As a Listing Agent, I market the property to the active Buyers Market. I evaluate the position of the property within that market based on feedback, data and a dash of gut-guess (trademark pending).
The feedback comes from past and present clients as they walk similar homes throughout the region, and then I balance consumers opinions with other agents opinions. The data that I use are the recent MLS sales, the general micro-trends within the market as analyized by National Association of Realtors and finally price per square foot. The gut is typically breaking down the weakest links and educating my client on the perspective of the Buyer when viewing the property.
The property that I am highlighting is a property in a suburb of Cincinnati, Indian Hill. Indian Hill is a private municipality that has a shared fire department, independent police and government, independent and highly ranked Schools. It is considered affluent and has some brand recognition among people who know the area as a desirable area if you have had financial success!
The topics handled in this entry span- motivation, market position and keeping up with the Market. The topics are many, but none are about how to create financial success, but it is about write an Offer where you have interest, as you NEVER know the motivation of the other person in your transaction. Motivation is what agents talk about when they want to understand how fast they will get paid. If your client is motivated, then the property will Sell quickly, and the result is a Closing. If they are not motivated, then you run the risk of sitting on the market until that “right offer” is brought. If an agent is doing their job of marketing, then the price and inherent motivation of the Seller becomes interpreted public knowledge. I say “interpret” because to a knowledgeable person, with years of information- an agent can make assumptions. I call them fire sales and am aware of them immediately!
The property at 5775 Sugarun, 45243 is the property that I am going to use as an example. The property is marketed as 14 rooms, 5 beds, 5 full baths and 3 half baths on three acres. Its original price on the market on July 19, 2013 for $1,198,000 and after 20 days dropped to $1,096,500. The property expired after 215 days, which during that time it went Pending zero times. The next Listing period began and it was listed with a different agent, but same agency for $1,050,000. It was a Listing period of only 72 days and it was Canceled May 8, 2014. Then, the same company relisted the property for $949,000 and the reduced it at 102 days to $895,000 and then 42 days later, the property went Pending and Closed for $785,000 plus the Seller paid $2500 in Closing Costs! The property Closed for 65.5% of it original List Price and it took 432 Days to Sell!
The answer to WHY, lies in how the market values the property. The agents can be faulted, but the agency maintained control of the property during the marketing process, so they must have created confidence with the Seller- more so than the agents who kept being fired! But, the moral of it is that the Seller got market value for their 3 acre outdated property that needed a half million in renovations. Within a ½ mile and 6 months no property has been Listed or Sold under $1M, but the other properties were all decorated and updated- if even superficially.
The value of this story is to highlight two major topics- re-invest and move quickly with a Shifting Market. The re-investing part happens after we Sell you the property and as you enjoy that property. The reacting quickly is the responsibility of the agent in our Shifting Market and not allowing the property to become the punching bag for an offer more than $100k or 12.5% of its total value in one offer. Strategically, if the Seller would have reduced the price to $750,000 they may have gotten a better Net, but that is hypothetical in all cases! The responsibility of you, the Owner, is to improve your property to what will make you happy and to maintain a position in the marketplace. Your requirement to maintain the best position possible is to always re-invest and re-invent to keep up with the Market—as if you do not, your equity built with the property can be lost quickly!
Good luck Buying, Selling and as always, please call John Payne and Marcia DeMar (Wycoff) to evaluate, market and List your properties- the Payne Team is your professional Real Estate Advocate!