Tuesday, March 15, 2016
I was reviewing 2015 production. I’m proud to say that CENTURY 21 Beggins finished 2015 as the #1 CENTURY 21 Firm in Florida in both Units and Sales Volume, and we ranked #14 in the WORLD out of nearly 7000 CENTURY 21 offices around the globe. A quick aside: Did you know that CENTURY 21 sells more houses outside of the United States than it does in the United States? We are truly a Global Real Estate Company and that enables us to sell more homes and help more buyers.
In any event we sold 3600 properties in 2015, however we only closed 2,600. We typically keep about 400 pending contracts at any time. Quick math reveals that about 600 contracts cancelled. Any good Broker would want to know what causes so many contracts to cancel, so I did some research. We found 3 main areas, and two of them are almost totally out of our control.
Area 1: Appraisals. Buyers choose houses based on what’s available to them on the day they decide to buy. In a rising market, typically, new houses on the market cost more than houses that recently sold. That’s normal. However, appraisers, hired by the bank, use closed sales from the past 6 months to determine value. Too often, we sell a house to a buyer who’s willing to pay the negotiated price only to find that an appraiser doesn’t agree with the Buyer’s assessment of value. If the Seller doesn’t adjust the price or if the buyer can’t raise the additional cash for the down payment, the contract cancels. There’s not much we can do about that.
Area 2: Lender Qualification. Serious Buyers obtain pre-qualification before they begin looking for homes. The pre-qualification process typically does not drill down into proof of the buyer’s qualifications. In today’s strict lending environment, in an effort to avoid another mortgage meltdown, underwriters scrutinize every file. If everything doesn’t line up, they deny the loan. Again, there’s not much we can do about that.
Area 3: Inspections. Nearly all buyers obtain home inspections when they select a home and nearly all home inspectors find issues in a home. This is an area I feel we can do something about. Let’s face it, there are issues that pop up when selling/buying a home. The hard part is that when those issues pop up, too often buyers lose confidence in the home and sellers get frustrated, dig their heels in and contracts fall apart. Our Certified Pre-Loved Home TM program has the Seller put the property through a series of assessments before we put it on the market. Title Search, Lien Search, Inspections, Insurance qualifications, Loan Options, etc. This has turned out to be a great way to ensure that contracts stay together and Buyers and Sellers have a more enjoyable experience. Ask your CENTURY 21 Beggins agent to explain how our Certified Pre-Loved Home TM program works and see if it’s right for you.
Curious what your property is worth? One of our excellent agents will ask you a series of questions and show you 15 properties like yours in 3 different categories. We’ll choose 5 homes on the market now similar to yours, 5 homes that have sold and 5 more that have expired or withdrawn from the market. Our exclusive Strategic Pricing Analysis (SPA) allows YOU to pick a price according to your personal motivation to sell. And it’s free, without any obligation. Who knows? Your home may be worth more than you think.
Please, give us a call if you or someone you know is thinking about taking advantage of this rising real estate market and super low long term mortgage rates.
Until next time, may you have fair weather and following seas!
Craig Beggins, President
CENTURY 21 Beggins Enterprises