October 1, 2017 Real Estate Market Update by Jim Turano-Broker *DIVERSE REAL ESTATE*Celebrating 38 years in the business.
After appraising over 3,000 homes in writing in my 38 year career, the new trend is Millions of Dollars. But the same scenario in the 1980’s still happens today. It is only normal. So let me digress. Today a 2 family semi- detached that is, 30 x100 property size, that has a 6 room apartment(3beds.) a 6 room apartment (3beds.) a 3 room walk in apartment a huge finished basement 2 car garage, sells recently for $1.4 million dollars.
Immediately everyone who has a two family hears about the price and wants the same or more for theirs. Naturally right? Except for one thing. The house above that sold is not a two family but a legal 3 family. Next it has 7 bedrooms, not 5 bedrooms. The property size may be bigger above than what a seller may intend to sell now. And the current owner who is considering selling may only have a 1 car garage, not a two. But all they hear is a house sold for $1.4 million dollars.
So they try and dictate the price to everyone. If they call a Broker, and tell him or her that is what I want, 98% will not argue because they get the listing. It is the job of the agent or Broker to explain why other homes sold for what they did and for reasons why. It is their fiduciary duty to do their job right.
Collecting listings does not put money in your pockets. Selling them does. Without mentioning names, you have a home on 74 street that has a for sale home sign on it since 14 months ago. Why? Ridiculous isn’t it? Obviously the broker does not care, and the home sits and sits. If an owner asks for $150,000 dollars more than the market bears, they should be up front with that owner. The easy way out is to just get the exclusive hang your sign and collect 100’s of new customers but that is about it. This is not a Broker you want representing you.
OWNERS NEED TO BE REALISTIC AND AGENTS/BROKERS TO.