My team and I religiously track the real estate market in search of information that will give us a competitive advantage and help our clients. On a biweekly basis we take each of our listings and monitor the # of properties in direct competition; how many new properties have been added to the market; how many price reductions; # of properties under contract; # of properties closed; etc. Over time trends emerge...but I have never seen a trend like the one I discovered yesterday.
Keep in mind that over the past 5 years it has been our primary goal to market properties better than the competition and simply get them under contract. 95% of the time these properties would go through the motions and successfully close. Times have changed.
As an example I would like to show you the Groton residential single family market in the price range of $250,000 -$300,000. Over the past 4 months there have been a total of 52 properties that have gone under contract. Of those 52 properties 14 have closed. This is a 27% close ratio in comparison to a former ratio of 95%!! 4 properties in that range are still under contract at this time. Many of these properties have been withdrawn or are in pre foreclosure-foreclosure status. The Montville market is at a whopping 18% close ratio.

It is becoming more and more difficult to find qualified buyers that are capable of meeting the new lending standards and are willing to see a transaction through without being scared off by the National Media at some point throughout the transaction.

Thankfully unique properties such as waterfront, equestrian, or special use properties are being targeted by the wealthy, overseas investors, or bottom feeders with their eyes on an opportunity. This will keep diversified agents fed through the tough times.

More to come…

INVESTING WISELY IN A TROUBLED MARKET

Have you ever noticed that successful real estate investors often purchase real estate when the market is not strong? Many would say they are lucky. I say they make their own luck. These people use their knowledge of real estate cycles to their benefit. They are people with vision who watch the trends and recognize opportunities when they become apparent. They use their knowledge of the fundamentals to make sound decisions and are ready to buy when the opportunity presents itself.

What you can do to assure that you will make the right decision:
1. Research the local market and the price range you are prepared to buy in.
a. Identify all current area listings that are $50,000 above and below the price point you are interested in.
b. Identify and fully study the area sales that have occurred $50,000 above and below the price you are considering.
c. Determine the current inventory (months of listings).
2. When you find a property that interests you.
a. Research to find out which nearby properties may be in financial trouble. (identify current debt/check foreclosure notices)
b. Identify the most recent sales in the neighborhood and determine how the sale price of each compares to it’s last sale price. (appreciation/depreciation)
c. Determine:
i. are there any unsold new homes/units in the neighborhood,
ii. how long have those properties been on the market,
iii. have there been any price reductions, and
iv. what percentage of units are still owned by the developer.
3. Treat the purchase like an investment - don’t buy on emotion.
4. Always have the property appraised and thoroughly inspected by licensed professionals.
5. Align with an agent that can provide you with a depth of real estate knowledge and experience.

This is a time when people with the ability to buy have a competitive advantage. With higher than average inventories and many troubled properties in the market, this is a great time to buy real estate.

Call 860-912-8167 to reserve a seat for our next seminar titled ‘Investing Wisely In A Troubled Market”
to be held at 9 AM, Saturday, July 12th, 102 Front Street, Noank, adjacent to the Noank Village Boatyard.

Raw Video -Metcalf's Law put to the test

Buyers and sellers are faced with many options when choosing a real estate professional. To differentiate ourselves ultimately means more business. But there are only so many hours in the day and our sphere of influence is not helping us grow our business as fast as we would like. Does video work...I am not sure at this point but I do know that after folks watch our video they feel as though they know us. The first meeting seems more relaxed and casual. Instead of hearing "Nice to meet you" we here "Great to see you" The end result is that we are utilizing metcalf's law in we produced something once and let the web do the rest indefinitely...even as we sleep. Our video is very basic, shows that we are down to earth, and makes us approachable. Click below or paste into your browser to watch this 1 minute video.
http://web3.streamhoster.com/tbray777/Introduction%20to%20Bray%20Consultants%20@%20Sothebys.wmv

