The Flexner Report

Flexner Closes Six Escrows in October!

In the midst of constant negative media coverage on the California housing market, Erik Flexner, a top agent at Innovative Realtors, closed six escrows in the month of October.  Erik attributes his success to his keen negotiating skills and consistent networking.   Flexner primarily focuses on listing properties and has a great sense for determining a property's value in these uncertain times. 

Why Do “For Sale By Owners” Get Less For Their Homes?

According to the National Association of Realtors, FSBOs (For Sale By Owners) in their attempt to save the 6% fee that realtors charge for their services, earn approximately 16% less on the sale of their homes than owners of comparable homes that put the transactions in the hands of an experienced agent.

If you consider that prospective buyers automatically deduct 6% off their offers to FSBOs because they figure there is at least that much room in the price, where does the remaining 10% go?

One blatantly obvious difference is the inability for the FSBO to market their property as efficiently and effectively as a real estate professional.

Interestingly, brokers control all the sites used most frequently by buyers. FSBOs in a survey also said they had more difficulty in understanding and completing the necessary paperwork, preparing their homes for the market and setting the suitable price than they did in attracting buyers.

It’s hard to see how handling the paperwork affects the eventual selling price, but staging the house so buyers see it in its best light and determining the correct asking price can have a profound effect.

Although there are websites with tools to help owners establish their homes worth, most agents have the best tool – The Multiple Listing Service, which reports both list and sale prices – at their disposal.

Finally, One of the best reasons for hiring a Realtor to sell your property is their ability to pre-qualify a prospective buyer financially so that you don’t lose valuable negotiation time. Your agent may discover when a prospect has an ulterior motive for shopping homes, other than purchasing.

Question: What is a Real Estate appraisal & how is value established?

Answer: An appraisal is an unbiased, supported opinion of value of an effectively described piece of property made by an appraiser who has sufficient knowledge, training & experience to accurately estimate its value.

The value of a property is based upon recent sales of similar, neighboring properties in the market as well as rentals, and currently listed properties. Ideally, appraisers try to use comparison properties with the same size, age, room count, condition & external influences or amenities. This rarely happens so adjustments must be made based on what buyers will pay extra for, such as, extra square footage or bedrooms, swimming pool, fireplace, views, lot size etc. In order to ascertain an accurate value, this information is entered on a form, a value for differences is established & comparisons are made to the property in question. A minimum of three verified closed sales with photos are required in order to establish value.

Homes appraise higher when they are well maintained inside & out, are located in a desirable school district, additions are done properly with building permits & conform well within the structure, are not over improved, there are no zoning changes expected & there is not a mixed use. Conditions that work against the value are location in an airport flight path, center of night life activities, run down block or neighborhood, next to a school or playground, next to apartments or commercial property, close proximity to a freeway or gas station.