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What trying times. Damn, I hate it. There was a time in this industry when the world was wonderful….people bought a home, made improvements, kept it up , lived in it, raised a family, and sold it for a profit, which helped in either retirement, or moving up to another. People would look at homes, select one they could afford, and began making their dreams come true.
It’s not that way anymore, and it’s sad. Now, don’t get me wrong, I think it’s a great time to be buying a home…mortgage rates are at an all time low, and home prices have moved incredibly downward and….wait, that’s where my problem is. Not for the people buying, heck no, it’s with the sellers.
My last entry was about the home and it NOT being a castle. I yelped about it being a commodity, and is only worth what someone will pay. Now, I’m not backing off that premise, because it is true.
By nature, I’m not a callous kind of guy. Actually, I like to think if myself as a rather caring fellow. Heck, if I were cold as steel, I wouldn’t feel badly when I break the news to the sellers that their home won’t sell for the amount they have in mind….or what they “think it’s worth.”
Time and time again, armed with reams of data, pictures, comparables, well, you get it, the cold hard facts as to what their home is worth, the expression of shock and awe is written all over the sellers’ faces. Many times the projected price is many times less than they owe. But, facts are facts, and someone has to be straight up with the seller.
I’ll tell you what prompted this blabbering. Just minutes ago a gentleman in his 70′s came to the office inquired about his listing, and why it hasn’t been shown in the year it’s been on the market. He wasn’t, as my daughter would say, “a meaner”, rather just wanted some info. It’s not my listing, but decided to spend some time with him. I did an in-depth Market Analysis for him and had to share that he was about $65,000 over priced! Instant Shock and Awe… “That’s about what I owe” is all he could say. We spent some time talking, and I heard all about his “castle” and how he built it himself, taking four years working on it after work and on weekends. I think I heard every nail being pounded, every stone being laid, every single ounce of pride that went into that home. Sad to say, I still had to tell him that his house wasn’t going to sell at that price. He said he understood as he stared at the comps. I let a minute go by before I asked how close to the target price he wanted to move to…
He said, “Leave it where it is”.
I sat in shock and awe…. what a business.

There is a saying that goes something like “a man’s home is his castle” When it comes to selling a home nothing could be further from the truth…well, many think the saying has to do with value of the “castle”. Because I’m talking about selling your “castle”, let’s get that premise off the table right now: The proverb has been traced back ‘Stage of Popish Toys’ (1581). In 1644, English jurist Sir Edward Coke (1552-1634) was quoted as saying: ‘For a man’s house is his castle, et domus sua cuique tutissimum refugium’ (‘One’s home is the safest refuge for all’). So basically it’s “You are the boss in your own house and nobody can tell you what to do there. No one”.

In all my internet research on that subject not a single mention was made to value, period.

You may be wondering where this diatribe is going… it’s simple and has to do with finding the sweet spot in selling a home. I can’t tell you the number of times an associate goes to list a home armed to the hilt with comparables of like homes which have sold, those homes currently on the market that are similar, and the length of time on the market. All indicators as to where a particular home should be priced, and the homeowners seemingly look past the facts and fall back to the inappropriate “castle” theory and set a price way too high.

Most agents, in order to get the listing, willingly disregard their own facts and figures, and list the home they know will not sell. The strategy on the agent’s part is pretty simple; after a month of no action, they call the owner (or in many cases the disgruntled owner calls to complain about no showings) and the agents says, “Maybe we should lower the price a little.” This will happen for several months and each month the price goes down and the dynamic of the sweet spot comes closer and closer. The concept of a “sweet spot” isn’t rocket science- It goes something like this: The number of people looking at your property directly correlates to the salability of your home. If your property is being exposed to the open market and no one is even looking at it, or many people look but you haven’t gotten any offers, you are simply overpriced. There is absolutely nothing else that contributes to a stagnant listing other than price. Some of you might be thinking, what if it’s in a declining neighborhood, has rotten wood, needs a roof, or some other physical detriment—To that I say price. Good comparables will yield proper price in a declining or changing neighborhood. Things like, parcel size, and age will also be reflected in opinion of value. Making value adjustments based on commodity condition will also show up in the selling price. The sad part about the scenario of the overpriced listing is that during those long, lonely months of no action, somebody sold their home. In all likelihood, someone looking for a home just like yours, bought one. They either purchased one from someone who has already gone through those long months of price reducing. I guess the bottom line is: Hire an experienced full time, real estate professional familiar with your area. They are the ones who will typically produce the type of information that will quickly reveal your “sweet spot”. Ditch the Castle theory- I know your garden is nicer than the guy down the street….and you have under cabinet lighting, and blah blah blah… facts are facts; when your castle goes on the market it’s a commodity, and it’s worth exactly what someone is willing to pay.

Welcome to our blog.As the primary author, I’ll be subjecting you to what I’d like to think of as interesting, fun, insightful, and informative matters that happen to be on my mind. I also hope you will take the time to comment on my musings.

Like the title says, Prestwick Properties is like the Phoenix rising from the ashes. In mythology, a phoenix is an immortal bird that, when it dies, bursts into flames and is reborn from its own ashes. “To rise from the ashes of the phoenix” means to make a miraculous comeback. With what the real estate industry has gone through during the past couple of years, it’s a miracle this young company is still around.

It hasn’t been an easy road. Two years ago, there were four agencies here in Newberry. Now there is Prestwick Properties. Under the great leadership of broker, Joy Glanzer, Prestwick Properties not only lives on, it has begun a wonderful transformation to become a premier full service agency. Here’s what I mean: The number of active real estate agents in the Gainesville, Florida area has dwindled from around the 1400 mark to a humbling 700 or so. Yet, Prestwick has added active professionals. The property management and rental arm limped along with two or three apartments for rent barely a year and a half ago to over 35 properties today. There is now a dedicated staff handling all aspects the rental department to help it grow. We recently introduced a service department, too! Commercial real estate? Oh that was sort of an afterthought; and “sure we’ll do it” approach….not anymore! We now offer full commercial brokerage, including design, build, management, tenant representation. We have a State Certified Building Contractor on staff, experienced broker associate, and collateral sales support. General real estate, long the only lifeblood of the company “kept the doors open” through the tireless efforts of Joy Glanzer. She took a chance with a rookie sales associate, and between them, defied the odds during these trying times. Today, that rookie, Charlene Stefanelli, has blossomed into a powerful associate, with a loyal following who continue to recommend her to friends and family. Recently two more seasoned pros decided to join Prestwick and a new associate is learning the business under the wing of “Miss Joy”. The latest venture has been to add a sales and marketing division for stalled, small and medium developments, implementing all aspects, from adding preferred builders, developing the marketing plans, selecting and training sales associates for new home sales in specific subdivisions to analyzing absorption potential in today’s environment.

Although having wonderful people on board, Joy understands that keeping them doesn’t happen by accident. Recently the entire Prestwick Properties website has been changed to emphasize a search friendly environment. It use to be about the company. The new site is all about the customer, from the advanced search platform, to subscribing to and exposing our properties to 46 or so of the largest real estate sites and search engines in the world. The commercial listings are now getting world exposure to one of the most prolific commercial web sites in the country. Little Prestwick also is a member of the largest foreclosure tracking company in the US to assure our buyers and investors stay up to the minute is that market segment.

See what I mean? Like the Phoenix rising from the ashes…and the best is yet to come!