Thinking 3 or 4 steps into the future, for this home and neighborhood, can make your client and yourself a lot more money today. If you’ve been selling Real Estate for a while, this may surprise you. I know what you’re thinking…. “The MLS is where every buyer gets the opportunity to see and compete to get our client the most $$$$.” And, You Are Right…. However, who else is seeing your wonderful listing?
Investors AKA Sharks
Investors are a good thing. Every Realtor Needs Investors.
Our concern is always with the investors we don’t know. The amateur “investor” who attended a seminar last month and feels empowered to make an offer without a real understanding of exactly what’s involved, inevitably wasting your time and upsetting your client. Investors who spend day and night looking for cracks in the market to attack and take every advantage possible. All the while, knowing they will never buy your property, (because they’re most likely attempting to wholesale it to another poor schlub). Or, they will buy it but only after taking you through the gauntlet of games to get the reduction they knew they required from the beginning, inevitably wasting your time and upsetting your client.
Online Real Estate Valuations
One of many Examples: Zestimate – Zillow’s Software/Bots actively pull the stats from every listing and adjusts values in every neighborhood. When you list a house for $250,000 in a neighborhood where the average is $500,000, you are directly contributing to reducing the FMV (fair market valuation).
I know… this should not affect the true value of the home, but it does affect the perception. And, online values and consumer perception is growing more and more important and will continue to grow with the growth of companies like Zillow. In other words, if you believe Zillow has a big future, their Zestimate’s have a big future, as well.
Note, to this point*
After factoring in all the details, every investor will determine the ARV (after renovation value). Online valuations have become an important factor in determining the final ARV. You reduce that ARV by putting the property on the MLS; you reduce the amount investors will offer your client.
House Flippers
House flippers may pay you a reasonable amount for your listing, but if you are intent on selling a distressed property on the MLS today, you may adversely affect their ability to re-sell the house for a much as possible down the line. You can’t imagine how many times we’ve attempted to sell a home that was previously on the MLS only to be met by negativity from Realtors and homebuyers who feel our resale value is too high in comparison to what they believe we bought it for… Because it’s easily found online after having been listed on the MLS. Everybody knows and doesn’t want to fall for fix and flip a house hack.
Example: We bought a condo for $366,000 off the MLS, spent $83,000 in renovations (it was in real bad shape) and costs and put it on the MLS for $475,000 (ARV $500,000). Many Realtors stated they wouldn’t suggest their buyers pay more than $100,000 over what it was recently purchased for. Without knowledge of what was spent or done to the home, they developed a bias against the seller making any money… I know, it’s crazy.
The truth is, yes, the previous purchased price is available in public records. However, when it’s put on the MLS it spreads like wildfire.
Thinking 3 or 4 steps into the future, for this home and neighborhood can make your client and yourself a lot more money today.
The solution!?
Reach out to us before you list a home on the open market
With Corcoran Global Living’s CGL’s Investment Network, you are now connected to one of the largest private investor networks in the US. You’ll be putting your property in front of over 10,000 fully vetted, professional, investors and we will make sure you and your client make the most with as little cost and hassle as possible.
And our service is FREE to Realtors & Homeowners.
If you’d like more information you can click below and start the process or email us today at info@cglinvnet.com.
