Here’s a pretty picture of the beach for your viewing pleasure
I’d like to preface this by saying I’ve been debating on whether to write my next blog about the potential real estate crash/correction or this blog here. I understand that some of you are on the fence about selling your house and want to time it right before the market continues to correct downwards.
I personally don’t think we’ll see a crash which is defined as a 20% or more loss in value. Why? The demand for living in this area remains strong and we only recently passed the national median home value average here in St. Pete. This area had been undervalued for a long time.
There’s a lot going on in the Real Estate industry with the advent of new technology in the past decade or so. Like any entrepreneurial idea, these corporations are trying to disrupt the previous model to insert themselves instead and make their money.
I understand the way these online brokerages work can be an attractive option to some. Some online brokerages will offer a reduced commission. Sometimes they’ll just offer to buy your house with cash to prevent the hassle of people coming through your home. There are pros and cons to these situations which I will dive into in this article.
I wanted to write this article to give you my perspective as an agent who has been doing residential real estate since 2014. Maybe this will help you determine which way to sell your home works best for you. If you have any questions for me during this article, feel free to reach out to me via phone at 727-307-1111 or you can email me at chrisformico@gmail.com.
5. A good local real estate agent will feel personal responsibility to sell the home rather than seeing it as a number on a spreadsheet to unload
Ka’Tiki just celebrated their 40th anniversary
Some of these online brokerages have local salaried agents while others do not. Either way, they have their quotas to meet and will encourage you to continue dropping the price to sell rather than pro-actively getting potential buyers in the door.
A good local agent will do a few things to get potential buyers in your home including schedule times to hold the home open. This accomplishes a few things – it attracts the people who may want to buy but haven’t found the right buyer’s agent yet so it’s easier for them to just find some open houses to get started.
It also makes the scheduling of a showing easier for the homeowner – people will be able to see the home in the span of a weekend rather than asking the owner to leave multiple times per day throughout the week. When this happens you’ll typically get a multiple offer situation if the house is priced correctly and then you’re able to have a better pick of the offer that works best for your situation.
A good local agent will also have access to MLS reverse prospecting. This is a tool that allows agents to email all the agents that are representing buyers who have searches set up with your home’s criteria. Reaching out to other local agents directly can be very helpful. I did this last week, sent an email to almost 500 agents and we had a contract the next day.
Most importantly a good local agent will be there to empathize with your situation no matter what it is. This is why I don’t think real estate will ever be completely automated with technology. It’s important to have an agent you can reach out to whenever rather than calling a hotline to be put on hold. There has to be a personal touch. Selling a home is more of a relational process rather than a sales process.
4. A good local agent knows local nuances, contractors and real estate related companies to streamline the process
Look at all these nice waterfront homes
There is some preemptive research I do, especially when it comes to buyers. When working with homebuyers I make them aware of certain situations that could cost them time and money and how to avoid stressful situations that they may not want to get into. Situations we deal with in St. Pete, Florida include identifying flood zones and the associated insurance costs. Identifying obstacles like conditions on the 4 point inspection that may prevent them from obtaining a reasonable insurance policy. Making sure the type of home they want to make an offer on will be obtainable with the type of financing they’re using.
These same concepts should be explained to the seller so they can be transparent about their homes condition and insurance status which greatly increases the chance of a successful closing. It is always so much easier on everyone if the listing agent is knowledgeable enough to navigate all these potential situations. When a seller is fully briefed of potential obstacles, they’ll be mentally prepared to do what it takes to get the home sold. I’ve found that you’ll have the most luck in the home buying and selling process if you shoot for a win-win situation. A good local agent on both the buy and sell side will view this as a collaboration with other agents – a chance to solve the problems we encounter so everyone wins.
This is especially helpful when we come across situations while under contract they may need creative solutions to insure or finance. It’s also important to me as an agent to know trustworthy contractors that can get any needed repairs or maintenance done. Florida is not really known for its stellar contractors so having a list of reputable ones will save you a lot of hassle.
3. Repel potential buyers with lowered commission costs
Clearwater Beach Hotel
Yes some of these corporations will offer you a lowered commission fee but when buyers agents don’t get paid by the seller, they will sometimes ask the buyer to make up for the difference in the discounted commission. That’s a surprise cost that can be off putting to many buyers which in turn isolates part of your potential buyer base.
OK so you’re saving a little bit on commission but now you have created less demand for your house which may mean a significantly less purchase price. Do the corporate home selling companies care about that? Probably not, they just want to get the listing contract and unload your house.
2.Corporations buying up homes
Clearwater Beach
This is one of those things that you may or may not care about but let me explain why this can affect you and especially your family in the future.
Our global economy has allowed the wealthiest people in the world to hoard a massive amount of monetary wealth. Capitalism is fine in my eyes, good for them I guess but it’s starting to get a little more sinister in my humble opinion.
Some of these massively wealthy individuals are attempting to implement programs that put restrictions on the rest of the population. You may have heard of the World Economic Foundation and their spokeslizard Klaus Schwaub who publicly announced that by 2030 “You will own nothing and be happy”. That really doesn’t sit well with me.
I’ve helped many people buy homes over the past 8 years which provides stability to their lives and builds monetary equity that they can leverage in their favor. This in turn allows them to get ahead of the curve a bit and move forward with their dreams and ambitions. People can then realize their own independence and create a self sustaining life that they can be proud of. This is a principle that I think many Americans resonate with in their pursuit of happiness.
In owning nothing you will not be able to own your own home? You’ll be forced to pay whatever rent amount someone else deems fair. No thanks. These hedge funds and billionaires looking to control the supply of housing are definitely overstepping their bounds.
I would suggest you have a local agent market your home to local people and not to greedy corporations. This is of course personal preference but you may find that you feel better about selling your home to a family that will enjoy it rather than a corporation that uses it to employ their greedy tactics.
1. A good local real estate agent will know how to price your home correctly
Johns Pass Sandbar and Boardwalk!
One thing that is pretty amazing about St. Pete and many parts of Florida is how each neighborhood can differ in value, even if they are right next to each other. One more established neighborhood may command a 30% higher value for the same house as another similar property less than a mile away.
If you price too low then you will of course not get the right amount of money for your home. If you price too high then your home may sit on the market for too long and lose its magic. People may start to assume that there’s something wrong with the house and choose not to even view it. This of course diminishes your potential buyer base.
Other things that can affect your property value are things like proximity to a desirable area, flood zones, home construction types, previous home maintenance and upgrades. You are better off using a local agent that is aware of these nuances rather than an online brokerage that may apply a one size fits all approach.
In Conclusion
You’ll have to find the approach that works best for you. I hope this article gave you a bit of insight into your different options when selling and how that can affect you as well as the people looking to buy your home. Of course you need to look out for your best interest but also keep in mind the future families that may enjoy home ownership rather than the corporations that are looking to buy up properties and exploit the working class. Thanks for reading and feel free to reach out to me at 727-307-1111 or email me at chrisformico@gmail.com if you’d like an estimated valuation of your home!