For most buyers, purchasing a home is the largest investment they will make, and they crave accurate information to make a sound decision. We believe more understandable information is better when making such an important decision. If comprehensive market research and more might help our clients, we want to provide it.
When we talk about “market research” in the context of real estate, we aren’t exactly talking about marketing. In “Marketing” there is a focus on the “4 Ps,” and can use the same 4 Ps to structure our review of the research and the data we provide to buyers.
Much of the information referenced here is provided by many in our profession, but at Personal Realty Advisers, we go far beyond the norm to provide ample information buyers need to help them make the right/best decision.
Considering our fast-moving market, we don’t always have the luxury of providing ALL the information we want buyers to have before they view a home. Whatever we cannot provide before they view, we provide shortly after if the buyer is interested in the home.*
*DISCLAIMER: In a heated Sellers’ Market like today, we tell buyers NOT to wait for information to submit an offer, or they may lose a home they really want. The inspection period provides ample time to consider all forms of data. Buyers can always cancel a contract during the inspection period if the data (or anything else) causes them to question the soundness of their purchase.
Here, we will examine the client-centered research we provide to help our buyers in their home-buying decision making, organized by the 4 Ps and our timeframe for providing such data: before viewing a home and after viewing it (during the offer process and inspection period). Continuing to provide information during the inspection period is essential to help reinforce the clients’ purchase decision – or to support their decision to get out of a bad deal.
P1 – Product
In real estate, the Product is the property for sale, and buyers need to know as much as they can about the “product” they will be buying.
Before a Showing
- Product Listing: Most product information will come directly from the property listing in the MLS or other online search portals. This includes information about the property’s age, size, number of beds, improvements made, etc.
After a Showing, Based on Buyer Interest
A lot can be learned about a property beyond what the listing agents include in their descriptions. If a client expresses interest in a property and is considering making an offer, we dive into the research to learn as much as we can about the property. Below are a few things we often provide:
- Listing Attachments: MLS property listings are supposed to have attachments, such as a sellers’ disclosure, a lead-based paint disclosure, and a few other forms and disclosures for special living environments such as Condos and HOAs. We get these documents into our clients’ hands, as soon as possible, and we help them identify any important facts contained therein.
- Property Appraiser Record: Having a copy of the Property Appraiser’s property record can be helpful in exploring a few things:
- Does the square footage identified match the listing?
- When was the house last purchased? For how much? Also, check the full purchase history.
- What major improvements have been made if any? Were permits obtained and inspections passed?
- What is the just value of the property?
- There may also be some details we can learn about the sellers from the property deed, often on file with the property record for example, if ownership of the home was inherited.
- Quick Links:
- Permit Search: If the home has been renovated, we often do a permit search from the local municipality. This can help us identify unpermitted work or provide reassurance that upgrades were done to code and passed inspections.
- Old Property Listings: Especially for a home that might be a “flip,” it’s helpful to look at the previous property listing to see the before and after records of the property: sale price, photos, etc.
- Property Report / Realtors Property Resource (RPR): In our local MLS, we have access to a resource called Realtors Property Resource that can generate detailed reports on most properties, including home facts, estimated property value and value history, property photos, financing activity related to the property, and much more.
- Listing Agent Outreach: Sometimes, we can gather helpful information about a property by talking with the listing agent. Especially if a pending sale contract fell through, we may contact the agent to find out more. Without breaking client confidentiality, there is a lot an agent can share, such as previous inspection reports or other details that killed the deal — all information that can be very helpful in the buyer’s decision-making.
P2 – Place (Location)
Before a Showing:
The place is the “market” in our market research. Understanding how a property fits into and compares with surrounding properties is crucial for a successful offer and sale.
- Online Property Listings: Most of our buyers actively search for properties online, and that’s a fantastic way to keep track of the market: what’s coming on the market, what’s sold, etc.
- Trend Information: If our client is looking for a property in a specific neighborhood or looking for a particular type of home, we might provide them with some quick trend data to understand the market they are facing when viewing homes and placing an offer. Below is an example of one such quick trend report that informs buyers there will not be many homes available that match their criteria and the competition to purchase these homes will
After a Showing, Based on Buyer Interest
This is where “comps” (comparable sales) overlap across two categories: Place and Price. We provide buyers with ample information to have a solid understanding of the buying market and where their property of interest might fall within that range.
- “Recent MLS Sales Activity”: Rather than provide comps, we provide the buyer with information about all recent sales within a particular set of criteria. Homes that are the closest “comps” would fall within that. In addition to understanding the comps, it’s helpful to understand the larger home buying market. We limit this search to the immediate neighborhood, subdivision, or condo complex whenever possible. We include Active and Pending listings, in addition to properties Sold, so buyers can see what options are available for other buyers interested in the same property.
- Insider Tidbit: Industry practices recommend at least three listings for suitable comps. THREE!!! We have seen some sales agents who cherry-pick certain comps that best match the price of the property of interest to help make a sale. By providing the complete list (all sales), clients know we did not pick and choose – we present it all.
- Map and Quick CMA (Comparative Market Analysis): For the Recent MLS Sales Activity, we present data in both a map and a Quick CMA worksheet that analyzes the sale data showing price per square foot, list price, sale price, days on market and more.
