marketing in proper perspective

The real estate brokerage business is perhaps one of the most competitive service industries out there. And in our eternal quest to gain market share we real estate agents continually play a game of marketing one upsmanship. We say things like,”hire me and I’ll market your property in this magazine, that newspaper, and these internet sites”. And then the next agent will say, “I’ll do that as well, and on top of that I’ll add x, y, and z too!” And the icing on the cake is that all of this “stuff” that we’re giving you will sell your property “quickly and at the highest price”
Here’s a reality check that’s likely to put me at odds with many of my colleagues: No marketing, at any time in the history of real estate, has ever sold a single piece of property. I’d love to take credit for this eureka statement, yet my humble respect for Mr. Jay Schweppe prevents me from doing so (more on him in a future post maybe). Even yours truly, with a degree in marketing, has seen the light.
Here’s the logic: Marketing can sell products. Marketing can sell services. Is your house a product or a service? Or perhaps it’s something else. Truth be told, real estate is a commodity, and no amount of marketing, no matter how good, can sell it. When was the last time you saw an ad in The Wall Street Journal reading “great deal on wheat futures”? Yet wheat futures sell every single trading day. There are always buyers, regardless of what the market conditions are. And what ultimately determines how much sells, is whether there’s a perception of value for the commodity on that day.
Real estate is no different. The buyer pool remains relatively constant, yet it’s the perception of value that changes. Is the perception of value for real estate in 2011 different than it was in 2005? Of course! So what’s a would-be home seller to do? Make no mistake about it; the only tool that a home seller has at their disposal to create a perception of value for their property is the asking price. “So why all the fancy schmancy marketing?” one may ask. That’s a good question.
One must be able to reach as much of the Buyer pool as humanly possible. So it stands to reason that the Seller who employs the most prolific, extensive, interactive, targeted, cutting-edge, and technologically driven marketing platform, will ultimately reach the entirety of the buyer pool. Couple this with a well-positioned property that creates the necessary perception of value, and the net result will be a sold property. Happy selling!!!

pricing for the internet age

A not so big secret within the real estate industry is that the single most important factor that determines whether a property that's on the market sells or not is the asking price. This is not to discount the dstinct advantages of having a pro active agent and a comprehensive marketing strategy. Yet an effective pricing strategy needs to go beyond just having an attractive asking price. It must take into consideration the evolution of consumer's shopping behavior; namely the shift from print media to online sources. As a matter of fact, almost 90% of home buyers begin their search on the Internet, yet certain home sellers are still pricing their homes as if they were running a discount store. What savvy educated consumer is going to be persuaded by the fact that your property's priced at $199,000 as opposed to $200,000?



The typical real estate search engine allows buyers to search for homes using specific price brackets; usually in $25,000 or $50,000 increments. Taking the $199,000 home for example: If a buyer is calling up properties in the 150k to 200k range, this home will be found; whoopee! Yet, it will be the highest priced home in the search results. Conversely, if this same home is priced at $200,000 it will be found by the same buyer pool in the above example, and it will also be found by prospects looking at homes in the 200K to 250K price range. And here's the booby prize: This home will now be the lowest priced one in the search results! How's that for bumping up the perception of value for your property up a notch? Considerably more people will find the home at $200,000 then at$199,000. More online hits will lead to more inquiries, which will lead to more showings, which will eventually lead to a SOLD property.

So remember, position your property like it's 2011........not 1911.

Real Estate's "lame duck" session

In politics, the period of time following a November election until the new Congress is in session in January is often referred to as a "lame duck" session. This is the case because generally speaking, very little legislatively actually gets done.

Real estate also has a "lame duck" session of sorts. It's that time period that seems to start at the beginning of December through early January. Historically speaking, the transactions that take place during this period tend to be few and far between. It's only natural, I suppose, as people's minds tend to be on family and the holidays. Yet within this reality lies opportunity for those Buyers and Sellers of real estate that are willing to take a chance.

Think about it: what better time to make a offer on that home you've been eyeing than when every other Buyer's mind is somewhere else? The competition from other Buyers will be virtually non-existent. And what about if you're thinking about selling? The conventional wisdom if that you never put your property on the market around the Holidays. Baa humbug! "I say." Why not buck the conventional wisdom and get your home to market while your competition is sitting around waiting until after the New Year. Once again, no new competition.

In short, you need not let the "lame duck" dampen your hopes of real estate success. When others are afraid of the water, I suggest that you jump in!

