Often sellers have a desire to list their residential properties or vacant land parcels at a price often higher than the reality of local real estate market. This is why comparing apples to apples within the competitive market analysis (CMA) is quite critical.
I was reminded of this clash with a recent request to list a vacant land parcel with utilities here in Golden Valley, AZ. Given there was already a much larger parcel with utilities just down the road less than 1/10th of a mile away, the competitive market analysis clashed with the seller’s desired listing price. Even though I have been in this industry just 8 years, I realized this clash would only create ill will if I did list it as the sellers were adamant about securing a bottom line much higher than current real estate market conditions.
Several years ago, I experienced a similar situation with a single wide manufactured home that needed some tender loving care. There were unfinished floors, walls that needed some trim work. Again, in doing the competitive market research, the seller disagreed and indicated he had 20 fruit trees that were worth $1,000 each. I told the seller that if a buyer was able to secure a loan, the appraiser does not list trees as an asset on the property.
The seller went with a different brokerage firm. Six months later the house sold for the competitive market analysis selling price that I had shared. Actually, though I provide a range, the seller asked me for a specific listing price. I complied and suggested a list price based upon all of my knowledge of the property and current market conditions. His house sold for this suggested list price.
Sometimes sellers will work with real estate agents and agree to a specific time frame for a price reduction if the property was listed beyond current local market real estate conditions. Then other times real estate agents may walk away from a listing because they know the property will not sell at the seller’s desired price. These professional real estate agents understand about having "good will" and avoiding "bad" reviews.
Working with a professional real estate agent who knows local real estate, will undertake the necessary due diligence such as securing permits, etc. just makes sense. For example, when I undertake a competitive market analysis for sellers, I just don’t provide three (3) comparables.
- My CMA has data including: Subdivision Number of Bedrooms and Bathrooms
- Number of Garage Space
- Square footage for a residential property
- Acreage of lot, parcel
- Fencing from Full Fencing to No Fencing
- Number of Sheds or Out Buildings
- Year Built
- Utilities such as Electric Available to Septic Installed to Water Haul
- Current List Price Price Per Square Foot
- Originally Listed Price
- Days of Market
I also include:
- Current pending properties,
- Sold properties within the last 0 to 31 days
- Sold properties within 32-180 days.
Sometimes due to the unique features of the property especially Off Grid the CMA may look to 365 days or longer. This comprehensive CMA reveals not only current real estate market conditions but trends within the market place.
For my Arizona sellers, I also provide estimated closing costs for 3 potential accepted offer prices. These closing costs identify:
- Title Policy
- TItle Fees
- Recording Fee
- Pro-rated taxes
- Septic inspection cost
- Agents Compensation fee.
This additional information helps them to understand their estimated net proceeds.
Yes, as a professional real estate agent along with being an old school salesperson, I do things differently and that difference begins with the first contact. In other words, I answer my phone, no AI here, no team member. Also, I respond to emails usually within 24 hours depending upon my existing commitments. Finally, I don’t “bug” you unless we have agreed to have further communications.
If you have property to sell or wish to buy here in Mohave County especially Golden Valley AZ, Kingman AZ, White Hills AZ or Yucca AZ, please consider reaching out to me,
#LetsGetBackToRealConversations #WeDoThingsDifferently
Leanne M Smith, The Grit and Gratitude Agent Who Goes the Extra Mile Because Life Begins Where the Pavement Ends.
Feature Photo Courtesy of Pixabay.com
Any reproduction of Leanne M Smith’s blog for use by any AI or GAI, distribution or reproduction including but not limited to electronic newsletters e.g. PDF’s Internet sites or physical products e.g. newspapers, CDs without prior written permission and consent by me, Leanne M. Smith (Leanne Hoagland-Smith) is strictly prohibited.
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