Kevin J. May, Serving the Treasure & Paradise Coasts of Florida (Florida Supreme Realty)

Spam prevention
Ambassador
3,038,566
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I believe some agents may wing it ... others of us do our homework and know where the sweet spot is in pricing. 

Jun 26, 2021 12:56 PM
Rainmaker
302,347
Shayne Stone
Champion Real Estate Group - Missouri City, TX
"Your Rock Solid Choice Realtor"

It's not only the Agents, it's also the Lenders! The last three transactions I had the Lender decided to not send an appraiser out, but instead do a AVM... 

Jun 26, 2021 03:15 PM
Rainmaker
697,132
Steve Higgins
RE/MAX Kelowna - Kelowna, BC

It is almost impossible to do a CMA here as houses are selling anywhere from just under list to $200,000 plus over list. There is a townhouse out here on Vancouver island that was listed for $1.4 m and sold for 1 million over asking can you imagine the look on that sellers face when that offer was presented?!!

I had two listings that I thought were priced well and 1 went for $5,000 under list and the other went for $145,000 over list we knew the one was going to go over list as we had 42 showing, 6 bully offers and 17 offers in total. The other we thought would go for asking or a bit higher we had 3 agents say they were going to offer but once they heard there were going to be multiple offers they backed out it went for $5,000 under list. The market here is just wild. No rhythm or reason right now.

Jun 26, 2021 05:59 PM
Ambassador
2,564,851
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 

      Price, cost, and value are three different things.  Some people don't know the difference.

 

Jun 26, 2021 03:27 PM
Rainmaker
379,112
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

It certainly has gotten more difficult. Sellers are demanding prices beyond actual value. You really have to do your homework.

Jun 26, 2021 01:36 PM
Rainmaker
897,455
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

We have a phrase in our market for a pricing strategy that lists a home for way less than market value in order to stimulate bidding. Homes are listed at prices which the owners would not accept if a buyer was willing to present the seller with a suitcase full of cash equal to the list price.  It is called "fake pricing" and it is a real thing. It make me embarrassed to have to work along side such incompetent, lazy and just plane deceitful agents.

Jun 26, 2021 09:07 PM
Rainer
149,426
Ken Jones, Commercial Real Estate
Kenneth J. Jones, Inc. - Toms River, NJ
Serving Central & Northern New Jersey Since 1971

Kevin J. May, in my opinion, the residential mortgage appraisal industry has become so corrupted by the combination of self-interest influences of lenders, the accommodating nature of regulators that favor lenders, and appraisal management companies that virtually dictate which appraiser will get work and which one won't that it's a wonder there are any appraisers still willing to do residential mortgage appraisals.

That said, in a market where there's even less logic associated with pricing than in a "normal" market, the appraiser is damned if they support the sales price and damned if they don't.

For the last 3 decades, I've been saying there's really no reason for mortgage lenders to get appraisals since they have all the data necessary to make a value judgment at their fingertips. It would save a lot of time and money to accomplish the exact same result without having to put on the CYA dog and pony show.

I can hear others howling now at my comment.

But, no matter how much lipstick one puts on a pig, in the end, it's still a pig.

Jun 26, 2021 12:11 PM
Rainmaker
1,381,523
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

It's something that needs to be taught in onboarding.  More art than science.

Jun 26, 2021 11:29 PM
Rainmaker
5,535,237
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Kevin,

You have some wonderful commentary, and I would have made a similar remark as Fred Griffin Tallahassee Real Estate did.  A

Jun 26, 2021 09:37 PM
Rainer
268,300
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

some wing it, some do their job.  

Jun 26, 2021 12:48 PM
Rainmaker
875,017
Peter Mohylsky. Broker -BRIX REALTY
Miramar Beach, Florida - Santa Rosa Beach, FL
BRIX REALTY -DESTIN

It is an art not a science.  I am not really sure I understand what is going on right now.  Appraisers seem to be bending their knees first and what was intended to be a check and balance in the system has finally shown its faults.  

Jun 27, 2021 06:01 AM
Rainmaker
4,166,314
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Fred Griffin Tallahassee Real Estate nailed it! Some agents just roll the dice and some let the seller roll the dice to get the listing.

Jun 27, 2021 05:37 AM
Rainmaker
4,893,322
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

We are seeing quite a few price reductions now, thinking the agents/homeowners are still reaching for the stars.

Jun 27, 2021 05:56 AM
Ambassador
3,260,461
Anna Banana Kruchten CRS, CRB, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Kevin it appears it makes almost no difference as to what a property is priced at in my market.  Almost all sell for over list.  With that said....this past month or so it's getting beyond ridiculous and greedy sellers are marking them up way too high.  At some point, buyers will stop the frenzy.  I for one was looking for a golf course home but at this point I'm going to chill out until something with reasonable value comes on the market.

 

As for my market listings I know exactly what to price them at as we watch the market daily.

Jun 27, 2021 11:57 AM
Rainmaker
2,635,227
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Real Estate is worth what it is as stated in the appraisal world i.e. a value at a given time not for all time. Supply & demand is begging to be heard here. A trend is about & like water, will seek its own level. When? How? Where? Who? Why? Who can say. All I know is: Get in or out (now) of Real Estate as it benefits you. All clients should be briefed accordingly

Jun 27, 2021 06:03 AM
Rainmaker
2,020,450
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Real Estate evolves thru familiar looking cycles

Jun 27, 2021 05:16 AM
Rainmaker
846,420
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Some sellers are listing high not caring whether it sells or not. Just about every day now, I get emails from agents letting me know about huge price drops. It could be some agents fed seller bs just to get the listing, then started thinking about their approach to sellers for getting price reductions.

Jun 27, 2021 09:03 AM
Rainmaker
883,287
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Not long ago I owned a coupole dozen 35 watt UV lamps that I paid $17  a piece. I sold them them for $250 a piece.
Was I 'winging it?"
Did I lose the 'art of pricing?"
If there is only one comprerable house for sale in the CITY that is not updated, would I price my new updated  listing according to recent sales or market demand?
The latter, 'recent sales' strategy is one of the lazy agent. Let face it that will be an easy sale.
The hard working agent will exceed the conventional 15% ceiling by an additional 20% then protect their seller by not allowing the bank to become a negotiator.
Sellers are actually willing to accept the "comparable sales' data. But the fortuneate one hired a hard working agent.
Even with that extreme strategy, the hard working agent often has the house sold above list price before it shows in the MLS.  That is when having a good audience of proven buyers becomes as valuable as the listing.
This reality is when those who argue proper exposure can only be achieved via the MLS is laughable.
However, if the real estate business was actually democratized and buyer and seller remained anonymos and ALL bids are posted in public all of this strategizing would become irrelevant.
Here in Florida, so much 'non-local' money is involved competing for a smaller pie prices are going in one direction only.  And the lucritive $3,000 a month apartment reantal market is attacting investors with deep pockets. With the media incessantly reporting these trends buyers are realiizing they have to not only step up to the plabe fut swiing for the fences if they want to move.

Jun 27, 2021 08:03 AM
Ambassador
5,366,352
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

As always it it an Opinion, not everyone will agree on anything.

Jun 27, 2021 12:06 AM
Rainmaker
640,903
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Santa Clarita & Aliso Viejo

Never has and never will value is what something actually worth.

Jun 30, 2021 02:21 PM
Rainmaker
759,996
Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

Many weren't good at it before this latest chapter.  HA!   The true professional is keeping up with the changes and knows how to best advise a seller to position a property for a solid market response.  This should be the case in any market condition.  

Jun 28, 2021 04:22 AM