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As a Miami real estate agent, I’m often asked to do the impossible! Let me explain.
I regularly have conversations with potential sellers who ask me: Can I sell my house for cash, sell my house quick, sell my house without inspections, sell my house as-is, and even sell my house in poor condition? The questions are all valid and possible, so long as they understand about the golden triangle of product sales (a.k.a. the unattainable triangle).
This special triangle has Price, Speed, Quality at its points. And, it is said you can have two points at the expense of the third. For example, you can get a cheap product quickly, but it is likely to come at the expense of quality. Another is, you can get a high-quality product quickly, but you are going to see a high sticker price.
I also get approached by buyers who ask me if I know someone who is: selling a house below market value, selling a home that needs repairs or selling a house in poor condition or an outdated home. Again, the questions are all valid, and possible!
The world of residential real estate has as many stories as there are personalities. Each deal is unique because of the blend of buyer and seller personalities. Let’s look at a few examples.
Seller #1 is interviewing listing agents with the goal of getting the highest neighborhood sales price for their home. They are foolishly focused on getting the highest price per square foot and are not on their home size, as compared to the others. As a rule of thumb, larger homes mixed with smaller ones on the same street will get a lower price per square foot! As a seasoned agent, I would educate the seller that in order to achieve the best sales price, they must look to how their house stacks up in quality to the others in terms of roof, windows and doors, kitchen and baths, ages of air conditioner unit(s), ages and quality of major appliances, plus general finishes. If they don’t have new(er) kitchens and baths, how can they expect to beat the house down the block that did those upgrades? In general, focusing on highest price per square foot is a misdirected objective.
Seller #2 is looking to also get a high sales price for their home that has not been updated in 25 years. Are they willing to renovate before going onto the market? If not, this may be a fool’s errand. Do they understand that, besides laying out money for updates/fixes, they will be dealing with contractors and interruptions during this work? Further, updating certain features, like kitchens and baths, often will not raise the sales price as much as the cost to perform the updates. Under most market conditions, my recommendation is to do little to no work on your home before selling. Perhaps you spend up to $1000 to freshen up paint or the front yard for curb appeal. Let us not forget that time is money, and updating takes a lot of time. The seller’s goal is to sell, not to necessarily sell at the highest price. When in the right frame of mind, sellers will realize that it is the net profit and saved time that counts, not the sales price on the contract.
Buyer #1 is someone looking for a total steal of a deal. They contact me and ask me to see the homes which are in foreclosure or otherwise have desperate sellers. First off, no one is going to advertise they are desperate to sell. Second, the only important entity you will really be dealing with in a foreclosure (or pre-foreclosure) is the lender, and they know how to maximize their position. But, going back to the mindset of the buyer, unless they are seasoned at the art of fixing up a home, they are likely in for a world of disappointment. My advice before we were to truly set up their search would be to educate them about the likely conditions of a home being sold in a foreclosure or fire sale-like manner. If it is below-market price, there will most certainly be an intangible cost to be paid after the closing. What will the fixes and updates really cost? How much time will be spent with all, or a portion, of the home being uninhabitable. And, even getting to the closing might be a show-stopping nightmare with getting over the insurance hurdles that now impede many transactions.
Buyer #2 comes to me with ‘cash swagger.’ This is when they think that cash will automatically open sealed doors, the hearts and minds of the seller and just about everyone involved. And while it is true that cash can make aspects of the transaction easier, it does not mean that they are going to be able to overpower the seller in all aspects of a deal. In fact, I have seen it play out over-and-over again that the seller doesn’t care about closing a little earlier or if their proceeds come from a lender or the buyer. They only care if they are selling at a fair market price. So, this buyer again needs appropriate education and guidance so they can achieve success in their real estate journey.
So, what is the impossible I do every day? It is the alignment of ideas to affect the right outcome. Buyers and sellers go into a transaction with goals and emotion. They also often go in without enough factual information and real-world experience. As a full-time Realtor, it is my job to guide my customer to their goal with real-time adjustments to their base of knowledge, expectations and to help them shed emotion on the things that don’t matter in the grand scheme of their transactional success.
The unattainable triangle is just that…unattainable. Yet, with proper guidance and understanding, my customers achieve victory where others fall short. If a real estate deal is in your future, it is never too soon to get to know your real estate agent!
Real Estate Update
As of 10/23/24, there were 143 properties for sale in Pinecrest, 17 homes pending sale and 13.0 months of inventory (buyer’s market). If you’re ready to move, contact me to get the best local expertise, truthful guidance and realistic expectations. It’s easy to get started at miamihal.com/getstarted.
I invite you to view past episodes of my The MiamiHal Real Estate Show at miamihal.com/the-miamihal-real-estate-show to hear from experts and get the latest real estate news.
Hal Feldman (MiamiHal) is a Realtor with RE/MAX Advance Realty. You can contact him with your story ideas or real estate questions at www.MiamiHal.com, Hal@MiamiHal.com or www.facebook.com/MiamiHal
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