OPPORTUNITIES – Ok, now the good news

 You only need one buyer

 To move a stocks price a few points, thousands of transactions must occur. In selling real estate you only need one buyer who “values” what you are selling.   When buyers are new to an area, they may only visit 5 to 7 homes.  They often face time pressures and deadlines that the seller is unaware of.   Consider the likely profile of your prospective buyers.   Ask your realtor what attracted prospects to your property? What are your properties unique features? And how can be illuminated? Likewise what are your properties drawbacks and how can they be reasonably mitigated?

Seller can set the price and “everything is negotiable”

To sell a stock at a certain price you have to wait till the market gets there.   With real estate only one buyer has to get there.   Customarily everybody wants “top dollar” when they sell something. But it may make sense to price an asset at a slight discount if it means a quick sale and lessening the expense of the cash drain.   Forecast 6 or 12 months of property expenses (and the hassle factor) and consider front loading the expense in the sale price discount.

While most realtors hesitate to give you information about prospective buyers, it can be critical. Is the property in a golf community and would the buyer appreciate the golf cart in the garage?   Is there personal property that can be a hassle to move, like a hot tub?   That can be thrown in?   Price is just one item that can be a factor in a sale.   Maybe flexibility regarding the closing date is helpful.   Buyers like everybody else appreciate an act of good will.

 Appraisals can be helpful, but they don’t tell the full story.

Professionally written appraisals are required in most circumstances when settling an estate.   Appraisals are important documentation that can support a Personal Representative’s actions. Appraisal are an un-biased estimates of “fair market value”. Written appraisals can be critical in valuing the estate for estate tax purposes as well as, facilitate the distribution of “in kind” assets to beneficiaries.   Appraisals also provide a “ballpark estimate” of what a reasonable gross (before expense) selling price might be.  

Because appraisals are done utilizing historical comparable transactions they tend to lag the market. In quickly advancing price environments, they may be below the current market level.   In a declining market, they may “overprice” the price potential.   Some assets are simply hard to get comparable data on. Lakefront and ocean waterfront properties may have a scarcity of transactions.   In some locations, high demand properties stay in families for generations. It is very hard for an appraiser to quantify the value of a great mountain view, a deep water dock, towering oak trees, or the value of being located adjacent a state park.   If you are truly dealing with something “special”, then you may want to “ask around” for more grass root advice before you list the property at the appraised value.  

Appraisals exclude all the expenses related to the property which accumulate monthly. also excluded in the appraised value is the brokerage sales commission and closing costs.   Make sure that the beneficiaries understand that their proceeds amount from sale will be much lower than their percentage share of the value stated in the appraisal report.  If you give beneficiaries an estimated price range of sale proceeds they tend to remember the high number and hold you to it.

Property can be enhanced, to improve its marketability and sales price.

 Realtors have a keen sense on tips that can improve the aesthetic appeal of a home.   There is an emotional aspect involved for many buyers, they are not buying property they are buying “their future home”.    If fix up funds are available, ask the realtor where money will be best spent.   Make as many enhancements to the property as possible before it is listed.   You only get one chance to make a good first impression. Certainly, get rid of the clutter and personal effects before any prospective buyer enters.

Timing – Real estate many times has a selling season.

 Florida ’s selling season is in the winter. The northeast and cold market locals the real estate market usually peaks in activity in the spring or summer.   School ending and starting dates are critical time periods for families with young children.   Be ready for your peak season.   Have all your enhancements to your property completed and suggest to your realtor that they allocate additional advertising funds during this period.   When there are no leaves on the trees, 4 foot of snow on the ground or when its 96 degrees in the shade, it’s hard for buyers to get excited about your “special property”.

( Go to next page )