Well as you know I received my first listing appointment from my web site the other day, and was I excited! Being new, I wanted to do the best job as possible on the prospective client's home comps. I had our title company pull the title records and went from there. No worries.
First, the owners had only been in the home for only a year, and our market has been a little flat lately, listings are on the market close to 100 days, and lots of price drops, or concessions being given out. So I was concerned for any equity that they might have would be eaten with all the closing costs and commissions. Still blissful.
Also there is possible capitol gains to worry about for not living in the home 2 or more years, and California passed a law last year to hold 3 1/3% against any capitol gains state tax that might be due, also to be held in account. This was aimed at the flippers, because they weren't paying their state capitol gain taxes. Now I was starting to get a little worried.
In talking to the clients, they wanted to move for job reasons, and the move was more than 50+ miles away. They had put $20,000 down, and had a 1st and 2nd. They had only paid the interest on these loans so far. The original purchase price was $455,000. The house was in beautiful condition and had lots of upgrades through out. This was a 2 story 3000+ sq ft 4 bedroom, 3 bath home, in a fairly new subdivision, and new ones being built all around the close vicinity. More worries.
I searched for comps just in the subdivision of the home, and found quite a lot of homes active, sold, or expired, with 2 pending as well. I found 2 model matches on the market, 1 at $475,000 and one at $484,900 - $494,900 (value ranged ala Broker Bryant). And the new homes being built just up the street were being offered at $475,000 with upgrades and $20,000 for closing costs. The two matches had been on the market 85+ days each, and both had price reductions. Now a headache was starting.
Talking to the home owner, they informed me that one agent had already been out for an interview, and given them a value of $499,000. They didn't like that number! They needed more so they could get some equity, in order to buy a new home. So I really looked at the comps in the area and taking into account that they wanted to move quickly, the $499,000 amount wasn't all that bad in our market, in fact it was probably high. And I know they didn't want to be on the market more than 90 days. Give me some alka-seltzer!
In the span of a few days, I went from Everest to Death Valley.
p.s. The numbers stated above are just a little off, too protect the innocent.
;)
;)
Michael,
We know that sellers want the most for their money, but we need to educate them about the market condition on their area, I learned my lesson very well about some properties that I started listing, when I tried to do what they wanted to do and for that reason, homes are not sold, because we need to help seller to contribute with the set of the price for good.
Good Luck
Thanks Ray, yes I want to consider myself more of a consultant, than a salesperson. Just to be honest and upstanding with my clients.