there is a mountain of paperwork that must be completed just to make an offer! Secondly, the other night I was watching a show geared toward first time home buyers, there was a bidding war on a condo. The agent suggested to her clients they drop the mortgage contingency on their offer to get the condo. My jaw just dropped and I had to wonder who’s best interest she was looking out for … fortunately the “virgin” buyer told the agent absolutely not and although they lost the condo to another bid, they didn’t lose their shirts!