These are notes from a session at Keller Williams Family Reunion on February 24, 2009. The subject is buyer urgency in a buyer's market - where the number of properties for sale exceeds the number of buyers ready to buy.
1. There is a story at TaleofTwoMarkets.com that might be worth looking at when talking to buyers about the reality of a buyer's market. The fact is that - at least in today's market - there really are two separate markets. In one of them, 80% of the homes are overpriced. This is a sad state of affairs for sellers, finding themselves competing with distressed sales. But what it means is that there is demand for the 20% that are priced UNDER market.
2. Holding open house is a good way to meet buyers who are looking - though not every looker is a buyer. Inviting neighbors - by mailer or door knocking - is a good way to lead to a potential buyer. But a house that is priced under market will likely sell so fast that there won't be time to hold an open house.
3. In a buyer's market, first-time buyers may benefit from a seminar geared just for them. If you know - or are - a first-time buyer and are interested, give me a call and I'll set something up. 623.640.1219.
4. In a buyer consultation, the agent and the buyer need to explore what a "deal" looks like. It may not be the same to the buyer as to the agent - so get on the same page.
5. You can't blame a buyer for waiting for house prices to drop - but it is NOT FAIR to the buyer not to challenge that way of thinking. The fact is that nobody knows where house prices are going, or what houses will be on the market or what their condition will be. The person who can predict the b ottom is either a psychic or a liar. What we do know is that interest rates are the lowest they've been in 35 years - and a one point adjustment equals thousands of dollars in home price. If a buyer plans on being in the house for several years, buy now.
6. Buyer's remorse is normal - it is abnormal not to have second thoughts about one of the biggest purchases of your life. The trick is to keep your eyes on the prize. What motivates you to buy. How bad will you feel if somebody else buys "your" house?
Showing posts with label bank-owned real estate. Show all posts
Showing posts with label bank-owned real estate. Show all posts
Thursday, February 26, 2009
Sunday, August 3, 2008
Fair Market Value, Timing, Convenience
Fair Market Value, Timing, Convenience
I am looking for a seller who wants -- really wants -- to sell his house. The house he lives in. The one that needs to be sold in order for the seller to become a buyer for another house - his new home.
The goal of this seller that I'm looking for - the goal of ALL sellers - okay, maybe all is too strong a word - let's say ALL with maybe a couple of exceptions -- is to sell their home for the most amount of money, in the least amount of time, and with the least amount of inconvenience.
The first key objective is to price the house -- forget for now that we're talking about the house you've turned into a home - just think of it as a HOUSE - price the HOUSE at its fair market value.
A property that is listed WELL UNDER fair market value will…
a. Cause buyers to wonder what’s wrong with it, so they will scrutinize it much more.
b. Cause the seller to lose money.
c. Not be a win-win situation.
On the flip side, a property listed WELL OVER fair market value will…
a. Not generate as many interested buyers because they will think it’s out of their price range.
b. Waste advertising dollars and marketing efforts.
c. Take a long time to sell and could impact when the seller can move into his/her new home.
d. Make other competing properties look good.
e. Make the home overpriced in everyone’s mind (agents and buyers) and they tend not to forget.
f. Often eventually sell below market value.
So - the trick is to land on fair market value. That's tricky, both to identify what fair market value is and also to apply that to listing price. It is a good idea to think in terms of a PRICE RANGE -- that’s how buyers think about prices.
A second key objective is timing, which means selling your home in your desired timeframe. Did you know that a house generates the most interest in the real estate community and among buyers during the first 30 days (or four weeks) that it is listed.
The third key objective is selling your house with the least amount of inconvenience. Too much to write about here - but I have ideas, so if you're interested, contact me and we'll talk.
I am looking for a seller who wants -- really wants -- to sell his house. The house he lives in. The one that needs to be sold in order for the seller to become a buyer for another house - his new home.
The goal of this seller that I'm looking for - the goal of ALL sellers - okay, maybe all is too strong a word - let's say ALL with maybe a couple of exceptions -- is to sell their home for the most amount of money, in the least amount of time, and with the least amount of inconvenience.
The first key objective is to price the house -- forget for now that we're talking about the house you've turned into a home - just think of it as a HOUSE - price the HOUSE at its fair market value.
A property that is listed WELL UNDER fair market value will…
a. Cause buyers to wonder what’s wrong with it, so they will scrutinize it much more.
b. Cause the seller to lose money.
c. Not be a win-win situation.
On the flip side, a property listed WELL OVER fair market value will…
a. Not generate as many interested buyers because they will think it’s out of their price range.
b. Waste advertising dollars and marketing efforts.
c. Take a long time to sell and could impact when the seller can move into his/her new home.
d. Make other competing properties look good.
e. Make the home overpriced in everyone’s mind (agents and buyers) and they tend not to forget.
f. Often eventually sell below market value.
So - the trick is to land on fair market value. That's tricky, both to identify what fair market value is and also to apply that to listing price. It is a good idea to think in terms of a PRICE RANGE -- that’s how buyers think about prices.
A second key objective is timing, which means selling your home in your desired timeframe. Did you know that a house generates the most interest in the real estate community and among buyers during the first 30 days (or four weeks) that it is listed.
The third key objective is selling your house with the least amount of inconvenience. Too much to write about here - but I have ideas, so if you're interested, contact me and we'll talk.
Sunday, June 29, 2008
Open House
Held an open house in Phoenix Saturday - 7th Avenue and Thunderbird. Bank-owned. On Moon Valley Golf Course. Needs some work, but it's big (over 3400 s.f.), has a three car garage plus extra parking, a pool - and lots of potential. Worth a look if you know a buyer interested in that area.
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