HomeMy WebLinkAboutA014 - Email from Robert Howell dated May 21, 2018 Fwd: Price adjustment strategy
Robert Howell to: amescitycouncil, John Haila, Mark Lambert, 05/21/2018 10:33 AM
Kelly Diekmann, sSchainker
Dear City Council, Mayor, and City Officials-
As a follow-up to my email last week, I wanted to share an example email of the potential impact. This is
an email from our realtor, Traci Jennings at ReMax. As you probably know, her and Bill are the#1
realtors in Central Iowa and are experts in the local real estate market.
Since I'm sure you're receiving many emails, I've highlighted her comments that I thought were relevant
for this discussion... showing that the value of my property has decreased given the current rental cap
without a hardship option.
Again, I want to encourage you again to commit to having clear direction and next steps on the hardships
before you conclude your meeting on Tuesday night.
Any delay will force me(and many others in a similar situation) to reduce the prices of their homes/lose
money. The Spring/Early Summer is prime selling season for homes and we need to take action now.
Thanks for all you're doing for the community.
Robert
---------- Forwarded message ----------
From: Traci Jennings <traci,v jenningsrealestateteam.com>
Date: Sat, May 19, 2018 at 11:59 AM
Subject: RE: Price adjustment strategy
To: Robert Howell <robertlewishowellkgmail.com>
Cc: emilysmothershowellagmail.com
Robert and Emily,
I did a thorough analysis of your property and here are my thoughts to getting it sold before the
end of July. Based on the number of homes similar to yours that have sold in the past year vs. the
properties that are currently on the market, there is about 4 months of inventory on the market.
Homes like yours are rare...and many people love them, but in this price range many buyers opt
for a newer home over an older home...mainly due to upkeep on the home. You hired me to sell
your home, not tell you what you want to hear. I know you'd love for me to tell you that we just
need to keep it on the market longer and the price is fine. We've had decent activity on your
home, and no offers. This is the part of my job that I hate, but hope you will respect my honesty.
I love your home...I love the character and love the space and it shows exceptionally well. I love
the yard, the porch, the sideporch, the dining area and the additional space in the lower level.
However, as we know, you are surrounded by several rental properties, which is not ideal to a
family or homeowner that intends to occupy the dwelling themselves. I unfortunately think the
cities recent decision to change their rental rules and to deny you a letter of compliance is a
major hardship on you. I believe that your asking price of$269,999 is 100% justified if it
would be allowed a letter of compliance, however, by taking out all of those buyers, it
greatly reduces the value of your home. I believe the cities change in their rental
regulations have burdened you with a $20-$25,0000 loss in value. I am comfortable with you
telling the city council this information at the city council meeting on 5/22.
a
My market analysis recently came in in the range of$245- $250,000. (Robert additional
comment-we're currently on the market for$269,999 and paid $250,00 for the house two
years ago) I know that is the lower/same price that you paid for it 2 years ago.
My job is to get you the MOST amount of money by marketing it at whatever price you choose to
be at.
My recommendation
1 Immediately: reduce price to $259,900.
2. weekly marketing boosts on our social media platforms. We will do the property as a whole
and do other specialized ads that point out special features (we recently did this with a photo of
your front porch on Instagram).
3. host an open house the morning of 5/26 at 10:30-12pm. Host open hosue June 2 or 3 (TBD
time/date)
4. Idea: you could offer a$1500 credit to the agent with an offer before May 31 st or raise the
BBC to 3.5% (thus commission would become 6.5%). Almost all of the properties listed in Ames
offer 3%to a buyer's agent, by raising our listing contract to 6.5% and offering 3.5% to the
buyer's agent, it would be $1275 on an offer price of$255,000. I like this idea better because
agents have a habit to look at the BBC on a property, but may miss the note made about the
$1500 credit to buyer. I can do an email blast to all agents letting them know about this new
incentive &the price reduction.
5. We can do an email blast to all the contacts in our database (over 3000 people) featuring your
home, the upcoming open house and the new price.
If no offer by June 1
1 reduce price to $255,000
2. weekly marketing boosts on our social media platforms. We will do the property as a whole
and do other specialized ads that point out special features (we recently did this with a photo of
your front porch on Instagram).
3. host an open house the weekend of June 9,10th in conjunction with the 2018 parade of Homes
show.
4. Feature your home and the open house info on the front cover of the Real Estate Biweekly.
5. continue to offer the 3.5% BBC
6. contact all agents who have shown the property and shown interest to let them know about the
new price.
I am open to other marketing ideas, however, I truly feel like the sale of your home comes down
to price at this point. We have great photos, have it published on multiple websites, have reached
over 20,000 people on our social media platforms and viewers on the internet. I don't think
exposure is the problem. I am confident that if a buyer were looking for a home, that they would
know about your home and consider it.
I truly am sorry about your situation. I know that sucks for you...and I feel bad. However, I am
excited about your next step. My advice for you is to try not to stress about it too much, if you
lose a little money and move to the next stage in your life....the potential loss won't matter to you
10, 15, 20 years down the line. I hope you are moving to a better place for you and your family.
Please let me know your thoughts, and again, I am in your corner fighting for the highest price
that I can get. You can do any of the above, or choose not to...my job is to offer advice, not tell
you what to do.
Have a wonderful weekend!
Sincerely,
Traci Jennings