LISTING PRICE VS. SOLD PRICE
Are you wondering why they are so different nowadays?
Well, the value of a home is not necessary the same as the asking / listing price.
Actually normally they are quite different.
The “listing price” it is linked to a “marketing price”.
The “marketing price” is linked to the “marketing strategy” selected by the seller and the listing agent for that particular property and neighbourhood.
The listing price could set up the sellers for success or failure.
The listing agent should know very well the market in the area to help set up the winning strategy.
It seems that the listing prices are selected randomly in todays market .
On the contrary there is a lot of research that goes into the value of a home, the market it sits in and the listing price.
I will show you my strategy:
1️⃣ I visit my clients property once invited to start working on the strategy.
I carefully look into the following details:
– The neighbourhood and specific area the home is located.
– Type of home.
– Number of bedrooms.
– Footage of the home ( Square feet per room and per plan)
– Lot size
– Parking, Basement, extra rooms.
– Renovation and Improvements.
– General condition of the home. ( I do encourage my clients to do a pre-listing inspection)
2️⃣ Already knowing the property inside and out, I look for comparable homes in the area which sold , expired or terminated in the area through MLS. ( Not HouseSigma)
I produce a CMA ( Comparative Market Analysis) and I will for the sweet spot.
3️⃣ I come up with a recommendation that will put your property at the best level .
I produce a marketing strategy tailored to the value of your home at the “enter listing price”.
It is a collaborative process to guarantee it is aligned with your goals, your expectations, market conditions, and current inventory.
NEW PRACTICES INSTALLED BY REALTORS WHEN DEALING WITH COMPETITIVE OFFERS
I am a believer that we have to work respecting not only our clients but also our cooperating brokers’ clients. We, as realtors, have a very important role in society. We help change people lives and we should strive to do that with CARE.
Somebody who is a SELLER today will be a BUYER tomorrow . S,o the rights of both groups SELLERS and BUYERS should be carefully protected. It is our obligation to be fair to everybody, not only for the global community wellbeing but also for the economic and financial basic rules which makes a business survive and grow.
I have noticed some interesting practices while helping my client buyers in this current “seller’s market” . After the offers are presented and the seller agent reviews them all with the seller client they send them back for all or part of the competing buyers to “improve the offers” . Sorry, but what does that mean? Is that fair for the one buyer that sent the higher offer from the beginning?
I had one particular situation helping a buyer a couple of months ago that made me really upset with the process. The seller agent called us to tell us they have decided they would give everybody the opportunity to “IMPROVE THE OFFERS”.
We decided not to IMPROVE / CHANGE our offer as the house needed lots of improvement and we felt we were already very generous with the original offer.
The process continued overnight, believe it or not. I went to sleep and when I got up the next morning I found an email and a text from the seller’s agent congratulating me and my client because we were the winners of the competition.
We were happy and surprised at the same time. But to be honest, I am still puzzled. Imagine if we increased our offer without knowing it was in fact the TOP OFFER?
Why we are doing that as REALTORS ? Our clients trust us and follow the processes we set up for them.
Aren’t we being unfair with both SELLERS and BUYERS?
It seems that those realtors think they are looking very good for their clients eyes for trying to get more than they can dream of for the sale of their properties. But what about fairness with the buyers?
Remember the Sellers of today will be also Buyers in the future and would like to be treated fairly.
We should represent the clients and the whole industry in a fair, honest and respectful way. Let’s have a long term view to the situation we are generating in the market, is it sustainable? And of course, not all Realtors are created equal.
FOOD FOR THOUGHT, LET ME KNOW WHAT YOU THINK!