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Pricing is More than a Number! Think!

Go Straley Group explain that market stats are not able to be discerned at a moment’s notice.  Not by a consumer or a real estate agent.  It takes study.  It is intentional.  It is unique and personal to your property, your marketplace and your location.

There is no other way.   This is why a professional agent in the market daily, for years or decades, will be your valuable resource.

It’s priceless – for the peace of mind alone.  Knowing everything has been considered.

Go Straley has visited thousands of properties over decades!  Through inspections, strategies and negotiations the experience internalizes and the results are tracked.

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Pricing a home for a buyer, as well as a seller is critical.  There are money leaks riddling the process and most of the time you don’t even know what you lost.

 

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It’s not a game of asking more and settling for less.  It is a target.  It is precision.   Most often you only get one time to hit the target.  Don’t waste opportunity!

Go Straley Group gets it right the first time – every time. 

Ask about YOUR CUSTOMIZED BUYING STRATEGY!

Finding Nemo? Tell Me What My House is Worth.

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A very simple question, how does the appraiser measure the contribution of an element such as a fireplace?

Is this a subjective process?

Can I have a simple answer??!!

Eureka, we have arrived!  This is what every REALTOR® simply wants to know, the $64,000 question.  The REALTORS® want this to be some easy methodology like: fireplace = $2,000, this one has it, this one doesn’t add $2,000 and done.  Same for granite, same for finished basement, same for hardwoods, same for garage, same for an acre, give me the numbers, plug them in, done!  The gap in understanding between the REALTOR® and the appraiser is the frustrating non-specific specific TRUTH of “IT DEPENDS!

Back up the truck and realize REALTORS® and the public understand that an appraisal is an “… opinion of value” (The Appraisal Institute, 2008) performed by a licensed appraiser.  The misunderstanding starts here in the “…”, and I will go tangential to illustrate and then circle back on topic.

I was involved in a volunteer job help program in the mid 2000’s and the client I was assisting reacted to something I said and he showed me a tattoo on his arm that said, “Money, the root of all Evil.”  Being that I am a huge fan of money as an efficient means of transferring manifested energy and investment, I paused for a moment and commented that I think a few words are missing from the phrase skewing the interpretation and possibly your actions in life.  Depending on the Bible translation you use, I found it to be, “For the love of money is a root of all kinds of evil.” (The Bible, 2017).  I realized that maybe he shortened it for impact and it would otherwise take up too much room, but that is inconsequential to the result. The truth is, when you leave off a few words, or even one, then the whole meaning changes and when the meaning changes, your thoughts change, and when your thoughts change, your actions change and when your actions change, your results change and when your results change, your whole world changes. 

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Returning to real property valuation, the complete definition of an appraisal is, “The act or process of developing an opinion of value” (The Appraisal Institute, 2008).  The “It depends” is due the truth that “It depends”, because the appraiser has to go through the act or process to determine the amount of adjustments, they just can’t count 12 fireplaces in a 3000 GLA area home and make an adjustment of 12 x $2,000 = $24,000 adjustment.  The act or process will determine, by repeatable methods, that the collective actions of the market may only value fireplaces in 3000 GLA homes up to 2 fireplaces and after that, additional ones may even detract from value.  This is where the Sales Comparison Approach is valuable over the Cost Approach. 

By shortening the definition of an appraisal to “an opinion of value”, market participants believe that the appraiser is using a subjective process based on feeling, rather than an objective process based on a processing of data and facts.  Many people and REALTORS® use the subjective processing and thereby make mistakes in market valuation estimates. If the REALTOR® uses the accumulation of intuitive knowledge/data collected from 100’s of transactions, then they become a human computer that is going through a complimentary act or process to the appraisers’ work, as long as it is not subjective or based on inaccurately on feeling.  This is a noteworthy time for a repeat of my earlier post that “REALTORS® are Market Makers and Appraisers are the Referees!” (Straley, 2017).

