Why would 3 real estate agents give you 3 very different prices for your CT home?

Just yesterday, I was at a sellers house,  and they called me in because they got wildly different prices for their home from the three real estate agents that were there before me. They wanted to get the most accurate price, and couldn't tell from what they had which one was right. The sellers were in a quandary as to what to do, and how to price their home.

Let me put it to you one way, and this is the only way. In order to price your home properly, a lot of research must be done by your real estate agent so that you don't overprice it or underprice it.

A Comparable Market Analysis ( CMA)  is an anaysis of homes that are similar to yours in one respect or another, and the agent analyzes  their pricing and the current real estate market trend in order to arrive at an appropriate price for your home.

I have seen many analyses given to sellers by agents, and quite frankly, I am surprised that any agent would submit an analysis to a homeowner without doing their due diligence.  Comparing your home to five  homes  that are on the market, five  that are under deposit, and  five  recent sales can NEVER give you an accurate price for your home. Rather, the price would indicate an average of those fifteen houses.  Some agents use less than 10 comparables in total to price your home. That just can't be effective, can it? The best  CMA's  are not all fluff, and "pretty to look at". Sure, there should  be some marketing information and a nice presentation, but  beware of the "smoke and mirrors" analysis. 
The best market analysis that you could possibly get from a Realtor is one that is so thorough , that the Realtor  does not even have to tell you a price  for your home. It will be as clear as day to you. A number of cross-referenced analyses that point to a specific number  in  the same range are the most accurate. That's the right way, with no shortcuts.  Don't settle for anything less. 

BOTTOM LINE: If you want to price your home correctly,  contact me.


Real Estate lingo defined: Is "Street Phenomena" good or bad?

Street phenomena is when one home goes up for sale on a street, and then a few others pop up for sale almost immediately. What just happened?  It does raise a minor red flag, and it is important to find out why these homes are for sale.

There are three reasons for street phenomena.

Sheer coincidence, Some type of event in the neighborhood, or Seller ego.

• Sheer coincidence- It does happen, and when this is the case, there are no worries. Some areas are more transient than others for a variety of reasons.

• Some type of event in the neighborhood- It could be that the school boundaries have  been redistricted, for example. Or yes, it is a possibility that some homeowners got spooked by an event. You'll want to find out what, if that is the case.

• Seller ego-  This is by far, the most common. Here's what happens. Joe and Jen list their home down the street with a Realtor. Bob and Betty see the real estate for sale sign go up, and inquire as to how much Joe and Jen are asking for their home. Bob and Betty think to themselves, if Joe and Jen can get THAT price for their home, we can certainly get THIS price for our home. Let's sell our house, too.Then Kurt and Kathy find out what prices those homes are listed at and join the fray. Don't fall victim to that trap.

If you are selling your home and experiencing street phenomena, it is imperative that price your home correctly. If you are a buyer, and are interested in a home located on a road  that is experencing street phenomena, it's important to find out why, and in what order the homes went on the market. It does make a difference. I  delve for details for my clients, so no worries!

So, all in all, street phenomena is nothing to get overly concerned about. Just find out the details!


If the Federal Reserve thinks this is important, then you should too!

Did you know that the Federal Reserve banks submit a report every 45 days on current economic conditions? It’s called The Beige Book”.  I have my own real estate version of “The Beige Book”, and I call mine the “The RealTrender Report”. It’s a 45 day listing and sale summary of homes, sorted by price and bedrooms. Sounds complicated? Not really. It’s a great market gauge. I’ve supplied a  graph to give you a visual, rather than text description.

When it comes to pricing homes in any real estate market, your Realtor needs to be right on top of the latest data available, and should be able to trend at least the very near future. When you are ready to buy or sell, trust your biggest investment with an agent who cares enough  to go the extra mile to get everything right. (That would be me!) Visit our Real Estate Blogs on Easton, Fairfield, Norwalk, Trumbull and Westport  to see your local "Real Estate Report". As always, if you have any questions, call me, text me, or just set up an appointment.


Should a seller leave during home showings?

So you've decided to sell your home, and the showings begin. What exactly are you supposed to do during the showings?

