Ar_home_b_search
 

 

Redfin CEO Glenn Kelman at ConferenceThis past weekend, the Today Show spotlighted an interesting segment titled "The Science of Selling Real Estate."  As science was a part of my "past life," prior to real estate state, this title held particular fascination.  The focus was an interview with the Redfin CEO, Glenn Kelman who shared several "scientific" insights about Selling Real Estate. According to the segment's introduction, ...Seller's should forget EVERYTHING their real estate agent had ever told them. 

Kelman who was being interviewed by Meredith Vieira clarifies at the beginning of the segment that Redfin (presumably the Redfin programmers) are computer scientists NOT sales people.  The segment's stated aim was to separate the Sales Voodoo from the True Real Estate Data. So, without further ado, we now compare the "Science" according to Redfin and the LOCAL Real Estate Facts in Grand Rapids, Michigan according to Grand Rapids, Michigan Real Estate Broker, Lola Audu.

1.  Don't Over-Price the home.  This will create a longer marketing time and result in price reductions of up to 88% vs only a 97% reduction if the home is priced right. Kelman went on to say that real estate agents try to get home owners to sell as HIGH as possible. Huh??? 

Grand Rapids, Michigan Real Estate Facts:  The penalty for over-pricing in Grand Rapids starts at about 25%  and can go as high as almost 35% or more. Pricing the home is so critically important that the battle is getting home owners to be realistic in ACCEPTING the market price NOT Pricing a home above the market!  Homes that were priced correctly did get about 96% ~ 97% of the List Price in Grand Rapids as well.

2.  Be Web Saavy About Pricing Your Home.  Kelman indicates that the web is where all the buyers are.  Pricing Thresholds online  increase in bracket of about $25,000 ~$50,000. Price ranges above the threshold can prevent your home from being seen by potential home buyers who won't look $1 more.  According to Redfin, you can loose 7% of your audience. 

Grand Rapids, Michigan Real Estate Facts: In Grand Rapids, Michigan...the thresholds are much smaller.  Our thresholds are between $5,000 ~ $10,000 price adjustments.

3.  Debut Your Home on Friday.  Click Here to continue Reading...

Photo courtesy of White African's photo stream on flickr.  Glenn Kelman is seated front and center.

Copyright 2007 Audu Real Estate  All Rights Reserved

 

Lola Audu, CRS, GRI e-Pro ~ Audu Real Estate

Lola Audu, is the Designated Broker & Owner of Audu Real Estate.  Our company specializes in helping people buy and sell homes in the greater Grand Rapids, West Michigan area.  We've had the privilege of helping hundreds of clients succeed in their goals of purchasing and selling property including demonstrated success in the negotiation of Short Sale Transactions. You can contact us via e-mail @ info@auduhomes.com or by phone at 616-791-0511. 

Twitter feed for Lola Audu     Auduhomes on Facebook     Lola Audu's photostream on Flickr 

 

14 Comments on The Science of Selling Real Estate...Why Computer Scientists Should Stick with Computers and Let Realtors Do Their Job!

DEC
17
2007
237,795 Points 6 Featured Posts Outside Blog

Lola, its a shame the unsuspecting public will fall for this crapola disguised as science.  Another case of total media irresponsibility. Shouldn't we demand equal time to set the facts straight? Wonderful post. I am flagging it for a feature!

Ginger 
11:23pm • #1
DEC
18
2007
321,006 Points 52 Featured Posts Outside Blog

My hubby is a computer "geek". That is his chosen career.  He won't even begin to comment on the real estate market when asked by people who know what my career his.  His answer "Here's my wifes card, ask her.."

What bothers me more than Glen Kelmans "interview" is the fact that NBC didn't someone who is in the trenches in our industry on the show at the same time to present their facts and opinions.  Balance in the media?  Nahh..not when it can affect ratings.  
5:02am • #2
1,545,555 Points 416 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

I don't take "fringe" Internet companies seriously. 

However, what I found disturbing was that the NAR featured that interview in the December 14th Realtor Magazine online issue. 

