The market value of your home is not:
• What you have in it
• What you need out of it
• What it is appraised for
• What you heard your neighbor’s house sold for
• What the tax office says it is worth
• What it is insured for
• Based on memories and treasures
• Based on prices of home where you are moving
The true market value of your home is….what a Buyer is willing to pay for the property TODAY:
• Based on today’s market
• Based on today’s competition
• Based on today’s financing
• Based on today’s economic conditions
• Based on the Buyer’s perception of property condition
• Based on location
• Based on normal marketing time
As a seller, you control:
• The price you ask
• The condition of the property
• Access to the property
As a seller, you do not control:
• Market conditions
• The motivation of your competition
• Value
Warning Signs:
AGENT Elimination – If agents are not previewing or if they preview but do not show your home, they are eliminating your property
BUYER Elimination – If your home is being shown repeatedly with no results, buyers are finding better properties in your price range. In either case, this is an indication that your home is not priced at current market values.
Remember: Price Overcomes all Objections!
Ralph, you said it about as well as I have ever seen it said!
Ralph, I like your style and the cool background music. Great information in your article here:)
Ralph - You said it right. The seller should be handed this piece of info at the listing presentation. If she/he do not agree, then it's time to walk out. The house won't sell and we are just wasting our time and money. Thanks for a great post.
Great post - may print out to take on Listing Presentations with me, although I pretty much have it memorized!
Sherman,
The only one I would disagree with you on about the determination of market value is that appraisers can determine the market value of a home. I and several agents in our office have been running into homes not appraising even though the buyer and seller agree to a price. A lot of this has developed with the recent changes in the appraisal process. Our market has not taken the hit that a majority of the country has seen in the last couple of years, but it has been a little soft as of late. This is why it is important to understand pricing especially in the market we are in.
Jeremy Williams
Keller Williams Realty NE
Kingwood, TX
Williams4YourHome
Ralph ..I love it..Great presentation and one of
my favorite songs! Thank you
HELPFULHANNAH
Ralph, PERFECT! This is my favorite - What you need out of it
Ralph - wow - I feel like I should get up and DANCE! This is better than a stabucks!!
Short, sweet and to the point post. Excellent!
Here's to our Active Rain Family - get up and DANCE!
Anna Banana
Ralph - What a great reminder to homeowners and agents alike !
Ralph - this is a terrific list to put in a pre-listing kit to get in front of every potentail seller. We keep saying and some folks keep ignoring it.
Jeff
Ralph, you are right on!! I think the best way to get the highest price right now is put all the buyers in competition with each other at a live auction. A well-advertised auction with drive the price up to as high as it can go. Check us out at www.sellwithauction.com.
Plain and simple. Great post that sellers need to understand.
I thought for sure the market value used to be determined by pulling a value out of a hat! Well, it sure seems like that was the way. I cannot even begin to imagine how you agents in Cali & other crazy value states dealt with the rise of the bubble. I met someone once from Cali that purchased a brand new home and sold it before it was completed and made something like $50K. That is insanity at its finest!
Thanks for the great info........
Absolutely Excellent! I will have to re-blog if you don't mind :) ~ Rita
I guess the profile pic lags a little behind as it still shows Brian, but its me :)
Revolutionary thoughts!!!
I thought market value was what the owner currently owes + sales expenses + the payoff on two credit cards + the cost of their upcoming trip to France + a few extra thousand for emergencies....no??
Hey Ralph,
LOL, that music scared the pants off me! Not rly :-0
But yeah I am down with everyone else to dance, and this post is very precise and to the point. :)
-Lisa
Ralph - I love the post but what the hell is up with the music?
Ralph, love the music...takes me back to being a kid in Philly and watching Sister Sledge perform on "Soul Train"....lolol! Your last line is classic -> "Remember: Price Overcomes all Objections!"
Bill,
Chill, will ya.
Do you dislike music?
Just makes me wanna bust a move while I'm a birdie on the QWERTY.........
Ralph,
Great post and love the extra with the music playing while I read your post.
As Chuck said above....
PLAIN AND SIMPLE... with a twist of common sense.....a good combination and a great post..
Can I add your post to my web site....
Dan, I know that you were just kidding around with your revolutionary thoughts, but several years ago many people felt that was true..