As for the technical appraisal answer to this simple question, the appraiser will utilize the act or process called “paired set analysis” to find homes that are exactly the same except that one has a fireplace and one doesn’t.  This objective process, based on facts and data, will enable the appraiser to distinguish the appropriate adjustment for the property characteristic.  If a paired set is lacking in sales history of the market, the appraiser can also use a sampling process of closely related/similar sales data using a set with fireplaces and a set without fireplaces and averaging the two sets and finding the difference in the averages.  The larger the sampling and the larger the differences wash out (Martin, 2013).  The smaller the characteristic difference, the harder it is to identify the market value of that characteristic.  I find it much easier to explain on larger elements like a 2 car garage vs. a 3 car garage because the collective market valuation is much more evident.  

bigstock_121114772The cold hard truth is that Nemo is not easy to find and there is no fast track to some quick opinion of value. Finding the objective facts is much more difficult than it looks and agreed, it would be much easier, but less accurate, to just have a subjective opinion. To support that view, simply watch the vetting from a Dragnet scene and you will agree, “Just the Facts, Ma’am” is the best method (Dragnet, 1970’s).  Sure, you can log into 400 websites to “Find What My Home is Worth” and come up with 400 different values and average them all, but you are much better off if you hire an experienced Appraiser and a well educated REALTOR® to help make sense of this complicated process. 

In the REALTOR® category, I suggest you look for a candidate with a degree from REALTOR® University and a certification from the National Association of REALTORS® Pricing Strategy Advisor (PSA) course (National Association of REALTORS® PSA, 2017), there is your Nemo! 

Michael Straley | Go Straley Group of eXp Realty | Stafford, VA. | Lic. in VA | 540-834-6263

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References:

The Appraisal Institute, (2008).  The Appraisal of Real Estate (Thirteenth Edition). 

The Bible, (2017). 1 Timothy 6:10. Retrieved from https://www.biblegateway.com/quicksearch/?quicksearch=root+of+all+evil&qs_version=NIV

Dragnet, 1970’s. Retrieved from https://www.youtube.com/watch?v=zlGWzAaR03Q

Dragnet, 1970’s. Retrieved from https://www.youtube.com/watch?v=AMIZGrgWOO4

Martin, S. P. (2013) Advanced residential applications and case studies (2nd Ed). Laguna Hills, CA: Ashley Crown Systems, Inc.

National Association of REALTORS®, (2017). Pricing Strategy Advisor Certification (PSA). Retrieved fromhttp://pricingstrategyadvisor.org/about/

5 Biggest Negotiation Blunders

 

According to the 2011 National Association of Realtors® Profile of Home Buyers and Sellers, the second most popular reason buyers use a real estate agent is to help with the negotiation process. However, buyers can negatively impact the process making mistakes which lead to them losing their dream house. Don’t make these negotiation blunders:

1.       Not entering with a negotiating strategy: Before submitting an offer, try to remember that the seller has already decided how much money they want from the sale of their property. “Knowing how to negotiate effectively is the key to getting the best deal,” says Rebecca Straley, Accredited Buyer’s Representative “Without a plan, you might risk losing the house you want.”

2.       Giving up too soon: Buyers might get discouraged when they are competing against multiple offers on a house. However, the biggest mistake a buyer can do is panic and withdraw their offer. You should stay involved for at least one round of negotiations, but also establish your maximum price.

3.       Not providing earnest money:  Earnest money is a cash deposit you make when submitting your written offer on a property to show your “good faith.” Sellers are understandably suspicious of offers that offer a low deposit amount.”  Buyers show their desire, willingness and ability to a seller, based on the “good faith” deposit.

4.       Having too many contingencies:  A contingency is a term or condition that must be met for an offer to become a binding contract. Home buyers with too many contingencies tend to weaken an offer.  Some examples of contingencies are securing a job transfer, selling your current home or obtaining specific financing terms.  Minimizing contingencies – increases success, so use contingencies wisely.

5.       Weak negotiating position:  Sellers usually like to go with a strong bargaining position. Some examples of strong positioning is being pre-approved for a mortgage or having little to no contingencies. “With these factors in your favor, you may be able to negotiate a lower price. On the other hand, in a ‘hot’ seller’s market, if your  ‘perfect’ home comes on the market, the other buyers not the seller may be your biggest concern.” Rebecca Straley, ABR®, encourages speed of offer may be the key to unlock the door to the ‘perfect’ home.”

However, an Accredited Buyer’s Representative can counsel you on making an effective offer that will land you the house of your dreams. Straley is one of more than 40,000 members of the Real Estate Buyer’s Agent Council (REBAC) of the NATIONAL ASSOCIATION OF REALTORS®, who have attained the Accredited Buyer’s Representative (ABR®) designation. The Accredited Buyer’s Representative (ABR®) designation is designed for real estate buyer agents who focus on working directly with buyer-clients.  Having an ABR® can guide you through structuring your offer and negotiation strategy.

