FREQUENTLY ASKED QUESTIONS
IT’S A BIG WORLD … READY TO MOVE ON?
Vail Property Brokerage is proud to announce a never before offered
seller listing platform that is completely different and a real alternative
to big brand marketing companies. Our approach is guaranteed
to sell your property for the most money, in the shortest time,
with no conflicts of interest or hidden agendas.
IS NOW THE TIME TO SELL?
Most listings did not sell during the Great Recession due to fear and anxiety over the unexpected implosion of real estate, an ensuing banking crisis, and significant loss of consumer spending. Demand for high end luxury goods is driven by confidence in employment income, investible assets and home equity. Within a six-quarter period the Standard & Poor Index (SPI) fell from a high of 1450 to under 700, destroying trillions of investor net worth along with the balance sheets of every global bank on the planet. Housing prices dropped across the country by about 30%, wiping out most if not all homeowner equity positions. Employee stock options and bonus compensation packages became worthless and as Corporate America downsized, unemployment reached record heights. From an economist and financial analyst perspective the Great Recession was far more psychologically damaging than most people realize, resulting in risk avoidance and doubts about the future where liquidity reigned supreme as a hedge against further financial deterioration.
So what has changed since March 2009? US domestic stocks had their biggest run-up in Post-Depression history. A Federal Reserve-Treasury partnership pumped four trillion dollars of printed money into the system forcing interest rates down and liquidity up. The top 10% US households, who the WSJ reports as arguably controlling 70% of all wealth in the country, have not only fully recovered from the Great Recession but have made money over the past 10 years as evidenced by the S&P lurking in the 2100 trading range. Unemployment has dropped, hiring reinvigorated, with GNP predicted to be in the 2.5% to 3% range which is not stellar but a real improvement as compared to cyclical lows. Consumer spending for big ticket items is on the upswing and primary residential is clawing its way back toward record highs. All of these spending patterns are due to improved consumer confidence and real gains in net worth, signaling what may be the start of what economists call a “virtuous cycle”. All in all, things haven’t been this good since the summer of 2007 and what we see as the early stages of an emerging seller’s market in the Vail Valley.
VPB has been patiently waiting since the distressed property sell off of 2010 for signs of a turnaround. Now that it is actually happening we intend to capitalize on these drivers before another calamity comes along unhinging confidence. A reallocation of investible assets as the stock market slows and money looks for other alternatives and or portfolio diversification is expected. For many families it only makes sense to take some profits off the stock market table as a hedge against volatility where the occasional correction is inevitable. Many aging Baby Boomers are giving thought to family, friends and lifestyle enhancement fueled by the old adage “you can’t take it with you”. Owners aren’t selling due to the lack of reinvestment alternatives, hanging on to their Vail Valley homes and letting the equity ride resulting in an unsupplied market. Timing has always been a crucial element for most financial decisions, and based upon what we suspect is an already in-motion seller’s market, take a look at the metrics which confirm a “now is the time to sell” conclusion.
Valuations are on the cusp of a significant revival and we predict ski proximate real estate will be up 10% -20% over the next couple of years after a brutal 8-year period of illiquidity. Increasing buyer demand may signal the start of a possible “virtuous cycle” but long term forecasting is difficult in light of the FED’s announcement to increase interest rates as the economy improves. If you have been thinking about making a change and are ready to explore other lifestyle alternatives, don’t hesitate to capitalize on these changing conditions. We welcome the opportunity to discuss this matter in greater detail, so please give us a call now for more information; we promise you won’t be disappointed.
FREQUENTLY ASKED QUESTIONS
DO YOU KNOW THE INDUSTRY’S BEST KEPT SECRET?
The best kept secret in the brokerage industry is how listing companies go about their marketing efforts. If you think all of those promises and promotional materials are designed to sell a specific house you would be sadly mistaken. Listings are promoted in order to attract new clients to the brokerage company, and in realty are nothing more than inquiry generators. It is not unusual that neither the company nor the agent care whether the caller is interested in what they called about. If the home that generated the call were to sell based upon a direct inquiry, it would be completely by accident.
Sellers paying six figure commissions should demand more than a posting on the Multiple Listing Service (MLS) web site, open houses, print ads, and an agent who is hoping the phone will ring! It is this homogenized approach towards the process that is the problem, with most industry outsiders completely unaware as to what is really going on behind the scenes.
