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Home > Archive > Real Estate Agents > June 2006 > Pricing the home
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| md1000@gmail.com 2006-05-08, 4:21 am |
| I am a Realtor here in NYC and I am on a rampage. I will only take a
listing if the seller is willing to underprice the home. I have found
that in this market (especially where it is very competitive as far as
other houses being on the mrket is concerned) The best way for me to
get the seller the most money is by pricing the house so competetively
that every buyer and agent in the neighborhood drops everything they
are doing and comes to look at this house. This way there will
certainly be more buyers interested , and naturally more offers , which
naturally will bring more money to the seller. ( which is my job!!) I
have found that when houses are overpriced or even priced at the market
value , the houses sit on the market because it is just "another
expensive house on the market". In the interum the seller is paying a
mortgage, taxes heating or ac etc. The houses sell quicker and for
more money with this method . I always bring up the ebay concept to my
sellers. I tell them that there are items on ebay that start out at .99
cents and end up selling for thousands, very often more that what they
are really worth. Is there anyone who may have had an experiance with a
broker who promised them the world and then could not sell the house
for like six months??? Or are there any brokers here that can vouch for
my strategy? I would love to hear some feedback.
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| Phonedude 2006-05-08, 9:21 am |
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<md1000@gmail.com> wrote in message
news:1147069879.597564.151200@i39g2000cwa.googlegroups.com...
>I am a Realtor here in NYC and I am on a rampage. I will only take a
> listing if the seller is willing to underprice the home. I have found
> that in this market (especially where it is very competitive as far as
> other houses being on the mrket is concerned) The best way for me to
> get the seller the most money is by pricing the house so competetively
> that every buyer and agent in the neighborhood drops everything they
> are doing and comes to look at this house. This way there will
> certainly be more buyers interested , and naturally more offers , which
> naturally will bring more money to the seller. ( which is my job!!) I
> have found that when houses are overpriced or even priced at the market
> value , the houses sit on the market because it is just "another
> expensive house on the market". In the interum the seller is paying a
> mortgage, taxes heating or ac etc. The houses sell quicker and for
> more money with this method . I always bring up the ebay concept to my
> sellers. I tell them that there are items on ebay that start out at .99
> cents and end up selling for thousands, very often more that what they
> are really worth. Is there anyone who may have had an experiance with a
> broker who promised them the world and then could not sell the house
> for like six months??? Or are there any brokers here that can vouch for
> my strategy? I would love to hear some feedback.
If a property "sits on the market" then it is not priced at market -- it is
overpriced. If you're truly pricing homes below market you are not doing a
good job for your seller. The trick, of course, is to figure out what
"market value" is and then price it right. If it is priced at market value
it will sell, if it is priced higher it will not, if it is priced lower then
the seller is harmed (unless, of course, that's what he or she wants in
order to sell the house immediately).
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| homan4 2006-05-08, 10:21 am |
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<md1000@gmail.com> wrote in message
news:1147069879.597564.151200@i39g2000cwa.googlegroups.com...
>I am a Realtor here in NYC and I am on a rampage. I will only take a
> listing if the seller is willing to underprice the home. I have found
> that in this market (especially where it is very competitive as far as
> other houses being on the mrket is concerned) The best way for me to
> get the seller the most money is by pricing the house so competetively
> that every buyer and agent in the neighborhood drops everything they
> are doing and comes to look at this house.
The best way to get buyer agents to show your listings is to pay them a
better than normal comission. In the metro NY area there are tons of
companies who have a very low cobroke. If normal cobroke in the area is 2%
offer 3% or 4% rather than offering the home "below market." In NY you have
a fiduciary responsibility to the seller, I would make sure I gave the
seller full disclosure and get them to sign off on your pricing strategy to
avoid problems with the Attorney General, Real Estate Brokers and Agents are
in the cross hairs these days.
