Notoriety: Does a famous property increase the value?

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Have you ever sold or bought a Landmark property? The kind that everyone recognized when they drive by?

Recently I listed the ‘Christmas Haus’ for sale. This property was a distinctive Victorian era home that has been transformed into Christmas wonderland. The home had been painted in Christmas colors, and houses a Christmas shop that sells authentic German Christmas decor in the rear of property.

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The home is on the main thoroughfare to Gettysburg, PA which is home to all things historic. Because of the tourist traffic that comes bast this home, hordes of people have visited the shop and recognize the landmark.

Christmas Haus

Christmas Haus Shop

A recent Facebook add campaign gathered 14,000 people viewing or commenting on the post. Many were intrigued to see the inside of the home.

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All of this attention causes us to ask the question- does notoriety add to the value of a property?

The recent appraisal that was completed did not take this into consideration. Appraisal is defined by what a willing buyer and willing seller will give or take for the property. The fair market value has gathered much interest, but getting beyond the fair market value is not likely. The owners understand this, and are happy to sell for the appraisal value.

The notoriety has certainly added to the marketing benefit, and we gather much interest and showings for the property from it.

In Commercial properties like this one, the high traffic count certainly does help to gain a monetary benefit, and that is something to take into consideration. Since the business is not part of the sale in this case, the appraiser used the sales comparison approach to arrive at the value.

What do you think? I am curious what your experience has been in this realm. Please share in the comments below.

See the listing here: Christmas Haus

The Negotiator: Friend or Foe?

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All that separated the buyer and seller from coming together. The buyer, a veteran, wanted to get the best deal possible and was playing all his cards. The seller, an investor, had decided the lowest number he would go and just would not budge beyond it.

“Why can’t he just concede?” the investor asked. “I have a margin I need to make.”

Our veteran buyer said, “I am a disabled Vet, why won’t he show any appreciation?”

In situations like this, both parties have a legitimate point, so it is not a matter of wrong or right, it is finding a meeting of the minds.

In real estate, the definition of market value is, “A willing buyer and seller finding a meeting of the minds, without acting under distress.” By agreeing on a purchase, the buyer and seller are literally creating a fair market value.

As a Realtor, part of my role is providing a counsel on value to my clients. What I always try to explain is that at the core, value is finding a willing buyer and seller meeting together.

Many of my clients have remarked that they find negotiation in their favor as the top service I provide as a Realtor. Here are a couple ways I provide that service.

  1. Listen.   Good negotiations start with trying to understand where the other side is coming from. When we understand their position, we can tailor it to your favor, while also trying to give them what they want.

For example: The seller wants to close quickly, since they have moved out already. The buyer wants a longer closing date, so they have time to give notice to their landlord. The compromise: we give you the quick close, if you give us a credit to cover the extra month of rent the buyer will need to pay. The reality is that the seller still be out the same amount of money, but the seller felt like they got want they wanted.

2. Feel their pain.   Many times both the seller and buyer are wrapped up in thinking about the situation from their own point of view. If I explain to my client how the other party feels, it may open their eyes to finding a compromise.

Just like they don’t want to pay an extra month of rent, the seller does not want to pay that mortgage for another month.

3. Affirm their position.   Understanding how the buyer feels an aggressive price would help make their mortgage payment smaller helps us get in the boat together. Once I am in the boat, we can row together towards the common goal.

When you know someone is on your side, isn’t it much easier to listen to what they have to say? You know your Grandma has your best interest at heart, even if she tells you that you are crazy for buying that big apartment complex!

4. Find the solution.   Making suggestions for how a situation can work out is crucial. As an impartial director of the negotiation, I can see solutions the client may not because they are so close to the obstacle.

When we suggest that the seller give the credit to cover the buyer’s rent payment for last month, they both win without feeling like they lost.

 

Having a professional on your side that can help steer the boat when the waves get a little rough and can make all the difference in each transaction. So when it comes time to work through your next real estate deal, ask yourself, are you ready to negotiate on your own behalf?

We have proven that the service of negotiation not only gets the deal done, but many times covers the cost of our service. As a bonus, you as the client come out with a smile on your face at closing, too.

If you are ready to test the services of a professional negotiator, call us for a no- obligation consultation.

To your win!