 
6:48am • #3
208,442 Points 6 Featured Posts Outside Blog
Lola,  I saw this too and was taken aback.  The only thing that I can think of is that he is attacking Realtors because he considers us his competition.  Of course, it would have been nice if the facts were correct, especially on national TV, but what the heck!  I didn't realize that he was also online like Lenn states, so there must be a media push going on for him to be on both avenues.  And it's not like what he was talking about was rocket science, but let's not even get into that.
7:49am • #4
354,647 Points 137 Featured Posts Localism Sponsor Outside Blog
Ginger, Thanks for your comment.  The assertions in this piece were so wildly bizarre that I felt compelled to respond.  If a doctor or true scientist had made these allegations they would have been challenged on the basis of mal practise.  Apparently, those professional safeguards are not applicable to the world of real estate.  Too bad...
12:20pm • #5
354,647 Points 137 Featured Posts Localism Sponsor Outside Blog

Kris, the News Media is increasingly concerned primarily about entertainment value.  That's why it's important for us to speak up when they try to disguise as entertainment, a discussion which is serious business and should not be distorted to make a misguided point or two.  Thanks for your comment.  Smart hubby...:)
12:22pm • #6
354,647 Points 137 Featured Posts Localism Sponsor Outside Blog
Lenn...Interesting.  Didn't catch the interview...wonder if they included appropriate commentary to counter-act the misinformation.  Just Wishing...:)
12:25pm • #7
354,647 Points 137 Featured Posts Localism Sponsor Outside Blog
Marc...The definition of "Science" reached New Lows.  Unfortunately, unsuspecting individuals are being inundated with misinformation disguised as good advise.  Opinions should be clearly labelled for what they are...That's responsible journalism. Appreciate your comment.
12:29pm • #8
284,607 Points 37 Featured Posts Localism Sponsor Outside Blog
I really wish I had seen this interview as I have read many posts about it.  Your points were right on target. I found the suggestion to list on Friday data particularly funny as in CA our broker caravans were on Thursdays so we found listing in time for them was perfect as it was followed up by a weekend of showings and even an open house.  How can they make such broad statements....crazy!
4:16pm • #9
354,647 Points 137 Featured Posts Localism Sponsor Outside Blog
Hi Diane, Thanks for stopping by to read and comment.  You can catch the interview by clicking on the link. 
4:48pm • #10
DEC
19
2007
That's it.  I'm writing these idiots a letter.  First the "Don't you DARE buy a house!" guy and now this.
9:23am • #11
354,647 Points 137 Featured Posts Localism Sponsor Outside Blog
Karen, Good for you!  We have to become more involved.  As agents, we are in the trenches.  We have to speak up about what we know.  Thanks for stopping by to read and comment.
11:10pm • #12
DEC
20
2007
211,928 Points 4 Featured Posts Outside Blog

Lola,

This particular interview made my skin crawl.  I watched it and was SO disappointed that once again the main stream media chose to promote an opinion by someone that is a self-proclaimed scientist, not a Realtor, and promote fear and panic.

The public generally does not take into account that Real Estate prices are determined by local factors.  What is the 'norm' in California certainly does not apply to Ohio.  And what is the 'norm' in Michigan certainly differs from Texas.  It's simply unfair and prejudicial to go on national television and attempt to spread fear and panic with statements that are generalizations based on Mr. Kelman's local area.  That would be like me going to Seattle and expecting to find a 2,000 sq ft home for $180K.  In Toledo that's not hard to do - and it would be in a nice neighborhood.  In Seattle it may be possible, too, but it may (don't know - haven't been to Seattle in 35 years) be in a less than desirable neighborhood and need many repairs.  My point?  I don't know that market, so I can't say.  

Perhaps Mr. Kelman should clarify where his information came from and what market he is using to base his assumptions on.  But wait --- that would put a hole in his babble.  Never mind....

I'm disappointed that NAR has not made inroads to appear on one of these shows and debunk these 'facts' as purported by Mr. Kelman. 
6:52am • #13
3 Featured Posts

Lola,  Nice wordpress blog!  "The assertions in this piece were so wildly bizarre that I felt compelled to respond." I'm so glad you did. Was there a NAR rebuttle or are they afraid?

Not taking foreclosures into account? Maybe there are none on the west coast.

This fall, the average sale to original price in my area was 85 percent. There were some lakefront homes that came in at less than 60 percent.
5:47pm • #14

This blog does not allow anonymous comments
 
Lola06 Rainmaker_large

Lola Audu~Real Estate Broker/Owner Grand Rapids, Michigan Real Estate

Grand Rapids, MI

More about me…

Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate

Address: 3659 Alpine NW, Suite 102, Grand Rapids, MI, 49321

Office Phone: (616) 791-0511

Email Me

Grand Rapids, Michigan real estate information including houses for sale, rent and home buyer/seller tips. Also includes wisdom and insights from Lola Audu, CRS Associate Broker.

Grand Rapids, Michigan Real Estate
Grand Rapids Real Estate
West Michigan Real Estate
Buying A home in Grand Rapids, Mi
Selling Your Grand Rapids, Mi Home
Downtown Grand Rapids, Michigan
Grandville, Michigan Real Estate
Relocating to Grand Rapids, Michigan



Listings

Links

Archives

RSS 2.0 Feed for this blog