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Are you looking for an experienced agent to help you buy or sell a home? Contact Jim the Realtor!

Carlsbad
(760) 434-5000

Carmel Valley
(858) 560-7700
jim@jimklinge.com


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Precision Pricing

precision

Jim, when you say “be within 5% of the last comp”, you’re saying to add 4.999% to the last sold price nearby to determine a list price for my house?

That’s how most sellers and agents will do it.  But motivated buyers will compare it closely to other sales - homes they have probably seen.

When prices are rising quickly, pricing accuracy isn’t that important – the market will catch up shortly.  But when the market is flat with a potential to stay flat or worse, listing your home for the right price is much more critical.  Buyers don’t mind waiting – it is very comfortable on the fence!

The values between similar houses can differ by approximately 10%, based on location, view and condition.

To price within 5% of the last comp means +/- 5%.

If the last sale was superior to yours and you add the 5% to their price, you could be 10% too high from the beginning.  If yours is king of the hill, it is still smarter to list at only +5% to look very attractive, and push for multiple offers.  But you have to have an agent skilled at causing effective bidding wars!

Could you fool someone?  Not the highly motivated buyers – they are the people willing to pay top dollar because they are the most comfortable knowing how it compares to the rest.  In a flat market, the casual or uninformed buyers aren’t as comfortable, and want to pay less.

The frenzy appealed to the casual and uninformed who just jumped at a house and paid whatever it took, regardless of comps. But those days are over, and the motivated, informed buyers are making the market.

As a result, sellers are smart to price their home to sell in the first week or two on the market.  Once you agree that you want to use the initial urgency to help push the sales price to top dollar, then carefully analyze the comps – like buyers do - to arrive at an attractive list price, instead of automatically adding 5% or more to the last comp.

It boils down to this:

When you catch yourself wanting to ‘tack on a little extra, just in case’ – resist that urge, and instead price it to sell, not sit.

Posted by on Nov 19, 2014 in Jim's Take on the Market, Why You Should List With Jim | 2 comments

Inventory Watch – Cooking

Still think it’s a bad time to sell? We had more new pendings than new listings this week (57/65), and the most new pendings since the week of July 21st.

The UNDER-$800,000 Market:

Date
NSDCC Active Listings
Avg. LP/sf
DOM
Avg SF
November 25
95
$376/sf
47
1,988sf
December 2
79
$371/sf
50
2,047sf
December 9
72
$383/sf
43
1,954sf
December 16
81
$378/sf
42
1,948sf
December 23
77
$374/sf
49
1,937sf
December 30
76
$373/sf
51
1,950sf
January 6
74
$370/sf
49
1,995sf
January 13
71
$381/sf
44
1,921sf
January 20
72
$384/sf
41
1,877sf
January 27
75
$399/sf
40
1,891sf
February 3
78
$409/sf
41
1,876sf
February 10
82
$395/sf
38
1,927sf
February 17
85
$387/sf
35
1,929sf
February 24
90
$383/sf
37
2,008sf
March 3
82
$397/sf
39
1,942sf
March 10
88
$377/sf
37
2,008sf
March 17
89
$366/sf
34
2,038sf
March 24
79
$369/sf
34
2,031sf
March 31
78
$367/sf
39
2,069sf
April 7
87
$373/sf
32
2,054sf
April 14
97
$380/sf
31
2,000sf
April 21
87
$377/sf
32
2,062sf
April 28
107
$379/sf
29
2,044sf
May 5
114
$376/sf
27
2,046sf
May 12
108
$385/sf
31
2,012sf
May 19
107
$385/sf
0
0sf
May 26
105
$375/sf
34
0sf
Jun 2
102
$376/sf
36
0sf
Jun 9
102
$377/sf
37
0sf
Jun 16
104
$369/sf
35
0sf
Jun 23
111
$380/sf
34
0sf
Jun 30
119
$376/sf
36
0sf
Jul 7
122
$387/sf
36
0sf
Jul 14
127
$388/sf
34
0sf
Jul 21
135
$381/sf
36
0sf
Jul 28
144
$382/sf
37
0sf
Aug 4
148
$379/sf
39
0sf
Aug 11
135
$375/sf
42
0sf
Aug 25
135
$374/sf
43
0sf
Sep 1
126
$377/sf
46
0sf
Sep 8
130
$375/sf
46
0sf
Sep 15
134
$369/sf
45
0sf
Sep 22
127
$376/sf
49
0sf
Sep 29
132
$378/sf
48
0sf
Oct 6
130
$367/sf
48
0sf
Oct 13
131
$378/sf
44
0sf
Oct 20
130
$385/sf
45
0sf
Oct 27
128
$375/sf
48
0sf
Nov 3
128
$371/sf
49
0sf
Nov 10
126
$366/sf
52
0sf
Nov 17
115
$367/sf
51
0sf

Read More

Posted by on Nov 17, 2014 in Inventory, Jim's Take on the Market | 1 comment