How to effectively price your home for sale: Part 1 in this series of 8

This one's going to be short but sweet, as combining this list with a comprehensive description and explanation of each bullet point is better suited for a book than a blog post.  We'll take 'em apart later! 

A detailed explanation of each bullet point is nearly complete within this series of 9 posts,  with several posts active at this point...and more in the works. 

Now for the juicy stuff!

Pricing your home for sale is a stressful position to find yourself in.  That said, it doesn't have to be.  Home pricing is as much science as it is art.  Take the points below as a 'laundry list' of sorts: Items that may or may not apply to your situation.

1. Current Market Data or "Comps" - 
• What has recently sold? 
• What is pending? 
• What is active?  
• Data is science.  
• How you pull that data is art.  Make sure that you're pulling "Comps" as a buyer would, not as a means to secure the highest price for your home.
• Don't overlook what Didn't sell!
2. Interest Rates - Remember that interest rates and home prices are inversely correlated.  That means that as the price of money (interest rates) goes down, buyers can buy 'more house' for the money, increasing demand...and prices.
3. Market Pricing Trends - A trend might be a two year period, or a two week period depending on the market.  Be aware of trends and price your home accordingly.  If home prices are dropping, don't price your home at the top of the market, constantly chasing the market downward.  If trends are looking up, don't base your price on dated transactions or you'll be leaving money on the table.
4. Pricing vs. Inventory Trends - On its own, as inventory decreases home prices will increase and vice versa. No function of pricing is ever completely isolated, but inventory does have a big impact on pricing.  
5. DOM - Days on Market Trends - Is it averaging 45 days to get into contract or 4 days?  If the trend of DOM is decreasing, it means that buyers are snatching up houses more quickly, further increasing demand.
6. Micro Markets - Make sure that you're pricing your property according to trends and comps within your "Micro-Market."  Your home may be a block away from another home that sold for $X.  However, your side of the street has an unobstructed view of the Golden Gate Bridge (or it doesn't).  Is your community gated?  Are your comps all custom and varied in age and architecture?  Using a local area expert can pay big dividends with regard to Micro-Markets.
7. If you're not working with a Realtor, interview at least three local area experts in order to get a strong opinion of pricing.   If you interview only two, you don't really have a choice: It's really an either-or.  Three or more opinions starts to create a more statistically relevant picture to base your decision on.
8. Remember that what you paid for your home, improvements, upgrades, etc. has nothing to do with its market value.  Maybe you bought at the height of the market?  Maybe it was part of an estate?  Maybe you bought it 25 years ago? The home is worth what the market will support, always.

As always, I'll leave you with this tip:

Overpricing your house in hopes of finding that "ideal buyer" often leads to closing at a lower sale price than if you'd have selected a realistic price to begin with.  Once a home has sat on the market for a "long" period of time (long depends on trends) buyers and their agents often wonder "What's wrong with that place?  I wonder why it isn't in contract!"  These listings tend to get "stale" resulting in less activity and competition.  Do your homework, don't be unrealistic.  Your home is worth what it's worth.

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

My Bay Area Real Estate Crystal Ball: What I'm certain will happen in 2013...maybe.

So what's actually going to happen in the Bay Area Real Estate markets in 2013.  One thing is absolutely certain, and that is the fact that it will change.  The extent to which it will change depends almost entirely on government intervention.  If there was no government intervention there would have been burst in the housing bubble.  In fact, there wouldn't have been a bubble!  That said, the government will interfere, and the pulse of our market will not truly be "free."

The best predictor of future behavior is past behavior. Here is our "Past Behavior" with regard to Real Estate in Contra Coast County per TrendGraphix.  I doubt that these drastic and correlated trends are truly free.  They are, however, the facts...and that you can take to the bank.

For Sale and New Listings (Supply of homes for sale) decreased by 74% and 58% respectively. That, by itself, is meaningless.  However, nothing in business is truly 'by itself.' Average Sold Price and Average Price per Square Foot (a function of Supply and Demand) increased by 44% and 30% respectively. As supply goes down, price goes up.