> This way there will certainly be more buyers interested , and naturally
> more offers , which
> naturally will bring more money to the seller. ( which is my job!!) I
> have found that when houses are overpriced or even priced at the market
> value , the houses sit on the market because it is just "another
> expensive house on the market".
Everyone wants a bargian. Your job is to sell the home at market, or even a
little above, in a reasonable amount of time. Market value has to be
determined based on a number of factors. Condition and upgrades are a major
factor. Access for showings is also a biggie. The fact is if it is hard to
show, has a purple and orange shag carpet, avacado appliances and smells
like smoke, dog and cat piss, the other homes on the MLS with similar square
footage and upgrades which do not show on the listing may not be realistic
comps. The bottom line is market value is what people are willing to pay
for it, or by final definition the selling price, so every home that is sold
sells at market value, the only diferintiating factors are items that
usually do not show up on the listing - divorce, foreclosure, death,
illness, sale to a family member friend or co-worker, etc..
> In the interum the seller is paying a mortgage, taxes heating or ac etc.
This is a good point for the listing presentation, but, unless the seller is
going to have to carry two homes for a period of time, it is moot. A person
has those expenses regardless of where they live, and, if they are planning
to buy up, the cost of maintaining the existing home is most likely less
than the new home.
> The houses sell quicker and for more money with this method . I always
> bring up the ebay concept to my
> sellers. I tell them that there are items on ebay that start out at .99
> cents and end up selling for thousands, very often more that what they
> are really worth.
You might talk to someone at Prudential Douglas Elliman, many of their
agents use Prudential's "Value Range Pricing" which is a similar concept,
designed to attract multiple offers and set an auction feel to the sale.
The only draw back is that there are not too many agents with other
companies that understand or appreciate the concept of presenting an offer
in that type of situation. In a slowing market with increasing inventory,
most agents do not like to submit offers where there is going to be
competition, as they like to be paid. Good agents try to show only 4 - 5
homes, and if they have to go back to the drawing board and waste more time
with good buyers because they feel you are playing games, they will be
reluctant to show your listings.
> Is there anyone who may have had an experiance with a broker who promised
> them the world and then could not sell the house
> for like six months??? Or are there any brokers here that can vouch for
> my strategy? I would love to hear some feedback.
Most potential sellers still view their houses as winning lottery tickets,
and not as what they are - a place to live. If you can persuade sellers to
list at a fair price, you have good selling skills, and are well on the way
to make heaps of money in real estate. That said, I think before you short
change the sellers in price, you should work the commission instead. Price
the home at market + higher commission = home sold quicker + more money for
you, and the other agents who will be more than happy to keep showing your
listings.
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| darrenli516@yahoo.com 2006-05-08, 12:21 pm |
| I totally agree with the original poster's strategy for pricing a
listing.
I work in the Long Island, NY market, and our area is inundated with
overpriced houses that sit on the market for months and months and
don't sell.
Pricing is the main reason.
If the listing agent prices the house properly, it will sell.
It is a good idea to possibly set the price just a tad under market
value in order to generate interest among buyers. The seller is never
under any obligation to sell at a price he won't accept.
And if enough buyers are interested, multiple offers will result in
bidding the price up anyway.
If the initially offered price looks really good to the buyers, then it
most always works to the sellers advantage in the long run.
That is much better than listing the house high, and then lowering the
price every few months until it sells.
Darren
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| emehnert@optonline.net 2006-05-08, 3:21 pm |
| Darren drop me an email at emehnert@optonline.net I am also in Long
Island. (Nassau County).
And I have to agree with what Darren said, they buyers just aren't
there to create an auction style listing. In my area there are 270
houses on the market and only 155 have sold in the last 6 months.
There is a huge inventory out there, and just not enough buyers. The
auction style listing, works in a sellers phase 1 market, and possibly
in a sellers phase 2, but not in todays buyers market.
Ed Mehnert
ReMAX Southshore Realty
darrenli516@yahoo.com wrote:
> I totally agree with the original poster's strategy for pricing a
> listing.