We have differentiated ourselves in the way that we market properties and our philosophy when listing a property. To show potential sellers how our services differ, we have created a six minute listing presentation outlining our intent and plan to market their property. Although the presentation is strong, we find that our backgrounds and real estate education are the pivotal points tipping the scale in our favor. Our presentation can be viewed by pasting the following link into your browser or just clicking on the link.

http://wms3.streamhoster.com/tbray777/SothebysVideo.wmv

Popularity Contest vs. Value added

Having two young children forces a view of the world once forgotten. As we get older..we overthink things...analyze..make things more complicated than they need to be. Our minds race...are we forgetting something that could increase our chances of success?
Let's dumb it down.
As a child, being lined up the very first time in gym class. Two kids choosing who will be on their team. It is a critical moment that we will never forget for the remainder of our lives. It seems as though attractive and popular kids are chosen first while the shy and unique kids are at the end. Teams are chosen, the games begin. The playing field is leveled as the unattractive and last to be chosen are given a chance at bat to prove that they are worthy of a first pick next time around. As the game progresses, the value of players shifts in the minds of coaches and players. Little do they know that the foundation for the rest of their lives is being formed.
We as professionals have an opportunity to define ourselves by adding value to each and every one of our clients. Being the most popular may jump start your career and get you picked first as you embark on a new career path. But ultimately it is how you play the game and add value to the team that will get you picked first the next time around.
I am off to the beach to play with the kids.

Increase Your Chances For Sale - COMPARE

What factors/attributes should you consider when selecting a real estate agent and brokerage firm? In this less than perfect market it is important to select an agent/firm that will give you the best opportunity to sell your property in the shortest time and for the highest price. You have too much at stake. You must COMPARE.
Market Knowledge
Your agent should eliminate guesswork by providing you with the most current real estate trends possible so you can make informed decisions.

Technological Ability
Find an agent who can use technology to market your property in a way that will make it stand out. Real estate is no longer sold in the same way as it was 10-30+ years ago. Your neighbor, relative, or club member may no longer be your best choice for an agent. The sign in front of your home and the ad in the paper are no longer the first point of contact. Real estate has gone GLOBAL.

Valuation Experience
Your agent should help you price your property properly so that it has the best chance to sell within a reasonable time rather than languish on the market. Beware of the agent who first asks, “What do you want for me to list it for”. Don’t let them “cheat” by relying on the tax records which are often unreliable.
Years of Experience
Your agent should bring to you and your property a solid background in real estate to help you with your particular situation. Today, in this information age, an agent should understand you are well-informed and he/she should be available as a resource, a trusted advisor, someone who provides you with guidance.
CHOOSING AN AGENT CHECKLIST
1. Are you a full time agent?
2. How many years of real estate education/experience do you have?
3. What is your ranking among all agents in the area?
4. How well do you know the market and our price range?
5. What is your sale price to list price ratio?
6. How will your marketing separate my property from others?
7. How long are your listings typically on the market? How will you keep us informed? How frequently?

Paradigm Shift

Real Estate Has Gone Global

Thinking of buying or selling real estate? Fasten your seat belts because the industry has changed immensely for both realtors and consumers over the past few years. You as a consumer now have the ability to view almost as much information as your realtor. In fact, you can: receive automated emails that alert you to newly listed properties in real time; view high resolution photos of every room in a property; study aerial photographs and GIS maps to identify boundaries, soil conditions, public improvements, etc; receive virtual tours of the property showing the interior and exterior of a structure; enhance your understanding of a layout by viewing floor plans; study public tax records online; and you can analyze neighborhood sales on your own without leaving your chair.

Your realtor is no longer a tour guide with the only access to information. Now you have the tools to research a market 24/7 using the internet. However, the value of a professional realtor has never been more pivotal in the successful purchase or sale of real estate. Now, the dissemination and interpretation of vast amounts of data presents an opportunity for those consumers aligned with a new breed of realtor who can set up systems to spot an over-priced or under-priced property or to market a property to consumers on the other side of the globe.