Michael and Rebecca believe an agent seeking tools through education and experience are primary assets to you as a buyer.

 

How’s the Market?

Watch David Knox and Rebecca talk about the Market

People ask me all the time, “how’s the market?”  Usually this happens while I am in the checkout line, at the market – lol!  Well it’s not an easy answer – because there are lots of markets.  Of course, we are distracted with the National Numbers we hear on the news, but we all know real estate is local.

It is so local, your house and the house down the street may have different values.  Your house may have a different value a month from now, then today, based on trends either historical or future forecasting.  So it’s important to keep in touch with the sales and the unsold homes.

My answer always is, “it depends”!  or “Unbelievable”!

It depends on what market you are talking about.  There are categories and it is not only geographic.  There are categories based on neighborhood, based on price ranges or building styles and even school districts.

Therefore be very careful, if someone says, “the market is great” or some says, “the market is bad”, because it always depends.

This brings me to thinking about Automated Value Models, sometimes called AVM’s, but that is another big subject.

So how’s the market?  Talk to a professional, or find out through analysis over time.  You want to know the trending, the price gaps and the absorption rate too?

Please subscribe to our blog – we have a lot to share.  Or I can come over for coffee!

What’s My Home Worth? online?

Rookie Panel Rocked the House

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Women’s Council of REALTORS®
hosted a panel of 5 Rookie Realtors® today at the Fredericksburg Area Association of REALTORS®! As a strong veteran REALTOR®, Rebecca Straley, had considered passing the meeting and doing the “most productive” task on my list. Instead I decided to go and listen and learn – which is always progress!

 

We love our industry and are personally on a mission to encourage and improve our profession and one method of doing so is to inspire those looking to move into an HGTV Career!

facebookcoverblackFirst I was able to relive the passion I remember with a curious heart, absorbing information from all the sources, as I knew little about the nuances of each individual transaction. The passion for real estate is what brings success to the individual and the transaction.

I was very pleased to hear each of the Outstanding High Achiever Rookies tout their “I can do mentality”! I heard comments like – fear and confidence, I will not allow myself to fail, I can do this!

The common denominator began with hard work, long hours, and a sincere desire to succeed.2016 ccg medals

Most of the agents, had minimal investment potential and were “All In”! No one spoke of the back up plan!

All panel members discussed developing an authentic style that is unique to you and the willingness to be vulnerable with clients and competition.

Everyone understood the importance of being a market expert and the willingness to put in long, late hours to prepare for the next meeting.

Some were analytical, some were social, a couple were tactical but they all worked from the heart.

Real estate agents are a giving and caring people, which makes the profession easy to challenge, as heart felt people are often considered soft, weak or untrained. REALTORS® are a caring people because they understand the importance of a home purchase and they are willing, customarily, to put forth mountains of effort and delay payment of services rendered, until the very final step is completed, with settlement.

201603 ms1REALTORS®, that are successful early, understand the core to success is transactions. The business is a craft and the precision of the artisan is the beauty of the experience. Doing is the best method of learning, when each piece is in evolution, as you attempt to master.

The market, the individual, the regulation and even the purchase cost or power changes each day with each unique situation. The rewards begin with mastery.

Statistics define that only half the REALTORS@ sell more than 1 or 2 homes a year, which makes for little confidence. Today all agents had confidence because they continued activity and considered people first.

Best advice to you REALTOR®, new or experienced, is to knock on doors, have face to face communication, interact on Facebook and answer the pone.

pano_cherry_lakeIt is true – REAL ESTATE IS A PEOPLE BUSINESS! and knowing comes with doing so tracking reviews and transactions is a great starting point to evaluate your sincerity and expertise in the business and it is an even most wise decision for folks looking to buy or sell, review your potential agent’s activity – just ask them – how many homes did you sell last year?

 

Go Straley Group of eXp Realty – 800 Corporate Dr. #301 Stafford, VA.  540-658-3090

www.GoStraley.com

www,GoStraleySeminars.com

 

 

 

How -Mom and Dad’s, mom and dad got closer to MOM AND DAD!

I want to share THIER story!!

We all spend a lot of time thinking about children and the younger generation and some of our time thinking about parents.  The need is great to consider NOW how our generations will support each other!  In 2015 the Go Straley Group was fortunate to assist a local family with parents and heritage in transition.

I know a lot of young families move away from home.  Often times, we meet a spouse in college, have job transfers or unique personal opportunities that widen the geographic of the family.  We easily accept the concept of a global community not fully comprehending the unintended consequence.