> I work in the Long Island, NY market, and our area is inundated with
> overpriced houses that sit on the market for months and months and
> don't sell.
> Pricing is the main reason.
> If the listing agent prices the house properly, it will sell.
> It is a good idea to possibly set the price just a tad under market
> value in order to generate interest among buyers. The seller is never
> under any obligation to sell at a price he won't accept.
> And if enough buyers are interested, multiple offers will result in
> bidding the price up anyway.
> If the initially offered price looks really good to the buyers, then it
> most always works to the sellers advantage in the long run.
> That is much better than listing the house high, and then lowering the
> price every few months until it sells.
>
> Darren
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| Big Senior 2006-05-08, 4:21 pm |
| Hi, I am a student at the university of Maryland. You all seem very
knowledgable on the real estate business. I am looking to buy a house
by the end of the year and was wondering what you guys think are the 3
most important questions one should have about the settlement process.
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| Steve Horrillo 2006-05-15, 2:21 pm |
|
On 8-May-2006, "homan4" <homan4@cox.net> wrote:
> Most potential sellers still view their houses as winning lottery tickets,
>
> and not as what they are - a place to live. If you can persuade sellers
> to
> list at a fair price, you have good selling skills, and are well on the
> way
> to make heaps of money in real estate. That said, I think before you
> short
The first thing I do is walk through the house and take the best pictures I
can. This creates an instant rapport with the seller. Then I show them the
pictures through the eye's of the buyer. We then try to figure an
inexpensive way to make the HOME show better. Next comes the explanation
that for now, their HOUSE is just a home. Next we figure out how to make the
seller's house feel like their new home. If we can accomplish this we can
get top dollar even in a depressed market.
I'll get into how I handle the showing agents when I have a little more
time...
--
Warmest regards,
Steve Horrillo, Realtor / C.Ht.
MLS Training http://BrokerAgentTraining.com
Join EXIT Realty http://over100percent.com
| |
| Steve Horrillo 2006-05-15, 2:21 pm |
|
On 8-May-2006, darrenli516@yahoo.com wrote:
> I totally agree with the original poster's strategy for pricing a
> listing.
> I work in the Long Island, NY market, and our area is inundated with
> overpriced houses that sit on the market for months and months and
> don't sell.
> Pricing is the main reason.
> If the listing agent prices the house properly, it will sell.
No insult intended but any fool can talk a seller into a UNDER aka (properly
priced) house and it will sell. That takes no skill what so ever.
--
Warmest regards,
Steve Horrillo, Realtor / C.Ht.
MLS Training http://BrokerAgentTraining.com
Join EXIT Realty http://over100percent.com
| |
| Steve Horrillo 2006-05-15, 2:21 pm |
|
On 8-May-2006, emehnert@optonline.net wrote:
> And I have to agree with what Darren said, they buyers just aren't
> there to create an auction style listing. In my area there are 270
> houses on the market and only 155 have sold in the last 6 months.
> There is a huge inventory out there, and just not enough buyers. The
> auction style listing, works in a sellers phase 1 market, and possibly
> in a sellers phase 2, but not in todays buyers market.
Huge inventory. LOL. Check out my area http://www.ewm.com/trendx/report.asp
> And I have to agree with what Darren said, they buyers just aren't
> there to create an auction style listing. In my area there are 270
> houses on the market and only 155 have sold in the last 6 months.
> There is a huge inventory out there, and just not enough buyers. The
> auction style listing, works in a sellers phase 1 market, and possibly
> in a sellers phase 2, but not in todays buyers market.
--
Warmest regards,
Steve Horrillo, Realtor / C.Ht.
MLS Training http://BrokerAgentTraining.com
Join EXIT Realty http://over100percent.com
| |
| Steve Horrillo 2006-05-15, 2:21 pm |
|
On 8-May-2006, "Phonedude" <fonedude@verizon.net> wrote:
> If a property "sits on the market" then it is not priced at market -- it
> is
> overpriced.
Or it smells bad. No lockbox. Showinigs only allowed on certain days.
