How Facts & Trends Saved The Listing (A Real-Life Scenario)

When you have scratched your head while performing a CMA for your listing appointment only to find out that there are barely-to-no “relevant properties” to discuss with your Sellers, remember to use Facts & Trends.

In the subject case — there were no relevant properties. This was one of those situations.  Does this sound familiar . . . .

(permission by Shirley to post to internal blog only).

HOW FACTS & TRENDS SAVED THE LISTING . . . .

(e-mail from Seller’s daughter)

Dear Shirley…

Thanks very much for taking the time to visit my mom’s condominium. As I recall, your earlier “recommendation” was that an asking price of $120k was probably at the higher end of the range. Is this correct?

Yet, what I notice is that you have not offered your professional advice based on anything concrete that we can bring to our mother to make the case for a specific asking price. It feels more like a hunch…a wing and a prayer, if you will.

Understanding full well that even in her condo building one particular Canadian buyer is scooping up a number of properties at foreclosure after foreclosure, in my dealings with real estate agents over the course of selling several homes, a market analysis is always presented that includes comps and a written assessment of value. An actual recommendation is stated (which the seller can then work from) and eventually the agreed-upon asking price is reached.  And while Mom is happy to finally be selling, she is as smart as a whip and has no interest in anything less than a fully supported asking price especially since she realizes her investment has depreciated. We also are aware that the first three months on the market are important ones…so a right price is vitally important.

My sister was an appraiser for many years, and my brother was a real estate agent for several years; accordingly, we feel uncomfortable going further without a more comprehensive real estate analysis from you. In fact, it was my brother who offered you one comp from a condo that sold quite well in the same complex. While not of comparable size, it does anchor one end of the current real estate market in an actual fact. I do appreciate your recent trip to Ft. Lauderdale, but a casually stated email assessment is not what we had expected.

To assist you further in your assessment, here is additional information for you:

1) The condo fee is $335/month and covers landscaping, water, trash, painting, and general upkeep

2) The reserve fee last year was about $680.  The reserves are well maintained and have covered a new roof a few years ago, all the screening and supports were done on the lanais, all the reentries were redone (and look very classy)

3) Mom’s upgrades:

• Low impact (hurricane) windows in the bedrooms at a cost of $4-5000
• Carpet, 3 years
• Tile in bathrooms and hallway, 1 year; hall and kitchen, 6 years; patio floor, 2-3 years
• Painted two bedrooms last year; LR and Hall, 3 years
• A/C vents blown out last year;
• A/C new, 5 years
• Stove and refrigerator are not the originals, but she can’t remember when replaced.

Our kind regards,

CLIENT

SHIRLEY’S RESPONSE: (which was within the half-hour of having received the e-mail above):

Dear <Clients>:

In response to your e-mail, since there are no “hard” comps available, below please find my analysis for your perusal.

I am emailing the Facts and Trends for the subject property (under separate cover) so that you can get an idea of what has been happening over the past 15 months in Plantation, regarding condos that are neither REO or shortsale and are within 1000-1300 square feet.

Facts and Trends would indicate for condominiums with a Plantation address, NON-REO / NON-Shortsale, between 1000 and 1300 square feet, the average price-per-square foot is $88.00. The subject property is approximately 1000 to 1050, that would place the sales price around $92,400. Please note that the average sales price pursuant to the graph is $89,000.  As you can see from page four, the average list price is $124,000; however, condominiums are selling within 95% of list.

$124,000 was probably the original list price, because 95% of list on an $89,000 sale would be indicative of a “reduced list price” of approximately $93,700.

This $124,000 list price is also indicative of sellers having to price the property without any “hard” numbers or comparables to base their price upon.

The reason I felt that Elizabeth could sell for more is because of the location, the panoramic golf course view, and the condition of the property.

Please understand that these market trends are a snapshot of all condos in Plantation, from 1000-1300 square feet with no consideration as to location, view, condition, etc. However, these graphs paint a fairly accurate picture of what is happening in the Real Estate market for the past fifteen months.

The one-year analysis is as follows:

We had 21.09 months of supply one year ago; however, the good news is — our current months of supply is 13.13 months (rolling averages)  The 11.7 months is based on hard numbers (see page five).  Our inventory has decreased 53.33%; however, sales have decreased 25% (probably because of the decrease in inventory and the fact that the first-time-homebuyer tax credit ended).

Based on the above, my first professional opinion still stands — $120,000 list price and approximately $114,000 sales price.  I feel that these graphs support my opinion.

I hope that this information serves you well.  I look forward to working with you.

Shirley E. Bargery, Broker Associate
EWM Realtors
954-816-2217

*********The graphs were sent under separate cover, –**********