First of all, you would be surprised at how many buyers look at homes to buy during business hours. If that's the case, just make sure that when you leave for work, there are no dishes in the sink, clothes on the floor, garbage that needs to be taken out, etc. If you have an indoor pet, make sure that  you have the necessary arrangements in place so that a buyer can comfortably look at your home while you are out.

But what if you're home, and you get a call from an agent who would like to show your home within the hour? There are a few right ways to handle this, and a couple of wrong ways to go about it.
Let's talk about the right ways, first.

DO: If you have somewhere to go, then... go! (To the market, to the bank, to your neighbors house, etc)
If you cannot leave, it is very important that you remember that this is not the time to strike up any conversation with the buyer's agent or the buyer.
DON'T: Do not lead the agent and his/her buyer around your house and point out the positives. You only look like you are desperate to sell. Do not follow the Realtor around your home, either.(It will appear that you don't trust them)  There are many style of salesmanship- some agents do not say too much to their buyers during a showing- DO NOT start talking about "this feature and that feature, and how much this or that cost" It's overbearing, and will not help you.

If you are concerned that the agent is not pointing out all the good features of your home, refer them to your property marketing brochure. If your agent did not supply you with any, then, quite frankly, I'd get a new agent. Brochures are important!

Even though that buyer's real estate agent may sell your home, that Realtor does not work for you, and has a fiduciary responsibility to their client. If the agent showing your home is experienced and knowledgeable, they may try to extract information from you, that could benefit their buyer in negotiations. So, a simple hello and a pleasant thank you and goodbye is about all you should say. Your agent should advise you as to what's okay to talk about and what isn't. I always do.

I remember one time I was showing a home- a modest home in a modest area, but that seller would NOT leave us alone. She just had to tell us everything about that home, and trust me when I tell you- I am more of a conversationalist agent, and I will point out all the good features (as well as the bad) Well, we were in the living room, and the homeowner came over to us and blurted out, "Oh, we have a new furnace- it's just 7 years old", and then she talked about her newly remodeled bath- "that was done 10 years ago!" I felt badly for her, because it just sounded so desperate, and at the same I was laughing inside because  it also sounded so silly! Look at this way- If I told you I just a had a baby, and in the next breadth, I told you that he just celebrated his seventh birthday, that would sound kind of weird, wouldn't it? So, yes, this seller was only trying to help, but it didn't come out that way.

So listen to your real estate agent's advice, and if you can leave the house, that's always best.

Pre-qualified or Pre-approved for a home loan? There IS a difference!

Whether you are a home buyer or a home seller, you must have heard those two terms many times. Real estate agents sometimes use those two terms interchangeably, and they ARE NOT THE SAME! There's a world of difference between the two! The number of steps, and the amount of effort between the two vary greatly, and the one you choose to pursue can make every difference in the world as it pertains to your transaction.


Here's why one is better than the other-

Getting pre-qualified can be as easy as making a 10 minute phone call. It's certainly a good idea, and it's actually a first step towards pre-approval. The only things you need to do to obtain a pre-qualification is to call your lender or mortgage broker, tell them your income, how much downpayment you have, and what kind of debt you have. They will take those figures and calculate an approximate purchase price based on the inofrmation that you have given them, taking into account the current interest rates, and how good you feel your credit is. Your representative may not always request or run a credit report before he/she gives you a price range.

A pre-approval, on the other hand is much more detailed.  You'll submit tax returns, allow the lender to obtain a credit report, and fill out an actual mortgage application. You can do this even if you do not have a property in mind. When you locate a property, most of the submission process has already been completed, and the lender only awaits property specific details, such as a contract of sale, annual taxes, property condition, and an appraisal for the  house. 

The bottom line: If you are a seller, and you have two offers in front of you at the same price, and you are trying to decide which one to take, unless there is some type of extenuating circumstance, I would work with the pre-approved buyer. It makes better sense- a pre-approved buyer is a better prospect than a pre-qualified buyer for reasons stated above. If you are a buyer, go ahead and get prequalified NOW, if you are out looking at homes, and haven't already done so.  Once you are prequalified, begin the pre-approval process so you don't get into a situation where a buyer looks better than you do "on paper"because they have completed additional legwork.