Another variable that is affected by a drop in supply is how many days it takes for a home to be "sold." This is seen as Ave CDOM on the table above.  It stands for Average Cumulative Days on Market.  You can imagine that as supply goes down, the few homes remaining on the market (if priced reasonably) will go quickly!

So what is my "Prediction" for 2013?  Continued, unsustainable, increase in home prices.  

• More and more people will be out of the red and into the black, opening the door for more listings and purchases. 
• Builders continue to buy previously abandoned developments and land in an effort to increase inventory and meet demand. 
• Auction properties/flips will continue to dwindle as fewer and fewer homes are foreclosed upon.  
• Rent prices will stall or decrease as more and more home buyers re-enter the market after short-sale or foreclosure.
• Home Owners will leverage low interest rates in an effort to move 'up' in the market, opening up more homes for 1st time buyers.

Of course, all of this is subject to:

Interest Rates

Tax Consequences

The job market

Economic stability and security

The absence of catastrophic events.

Other than that...I'm CERTAIN!  ; )

As always, I'll leave you with little tip:

Garbage Disposals

• Never put hard-to-grind waste into the disposal (ex., chicken skins, egg shells, bones, celery or banana peels,...spoons!) - they will clog the drain.
• Run cold water down the drain for about 15 seconds before and after using the disposal to flush waste down the main line.  Just because it's past the disposal doesn't mean it's down the drain pipe.
• Turn on the disposal before adding food waste. Give it a fighting chance.  Let the disposal get up to speed before safely putting waste into it.
• Clean your disposal with warm water and a dozen pieces or ice or so.  It's the best "tip" I ever received from my plumber...after he pulled egg shells from my dishwasher vent tube.  Oops!

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

Real Estate Trends in Brentwood, CA 94513

2012 Year In Review

This blog caters primarily to people interested in Real Estate Trends throughout the areas I've lived in and continue to service; Walnut Creek, Brentwood, Oakley, and Alamo, California.  However, most of the information posted on this site really applies to all markets.  If you have any questions that the content inspires, please drop me a line.  I'm happy to reply in a timely manner.  If you'd like more specific information about real property in your area, please don't hesitate to ask...

...That's why I'm here.

  

The table below simply illustrates the List Price (LP) and Sale Price (SP) High, Low, Average, and Median for the time spanning 1/1/12 through 12/31/12.  There were 1060 homes sold in Brentwood in 2012.

Compared the above to 2011 (below) there were 1109 homes sold, with a median home price roughly $25,000 lower than in 2012.

Average Sales Price: Shown in Dollars per Square Foot

The graph below illustrates the average cost per square foot of homes sold in Brentwood in 2012, through November.  However, this information doesn't really give prospective buyer and sellers an effective 'rule of thumb' to use in estimating the value of their home.  Home values are a function of several key variables, not just dollars per square foot.  That said, this trend still demonstrates a consistent and noteworthy trend; a strong increase in the value of homes in Brentwood.  

Comprehensive Real Estate Market Data for Brentwood, CA 2012

The table below is a truly comprehensive view of important data as it relates to the Real Estate Market in Brentwood, CA.  Note: a 75% Decrease in the number of homes "For Sale",  as well as an increase in the average Active Price which may be the result of homes no longer being "in the black!" Also, note the decrease in Days on Market which is likely attributed to a lack of inventory.  If you want it...you better jump on it in Brentwood!

As stated in the header, if there's more specific information that you'd like to see, up to and including a complete Comparative Market Analysis for your own property, please drop me an e-mail or give me a call. There are several ways to reach me immediately below.

As always, I'll leave you with a little taste of wisdom:

"The U.S. Constitution doesn't guarantee happiness, only the pursuit of it.  You have to catch up with it yourself."

~ Benjamin Franklin

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

Short Sale 101: BTW...What is a short sale anyway?

When you're up to your elbows in jargon, idioms, and the practical vocabulary of any specific industry, you can forget the fact that not everyone on earth knows what you're talking about.  So here's a bit of an introduction to short sales for those of you who are (rightly so) confused about the terms and ideas you may hear around the water cooler.