Listing office or agent doesn't answer the phone.. Shows poorly. Owner
insists on being there for showing. Poorly entered listing. Listing agent or
office has bad reputation.Listing agent doesn't follow up.
Can anyone think of more?
--
Warmest regards,
Steve Horrillo, Realtor / C.Ht.
MLS Training http://BrokerAgentTraining.com
Join EXIT Realty http://over100percent.com
| |
| John Mianowski 2006-05-17, 1:21 pm |
|
Steve Horrillo wrote:
> On 8-May-2006, darrenli516@yahoo.com wrote:
>
>
> No insult intended but any fool can talk a seller into a UNDER aka (properly
> priced) house and it will sell. That takes no skill what so ever.
>
Another point of view is that any fool can talk a seller into an
INFLATED price and get the listing signed. That takes no skill
whatsoever, just a willingness to pander to the seller's greed & ego.
No insult intended, Steve - you're clearly sharp & I consider you one
of the "good guys" based on your posts.
The challenge is to find that appropriate price - the most that
somebody is willing to actually pay, not just the opinion of some 3rd
party who's never going to write a check.
By "tradition" the listing price is an upper limit, set usually with
the full expectation that prospective buyers will make lower offers,
with a final selling price usually settling somewhere in the middle.
What if, rather than setting a listing price at the high end & working
down, you set the listing price at the low end & worked upward from
there? Would the listing price, relative to actual sold comparables,
not look like a bargain? Could this perception perhaps attract more
interest than a higher listing price might? Could the increased
interest be leveraged into competition among potential buyers, to help
drive the price up instead of down?
JM
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| darrenli516@yahoo.com 2006-05-17, 2:21 pm |
| JM,
I agree with that idea of setting the listing price at the low end.
If you set it at the high end, the seller never gets that number out of
his/her head, and they will always think that they might have been able
to get that price.
Good agents always know when a house is overpriced, and can spot a
properly priced one on MLS very quickly.
If a house is proced right to begin with, then that in itself takes
care of the problems that can face an overpriced house.
Overpricing a listing does no one any good, neither buyer or seller
Darren
| |
| Ryan Dean 2006-06-16, 1:25 pm |
| [This followup was posted to alt.real-estate-agents and a copy was sent
to the cited author.]
In article <1147069879.597564.151200@i39g2000cwa.googlegroups.com>,
md1000@gmail.com says...
> I am a Realtor here in NYC and I am on a rampage. I will only take a
> listing if the seller is willing to underprice the home. I have found
> that in this market (especially where it is very competitive as far as
> other houses being on the mrket is concerned) The best way for me to
> get the seller the most money is by pricing the house so competetively
> that every buyer and agent in the neighborhood drops everything they
> are doing and comes to look at this house. This way there will
> certainly be more buyers interested , and naturally more offers , which
> naturally will bring more money to the seller. ( which is my job!!) I
> have found that when houses are overpriced or even priced at the market
> value , the houses sit on the market because it is just "another
> expensive house on the market". In the interum the seller is paying a
> mortgage, taxes heating or ac etc. The houses sell quicker and for
> more money with this method . I always bring up the ebay concept to my
> sellers. I tell them that there are items on ebay that start out at .99
> cents and end up selling for thousands, very often more that what they
> are really worth. Is there anyone who may have had an experiance with a
> broker who promised them the world and then could not sell the house
> for like six months??? Or are there any brokers here that can vouch for
> my strategy? I would love to hear some feedback.
>
>
Your strategy is interesting. But as soon as the market calms slightly
you will no longer be working in the best interest of your seller. I do
something similar. If you would like an explination e-mail me.
--
Ryan Dean
REALTOR, SOFI, HCOA
American Way Real Estate
710 S. Jefferson Ave.
Cookeville, TN 38501
RyanD@American-Way.com
www.RyanDean.HomesandLand.com
Direct (931)529-1712
Office (931)646-4010 ext. 2160
Fax (931)858-5570
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