How has your experience with real estate agents compared to this: The subject: Home sellers need to have realistic pricing expectations! When a homeowner or any property owner has made the decision to sell, one of the major keys to insure a successful process is that they have a realistic idea of what this extremely valuable and emotionally charged asset is actually worth! An analogy often used... [more]
How has your experience with real estate agents compared to this:
The subject: Home sellers need to have realistic pricing expectations!
When a homeowner or any property owner has made the decision to sell, one of the major keys to insure a successful process is that they have a realistic idea of what this extremely valuable and emotionally charged asset is actually worth!
An analogy often used compares real estate to the stock market in terms of what a seller can reasonably expect to realize from their sale.
For an investor who owns stock in Yahoo that was originally purchased in 1999 for over $100 a share and who wants to sell it today, they are certainly within their rights to ask their broker to place a limit price of $100 that will be good until they cancel it.
Sadly, however, because the stock is trading today at around $35 a share, they are going to be waiting a long time to realize that $100 price assuming that it actually ever happens at all.
Real estate is really not that much different! For homeowners who may have purchased their house prior to the financial crisis in 2007 for $500,000, they more than likely don’t want to hear that it is only worth about $400,000 today. They know that they want to sell but they also know that they really don’t want to lose money in the process.
This is where a real estate agent has the opportunity to either tell the homeowner what they want to hear or to tell them what is actually the reality of the situation.
The vast majority of agents will be upfront and honest while trying to instill a sense of reality in their potential client while others, the vast minority, may take the listing at the higher price to the detriment of the client.
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Response by Pioneertraining
over 11 years ago
Posts: 4
Member since: Jan 2014
Genuinely good thanks, I do believe your trusty audience would probably want a great deal more blog posts of this nature maintain the good hard work.
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Response by snezanc
over 11 years ago
Posts: 121
Member since: Oct 2007
yahoo's stock has split 3 times since 1999.
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Response by gothamsboro
over 11 years ago
Posts: 536
Member since: Sep 2013
What a stupid article and comparison. Rivals inonada comparing Manhattan with Wayne, New Jersey.
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Response by Pioneertraining
over 11 years ago
Posts: 4
Member since: Jan 2014
Pre-Great Depression II, sellers got more than they asked for it. Now, they get less. It is hard to know what to expect.
I always thought of real estate being more like a commodity than stock. although the stock market/banking institutions "health" has some impact on pricing. When selling, I've picked 3 separate firms to give me an idea of the asking price. It's amazing the range of asking prices given using the same building/neighborhood comps.
I had an apartment on the UWS for 20 years, moving in when it was not a "hot" neighborhood. I listed it with an asking price 4 times my purchase price and had a bidding war that drove the price up even more. One potential buyer left me a note saying that I was a greedy %#@! because he knew what I paid for the place and left a bid that was 1.5 times my purchase price. What drove the price up was that it was a very large apartment, the neighborhood was now "hot", and the economy was great.
I lived in my next place for a number of years and decided to downsize. A neighbor wanted to do an apartment swap. They offered considerably less than a recent appraisal price for my place while pricing theirs considerably over their appraisal. Their appraisal came in less than the price they paid for the apartment; to boot they had spent 75K on renovations. They were very angry when I rejected the deal. I waited another 2 years and sold at 170K over their bid. They sold their place at the same time at a price less than their asking price to me. I just was lucky again since my size apartment was in much greater demand than theirs. Also, their renovations didn't appeal to some buyers (red stove, unfinished edging of floor at entrance door, second "bedroom" that was 6' x 9').
Both scenarios were supply and demand driven.
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Response by steveF
over 11 years ago
Posts: 2319
Member since: Mar 2008
I've picked 3 separate firms to give me an idea of the asking price. It's amazing the range of asking prices given using the same building/neighborhood comps."
Just as sellers have their own interests and emotions so do agents. Agents want to price as LOW as possible to get that quick sale. They lowball list, line up their own buyers and close fast for the commission. They use the excuse "oh the market will dictate the price" bullsh-t. The agent manipulates the sale so the market doesn't even have a chance. SELLERS WATCH OUT FOR AGENTS THAT PRESSURE YOU TO SELL AT AN UNREASONABLY LOW PRICE B/C THEY DON'T CARE ABOUT YOU AT ALL. They just want to sell quick and move on you just get in the way.
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Response by bubblebutt
over 11 years ago
Posts: 0
Member since: Feb 2009
snezanc - she is using split adjusted prices for yahoo. SteveF is absolutely correct, the broker with the best resume usually wants the lowest listing price, the new independent will promise you the world just to get a shot at a listing and figure on chopping you down later. Low priced quick sales make tons of fast commissions, and makes a broker "successful". It can also depress certain properties in which they have a lot of listings. Too high sits on the market and people think there is something wrong with it. RE is a commodity, but people are both fickle and malleable. And they don't transact in it that often, so lucky for brokers the market changes so rapidly here in NYC.
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Response by Aael921
over 11 years ago
Posts: 131
Member since: Jan 2013
I second Steve's comments. The other bs line to be alert to is, "hey, the more you make the more I make. I want to sell it as high as possible." BS because the amount more they make with a higher price is negligible. They make more by selling fast and moving on to the next sale. Our selling broker who was at Corcoran and recently started his own firm encouraged us to price much lower than we wanted to. We had five offers by that Monday. We had said from the start that we were in no rush and wanted to push the price.. When we said we underpriced, he fed us the "market will find the price" bs and said our concern was a natural reaction, but that the greater concern would have been letting it sit. Then when we needed a few days to decide, he said we had to act on the emotion of the buyers immediately or the offers would be pulled. All lines to beware.