What is a short sale?
A short sale is a sale of real property (typically your house) from which proceeds are less than the balance of debts secured by liens (your mortgage or mortgages) against the property. If the property owner cannot (or isn't willing to) afford to completely repay the liens, and the lien holder(s) agrees to release it's lien on the property and accept less than the amount owed on the note, you have an approved short sale.

If it was that simple, they'd all be done and gone.  The short sale process is certainly not that simple...nor that easy. Although short sales have been part of the real estate industry forever, they can be quite complicated.  Today's real estate market, still heavily weighted with short sales, demands a much, MUCH higher level of expertise than in the past.  It is your agent's job to keep you informed, advised, and most of all protected.  If you don't think you're receiving that level of service...fire them!

I've seen many, many homes that should have closed as a short sale (or short pay transaction) not get approved, ultimately resulting in the foreclosure of the listed property.  There are far too many people I've bumped into over the last few months who've obviously had their short-sales mishandled. This failure to close  and subsequent foreclosure is often accompanied by buckets full of heart-ache and resentment by all parties involved.   After your deal is botched is NOT the time to start asking questions.  That's why I'm here.  Click here to e-mail me a questions directly.

• What is a short sale
• Banks -vs- Investors
• Why do banks take so long to approve the seemingly misnamed "Short Sale?"

First let me start out by reiterating very crudely and simply that a short sale is when a property is sold at a price that leaves the seller "short" on funds to close.  Example: The seller's mortgage balance is $655,000 but the home's current market value is $415,000.  There's a $240,000 deficiency which makes this a short sale; a sale short of the balance of the debt.

Secondly, let's clear up the difference between a "Bank" and an "Investor".  B of A, Chase, Citi, Wells Fargo.or J.P. What's his name...(whatever name they've slapped on the front of your branch at the local strip mall)...may or may not be the investor behind your mortgage(s).  These enormous multinational corporations 'service" the loan for the investors.  Who are the investors?  You've got a better chance of having a dinner on Beale St. with the Elvis than ever learning who the investors are.  OH...but if you did...your debt would probably be sold to another 'investor' before you got approval for the servicing bank anyway.  It's best to just drop it.  Do what the servicing bank says, do it now, and do it right the first time.  The bank will, in turn, smile and move things along smoothly.

Lastly, a short sale is a complete misnomer.  They are typically not short.  That said, I've have them approved in as few as 8 days, and as long as several months.  The length of time it takes for approval depends on many things including the competency and speed of the following:

• The listing agent
• Possible third party negotiators
• The servicing banks' document collectors
• Your single point of contact at each bank
• The time it takes for internal approval
• The time it takes for final review and a decision by the investors
• Possible counter offers
• Changes on HUD statements from Title
• and on and on and on.

These are just a few thoughts that will help you get up to speed with the terms and complex nature of the short sale process.  With all of this in mind, remember this: Getting your short sale approved is completely irrelevant if you can't get it to close!

Tips and Strategies for getting your short sale to close will follow this post.

As always, I'll leave you with a little taste of wisdom:

“You will get all you want in life, if you help enough other people get what they want.”

~ Zig Ziglar RIP

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

We're buying what we can, rather than what we need, and it's gonna cost us again!

What is the cost of peace? 

 

Ask a Buddhist monk. There is no price.  

It appears, regardless of how much digging I do, that the real estate market is truly recovering.  At this point in the time, many of us have 'learned our lesson' having overextended ourselves. We've paid the price, financially as well as emotionally. In fact, we didn't just buy our dream home...we had encumbered our peace.  So what now?  

Right now, tens of thousands of people throughout the US are ready and eager to re-enter the real estate market.  So, buyers talk to lenders, determine how much they can afford, then start shopping for their new home.  Lenders are looking at, among other things, the buyers "ratio".   