As Eagle County’s only buyer broker Vail Property Brokerage could probably count on one hand the number of times a listing agent has phoned to tell us about a new listing. Why? Because it requires effort! We are not saying that VPB is the right company for a seller who wants to be affiliated with a major brand, but we believe there should be alternatives to what the industry has been doing since the beginning of time. To be fair, listing companies are caught in a bind and can’t do anything special because they have a lot of clients; some of who will get upset if they find out another seller got special treatment that was not extended to their property. This conflict can create a lot of problems so when you hire a larger company you are hiring the way they do things; not what is necessarily best for the seller. It’s not market share, it’s not how many brokers or offices a company has, it’s not the size of the advertising budget; it’s the people you hire that that make the difference.
As a small specialized niche service provider, VPB is constantly compared to the competition based on size, advertising budget, market share or international reach. Based upon those criteria VBP really can’t compete; but do those elements really sell unique small town property? What does matter are relationships with other top producers who control the buyer base, personal effort, experience, an understanding of the process, and how buyers really buy; making VPB well suited to the assignment. It’s when owners of the company are personally accountable for the end result, and do not get paid unless the seller gets paid, that results are produced.
So if you’re interested in learning more about current market conditions, asset valuation, liquidity and our unique approach towards getting the job done, then Vail Property Brokerage is a company worth contacting. Even if we’re not right for the assignment you will learn a lot about our business and what agents typically do for their huge commission fees; and that’s a promise.
FREQUENTLY ASKED QUESTIONS
WHAT MAKES US DIFFERENT?
As Eagle County’s only Buyer Broker company Vail Property Brokerage deals with nearly all of the listing companies in the Vail Valley on a regular basis. We understand the Big Brands, their homogenized approach towards the process, how traditional marketing practices benefit the listing company and not necessarily the client, and the general lack of personal effort; despite five and six digit commission fees for services rendered.
As Eagle County’s only resort property advisory and consulting service company, VPB is pleased to announce a new and completely different approach towards the listing process where the Seller comes first with no hidden agendas or undisclosed conflicts of interest. Our concept was derived based upon four decades of industry experience, during which the past 22 years have been spent as the Vail Valley’s only specialized buyer broker representation company. VPB was founded in 1999 on four basic principles, which on the surface may seem rather simple but are unique when compared to the local marketplace.
The concept of a Client Fiduciary may not seem like much of a differentiator, but it is probably the most important principle to understand when dealing with agency companies. Brokers wear many hats and tend to take a generalist approach towards the business. They serve developers in the morning, buyers at lunch, then move on to a seller meeting for dinner while heralding an ability to “do it all” no matter the assignment or the skill set required. While this generalist approach worked in a less complicated world, today those multiple allegiances cause a confused and conflicted “who do I serve mentality” with oftentimes less than optimal results. It’s really not so much about whether you work for a Seller or Buyer but rather the idea that no matter who is the master, it is your duty as a fiduciary to set the client’s goals, objectives and personal interests above all other things including effort, influencing advice and getting paid. While simple in concept, this idea of uncompromising loyalty and strict adherence to the task at hand is not generally a guiding principle for most brokers who have a vested interest in seeing a deal done regardless of outcome.
Industry Experience is claimed by many, but if you have been enrolled in Real Estate 101 for the past 30 years, track record alone is not the all-encompassing measure. It is cumulative compounded experience over multiple decades where a person grows, matures and adapts to changing market conditions that is important. The owners of Vail Property Brokerage cut their teeth in the grueling slugfest of Southern California real estate representing some of the biggest corporations headquartered on the West Coast. That major market emersion required tenacity, creativity, savvy and financial acumen in order to succeed, which they ultimate brought with them in 1993 as the first brokers to have been hired by Vail Associates from outside of the Vail Valley. Their aggressive approach towards client representation was controversial at the time but welcomed by like-minded clients, making Connie and Greg the only real alternative to the good old boy network of how business was to be done in a small town setting.
Data Analyses is what VPB is typically known for. While opinions and intuition from experienced professionals can be valuable, it is verifiable data which supports advice and counsel that makes relationships credible and ultimately successful. Trust is essential when one party must rely upon another but how is such an elusive bond created? It is VPB’s mission to source as much relevant information as possible in order to achieve that vaulted status of “trusted advisor”. Transparency is the holy grail with VPB committed to this result regardless of personal benefit or how that transparency might affect the eventual outcome.
Our Service Pledge promises an uncompromising work ethic, in-writing contractual performance criterias, detailed and regular communication, and most importantly integrity where pride in the end result outweighs personal gain as opposed to a “let’s just make the deal” philosophy.
So if you are looking for a non-traditional approach towards the listing process and a real alternative to Big Brand marketing, please give us call for more information. Your Vail Valley property is a real financial asset that demands the best in terms of focus, time and commitment, where trust cannot be demanded; it’s earned.