Tag Archives: realtor

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!

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Learn More About Fredericksburg

 

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Go Straley Group wants to tell you all about Fredericksburg or you can experience it for yourself live!

Whether a buyer, seller, homeowner or renter you will love the vibe!  The old town, large town, small city vicinity boasts over 200,000 in Stafford, Fredericksburg and Spotsylvania.

We feature new home builders, buyer tips, but also local news and events!  Learn about school closings or traffic jams – as a Subscriber!

Offer discounts and drive traffic to your store as a business owner.   Check the link about to learn more about our great town.

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See you at the Parkbench!

Buyer Starts Process by Asking Questions?

PURCHASING A HOME

When buying a home, it’s important to think carefully about your offering price—but also your offering terms.

Most purchase offers define both. And in some cases, terms and conditions can represent thousands of dollars in additional value for buyers—or additional costs.

Terms may include inspections, requests for specific property repairs, or timing considerations, such as a conditional purchase clause (if, for example, you must first find a buyer for your current home).  When finding a REALTOR® you want to ask specific questions to qualify their professional abilities as your representative!

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ASK Go Straley Group to send you the TOP SEVEN !

540-834-6263 Text for Tips

 

Did you hear the woman ate a horse?

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I pondered why the United States was uniquely dependent on employer health care.

I pondered why the United States spends $2.1 Trillion in health care each year.

My research delineates that 34% of health care is paid by private insurance, 47% by Public insurance, and 19% by consumers.

In 2006, healthcare as a percent of GDP was 16% .

These numbers just don’t seem economically correct, but reading through causes, cures, and solutions seems to be like traveling through a maze.

As a patient, if I don’t have a health care plan, providers sometimes double or triple the rate over that of the rate under and insurance plan, so I need to plan to contain the costs, but the costs of the plans are not contained either.  It does not seem like the sensible economic system where costs are shown and consumers choose purchases based on utility.

A look back in history reveals the following:

“In describing how the United States arrived in the predicament it currently finds itself, the author accurately lays the blame on decisions made 60 years ago. Wage and price controls in effect during World War II meant employers had to turn to forms of non-cash compensation to recruit or retain workers. Workers pay taxes on cash wages but not on fringe benefits like health insurance. Over time, it became common for workers to fund their family’s health care by using tax-free insurance policies obtained through employment.” Herrick, D. (2005)

I liken the whole situation to the well known nursery rhyme!
I just hope we restore some sensibility and self responsibility before we get to the “horse”!

If you don’t address the problem directly with wise open direct economic decisions, this is what happens:

There Was An Old Woman

There was an old woman who swallowed a fly,
I don’t know why she swallowed a fly,
Perhaps she’ll die.

There was an old woman who swallowed a spider,
That wriggled and jiggled and tickled inside her,
She swallowed the spider to catch the fly,
I don’t know why she swallowed the fly,
Perhaps she’ll die.

There was an old woman who swallowed a bird,
How absurd! to swallow a bird,
She swallowed the bird to catch the spider,
That wriggled and jiggled and tickled inside her,
She swallowed the spider to catch the fly,
I don’t know why she swallowed the fly,
Perhaps she’ll die.

There was an old woman who swallowed a cat,
Imagine that! to swallow a cat,
She swallowed the cat to catch the bird,
She swallowed the bird to catch the spider,
That wriggled and jiggled and tickled inside her,
She swallowed the spider to catch the fly,
I don’t know why she swallowed the fly,
Perhaps she’ll die.

There was an old woman who swallowed a dog,
What a hog! to swallow a dog,
She swallowed the dog to catch the cat,
She swallowed the cat to catch the bird,
She swallowed the bird to catch the spider,
That wriggled and jiggled and tickled inside her,
She swallowed the spider to catch the fly,
I don’t know why she swallowed the fly,
Perhaps she’ll die.

There was an old woman who swallowed a goat,
Just opened her throat! to swallow a goat,
She swallowed the goat to catch the dog,
She swallowed the dog to catch the cat,
She swallowed the cat to catch the bird,
She swallowed the bird to catch the spider,
That wriggled and jiggled and tickled inside her,
She swallowed the spider to catch the fly,
I don’t know why she swallowed the fly,
Perhaps she’ll die.

