Do No Evil
Absolute sales. Reserve bids. Hidden reserves. Vendor bidders.
A recent article in the Sarasota Herald Tribune commented on the use of such arcane terminology in the auction process, and how unethical real estate firms have employed them to keep the rules of engagement hidden from buyers. The article summed it up by saying, “buyer beware.”
The shenanigans of some unscrupulous realtors that were reported in that article so upset me that I needed to respond unequivocally: every one of us at SKY Sotheby’s is disgusted by such practices.
Someone once said: “If you have integrity, nothing else matters. If you don’t have integrity, nothing else matters.” That succinctly sums up our philosophy.
Integrity - honesty in all our dealings with our clients - is the foundation of our business. And these aren’t just words: it is how we conduct ourselves every day.
To ensure we hire only people of character, we have standards of performance that all job applicants must pass before we offer them a position at our firm. Criteria they must meet include:
- Work as a full-time realtor: When the real estate market was hot, many individuals jumped in; when the market cooled, many left for greener pastures.
We work only with individuals who are completely committed to our profession. This shows they are serious about the business of real estate.
- Top performers: All applicants must have been in the top 10% of realtors for the past 12 months at their previous agency. It is extraordinarily difficult to be a successful realtor and to engage in unethical practices for a prolonged period. Word of mouth cuts both ways, shadowing the dishonest and helping the honest.
- Significant transactions: The average transaction for each applicant must be $750K or greater. This shows us that they understand the nuances of the luxury real estate market.
Most important - and most difficult to quantify - we hire only people who share our values. That means that every one of the 72 realtors at SKY Sotheby’s adheres to the highest ethical standards.
To sum it up succinctly, all of us pattern ourselves after Google’s motto: “Do No Evil.”
As for auctions, we believe that they are an appropriate tool for select clients - in particular, ones who want an accelerated method to sell their homes in a predetermined time, and are willing to let bidders drive prices. Demanding times like these demand innovative strategies, and we make use of different tactics in order to meet our clients’ unique needs.
Should I ever have the privilege to represent your property at an auction, you have my word that the process will be ethical and transparent. And that’s a promise you can bank on.
1 commentTo Auction or Not to Auction
A risky strategy or a timely tactic?
Buyers and sellers have no shortage of strong opinions about auctions. Lost in all the hyperbole is the truth about their role and value.
Real estate auctions go back to at least the times of ancient Greece, and have been a fixture of the American real estate market since the 1600’s, according to auctioneers.org. The same source noted that $264 billion worth of real estate was auctioned in 2006.
We at SKY Sotheby’s have a balanced perspective towards auctions: they are valid - and powerful - marketing tools when used appropriately.
Auctions are suitable for clients who want an accelerated method to sell their homes in in a predetermined time - and are willing to let bidders drive prices. As for concrete examples, our Fall 2007 Sarasota luxury real estate auction produced the following results:
- The auction drew more than 400 registered bidders from 18 states and four countries.
- Half the properties auctioned were sold.
- Properties sold for approximately 75% of their lowest list price and 106% of their assessed market value.
As for traditional approaches, homes priced at $1.5 million or more sold through the multiple listing service (MLS) during the same period brought 86% of the list price and were on the market for an average of 295 days.
Comparing these two vehicles, properties sold at our Fall Acution had comparable sales prices to those sold through the MLS - and were on the market for a far shorter time.
So what is the takeaway?
Auctions are effective when used judiciously. They identify buyers. They create a sense of urgency. They generate publicity for featured properties. They shorten the sales cycle.
In fact, our Fall Auction was so successful that we are planning one for luxury homes in April 11, 2008. We already have registered 800 prospective bidders, 25% of whom are from outside the United States with a significant percentage from Canada, England, Germany and Russia.
Auctions are not appropriate for every situation. They are just one tool in a realtor’s toolbox. They obviously benefit select buyers and sellers.
And they certainly have their place in this uncertain market where buyers and sellers are tyring to find a mutually acceptable outcome.
Comments
Tips For Buying And Selling In A Turbulent Market
In today’s turbulent real estate market, many buyers and sellers seem to have become confused about negotiating tactics.
Many buyers assume that every property is overpriced and that low-ball bids are de rigueur. Sellers often recoil at these “insulting” offers, which typically leave no room for negotiation.
The result: a potential deal collapses and both parties lose.
It’s no secret that the real estate market is correcting, but we believe buyers make a serious mistake when they automatically assume that every list price is inflated. Sellers who fail to entertain fair offers miss lucrative opportunities.
The best advice for buyers and sellers is to put their real estate agents to work. Demand comps (comparables) of properties recently sold, and then start negotiating from that point. Selling prices for comparable properties is a far better litmus test for the worth of a home than blind emotions or unfounded assumptions about the state of the market.
Capitalize on your agent’s expertise. Use facts and not emotions to guide your buying and selling decisions.
Today’s real estate market holds significant opportunity for buyers – opportunities not likely to be seen ever again given the desirability of Sarasota and Manatee Counties and population trends. The most successful buyers and sellers will be the ones who make their agents do their homework.
2 comments