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Response by jelj13
over 11 years ago
Posts: 821
Member since: Sep 2011
I had one broker who wanted to start at a low price also saying it could go into a bidding war. He threw in a lower commission fee because he said he wouldn't to take photos and post them. It took him a while to realize that "no" really meant no. It turns out that his brokerage automatically knocks off one point of commission when an apartment lists for over a million dollars, so his discount was no big deal. Also we felt that when we looked at ads for apartments, there was a reason.
We went with another broker within his firm with a "middle of the road" price. The appraisal came in close to our asking price and we sold within a week. Appraisals are another problem since banks will reject a mortgage or ask the selling for a larger down payment if the appraisal is too low compared to the selling price. After the mortgage crisis, banks have become very stringent.
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Response by urbandigs
over 11 years ago
Posts: 3629
Member since: Jan 2006
wouldnt it be nice if there were a transparent tool that allows you to type in a subject (target) property and then the tool will use actual relevant comps to either push forward an opinion on price or give you the ability to easily figure that out. Oh, its coming baby! Curious to revisit this thread in early July when we will roll out new UD.
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Response by RealEstateNY
over 11 years ago
Posts: 772
Member since: Aug 2009
"yahoo's stock has split 3 times since 1999."
Yahoo's stock price pre-split in 1999 was $345, not $100.
Genuinely good thanks, I do believe your trusty audience would probably want a great deal more blog posts of this nature maintain the good hard work.
yahoo's stock has split 3 times since 1999.
What a stupid article and comparison. Rivals inonada comparing Manhattan with Wayne, New Jersey.
Pre-Great Depression II, sellers got more than they asked for it. Now, they get less. It is hard to know what to expect.
real estate sales training
http://www.pioneertraining.org/
I always thought of real estate being more like a commodity than stock. although the stock market/banking institutions "health" has some impact on pricing. When selling, I've picked 3 separate firms to give me an idea of the asking price. It's amazing the range of asking prices given using the same building/neighborhood comps.
I had an apartment on the UWS for 20 years, moving in when it was not a "hot" neighborhood. I listed it with an asking price 4 times my purchase price and had a bidding war that drove the price up even more. One potential buyer left me a note saying that I was a greedy %#@! because he knew what I paid for the place and left a bid that was 1.5 times my purchase price. What drove the price up was that it was a very large apartment, the neighborhood was now "hot", and the economy was great.
I lived in my next place for a number of years and decided to downsize. A neighbor wanted to do an apartment swap. They offered considerably less than a recent appraisal price for my place while pricing theirs considerably over their appraisal. Their appraisal came in less than the price they paid for the apartment; to boot they had spent 75K on renovations. They were very angry when I rejected the deal. I waited another 2 years and sold at 170K over their bid. They sold their place at the same time at a price less than their asking price to me. I just was lucky again since my size apartment was in much greater demand than theirs. Also, their renovations didn't appeal to some buyers (red stove, unfinished edging of floor at entrance door, second "bedroom" that was 6' x 9').
Both scenarios were supply and demand driven.
I've picked 3 separate firms to give me an idea of the asking price. It's amazing the range of asking prices given using the same building/neighborhood comps."
Just as sellers have their own interests and emotions so do agents. Agents want to price as LOW as possible to get that quick sale. They lowball list, line up their own buyers and close fast for the commission. They use the excuse "oh the market will dictate the price" bullsh-t. The agent manipulates the sale so the market doesn't even have a chance. SELLERS WATCH OUT FOR AGENTS THAT PRESSURE YOU TO SELL AT AN UNREASONABLY LOW PRICE B/C THEY DON'T CARE ABOUT YOU AT ALL. They just want to sell quick and move on you just get in the way.
snezanc - she is using split adjusted prices for yahoo. SteveF is absolutely correct, the broker with the best resume usually wants the lowest listing price, the new independent will promise you the world just to get a shot at a listing and figure on chopping you down later. Low priced quick sales make tons of fast commissions, and makes a broker "successful". It can also depress certain properties in which they have a lot of listings. Too high sits on the market and people think there is something wrong with it. RE is a commodity, but people are both fickle and malleable. And they don't transact in it that often, so lucky for brokers the market changes so rapidly here in NYC.
I second Steve's comments. The other bs line to be alert to is, "hey, the more you make the more I make. I want to sell it as high as possible." BS because the amount more they make with a higher price is negligible. They make more by selling fast and moving on to the next sale. Our selling broker who was at Corcoran and recently started his own firm encouraged us to price much lower than we wanted to. We had five offers by that Monday. We had said from the start that we were in no rush and wanted to push the price.. When we said we underpriced, he fed us the "market will find the price" bs and said our concern was a natural reaction, but that the greater concern would have been letting it sit. Then when we needed a few days to decide, he said we had to act on the emotion of the buyers immediately or the offers would be pulled. All lines to beware.
I had one broker who wanted to start at a low price also saying it could go into a bidding war. He threw in a lower commission fee because he said he wouldn't to take photos and post them. It took him a while to realize that "no" really meant no. It turns out that his brokerage automatically knocks off one point of commission when an apartment lists for over a million dollars, so his discount was no big deal. Also we felt that when we looked at ads for apartments, there was a reason.
We went with another broker within his firm with a "middle of the road" price. The appraisal came in close to our asking price and we sold within a week. Appraisals are another problem since banks will reject a mortgage or ask the selling for a larger down payment if the appraisal is too low compared to the selling price. After the mortgage crisis, banks have become very stringent.
wouldnt it be nice if there were a transparent tool that allows you to type in a subject (target) property and then the tool will use actual relevant comps to either push forward an opinion on price or give you the ability to easily figure that out. Oh, its coming baby! Curious to revisit this thread in early July when we will roll out new UD.
"yahoo's stock has split 3 times since 1999."
Yahoo's stock price pre-split in 1999 was $345, not $100.