However, as we grow, and children become adults, parents and grandparents often look around and are not sure of the next step.  My parents are in Pennsylvania and, you got to know, I would do much to bring them to Virginia, if only they could embrace the change.

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As I was saying in the beginning, it was so fun to work with a family that did embrace this change!  The parents’ parents, now great grandma and great grandpa lived in their home for over 40 years and in their community even longer.  It was fun to travel back to the hometown just a few States away for the holidays, but families get busy and as the generations grow their obligations become overwhelming to the immediate family and visiting great grandma takes the toll.

Well GG and GP decided it was time to move and it was a process – and not an overnight decision.  The frequent trips to visit became less frequent, as driving at night becomes a concern and general health needs become more present each day.  Also, it is on the wish list of all loving families, to have more family members close at hand, not only, in case of emergency, but morning coffee sessions too!

So, the process began with information gathering and imagination.  GG and GP had private discussions on values and family and had to consider the likely possibility that they may not depart this world at the same time, so in an Action of Love – began preparing with the thought and later the action.  They began to understand the move to be closer to children might likely be approaching.  This is still not a plan, but a beginning.

 

Garage sales and cleaning out of unwanted and unnecessary clutter was a mission.  It was a great feeling to put things to use, through donations.  Things that sat in the garage, the linen closet, upper kitchen cabinets and more began departing the homestead!  The family became more sensitive to hearing and seeing home style possibilities and, in this case, quickly moved to viewing homes! 

0021One day, GG and GP agreed to look at a community just down the street from the children’s’ grown families and loved the new designs and envisioning where the favorite desk, piano and guest bed would fit.  The carefully analyzed the utility of the baths and the kitchen storage.  The safety and community were explored, as was the HOA representative and neighbors.  The idea became so exciting and real the house was identified within months, inspected, purchased and moving day began.

It was fun to watch the car and trailer full of family heirlooms and precious hobby tools come to Virginia.  There was no rush and the joy of moving was one of nurture and growth and joy.

Today I am ready to revisit – to see if the favorite bookcase found its new home.

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It can be difficult to make life changes and it doesn’t happen overnight, but I bet if your think about it, you might know someone going through this process right now.

Wouldn’t it be nice, to refer your friends and family to a professional you know who is patient and loving and educated about our communities?  Each family has a different priority when relocating parents nearby.  Friends, hobbies, church, location and shopping may all play a part.  In addition, size of home, yard and amenities need to be considered while balancing affordability and time schedules.

Go Straley Group is asking you to consider who you might know now in this lifestyle transition!

Would you please give me a call or text / even a Facebook message to let me know what you think about generational support and dependency?  If you know someone, please actively provide our phone number 540-834-6263 or better yet, call us and we will reach out.

Life changes are big, and you want to refer someone you trust!  In the years of business in our community our integrity, follow through and patience have earned us great references, which we can provide.  Please call and if you like any real estate information or home ideas/assistance let’s talk!  

 Let’s Talk Michael Straley 540-834-6263 or Rebecca 540-379-1949!

Check out our Website for More Info!

REALTORS® are 100 Years Old!

The “Mark” Turns 100: Get Ready to Celebrate

Find out what NAR is planning in 2016 to celebrate this remarkable milestone.

The trademark term “REALTOR®” was adopted in 1916 to identify the members of the National Association of REALTORS®, a revolutionary group of individuals deeply committed to integrity, community, and protecting the American dream of property ownership. Throughout 2016, NAR will celebrate the history and future of what it means to be a REALTOR®. As part of the celebration, NAR will launch an interactive website where members can share how they are making a difference within their communities. You’re invited to submit your own story and to nominate fellow REALTORS® whose contributions demonstrate pride in their REALTOR® identity and show how they help consumers understand the power of REALTORS®. Look for more information at realtor.org in early 2016.

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The above article is representative of the GREAT FOCUS REALTORS® place on community involvement!  If you have a story about your REALTOR® I will be happy to submit so they may gain recognition among their peers and the consumers!  100 Years is a long time to serve the public – “and we reserve the right to continue to improve!”  Every day we at the Go Straley Group continue to ask the question – How can we serve families more efficiently and with great compassion!

Forward your REALTOR® story – those REALTORS® that serve our community!  and I will forward and submit the National Association of REALTORS® on your behalf!

Rebecca Straley, Broker – Fathom Realty – Licensed in Virginia

540-379-1949 – Rebecca@GoStraley.com