Comments on: Watching, Reading, and Listening http://telestalk.com/2008/06/19/watching-reading-and-listening/ Real Estate. Reimagined. Sat, 12 Nov 2011 04:18:56 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Chris Pickett http://telestalk.com/2008/06/19/watching-reading-and-listening/comment-page-1/#comment-42 Chris Pickett Fri, 11 Jul 2008 03:12:05 +0000 http://telestalk.telesproperties.com/?p=44#comment-42 I definitely agree with the comment that for Sellers the market is price sensitive. I also agree that as a Seller if you need to get a certain price and this price pushes the boundries of what the "true" market value is, then now is not the time to sell. During the last several months, we sold two homes that languished on the market for over six months. Obviously, these homes weren't priced correctly. Every home appears to have a magic number where the Buyers swarm in order to compete for the home - and compete they do. In each instance, these Buyers found themselves in a multiple offer situation. More recently, we are in escrow in a home where the Sellers were very agressive with their price reductions. They too just found their magic number and sold their home in multiples. Granted, none of the aforementioned prices were the original list prices but all realized nice profits. (thus goes the adage that a Seller really makes his/her money when the Seller bought their home (a smart buy) - not when the Seller goes to sell) A real Seller is one who will rely on the expertise of their agent's market analysis. Of course, not all agents are created equal so it's critical for a Seller to partner with an agent who is immersed in the day to day machinations of the industry. This is also an agent who is not afraid to price the house at its market value even at the risk of loosing the listing. I know it's counter intuitive for a Seller to price a home at the "market" price the agent believes will sell the home especially if this price appears to be a low number. Most times, Sellers believe that they need room to negotiate down. I disagree. Using the internet, Buyers are more "market" educated than ever. 100% of Buyers that I work with use the internet. These Buyers track homes and areas. They are savvy and I love it! If Sellers add $200K to their list price with the thought that they'll be negotiated down to that number then these Sellers are going to chase the market down and possibly sell for even less. Often times, Buyers won't even write a "low ball" offer for fear they won't be taken seriously. In my opinion, in this market if Sellers want to sell then those Sellers need to dangle a carrot in front of those educated Buyers to write an offer and in this market that dangling carrot is price. Don't chase the market - get out ahead of it. Of course, I'm interested in other's comments and experiences. Chris Pickett Teles Properties I definitely agree with the comment that for Sellers the market is price sensitive. I also agree that as a Seller if you need to get a certain price and this price pushes the boundries of what the “true” market value is, then now is not the time to sell.

During the last several months, we sold two homes that languished on the market for over six months. Obviously, these homes weren’t priced correctly.

Every home appears to have a magic number where the Buyers swarm in order to compete for the home – and compete they do. In each instance, these Buyers found themselves in a multiple offer situation.

More recently, we are in escrow in a home where the Sellers were very agressive with their price reductions. They too just found their magic number and sold their home in multiples. Granted, none of the aforementioned prices were the original list prices but all realized nice profits. (thus goes the adage that a Seller really makes his/her money when the Seller bought their home (a smart buy) – not when the Seller goes to sell)

A real Seller is one who will rely on the expertise of their agent’s market analysis. Of course, not all agents are created equal so it’s critical for a Seller to partner with an agent who is immersed in the day to day machinations of the industry. This is also an agent who is not afraid to price the house at its market value even at the risk of loosing the listing.

I know it’s counter intuitive for a Seller to price a home at the “market” price the agent believes will sell the home especially if this price appears to be a low number. Most times, Sellers believe that they need room to negotiate down. I disagree.

Using the internet, Buyers are more “market” educated than ever. 100% of Buyers that I work with use the internet. These Buyers track homes and areas. They are savvy and I love it!

If Sellers add $200K to their list price with the thought that they’ll be negotiated down to that number then these Sellers are going to chase the market down and possibly sell for even less. Often times, Buyers won’t even write a “low ball” offer for fear they won’t be taken seriously.

In my opinion, in this market if Sellers want to sell then those Sellers need to dangle a carrot in front of those educated Buyers to write an offer and in this market that dangling carrot is price.

Don’t chase the market – get out ahead of it.

Of course, I’m interested in other’s comments and experiences.

Chris Pickett
Teles Properties

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