Great blog. I always tell my sellers that my job is not to tell them what their house is worth, but to tell them what it takes to get it sold and this list is a great reminder of how to get the point across!
Excellent! I have that very same info, format, content in my prelisting presentation-EXCEPT the very last tidbit. May I copy your last section and include in my prelisting presentation?
This is an excellent and very true post. Ralph, thanks. I hope you don't mind but I reblogged this one.
Anthony - sure, go ahead. I checked off the blog to allow re-posts on this.
I have an appraisal issue going on where my buyer has offered over the appraised price, not much over. I have pointed out we are in an up market, the appraisal is conservative and assumes a down market. Then I sent them a list of what is on the market and asked them which one the might prefer and suggested we take a look at it. The house has features that are real important to them, that are not important to a lot of other people. The wife does not drive and it is near the store, school, and public transportation. They need to think about what it is worth to them. We were out bid on a number of other homes.
Hi Ralph,
On my way to a listing appointment in Mt. Washington and this post was very timely! Hopefully I can get him to see the light.
Thanks for the insightful post!
Sue Eller
Dilbeck La Canada CA
Dear Ralph,
This appraiser is clapping! the ..'what it appraised for..' could be the last time they refi'd two years ago, or it could be that they hired Skippy the Value Wizard just last week.
You are right on with this.
Gene,
Would that be Brentwood, CA? You may indeed be in an up market depending on the neighborhood and your value ranges. Did the appraiser supply active listings and pending contracts in the report as well as sold/closed? If it is indeed on the upward trend, this info (properly chosen, of course) can support just such a trend. You can't include Mr. Pie in the Sky down the street or the short sale/relocation and hope for good results in listings/pendings if your subject is an arm's length or vice versa.
Have you seen the report?
Great post--Real brief--to the point--end of story.
(But really, Folks, I love how crisp and to-the-point this was & a potent reality check for Sellers during these tough times. Such reality gives both Seller and Broker a real chance to succeed in the sales effort --- vs. creating mutual frustration amd lost time.)
You da man--- Forrest EcoBroker in Hawaii www.hawaiigreenrealty.com
PS: With our work as EcoBrokers, there may be another tip for green Sellers, "Don't Undervalue your Green features---but don't believe that Every Buyer will value them as you do".
THANK YOU! Boy, how I'd love to send this to the seller of one of the homes my buyer made a bid on. They just don't have a clue. My buyer offered slightly above market value but $9,000 less than the sellers WANTED. But then it may not be all their fault. Their agent has sold 1 (one) house in all of 2008. Maybe it's He who does not have a clue.
Great Blog & music. I may copy & insert into my listing presentation to add to my point that in today's market you can't always get a return of 30% on your upgrades. Seems I always find a seller whose cousin, uncle or what ever says they can get $ xxx amount for doing this or that update/upgrade.
As for appraisals, has anyone run into the Zillow/Cyberhome valued listing? When ever I've asked did they go in and update the home info & comp selection to make it relevant?; they answer "No why should I?" OH LORD HELP ME. LOL
Gene said....
""" The house has features that are real important to them, that are not important to a lot of other people"""
This could be a major sticking point in your problem....I have no clue as to what is happening on the Left Coast so I am sure that Ms Platt's thoughts should prevail....
Hate posts with tunes! Good material but didn't this once come with pictures?
Lyn,
I guess your the minority.
As you can see from responses, most enjoy it.
But it Doesn't matter, any press is good press..............
My comment on another post about pricing a property too high - pricing a property too high helps other properties sell. Ask your seller whose property it is he is trying to sell!
By any chance Ralph, have you done a post about how to upload music to posts? Love it! Love it! Love it! It's fun and adds some stickiness - want to hang around to listen to the great tunes.
I didn't like the music either. Guess what I figured that out after 10 seconds. Problem solved.
You may play all the music you want this was brilliant.
Is this similar to the ninja selling program? I was in a two hour class today where about 20 agents talked about this very issue. You articulated perfectly. An action item I made today was to put together a listing package. This is going in it, do I need anything else?
Maybe a contract.
Ralph, I'm glad to see you got some mileage out of the handout I gave you to good use !!!
Hi Ralph! Thanks for sharing this Great advice! I liked it so much I reblogged it! Cheers!