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Thursday, December 13, 2007

Pre-Sale Marketing Tools You should Use




During the time I have been writing this blog I have mentioned the variety of homes (style, age, value) on any one street or in any particular neighborhood. Up north in America there are blocks after blocks of very similar buildings or homes, mostly built contemporaneously with each other and in a style and scale as to not be dissimilar. The suburbs that developed after World War II are filled with "cookie cutter" homes. So the buyer can easily shop for the best value by comparing similar homes in similar areas.

But Key West is different. On any one block you can find a cigar maker's cottage of 1000 square feet next door to a two story 2200 square foot grand conch house (Greek Revival). So pricing and comparing properties is a bit more difficult. And since the current real estate market in Key West is in such a flux, I suggest that potential sellers get their property appraised before we place it on the market. Now most Realtors can do a Comparative Market Analysis and give a seller an opinion of the current value based on recent sales. I view the impartiality of an independent appraiser (who is not going to list the property) as being more beneficial. Then the seller can use the appraisal as an additional marketing tool to sell the property.

Another tool that should be considered is to obtain a Pre-Sale Home Inspection by a Certified Home Inspector. Recently, the Fine Living Network aired a an excellent 30 minute program t about Pre-Sale Home Inspections. It showed one would-be seller who obtained such a report and discovered several problems that any post contract inspection would have found. This gave the seller time to get the items repaired or obtain estimates to determine the cost of repair. The seller opted to spend the money and remediate the problems. The house was listed and went under contract 27 days after being listed.

The nice thing about a Pre-Sale Home Inspection is that it helps reduce the uncertainty of contingencies in a real estate contract. Most contracts have financing and inspection contingencies. (Most Key West contracts are "As Is", meaning the buyer can have the home inspected and walk away from the deal if the inspection discloses some problem with the property.) But the Pre-Sale Inspection, like the appraisal, can be used as a marketing tool to reduce the uncertainty in the buyer's mind about the condition of the property. If the inspection is done by a certified home inspector, it is usually transferable to the buyer without any additional cost. The inspection reduces the likelihood of a subsequent lawsuit by the buyer against the seller for failing to disclose material defects with the property since the pre-sale inspection is done by an independent, certified inspector who will not benefit from the sale.

Here is a great article to read about the benefits of a pre-sale inspection report.

If you live in the Key West area and are considering selling you property, contact Kevin Barlow at Islandview Associates. Go to www.islandview-associates.com for more information on fees and services they provide. I know Kevin. He is a real professional. He is very knowledgeable and will work hard to make your sale in this difficult market a little easier. It is worth a call to him. He can be reached at 305-304-9196. Mention that Gary Thomas sent you. I won't get a nickle, but I would like to know that someone heeded by advice.

I was talking with Kevin Barlow and he told me the true story of two recent inspection he performed. One at Key West By The Sea. He found a very antiquated electric system that was a fire hazard. He had to denote what he saw in the report and the deal unfortunately failed. Had the seller addressed the problem earlier and had the electric updated or obtained a pre-sale inspection and an estimate on the costs to repair the problem, the deal might have had a chance of succeeding.

Another recent inspection occurred on Sunset Key, just off the Key West "mainland". The house was priced over $3 million. The buyer's primary concern was to avoid any mold. None was found--except one pocket door. The inside of the door was a mass of mold. Had somebody cleaned the home earlier or had a pre-sale inspection been obtained the potential problem could have been found found and averted.

In both instances mentioned an ounce of prevention (and the expenditure of a few dollars) could have eliminated the potential for upsetting a potential sale.

And if you accept my premise about using a certified appraisal as an additional marketing tool to aid in the sale of your property, call Matt Zintsmaster at Bone Island Appraisal.
Bone Island Appraisal Company 925 White Street Key West, FL 33040
Phone: 305-295-8336.

2 comments:

mark said...

The real estate business is like an elevator, it has its ups and downs !!
This is an excellent real estate blog. Many people do not realize the importance solid fundamentals and principles in the area of this business. Please keep working on your site and blog because good real estate info like this is hard to find.

God Bless,
Elmo
Real Estate Professional

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Gary Thomas in a Nutshell

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Key West, Florida, United States
I first read about Key West in a magazine called "After Dark" sometime in the mid 1970's. But it wasn't until March 1984 that I made my first visit to the island that would become my home. I had two weeks for a vacation and reserved a room at Colours Guesthouse (now Marrero's Guest House) for one week. I thought that if I didn't like Key West, I could always go back to Miami or Ft. Lauderdale for the rest of my trip. But after a couple of days in Key West, that was no longer a consideration. But when I wanted to extend my stay for the extra week I found there was no room at the inn. The guesthouse owner did find me a room at LaTeDa, the infamous guesthouse/restaurant. That's a story I'll write another day. But those two weeks in Key West gave me the realization that I had found Paradise. Key West has been my home since 1993 and my only regret is that it took me so long to get here. I am a full time Realtor at Preferred Properties CRI. Let me help you find your new home or business in Paradise. Living in Paradise is not a slogan, it's a way of life.