Debt to income ratio is just that; a ratio or percentage of income that will go toward debt after a mortgage loan is funded.  For example, a buyer's income is $5,000 per month.  If, including the new mortgage payment, the buyers monthly debt is $2,500 the 'ratio' is 50%.  Personally, I have a 'magic number' that gives me peace.  That number is a number that is much, much lower than most others. I'm suggesting an alternate point of view.  Don't buy what you can afford! Buy what you need, and with that...your peace of mind.

Various mortgage programs, interest rates, etc. are determined in part by this ratio.  So what?  What does this have to do with peace, needs, and wants?  Just this: Lenders approve loan applications to a limit at which they feel comfortable that a client will be able to repay the debt.  There is one world in that sentence that doesn't really jump out, but it really needs to, and that is limit.  So buyers start looking for a home at or near their limit!  They then determine which home, at or near their economic threshold, would be best.  In my eyes, that process or sequence is backward.  Let's try something new:

1. Talk, listen, think, and determine what features you need in a home.  
2. Differentiate what you need from what you want or would 'like to have'.  
3. WRITE IT DOWN! It's simple: Must Have vs. May Have. Writing helps to distill your thoughts. 
4. Get with a lender that you trust. Learn what you qualify for. Set your budget. Stick to it.
5. Go buy your home. 

You may discover that by sticking with what you need...you can move into the neighborhood that you love.

You may discover that by sticking with what you need...you can afford to have your spouse work less.

You may discover that by sticking with what you need...you can afford...your home!

Just because you CAN buy at a certain price point; just because you CAN afford a particular monthly payment doesn't mean that you should.  In my list of needs vs. wants, peace and security are at the top. After that, I start thinkin' about bedrooms, bathrooms, and living space.

I'll leave you with these little tastes of wisdom:

“It is the preoccupation with possessions, more than anything else that prevents us from living freely and nobly.” 

― Bertrand Russell

“Normal is getting dressed in clothes that you buy for work and driving through traffic in a car that you are still paying for - in order to get to the job you need to pay for the clothes and the car, and the house you leave vacant all day so you can afford to live in it.” 

― Ellen Goodman

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

 

25 Billion Dollar Mortgage Settlement: Will you get the help you need?

Definitely maybe!

In February of 2012, the US government and 49 states agreed on a National Mortgage Settlement. So how does that affect you?  Well, if you're a tax payer, one way or another...it affects you. But let's dig a little deeper.

Now I'm not a financial analyst, a legislator, etc. so I needed to do some digging to see how this settlement might be able to provide some desperately needed relief to folks in my family, my friends, and my clients. At first, after about 30 minutes of digging, I realized how hard it is to actually learn what the National Mortgage Settlement really is! Well, that's not entirely true, as I still don't know exactly what it is, where the funds go, and how!

It appears as though this state/federal agreement applies only if you borrowed from the big 5 lenders: Ally, Bank of America, Citi, Chase, and Wells Fargo. That only leaves about 150 or so other lenders that aren't included.  But $25 Billion is a huge number, right?  Sure, if you're talking personal income, but in terms of relief for the entire nation...we're not even scratching the proverbial surface. The best number I could find for total mortgage debt in the US is $14 Trillion. (the image below was copied from the Federal Reserve site)  

So that means that if all $25 Billion went immediately to the borrowers who are underwater...we'd owe $13,341,278,000,000.  That's a 1.7 percent break!  Forgive my sarcasm, but WOOOO HOOO!!! Finally I can sleep better, knowing we'll all be OK!

Then I read that the settlement sets aside $3 Billion to go toward refinancing relief for borrowers that are current but upside-down on their mortgages. Let's break out the abacus again.  Approximately 30% of all mortgages in the US are "Upside down".  Call that $4 Trillion for simple math.  So the $3 Billion going to those who continue to pay on time is less than .1% relief.  Don't miss the little point before the one: one tenth of 1 percent! I mean, if you're passing out billions, I'll be the first in line, but that's not what's actually going to happen on September 24th, 2012. when this thing gets rolling.

Click here to read more from the California Department of Justice.  It starts to explain how, when, and where the funds are going.

Then click here to learn that...of the 49 states participating, many are setting aside funds for their general funds.  For example, California setting aside nearly a half a Billion dollars to pay toward the state's debt.

