There are several thoughts here:
- Open houses are powerful tools when used within a specific marketing strategy.
- Getting the price right is easier in the newer tract neighborhoods.
- Demand is fine – buyers are ready, willing, and able – and will pay a fair price.
- Most sellers are 5% to 10% too high on their initial list price, and then don’t adjust quickly.
- The summer season will be over by mid-July (4 weeks away).
There is very little chatter in the media about specific market details – just vague numbers that always seem to sound bad. Does N.A.R., or other influential industry leaders, try to educate the participants – both clients and agents? Why doesn’t somebody roll out real facts, and solutions?
It’s because they are gripped with fear, and scared they might say the wrong thing – and at this point, they really don’t know what to say.
Anybody with a microphone is too far removed from the day-to-day action to really know what’s happening, and won’t investigate.
I’m going to keep laying out the basics, in hopes that somebody is listening:
Sure cleaned up nice. And price does work wonders.
Looks like a completely different house, Jim! I love your classic comment: “Is it priced to sit or priced to sell?” Congrats on the quick sale…
“Does N.A.R., or other influential industry leaders, try to educate the participants – both clients and agents? ”
I just vomited in my cereal. LOL!
Yeah, the good ol honest NAR. . . Maybe they are doing “God’s Work” after all, like Goldman Sachs.
It will be interesting to see now what happens with the short sale at 3505 rock ridge that is a couple of doors down from Tamarack, has a north facing backyard, is loaded with cheap tile counters and floors complete with missing appliances. Probably have to go down to 520k or lower to move it given the hassles with dealing with a short sale.
The list price problem kind of reminds me of Pawn Stars. Guy comes in with his item and says I did some research on the internet and people are getting $x for this thing. The pawn guy always says is that what they’re getting or is that what they are asking for. Home sellers seem to use the same mentality when initially pricing their house.
1) Go to MLS and look for properties on the market that are similar.
2) Set list price right around the other quality property list prices and wait.
3) Don’t look at any of the recent comps and even if you do find an excuse why that one or one’s doesn’t apply (bank REO, Short Sale, not a quality property like your’s)
4) Sit on the market for months wondering why buyers are interested. The reason is the buyers are smart right now and have all the comps. If you and everybody else are 5-10% higher than all the recent comps you aren’t going to sell.
Probably best way to educate the sellers is to really push comps rather than the current list prices.
#4 – We covered that one last week – it’s an REO that’s pending.
By definition, any property for sale on the open market is sold at the “FAIR” price, otherwise it is not sold at all.
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