Kent Davis

I recently met with a couple who purchased their first home from me in 2004 -Oh the good ole days, we watched the new listings daily and were outbid on several nearly on terms offers but finally they bought a great house in an even greater location. It was close, there was another house they nearly bought, nicer house, less money, and not a bad location but it was too close to future commercial development.

They knew I liked the one they bought better "Always Think Resale!" they remembered; I could tell they liked the one near the commercial (and I'm talking light Manufacturing in this case). Business has been good for them, their family is growing they want to move up and have seen prices in next price range coming down.

First, they were afraid their Albuquerque house had dropped a lot of value- they had watched a lot of news and read a lot of headlines - but surprise! - no their value had not increased - but the decline in their prime area on the smaller houses was a whole lot less than they expected.

So they asked me, point blank, what features did I look for when I say "Always Think Resale!"

Now that's a huge question, I look at hundreds of factors - but here a few I shared with them:

Is is convenient? This used to be a lot further down my list, but what sells today is close to as many daily items as possible. How far is it to the grocery store? How about to a Freeway, bus or rail line.

Is it quiet? How about nearby traffic - can you hear it? Does the street carry other traffic than it's own?

Show me the view. We have glorious mountains & spectacular sunsets, sure there is price that comes with them, but a home with views just sells better - and in this case I think they will get their money back on resale on the one they bought in '04.

First Impression - Curb Appeal. You know it when you see it. Tasteful well thought out landscape, the home is attractive and you like it before you ever get out of the car!

So we are out looking. What are some considerations at the top of your "Always think Resale!" list?

Thanks for sharing your ideas and opinions.

Kent Davis, QB, MBA

Albuquerque Journal Jan 30, 2009, Headline top of the fold story "TOUGH SALE" ...the average price of homes sold in December dropped a whopping 25% from the preceding year. Meanwhile the number of homes sold plummeted 25% in 2008 - nearly double the 13% drop seen nationally."

My 83 year old father and I shared an early morning cup of coffee as I read stats provided by the Greater Albuquerque Association of Realtors. "I don't believe the Realtor's Association numbers" my dad stated matter of factually. Never having been a Realtor himself, though buying and selling more land, farm, commercial and residential real estate that anyone I know; my mother was a REALTOR® my sister and me to.

"Don't believe everything you read in the paper." dad said, "check the facts for yourself" seeing my concerned look as I read the article with puzzled interest. Didn't I just tell a seller I thought prices in Albuquerque NE had declined about 10% in 2008. Yikes was I that far off?

Maybe in a time when some areas of the country did have such a decline, I was sure they did not fall 25% in Albuquerque. But then the S&P 500 sure dropped a good 40% in 2008. Was I wrong and the Journal right? I clipped the newspaper article to remind myself to email the article to my clients, most of whom don't get the morning paper all downloaded and printed out like my dad.

But there it was, front page center & top of the fold the graphic with a red line plunging like a Bank of America stock chart, 25% in December 08.

Thinking of the buyers and sellers I'm presently very thankful to have, I finished coffee with dad and made a beeline to login our MLS. I knew December was slow, but I did work this very market, and I sure did not see any 25% decline. The MLS is a great data base, I searched it, and just like my dad now I'm not believing my own association numbers.

To my great relief the next day I saw a revision listed, page two, two columns wide four inch's long "Realtors Revise Dec. Numbers" Price of Average Metro Area Home down 9%, Not 25%.

It seems the graphic and the story was based on incorrect numbers provided by the Greater Association of Albuquerque Realtors. It was a typo the association chairman noticed.

Wait there is more! The association chairman had not received any calls from the 3500 or so members when the story appeared in the Journal. Wow. None? Has all the recent bad news so inoculated us that we don't recognize a headline story so incorrect?

Kent Davis, QB, MBA

When all they really wanted was a glass of water. My listing presentation; there in my own office I opened up the fire hose of real estate information on potential listing clients. I drenched them with data and days on market and all they wanted was an update on our market and some help marketing their home - it was listed been for nearly a year with another Realtor. Maybe they need a sip of encouragement and hope to.

I was glad they called me; I know the house an offered to meet with them the next day at their home. They had holiday guests and so we scheduled an appointment a week later. That is where I made my first mistake - I had too long to think about it.

And I want this listing, it's an area I have farmed, good curb appeal, really no excuses in any other market excepting the old list price. And there was my second mistake. I had a week to find ways to convince them that they were about 20% high, maybe more if some of those pending sales close where I think they will.

The old list price made me more than a little uncomfortable, which led to my third mistake, I was anxious about my listing presentation. Why? Was it the market and I need the business, was it knowing the competition would be working hard to get this listing? Usually I am calm and confident in these situations - this one rattled me.

That's no excuse for being nervous, and I needed that data to confirm a price range, but there I did it...hit them will a full pressure fire hose 10 page market analysis.

Fortunately this patient husband and wife listened - and I stopped talking on about page 2 and let them ask me some questions about what I would do to sell their house. They knew they were overpriced. I did ask them if the were ready to put their house on the market again - they wanted to interview another Realtor before they made a decision.

So we will see what happens, my marketing plan is internet heavy and for all my intensity I do hope they take away the importance of that from my proposal. I'll follow up with a short low pressure phone call in a few days.

Thanks to Active Rain I feel better having written this, and thanks to you for reading I look forward to your comments!

Kent Davis