An Inside Look at the Real Estate Market

The newspapers continue to report that home sales are relatively stable in Rochester and Buffalo and that prices are even on the rise.  I just read that in the Buffalo News this morning. A reason for this “news” is that Buffalo and Rochester are not large enough to be included in a very important index- the case-shiller home price index. This index reports on the change in sales price of homes that have sold multiple times.  It is the best way to gauge what is actually happening.  So let us look at an example of a home in Lancaster, NY. Read More…

The post below was first published on August 5, 2008 but is being re-published in response to recent media attention to the state of residential real estate.  An October 29, 2008 article titled “Homeowners’ Perception of home values not grounded in Reality” by Susan Miller published in Bizjournals has been discussed in numerous forums, and has appeared in the New York State Association of Realtors web site.  By the time homeowners finally accept the fact that their home will not command the price they optimistically believe it is worth, - an assessment typically based upon emotion, e.g., I saw my neighbors house sell last year for $325,000 and my house is nicer, or based upon statements by real estate agents trying to get a listing, e.g., your home is well priced, my marketing plan can get you the results you need ( what we call puffing a listing appointment) - the homeowner is stuck in a long six month listing and is forced to accept a lower price and pay a ridiculously  high commission just to receive the low price. Read about a story that illustrates this point: Read More…

The uncertain economy coupled with losses incurred by many people in securities held for growth or retirement has impacted many of us in the real estate community.  I notice that many long time agents with status quo real estate firms have had their worst year - although they will most likely not admit to it.   Many agents have left the industry or have gone to a “referral status,” meaning they are unwilling to pay the real estate board membership fees.

Yet, many of our agents have had a record year.  Sue Chaskes in Buffalo is constantly selling homes.  She just sold 125 Crestwood Lane for $275,000, 2 Brompton Woods for $350,000, a lot for building, two homes that were refurbished by investors who bought distressed properties, a condo, and many more. She just listed a home for over $400,000 that just expired from a listing with another broker.  Her phone rings all the time and she is showing homes almost daily.  She is working awfully hard and getting results. 

Barb Murie has had an incredible year mostly in the southtowns region of Buffalo.  Take a look at some of her sales on our website at keepequity.com.  She will be our top producing agent - millions of dollars of sales.  Her phone rings constantly and I see her react quickly when sellers and buyers call.  I have had other agents ask how she does it.

Both Linda Lehtonen and Alyssa Hedges have been awarded the coveted Master Sales designation from the Greater Rochester Association of Realtors.  They will be honored at a ceremony in November.  The award is given to realtors reaching over $5,000,000 in sales.  Take a look at their production on our website or pick up a copy of Your New Home Magazine in Wegmans or Tops.  Susan Payne in Rochester has had her best year.  She is diligent, responsive and knowledgeable.

So what is it? Why are these agents prospering?  Well, I see a few common factors.  First, these agents are all good at what they do.  They are true hard working people. They have made a true commitment to making real estate part of their lifestyle.  It is okay for them to show homes all weekend, nights, and to take calls at all hours.  Each of them is strong and willing to take on the pressure from other agents who do not want to see real estate commissions fall from 6% or 7%.  Simply put, they are not going to make friends in the status quo real estate community. It is not status from other realtors that drives these agents. Rather, they are selling more real estate, making more money, and keeping busy notwithstanding the economy. 

So, they have to be good at what they do. 

Another common factor is that these agents are not greedy.  They are willing to work hard for America’s Choice customers by entering into an exclusive agency agreement.  This means that our agents are willing to take the listing, enter the information into the MLS, take the phone calls and emails, work with buyers,  negotiate and draw up contracts all for 1% of the sales price only if the sale is brought about through them or another agent.  They have to work these listings, but since the seller is willing to do the showings and appearances, there is a lesser driving and time commitment.  Other agents are unwilling to offer such services. 

Again, our agents have to be good.

In its September issue, Consumer Reports magazine reveals the results of its poll of more than 9000 home sellers.  The results show consumers are equally satisfied with the service provided by companies that charge 6% or 7% and with the service provided by companies charging less.  That makes absolute sense to me because there is no correlation between charging 6% or 7% and the level of professionalism and service to be provided by a real estate company.  In fact, research conducted by university professors concluded that it was not the level of service to be provided or the cost to provide the service that explains that continuation of the 6% or 7% commission, but rather, it it simply anti-competitive behavior. Read More…

The July 16, 2008 Buffalo News page one article about Google’s street views was interesting and brought up some food for thought.  The jist of the article was about privacy issues and how people are using street views.  America’s Choice and 2.5% Real Estate Direct’s incorporation of Google’s street views into our system was discussed and highlighted. I was asked to comment about it.  Most people find street views and satellite views helpful and interesting.  I will keep  you up to date.

Check out the MapChoice interactive google map based searching on America’s Choice and 2.5% Real Estate Direct sites.  Start to conduct a search for properties and choose the MapChoice icon.  This tool dramatically cuts down your home search.  Try it.  It is so much better than typing in search criteria in the old systems.  What do you think of the panoramic street views?  Scary technology to say the least.  You really can drive right down streets, make turns, and see the homes all from  your computer.  I was playing with it today and saw a woman exiting her car.