A Tale of Two Houses

I‘ve been working with buyers who, for six months, have been patiently waiting for bank approval on a short sale contract. Finally last week, the approval came! The Seller’s lender gave a written OK for the transaction to go forward at “x” price and terms. Needless to say the buyers were both relieved and excited, as this was their dream home. We immediately proceeded to order the appraisal and home inspection. And what happened next was like a kick in the stomach…….Chinese Drywall :(

The presence of Chinese Drywall in a home is perhaps the most devastating news for a homeowner or buyer to hear. A roof can be replaced, bad plumbing can be fixed, and even a faulty foundation can be strengthened. But in many cases the presence of Chinese Drywall requires a complete gutting of the property down to the exterior walls and roof. Now granted I’m no expert, but I’ve just received a crash course; read on my friends...

Upon discovery of this bad news, I immediately set up an appointment for the buyer to see another property that I was almost ready to bring to market just a block away from the first one. Upon entering the home, and having learned about the Chinese Drywall just 20 minutes before, we proceeded to look in the air conditioning closet and could not believe what we were looking at…………evidence of Chinese Drywall!!!

Here are some tell-tale signs to look out for:
• Corrosion of a/c coils (black in color)
• Corrosion of electrical wiring
• Failing electronic equipment (computers, TV’s, washing machines, etc.)
• Rusting doorknobs and hinges
• Corrosion of plumbing

To learn more about Chinese Drywall, possible health issues, and remediation you can visit www.chinesedrywall.com

back to the future?

I’ve been having a text conversation with a potential home seller for about the possibility of bringing a prospective buyer to see their property. The conversation has progressed to the point that I now have a scheduled appointment to bring that buyer to tour the property in the near future. Just this morning I received a text from the owner that essentially said this, “Bring me an offer for ‘x’ amount, no low-ball offers!”

To which I replied, “ I can bring you an offer for that amount if you can supply the 1.21 gigowatts of power required to transport us all back in time to the year 2006”. Now, I’m not quite sure how that went over on the other end, but I still have an appointment for this Saturday. I’m confident that all will be fine…

The 200,000 mile machine

It’s not every day that you see a car with 200,000 miles. As a matter of fact, most people would cringe at the thought of driving a vehicle with such high mileage. But I know the owner of this one, and he wears it like a badge of honor! He makes the point that many years ago he stopped paying for this car, and it, in return, started paying him, through lower insurance rates, and by the mere fact that the car was paid off.

As the dust is beginning to settle on what will be undoubtedly be looked back upon as one of the most tumultuous times in real estate history, many may find themselves contemplating what decisions, actions, or pro active measures they would have taken, had they known then, that the unprecedented rise in real estate prices would eventually come to a screeching halt. While the 200,000 mile machine is just a car, this owner’s example and experience can really be applied to the ownership of real estate. He started with a quality product, maintained it meticulously, and probably most important; when the inevitable urge came to trade-in or trade-up, subsequently creating more debt, he simply resisted. Now it might seem odd for a Realtor to be championing the idea of buying a property, and holding onto it for an extended period of time. After all, we real estate professionals derive our income from the buying and selling of others. Yet a conservative posture such as this is just what the doctor ordered in today’s real estate environment. This is not to say that the case is not overwhelmingly strong in favor of buying real estate today; inventory is plentiful, prices are attractive, and interest rates are at historical lows. In short, the next time you’re thinking about buying a home, think about the 200,000 mile machine…

Psst………….I love my car!

Market timing, a luxury community, and the seven year itch...

Those rare times when the planets seem to be astrologically aligned to favor our major financial transactions, such as the buying of a home, are few and far between. Yet occasionally, I'm able to direct my clients to just such a "Haley's Comet"; in this case specifically, Silvercrest Lakes Estates in Miami Lakes.

Simply put, Silvercrest is one of the finest single-family luxury gated communities in South Florida. However, this is not the primary reason that you want to consider buying a home here in the near future. A convergence of seemingly non-related events has created a wonderful opportunity for would be Buyers in this community. For starters, this project was built in 2001-2002. Hence many of still original owners bought their homes before prices started appreciating at such an alarming rate. Subsequently, many prospective Sellers can price their homes competitively while still making a profit; a win-win scenario for Buyer and Seller!

Additionally, the foreclosure rate in the community is very low, which bodes well for the present and future property values. As a matter of fact, there's only one recorded foreclosure filing in 2010 to date.

What about the "seven year itch?" Well, statistically speaking, the average American family stays in a home for approximately seven years before relocating. So for some who bought homes here in Silvercrest in 2002, the time has now come to make move. And the net result of all of this is that a prospective Buyer here now has a varied selection of homes to choose from, generally well-priced, in a pristine secure community..........and let's not forget the ridiculously low mortgage rates; that's just a Bonus...LOL!