Special offer

(I Can’t Get No) Pricing Traction

By
Real Estate Agent with The Kentwood Company at Cherry Creek

Real Estate buyers often ask me, “will they take less?” and “how low can I offer?” I’ve been asked if I’m a good negotiator (see ARDELL’s post on this one). They also want to know the average % of list the “typical” house in Denver sells for.

Hold on, let me get out my crystal ball. Omph, it’s in there, just a sec…

O.K. The average % of list a typical house sells for is irrelevant! Some houses are well-priced, others are way over-priced. Every seller’s motivation is different and affects the pricing strategy they take. Some sellers are moving tomorrow and need to get the house sold. Others haven’t even started looking for their replacement home and don’t have any urgency at all.

Buyers who identify the one, particular house they love are then able to have an intelligent conversation with me about what we should offer. We can go into the MLS in Denver and look at what price reductions they’ve had already (% of list for which price would they be wondering about?), how long the property has been on the market and what comparable homes have recently sold for. Now we have pricing traction.

No, No to Zillow

Buyers - you should pay attention to the condition of the house when comparing the one you’d like to make an offer on to the comparable sales. Sellers - go out and preview your competition (at a minimum on the internet) before you price the property. I personally don’t recommend trying the valuation model on Zillow. I’ve done that exercise on enough homes to know that it’s very hit or miss in either direction.

To read the entire post click on: 

(I Can’t Get No) Pricing Traction

 

Comments (8)

Joe Virnig
RE/MAX Gold Coast REALTORS, Ventura County, California - Ventura, CA
No Ordinary Joe
Say no to Zillow right for sure.  Many properties are overvalued on Zillow.
Apr 27, 2008 07:55 AM
The Dave Ruwe Homes Team
Re/Max Lakeshore - Grand Haven, MI
Realtors

I agree. Buyers ask and I tell them it is different for every home and seller. Now you add in the extra fun of negotiating with a bank for a short sale or foreclosure. :) I haven't used Zillow alot, but have found and heard it tends to be on the low side.

Dave    Keller Williams Realty    www.daveruwehomes.com

Apr 27, 2008 08:02 AM
Rick Sergison
EXP Realty of Canada Inc., Brokerage - Pickering, ON
Durham Region Real Estate Blog

I just stopped by to welcome you to Active Rain. I hope that you find it a great benefit to your business and that you see the value that I have also found here. I am from Charlottesville Virginia and using Active Rain has really increased my business!

My main blog on Active Rain is here: Charlottesville Real Estate Blog, not the link at the bottom of this post.

I hope you will look into the many groups as there are some great group both local and broad based,....

enjoy!

Apr 27, 2008 08:07 AM
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana
Gretchen does your crystal ball have next years stock page?  I need to make an easy buck.
Apr 27, 2008 08:19 AM
Marc Baysek
Iron Horse Properties, LLC - Rockingham, NC
Iron Horse Properties

The % of list vs sold can actually be used to prevent the lowball offer, if you word it right.  But as you know, everybody wants to STEAL EVERYTHING!

Apr 27, 2008 08:27 AM
Gretchen Faber
The Kentwood Company at Cherry Creek - Denver, CO
LifeStyleDenver

Joe: I've seen them over and under valued.  I guess it's just a swipe in the dark.

Dave: For sure!  The short sales are adding a whole new dimension to our world.

Thanks Charles, I will check out your main blog, and I look forward to it!

John: Umm, yes!  It says, "buy gold and real estate in Denver!"

Marc: Absolutely right!  I do think the list to sold works well in the reverse with buyers.  If they're astute at all, though, they'll ask of which price are you calculating it?

Apr 27, 2008 09:11 AM
Sondra Meyer:
EXP Realty, LLC - Corpus Christi, TX
See It. Experience It. Live It.
Gretchen, Good post.  The crystal ball comment is amusing....great way to respond lol. 
Apr 27, 2008 09:52 AM
Gretchen Faber
The Kentwood Company at Cherry Creek - Denver, CO
LifeStyleDenver
Sondra:  I tell my clients that sometimes when they ask me what's going to happen to property values - "I wish I had a crystal ball."
Apr 27, 2008 09:59 AM