Social networking and local market knowledge have always been integral in the real estate sales process but the number of out of market transactions are on the rise. Exploiting a global marketing plan is critical in shortening the sale cycle and increasing the chance of selling at the highest price. This is particularly true for luxury real estate and commercial real estate markets. Placing a sign in front of a property gives notice to the local market that the property is for sale but does little to reach the global marketplace.

Increase your chances of reaching your real estate goals by making sure your realtor can provide: Global Exposure, Experience & Technological Expertise

FOLLOW THE MONEY

FOLLOW THE MONEY
SOUTHEASTERN CONNECTICUT DISCOVERED

Recession, sub-prime meltdown, foreclosures, real estate values plummeting. (Sound familiar?) Many people are waiting for the bottom to fall out before they make a move…especially with regards to the purchase and sale of real estate. Unfortunately, the Mystic Country portion of CT is lumped in with national statistics that don’t account for the local activity. Here are two compelling reasons for a different perspective.

New Retail Construction
Frequently analysts will point to activity within the retail sector of a region to forecast the economic health of that market. As a rule of thumb, we can follow patterns of growth in an area by looking at the amount of retail space currently under construction in comparison to surrounding areas. In particular, we can look at the big box stores such as Wal-Mart, Lowes, & Home Depot who hire firms to predict the feasibility of a store and the likelihood that the store will thrive. Are you aware that the majority of retail space currently under construction in this state (not including Fairfield County) is being built right here in our backyard?

Approvals have been obtained to develop 73.7% of the study area (CT – Fairfield County) or 1,322,272 square feet of retail space with more than 800,000 square feet pre-leased. Preliminary to these approvals, very expensive studies were commissioned. (This does not include casino expansions, the Preston state hospital proposal, the Norwich hotel proposal or the “Gateway” proposal in East Lyme).

Homes Selling for $750,000+
The number of people purchasing homes with sale prices greater than $750,000 rose 22% in 2007 over 2006 in New London County while sales in the 6 communities along Long Island Sound rose 28% with Stonington leading the charge at 71%. These buyers typically have significant personal assets and they are demonstrating a confidence in this market and its future.

Now Is The Time To Invest in Southeastern Connecticut
Look to the future like the investors do. Most investors use the less active real estate markets to position themselves for the future.

Gross Living Area – A Critical Valuation Factor

It seems every time we go through a growth spurt in a real estate cycle, very bad habits are developed by the market participants. Over the most recent up-tick, if you have refinanced or purchased a residence, there is a high probability the Gross Living Area of your home was improperly identified if the tax record was relied upon. Furthermore, a very high percentage of real estate agents, appraisers, and lenders use the tax record as their source for the GLA. As proof of this statement, I ask you, “Was your house measured the last time it was inspected by an agent or an appraiser?”

The text, “Mastering Real Estate Appraisal”, used in the required coursework for real estate brokers and appraisers in Connecticut and many other States around the U.S, identifies Gross Living Area (GLA) to be:
“The above-grade, heated areas of finished space, measured from the exterior walls”. This definition is generally accepted by Federal regulatory agencies, the Appraisal Institute, and the legal profession.

Here is the problem. Real estate agents and appraisers seldom measure a home and then use the corrected number to perform their market analysis or challenge the number reported in the tax record. This is the case in spite of the fact that square footage is the single most-important factor used to calculate the value of a home other than perhaps location. The excuse used is that we are not qualified to measure the residence and make such a calculation. (remember the methodology is taught in required coursework) The reality is that many real estate people are too lazy or uncaring to perform the necessary due diligence. The public deserves better. Agents and appraisers are paid well for their services and their clients deserve to be informed.

Why is the reported GLA for tax purposes frequently wrong?
1. Defined GLA not calculated/reported properly.
2. No access to structure.
3. Unreported improvements.
4. Mistakes go uncorrected.

I am suggesting assessors, appraisers, and real estate agents be required to measure and adopt the same standard for calculating GLA so that the consumer can understand the methodology used to estimate the assessed value/market value of their home.