5.2024 | How two identical homes sell in the same week with a $75k price difference
5.2024 | How two identical homes sell in the same week with a $75k price difference
Not all listing strategies were created equal as is it apparent in these two almost identical townhomes that sold one week apart with a $75k closing price difference. Both units were listed around $830-$835k in April 2024. The unit that sold for $850k had a 5 day offer review date and went pending after 3 days on market. Some would congratulate the sellers on getting the home sold in such a short amount of time. However, it seems pretty clear that the sellers left a lot of money on the table.
It is apparent that the sellers were guided by a listing agent who was more concerned with making a quick sale instead of maximizing their client’s best interest.
The million dollar question: how do you partner with an agent who looks out for your best interest?
Begin by asking yourself what are your must-haves and expectations with listing your property?
Every seller’s needs vary and there is not a one size fits all strategy. By understanding your own needs and communicating them to the agent, they should be able to customize a win-win strategy. The areas you want to communicate are your expectations on potential pricing, timeframes and terms. Another important expectation is how much budget you have to prepare the property for listing. This includes interior/exterior renovations, landscaping and more. Not all property requires remodeling but it’s best to ask the agent for comparables.
In our above example, the townhome that sold at $850k performed zero renovations whereas our listing completed new interior paint, new carpet, landscaping, HVAC servicing and pre-inspections which cost around $20k. The more work the seller does in advance makes it easier for the buyer to feel confident in submitting an offer at their highest and best price.What property data can they provide from recently sold and pending comparable properties in the neighborhood?
This information is readily available to most agents who are apart of a Multiple Listing Service. Some crucial information I look for when conducting pre-listing research is what comparable properties have sold and for what price, how long were they on market before pending, what offer strategizes performed best for pending comparables, what month out of the year yielded higher than average sold prices, what comps are active right now, and many more. A tell tale sign of an agent that is not aligned with your best interest is one that tries to pressure you to list as soon as possible without communicating why.
In our above example, there were no comparables that sold in the past 60 days within a 1 mile radius. The most recent comp was from more than 1 year ago and had a closing price around $830k. It takes an experienced agent to know how to price a home when there are no comparables.What is the agents pre-listing strategy and how can they present your property in it’s best light?
The description of the property, photos and staging are the sellers best chance to make a lasting first impression on potential buyers. You want to partner with an agent who pays a great deal of attention to these areas. The challenge is that preparing a property at its best takes creativity, a designer’s eye and an understanding of buyer psychology.
For our above example, it was clear that the $850k home hired a stager but the photos did not do the home justice. Luckily for my sellers, I was an avid photographer before becoming a real estate agent and knew that the direction of light at different times of the day would affect the way the home looked. This required multiple photography appointments and collaboration with our stagers to bring out the best in our property. Creating a lasting first impression requires patience, strategy and experience.What are the agents potential listing strategies?
Depending on whether you are in a sellers market or buyers market the listing strategy can provide polarizing results. Seattle has currently been in a sellers market which means buyers have to compete against other buyers for a limited selection of homes. There are two main strategies a seller can employ when listing their home. They can either list the property at or above market price or they can list it under market and set an offer review date. The later strategy brings in the most potential buyers and make them compete against each others emotions to outbid. However, this strategy typically only works if the home is attractive enough. The risk with this strategy is if the home does not go pending after offer review date which could signal to others that there might be something wrong with the property.
In our above example, the townhome that sold at $850k had a 5 day offer review period but went pending on day 3. They clearly took an early offer and left a lot of money on the table. This could have been the result of a seller who preferred a guaranteed offer but their agent could have done more to provide guidance on the alternative strategy. Our listing also received early offers but we knew that the best offer would come from competing offers. We waited the full week before reviewing them all at the same time and produced a record breaking price.
In conclusion:
There are many preliminary questions you can ask an agent to evaluate if their interests are aligned with yours. At the end of the day, it is important to understand that whoever you decide to work with you are developing a relationship with them. Establishing clear communication and empathy will promote an environment of mutual respect.
In our above example, I couldn’t have attracted the highest and best offers without the cooperation of my sellers. They went the extra mile to satisfy the conditions I suggested. We worked as a team to navigate the uncertainties that arose after listing the property. They trusted me with offer review date negotiations that allowed our property to escalate from an original $835k price point to our closing price of $925k with all contingencies waived and more.
Thanks for reading and please feel free to reach out to me directly if you have any questions on listing your property for sale in the Washington state!
wow, this is impressive. id like you to help sell my condo.