Tuesday, June 10, 2014

Review of broker websites::What does a customs broker like www.baycitybrokers.com do ...







Review of broker websites::What does a customs broker like www.baycitybrokers.com do ...








               Recently               I               searched               one               of               my               Real               Estate               Listings               on               the               internet               to               see               what               various               "valuation"               sites               were               saying               about               it.
               The               property,               a               bank               owned               home               in               a               neighborhood               which               once               commanded               sales               prices               as               high               as               1.3               million,               is               listed               between               $770,000               and               $790,000.
               Based               on               a               recent               Broker's               Price               Opinion               (BPO)               I               prepared               for               the               Asset               Manager               I               requested               that               the               price               be               reduced               to               between               $735,000               and               $745,000.
               My               BPO               was               based               on               several               factors
               ·               17               years               experience               as               a               full-time,               professional               Real               Estate               Salesperson               ·               I               had               viewed               nearly               every               property               for               sale               in               the               development               in               the               last               year               ·               Comparables               used               in               my               BPO               had               sold               less               than               90               days               ago               ·               Feedback               from               Buyers               and               their               Agents               who               had               visited               the               property               ·               General               Economic               statistics               and               news               recently               published               in               various               media               My               goal               for               preparing               the               BPO               was               to               have               the               Asset               Manager               reduce               the               asking               price,               theoretically               making               it               easier               to               sell,               but               at               all               times               I               exercised               Fiduciary               Responsibility               to               my               Seller,               strived               to               be               as               accurate               as               possible,               and               to               best               serve               the               neighborhood,               the               home               buying               public               and               my               peers.
               After               my               BPO               was               complete               I               was               curious               to               see               how               close               my               analysis               came               to               the               easily               found               valuations               on               the               Internet.
               Zillow,               a               site               I               had               already               seen               state               wildly               inaccurate               information               "Zestimated"               the               value               at               $661,900.

Zillow               referred               me               to               Foreclosure.com               which               on               the               same               day               valued               the               property               (as               a               "Zestimate")               at               $848,000,               a               difference               of               22%               ($186,100).

On               Zillow               there               were               no               direct               comparables               sited               and               on               Foreclosure.com               the               comparables               only               showed               the               number               of               Bedrooms               and               Baths               -               not               nearly               enough               data               to               reasonably               compare               homes               in               this               area
               I               checked               Remax.com               and               they               did               a               much               better               job               of               describing               the               variables               they               used,               citing               data               such               as               square               footage               and               year               built,               and               their               valuation               range               was               from               $650,000               to               725,000               -               more               accurate               but               still               below               the               current               market               value.
               I               sought               out               information               from               several               other               sites,               such               as               Online               Home               Values,               My               Home               Worth,               Get               My               Homes               Value,               and               Estimate               Value               but               each               of               these               sites               required               me               to               disclosure               my               email               and               phone               number               and               I               was               not               comfortable               searching               without               anonymity               so               I               did               not               proceed               to               a               final               valuation               on               those               sites.
               Based               on               this               analysis,               and               previous               searches               which               also               resulted               in               unreasonable               valuations,               I               ask               you,               "How               can               these               "valuations"               possibly               serve               the               best               interest               of               the               home               buying               and               selling               public?"
               On               a               home               by               home               basis               they               do               a               huge               disservice               to               the               Buyers               and               Sellers               navigating               their               way               through               what               is               hopefully               the               bottom               of               this               Real               Estate               cycle.
               Buyers               and               Sellers,               armed               with               this               and               other               inaccurate               information               sourced               on               the               internet,               come               to               Real               Estate               professionals               with               expectations               out               of               sync               with               the               actual               market               dynamics               and               reality.

Frequently               Buyers               expect               me               to               write               "low-ball"               offers               which               insult               the               Seller               and               are               generally               rejected               without               any               further               negotiations.

Even               if               the               Buyer               and               Seller               do               come               to               terms               then               one               or               both               sides               sometimes               end               up               feeling               cheated               because               the               Buyer               feels               like               they               paid               too               much               and               the               Seller               feels               like               they               settled               for               too               little.
               What's               the               solution?
               First,               I               believe               these               sites               should               more               boldly               state               their               innate               inaccuracies,               second               the               Media               should               discontinue               quoting               the               statistics               from               these               sites               and               third,               Real               Estate               Professionals               should               be               very               familiar               with               these               sites               and               be               able               to               explain               the               errors.
               Real               Estate               Salespeople               already               have               an               uphill               battle               to               prove               to               our               Clients               that               we               work,               think               and               perform               as               professionals               and               these               websites               are               making               that               so               much               more               difficult.







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