This morning on Father’s Day it is sunny and warm across upstate New York.  To celebrate the day, I camped out with my four children - two sets of twins - in our back yard last night.  We are preparing for a pancake breakfast with their grandparents.  As a father I appreciate the opportunity to be there and to serve for my children.  The same is for my business.   America’s Choice and 2.5% Real Estate Direct have grown and matured over 15 years.  We have become a staple in the communities we serve.  I take pride in the fact that we are a true, caring business.  Our employees are there for our customers.  We continue to give back to our community.  In Rochester we are supporters of the YMCA’s mission to help the young and the elderly.  We give each year because we can. In Buffalo we have been at the forefront in a successful effort to build a new day school.  Naysayers said it couldn’t be done.  Yet perseverance and determination prevailed. All of this has been accomplished because we have a successful business. That success stems from continuing to provide the absolute best in what we do.  We may charge less, yet that does not mean we provide less. To the contrary, our program is no doubt the most costly to maintain and the most successful for our customers. Our agents at 2.5% Real Estate Direct are truly phenominal. So today, I thank you, both buyers and sellers, who trust us with your real estate needs.

I have been thinking about a perplexing phenomenon. Over the years I have seen highly motivated, intelligent, and seemingly rational people exhibit a rather strange behavior.  They are the people who cut short their listing with America’s Choice in order to list with a real estate broker charging 6, 7, or 8%.  What do they have in common?  Each of these people, while listed with America’s Choice,  staunchingly refused to reduce their asking price, or if they did reduce their price, they did so for only a very short time. Yet, once listed with the high commission agent, they reduce and reduce their price.?!

Read More…

Susan Payne, one of my Rochester agents at 2.5% Real Estate Direct, joined us this year after successful years at Nothnagle.  This week we received two calls from long time successful agents in the Buffalo area inquiring about joining us.  Why would successful agents seek us out to work for us while at the same time other agents are telling another story to potential sellers?  Let’s explore. Read More…

Attractive as super low cost or no cost house listings on the Internet may be, the strategy to sell your home on your own by simply listing your home on FSBO sites and free listing services is not a professional or effective way to sell your home for the highest price in the shortest period of time.

The reasons to use America’s Choice or 2.5% Real Estate Direct are basically the same reasons to use a good competing 6 or 7% Real Estate Broker.  They are:

1.  You will get a higher sale price with America’s Choice and Real Estate Direct then you will receive using Craigs List, FSBO sites, and local unknown MLS only brokers who do not advertise. Extensive research over many years conducted by real estate scholors at the Univerisity of Madison proved that point.  You receive about 16% higher sale price with America’s Choice and Real Estate Direct - because of our advertising.  This result is on par with the results pubished by the National Association of Realtors. Our program more than pays for itself, results in the same increased sale price as a good 6 or 7% real estate agent, but puts the money in your pocket.

2.  The National Association of Realtors research has shown that buyers are using the Internet themselves to find available homes.  In Rochester and Buffalo and Erie americaschoice.com is THE site for buyers to find homes at 0% commission.  Buyers know this.  Research shows that americaschoice.com continuously receives thousands of new and returning visitors. No other 0% commission site comes close or is even in the ballpark.  Most of those sites do not even register.  Buyers simply look to americaschoice.com on one hand and to realtor.com, buffaloniagarahomes.com and homesteadnet.com on the other hand. Thus, they get just about all the available homes.  The only way to combine both sites and get all the buyers is to sign up with America’s Choice and go on the MLS with Real Estate Direct as the same time.  This results in more buyers then you could get with any other real estate broker, and they are charging more than double.

3.  It is easier and faster to use us.  Our homes sell faster because you are in control and are able to communicate with the buyers faster.  Our professional staff supports you the whole way.  We have lots of talented employees. This is a real business, with real people.  Don’t let a real estate agent tell you we simply take your money, give you a sign and leave you.  Our clients tell us they hear this from agents but they know better.  Our overhead to maintain a presense in the Democrat & Chronicle, the Buffalo News, the Erie Times and the Post-Standard along the producing the best full color real estate magazine distributed in expensive Wegmans and Tops is enormous.  The results are worth it for you.  Because of all this buyers keep looking to us for their new home.

4.   2.5% Real Estate Direct is the best real estate brokerage no matter how you look at it.  Our agents are completely full service, licensed, are Realtors, knowledgable and available.  They all sell homes and make a good living at it.  We are simply willing to buck the collusive forces trying to keep commissions at 6 or 7%.  We advertise more, conduct open houses, charge only upon a sale, use the MLS, and every other useful tool. Don’t fall for the arguments that somehow another broker is worth 6 or 7% no matter how your home sells and please don’t listen to the argument that other agents won’t show your home.  It is completely false, wrong, not relevent, and is a fear tactic to force you to feel compelled, unwilling, to list at 6 or 7%.  Get in contact with me if anyone says that to you.

Call us.  Talk with me or Lisa, Laura, Jeremy, or Alyssa.  Think about it.