- HOA/Condo Records: It is required that buyers of condos or homes in an HOA receive a complete package of all association documents and the current year’s operating budget. In some cases, we might discover additional information in meeting minutes or on an association’s Facebook page. For one buyer, we discovered an assessment that would significantly increase the monthly HOA fee. As a result, the buyer was able to renegotiate with the seller on the sales price.
- Google Earth: We always tell buyers to research properties of interest on Google Earth to see what might be located nearby. For some clients (with limited technology), we might provide that information. One buyer discovered that a home they really loved was located right next to a large distribution facility that looked like it would be very noisy during the workweek. They continued their home search for something more peaceful.
- Local Information: We work with many buyers who are relocating to the area from out of state. As such, we go out of our way to provide them with ample information about the communities they are interested in. We might provide them with historical news stories, links to the neighborhood association, chamber of commerce, school districts, and other facts and data about their chosen community.
- Special Information: Many of our relocating clients have special interests; e.g., they want to be near a large tennis center; they want to be near one of the best performing schools; they want to be close to a Catholic church; they want to be within a 15-minute drive to the beach; etc. Whatever their need/interest, we will provide this information, usually in multiple forms. One example below provides information about nearby tennis centers for our semi-pro tennis buyer.
P3 – Price
Before a Showing
Several previously mentioned resources are also helpful in the category, including the Property Appraiser property record that shows just value and all sales activity on the property and recent sales activity. Several other pieces of data are helpful to buyers when considering a fair price.
- Price History: We usually can provide buyers with a recent price history for the properties they are interested in. This also is available from many online property search portals. This often helps them formulate their offer or decide NOT to submit an offer if they feel the price increase in a short period of time (for example) is excessive.
- Value Estimate / Realtors Valuation Model® (RVM): We can access this quickly from the RPR, the same property resource mentioned above. The RVM provides a value estimate calculated using publicly available information plus MLS active, sold, and off-market data.
- Options / Cash is King: Whenever it is a good strategy for the buyers, we will offer information and resources to help them put their best offer forward, including all cash or other creative financing options.
After a Showing, Based on Buyer Interest
If the buyer is interested in a property, we try to go beyond to help them analyze value and consider a fair but competitive price.
- Online Home Value Estimates: If we weren’t able to provide this before the showing, we provide this afterward. Like the RVM referenced immediately above, we obtain AVMs (Automated Valuation Model) from multiple online sources. AVMs calculate estimated home value using publicly available information. Several of these are available through public websites such as realtor.com, Zillow, Trulia, etc. Zestimate was the first AVM made available to the public, which today, many people use to check a home’s estimated value. We compile information from many sources together in one place, so the buyer can see how estimated values across networks compare to one another.
- Recent MLS Sales Activity: As mentioned above, under “Place,” we will provide extensive data on recent MLS sales activity, and we provide a map and a Quick CMA/calculation worksheet. We run this date for the shortest timeframe possible, starting with 90 days of past sales activity. For homes that are difficult to find comparable sales, we may extend that to 180 days or a year.
- Pricing Trends: As previously shown, we provide price trend information that may be helpful for buyers to understand why the bungalow that cost $400,000 last year is costing $600,000 this year.
P4 – Promotion
Before a Showing
Promotion is a small category of information, but we try to look at how the property was marketed to the public and to our buyers. It’s important to know if extra glam has been added to the listing photos and description where no glam actually exists.
- Recent MLS Property Listings: Sometimes, a property that shows having been on the market for 3 days may have actually been on and off the market for a month or even a year or several years. This is important to know, and we will provide that information to our buyers. Buyers should question whether there’s something wrong with the property, why the price or the listing resulted in no sale, and why the property went on and off the market so many times.
- Open House Information: If any open houses are scheduled, we provide that information to our buyer. Even if they see the home before an open house, it forewarns them that purchase competition may come soon after the open house.
- Other Agent Promotion: If the listing agent is distributing any other promotional materials (such as email marketing sent to the Realtor network), we make sure the buyers receive copies of that right away.
After a Showing, Based on Buyer Interest
By this time, most of the promotion is done, but some listing agents will continue to follow up with additional information. Even the iBuyer company, OpenDoor, will regularly call to offer updates on a property’s listing status.
- Personal Selling; Meeting the Owner: In marketing, personal selling is a promotional strategy that involves person-to-person sales discussion. In some rare cases, it has been beneficial to bring the sellers and the buyers together, especially for a unique home with special features and character. It provides the seller an opportunity to share everything they are proud of about the home, providing greater reassurance and interest for the buyers.
- Personal Selling; Meeting the Neighbors: It’s always good to hear what the neighbors think about where they live. On occasion, we will make contact between the buyers and neighbors.
The list above includes a great deal of information. Every property purchase is different and requires different information as part of the buyers’ due diligence. At Personal Realty Advisers, we do as much as we can to help with that research.
If you did not receive this information for the last home purchased, make sure you are working with us for the next. We are happy and eager to assist. Contact Robert Coscia, Broker and Owner, directly at 727-317-7653. We look forward to helping you research your next home purchase.
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