Now I could be mistaken.  It has happened before!  But this smells an awful lot like a 25 Billion dollar media stunt.

On a very serious note, if you've been foreclosed on; if you're buried in your mortgage, please look into this program anyway.  It is real money.  Although it's not going to change the world, it could change yours.  Maybe you'll be one of the lucky few.

As I personally struggle having much faith in our government, I'll leave you with this little taste of wisdom:

" What you do speaks so loudly that I cannot hear what you are saying" 

 ~ Henry Adams

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

Available Homes in Brentwood, CA: There's no doubt we've turned around. Will it last?

East county's inventory continues to dwindle, further driving up active home prices.

Click here to see available homes in Brentwood as of September 12th, 2012.

Since January of this year there's been a 72% decrease in active homes in Brentwood, CA.  This chart clearly illustrates that trend.  What it doesn't show is that we have only 60 homes active as of today.

The table below demonstrates similar trends to what I posted last week with regard to homes for sale in Oakley.  Looking at the last row, median home prices, you can see that in January the median price of a home sold in Brentwood was $279,000 while in August that rose to $330,000.  That's averaging an increase of nearly 2.5% per month: Staggering!

What does that mean for you if you want to buy a home in Brentwood?
If you're looking to buy, it's really time to get going.  "Well, I was thinking about maybe calling a lender to see if I might qualify..." Nope!  Call!  If you'd like to buy in this market, get your pre-approval in hand, get your earnest money deposit funds into your checking account, find an excellent buyer's agent who will represent you fairly and effectively...then get in the car and go!  By the way, bring your pen.  As a buyer, the best news you can hear other than "Here are your keys!" is "Your earnest money is going to be deposited into escrow!"

What does that mean if you want to sell a home in Brentwood?
If you are thinking about selling your home in Brentwood, have someone (I'm very happy to do so) provide you with a professional CMA, or Comprehensive Market Analysis.  From this, you can get a strong understanding of what your Net Proceeds (what you can anticipate walking away with after the close of escrow) will be. 

Will this market last?
This is a simple question to answer honestly.  The answer is..."Who knows?"

What's going to happen to interest rates?  What's going to happen to the real estate market before the election?  What's going to happen afterward?  What happens when the banks release this mythical (in my opinion, there is no inventory that banks are holding on to) sea of foreclosures to be sold?  If I had a crystal ball I'd be sailing around the world looking for great surfing waves with my family rather than sitting at my desk. The market is what it is, and it always will be.

If you would like a CMA, please drop me a line; email, text, call, etc.  I just need your address and a way to reach you.  If you know someone else who'd like one done, even outside of the areas I service; Alamo, Walnut Creek, Brentwood, and Oakley, please forward on my contact information. I will put them in contact with an local area specialist form their area.

As always, I'm here for your questions, comments and concerns.

I'll leave you with this Taste of Wisdom, 

"But until a person can say deeply and honestly, "I am what I am today because of the choices I made yesterday," that person cannot say, "I choose otherwise." 

 ~ Stephen R Covey

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

Email me at andy.blasquez@gmail.com
Click here to reach Macky Hensel.

Please Follow me on Twitter and Re-Tweet these blogs.
Please Add me as a friend on Facebook 
Finally, please comment or ask questions.  Other readers may be wondering the same thing.  I love the feedback, critical or otherwise, and love the interaction: I love this job.

Thank you always for your support.

How to find the best Realtor: Questions to use when interviewing a real estate agent.

OK, so at the end of each post, I share a "Taste of Wisdom";  a savory little morsel that I hope leaves my readers satiated and entertained. This time, however, I have put my Taste of Wisdom in the front.  You'll understand why soon enough.

A Taste of Wisdom:

"Knowledge is knowing that a tomato is a fruit. Wisdom is knowing that a tomato doesn't belong in a fruit salad."