There was an old woman who swallowed a cow,
I don’t know how she swallowed a cow!
She swallowed the cow to catch the goat,
She swallowed the goat to catch the dog,
She swallowed the dog to catch the cat,
She swallowed the cat to catch the bird,
She swallowed the bird to catch the spider,
That wriggled and jiggled and tickled inside her,
She swallowed the spider to catch the fly,
I don’t know why she swallowed the fly,
Perhaps she’ll die.

There was an old woman who swallowed a horse,
She’s dead—of course!

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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/

GO STRALEY GROUP says selling houses is a mission!

Life is about to GET A WHOLE LOT BETTER for the REALTOR® and the CLIENT! If we learn to embrace the unfamiliar and articulate VALUE! What is your mission?

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The GO STRALEY GROUP Mission Statement is our truth:

We are a team of successful REALTORS, with sustained study and preparation in advance of your call.  We stand ready to deploy and craft the unique plan for your transaction that will enhance the extraordinary and mitigate the limitations.    We will celebrate with you on the sunny days and we will walk beside you on the stormy days. It is by this navigation, not just by good intention, that you will likely reach your destination.

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FATHOM REALTY Mission Statement is our truth:

Fathom Realty represents the future of the real estate brokerage. Our philosophy is that happy real estate agents provide the best service and give the most back to their clients. The best technology, training, support & commission splits in the industry!

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SO IT IS NOT BUSINESS AS USUAL!  The public does not need or want to walk into a real estate office anymore?  Who has the time?  Why would I want to walk into an office and have to work with the duty agent?  What if I don’t like them, or they don’t understand my lifestyle?  Office environments limit choice and Internet environments expand choice! The secret formula, is CUSTOMERS LIKE CHOICE!  Fathom Realty, was awarded a badge of honor – 2014 INC 500 FASTEST GROWING REAL ESTATE BROKERAGE!

Rebecca and Michael Straley will tell you why it is good for the Client and the REALTOR®

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YOU NEED TO BE AUTHENTIC!  and you need to have the integrity to deliver what you say you will!  

DRIVE YOUR BUSINESS

BY KNOWING YOUR MISSION,

ARTICULATING YOUR MISSION

AND WORKING WITH A GROUP OF PROFESSIONALS that operate a business!

Real estate just got a whole lot better!

http://www.fathomvirginia.com/

http://www.fathomcareers.com/calculator/

COMMUNICATION write,talk,listen?

As I learn about blogging and receive even just a couple of replies, it reminds me that I am not alone, as I often feel I am on an island.

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It also brings to mind the fear which is imposed on the ability to say the right thing –

at the right time and in the right way  There are so many interpretations of mood, inflection and

even words in both personal and business communications.

 

Like Slow Children!  Does that mean the children are behind at school?  Or does it mean we are to drive slow?  Does it mean there might be children present but don’t expect them to run?

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Words are such a paradox.

 

We can’t express ourselves with them or without them many times!  Are we more civilized with words or are we more critical and therefore less civilized because of words?  Hence choose our words carefully.

 

Choosing words is a big part of being a successful REALTOR.  We want to be encouraging, at times, but always truthful.  To allow myself  to “get a life”  and enjoy freedom of speech I must also be mindful of how words may affect others feelings or actions.

 

I often make an effort to frame my opinion based on a fact, and then related to an experience.  Such as, “This home has a beautiful pool; I know several persons say it has changed their life and brought their family closer together.”   This fact is much different than stating this house is worth more if you add the cost of the pool.  This is an easy example, as we all know; a pool may actually disqualify the home from a purchasers list!

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It is also important to remember when to write and when to speak.  

Instructions from our clients should be in writing.  Such as 1) Tell the buyer why I am moving, or 2) Prepare a notice.

 However, opinions or emotions are better spoken, so inflection and body language can be evaluated such as:

 “Do you think we listed my home too high” – “I am concerned about the traffic to the commuter lot, maybe I shouldn’t buy?”

 

Decisions from our clients should be in writing.  1) I do not want a counter offer.  2) I will not repair the sink in the basement.

 

Disclosures are best conveyed in writing.  1) The airport noise is only at lunch time but we are in the flight path.

 

So let’s meet and chit / chat about ideas!  Which brings up  the reciprocal agreement?  Listening!!! ???

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Listening is another chapter, stay tuned.  Thank you for commenting on my blog.  I am excited to include blogging into my new activities as we grow Fathom Realty Virginia