value

Killer Mindset For Today’s Market

Mario AvalosLeave a comment

White LionBuyer mindset for today’s market. What’s it like? How must you think to score the right deal given an opportunity?

The only way I can describe what you must be: patiently aggressive. Now…what the heck is that?

Today’s market consists of a historic low inventory. Add to that the portion that is made up of foreclosures and short sales. These type of properties are usually priced from fair market value up to 10% below it. This combination has created an outrageous demand for good homes in good areas.

Patiently aggressive buyers are like tigers hunting for deer after months of hunger. They wait for the right deal to cross their way because they know its coming. And once it comes, they don’t think. They act. They don’t plan. They execute. They don’t compare, analyze or start pondering if there is a better deal out there.

And in today’s market, for you the buyer, this is the right mindset you must have in order to score on a great deal. Ever heard of the saying, ” the deal of the century comes once a week”. Well, in this market, its coming once a month. So you must be ready.

Off-course, nothing is ever done without the right preparation. And where do you start? With a real estate agent?

Before stepping onto your car to view a single property, a real estate agent must explain to you three factors and not just simply throw you into a safari with a blessing. The three factors are:

  1. Expectations of how the market is, or how are other buyers’ conduct in buying properties so that you know how to compete in order to score a deal. Yes…as much as you may not think…this is competition. You are competing with other buyers.
  2. The process of making an offer within 24 hours from viewing the property.
  3. What are all your “ways out” of a contract after you submit an offer to a seller.

In conclusion, the above explanation is for buyers that claim they want a “hot deal”. And most buyers do. The problem is that lost of buyers and or their real estate agents are not aggressive by nature.

Make Or Break. Home Price

Mario AvalosLeave a comment

the falls single family homeHome price. Like the concept of “truth”, its mainly in eye of the beholder.

So a gentleman from Amaretto, a Kendall community composed of single family homes, phoned me a few days ago asking for the value of his house. And I gave it to him…and it caught him off guard. What a surprise 😛

I told him that homes in Amaretto (as of 10/30/13) are more less going for in the low to mid $200,000(s) depending on the interior condition of the property and several other factors.

Then he asked, “how come other homes like in Westchester or Calusa are going for well over $300,000?”. I replied, “it’s mainly due to three factors:

  1. the garage
  2. lot size
  3. HOA or association

Believe it or not, in the area of Kendall as of 10/30/13, what makes or breaks the $250,000 (approximate) price mark for single family homes are these three factors.

In other words, if you home is located in a community that has an association. In a community where lot sizes are relatively small at less than 6,000 square feet. And such homes do not have a garage…then expect prices to be under $250,000.

Now…say you start adding a garage…that one item alone can put you in the mid $200,00s.  Add a larger lot…automatically you’re in the high $200,000s. No association? Starting ballpark price? $300,000. Off-course…adding these factors do not have to be in that order…but you get the point.

Who’s the lesser of the three evils…I would say the lot size. Most buyers I work with prefer to give up a larger lot size in order to find a home with at least a 1-car garage and preferably with no home owner’s association. What’s your preference?

Disclaimer. Disclaimer. Disclaimer. The above is a rule of thumb or a good approximation of how prices are looking in today’s Kendall market. Am not an attorney so I won’t complicate this. Want to know the precise value of your home?

Contact me.

Want to have a ballpark idea of your home’s value…re-read this post or you can also Contact me.

Home Pricing 101

Mario AvalosLeave a comment

custom made mailboxBuyers determine value by what’s called comparison shopping. In essence, buyers look at two prime elements when shopping  for a property:

  1. Value…or particulars a home offers a buyer such as a having or not having a pool, tiled roof, hurricane shutters, etc…and
  2. Price

Then, a buyers compares these two elements against other similar properties in the immediate neighborhood to make a decision what gives them the most value for the price.  Hiring the right agent to assess the value of  a property is pivotal, perhaps even more than advertising and client service.  Not having the right price on a home can mean the difference between a property selling in 30 to 60 days as opposed to not selling at all.

Keep in mind that pricing a home is an art. There is no formula. So…during a listing presentation, ask your agent…”how do you calculate the price”. If it makes sense, hire them. if it does not, move on. If the logic makes sense, great. If it does not…ask questions. An agent that knows what they are doing will answer all your questions with confidence and ease regardless of how much you may or may not like what you are listening too.

Yes…look out for confidence and ease. Why? The price of your home is created by market forces, not an agent. If we had that kind of power, we would be sipping margaritas in Tahiti on our private island. Since we have no control over price, we are merely the messengers of this data.

And because of this notion, there is no reason why a real estate should not be confident and at ease when delivering the price.  Any lack of the latter means two things: the agent is not telling the truth in order to get the listing OR they are not sure how they derived your home price.