~Miles Kington

Nobody wants to learn after they bought a house that their real estate agent was just another sales person looking for a commission.  When interviewing a Realtor, it's wise to have a list of questions to help you make your decision.  That said, I really do have to laugh a bit.  I was just ‘interviewed’ by a prospective client who, with great intentions, decided to grill me with a canned set of questions he pulled from About.com. I know for sure he’ll be laughing when he sees this blog. If I didn't know that for sure, I’d have the courtesy to camouflage this tongue-in-cheek posting.    

What can you take away from this post?  Remember that the answers you receive from different agents are circumstantial and are based on their unique situations.

Now this post would end up thousands of words long if I posted it in one fell swoop, so I think it’d be best to take it on a bite or two at a time!  I'll post more on this topic over the next few days.

 Sit back and enjoy!

Q1. How Long Have You Been in the Business?

A1. Virtually irrelevant.

In a seller’s market like today, a new agent might not yet be equipped to handle on the spot negotiation, nor will he or she have the reputation that gives listing agents and their sellers the security they are looking for to go into contract.  That said, this new agent's mentor/coach might! 

In a buyer’s market, anyone with a pulse could close a deal.  Effectively and ethically?  Of course not, but they’d be closing.

As a newby, I had the good fortune to be mentored by Macky Hensel who has decades of experience within the real estate industry; with builders, title, lenders, and in resale.  She had the care and the sense to stand very closely behind me several years ago to ensure that as a rookie a) my clients were optimally represented, and b) that I learned the lesson of the moment!  Really, the question ought not be “How long have you been in the business?”  It ought to be, “Could you please explain what makes you an effective buyer’s agent or seller’s agent?”

Q2. What is Your Average List-Price-to-Sales-Price Ratio?

A2. Huh? 

This one killed me!  First of all, if an agent knew that number…the client sure wouldn’t know what it meant. The fact that this was “interview question” number 2 of 10 on this popular site's list is…well…I'll bite my tongue. This ratio, by definition, is a function of the list price.  The listed price doesn't even guarantee that the sellers…nor the lender…nor the investment group behind the lender will accept an offer at this price!  This might sound ridiculous, but one could argue that a properties list price might as well be completely erroneous.  I can say however, with absolute certainty, that a given property will sell for exactly what the market will support, under that market condition and that seller’s unique circumstance.  They all do.

Example: I recently saw a property in the Shadow Lakes area of Brentwood. It was listed at $228,000 and closed nearly $100,000 over.  Obviously $228,000 wasn’t market value!  Why would a listing agent do that?  I’m speculating that the seller needed an immediate offer to keep a property out of auction. Then they received several offers, took the best one and closed.  AND...I could be wrong.

There are many, many strategies that agents use when choosing a listing price.  Personally, I tend to list Short Sales above comps.  "But it's a short sale!"  Yep!  If we get an offer above what comparable properties sold for, great!  If we don’t, we can lower the asking price and we've proven to the bank that we are ethical, and that our original asking price was too high.  That’s just me.  I’m not "right"…and “they” aren’t wrong. 

NEXT...if this actually mattered, wouldn't DOM or Days on Market matter too?   "What is the average number of days that your listings remain active?" After all, shouldn't agents sell homes as quickly as they can?  This sounds like a good question, right? But remember...we don't put tomatoes in a fruit salad!  Average number of days on the market is certainly knowledge, but by itself it's simply statistical data.

Lets look at homes that have been on the market for 100+ days!  In today's real estate market, virtually all of Contra Costa County has an Average Days on Market of +/- 21 days. Many properties go into contract on day 1, and some even have accepted offers on day 0. So if a property sits on the market for 139 days or 268 days, it must be overpriced…right?  UNLESS…the seller is in a position to wait for just the right buyer and he or she will only sell if a particular purchase price is reached.  In that case, Days on Market doesn’t matter; finding the right buyer does! The idea that somehow, some ridiculous ratio that agents ought to “ strive to achieve” flies in the face of ethics and economics.

More authentic points of view to come!

Until next time, and thank you in advance for remembering me when the topic of real estate arises.

Andy Blasquez ~ The last Realtor you'll ever need to look for.
DRE# 01826135

www.andyblasquez.com

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