Referrals Everywhere

It's been a busy few weeks for people calling me to ask for help in selling real estate here and elsewhere. After all the talk about the Internet as a way to sell real estate oneself, and all the fears about the demise of our profession, it's heartening to see how many buyers and sellers out there know that they can use our help profitably. Even though all the studies show that the vast majority of transactions are done through real estate companies, there is a perception that that time has passed. It is true that the information buyers need can now be found online in many cases. What isn't true is that buyers don't need assistance in interpreting the data, in learning about a region, and in structuring an offer. And sellers are much the same. I've heard some talk about using Zillow to price a property, although it is very unreliable in certain areas. I've also known people who do their own marketing and even open houses. Much more often, though, I've heard people say how much they value having an intermediary in the negotiations, especially when they know the other party. What would seem to be an advantage--familiarity with the other side--makes most sellers and buyers very uncomfortable. The addition of professionals is highly comforting. At a time when saving money is chic, the use of real estate agents and agencies is a clear sign of their value. And you get what you pay for. As they say about lawyers ("he who represents himself has a fool for a client"), so goes the saying for sellers and buyers.

Good News All Around

We just finished our annual meeting at the New Haven Country Club. It's a beautiful day, and it was a great time to reflect on the past year and celebrate the recovering market! We sign many signs that real estate sales are improving; in fact, our first quarter numbers show a 34% increase in sales throughout our region, and a 15% increase in listings. We are proud to say that we made money last year, although we are looking forward to having it be a little easier this year. Consumers seem to be coming out of hibernation, and activity is definitely up.

Awards were given to our 20-year associates, and to our Chairman's Circle of top producers. Even in a challenging environment, the best agents always find a way to be successful, and we honored their accomplishments. Longevity is also important to us as a company, since we are a family business in its second generation.

We reviewed the many tools that our company has for marketing and sales. We have a first-class website, and are endeavoring to improve individual web pages. Realtor.com is a great resource, and we pay for enhanced service, so we emphasized those advantages, along with real estate tours (now uploaded to YouTube as well). Our agents also have access to a wonderful listing presentation service called Toolkit, as well as Xpress Docs, an online provider of marketing materials.

By focusing on these basic offerings, we have enhanced the service we provide for our clients. We are well-positioned to catch the recovery wave!

Are You Losing Value?

Recent reports indicate that residential real estate values in our region are declining at around 10-12% per year. That means that a $400,000 home is worth $4000 less every month. Therein lies the real danger of overpricing.

Since we know from experience that the first two weeks of a new listing are the most important from a marketing point of view (since many buyers--and agents--only check for new listings when they search), it's important to begin that period at the correct price. "Testing the market" at a higher amount for a "little while" can lead to months of delay in selling the property, since it doesn't appear as new to those looking to buy, even when it eventually reaches the best price point. Once you factor in the economics of a market that's declining, you can see the true downside of waiting longer for a house to sell. It isn't just the carrying costs, or putting one's life on hold, it's dollars and cents--1% per month, as a matter of fact. And that doesn't even take into account the number of sellers who turn down the first offer (almost always the most motivated offer, and the highest), because they somehow forget that they are "testing the market", and start to think of the higher price as the dollar amount they expect to receive. If we had a dollar for every time a seller tells us later that they regret not taking the first offer, we might not even be taking listings that are too high!