I don't know about other markets, but it's been quite the chore in some Oahu neighborhoods to determine pricing for the sale of the property. It's been just as hard for an appraiser to get a grip on some neighborhood markets as well.....in our Up and Down Oahu Housing Market.
For most of the listings I've had this year, I've literally had to beat our MLS to death for comparable properties as some of the short sales and foreclosures have closed; yet our market wants to recover as well. It's been mind boggling to present to the seller an approximate in between for pricing. I've come to the conclusion that using the ‘in contract' prices may just be what I need to use for the ‘high' price as well as other factors........
The Oahu Housing Market has gone up and down in numbers and sales prices since the beginning of the year and I incorporated a "Strategic Plan for Pricing and Marketing" the property being listed.
After preparing my listing packet with supporting comparable properties, crucial pricing information, graphs and so forth, I sit down with my clients and discuss their options. I listen to their wants and needs and most of the time they are open to listening to my plan to sell their home too.
- Get the home in tip top shape for the first Open House. I ask if they want my suggestions to get their home ready. If they are willing, I go through the home with the client and make a list of things that need to be done before that first showing.
- Price the property aggressively to attract the consumer. After going through the comps and
information we discuss options. It's not only about getting the top price but how you get that price too! Read on........... - My crucial and creative plan: While they're still doing their last minute touch ups and cleaning to get ready for the First Open House, I list the property at the attractive list price with notice that the first showing will be at the first Open House. If the property is priced well, this will allow time for the public and agents to view the listing....and make time to attend that first showing.
- The first few days on the market: ...and before that first showing/open house)....Listing the property in every available internet site that I subscribe to and create the property virtual tour with www.realestateshows.com Here's an example>> Mililani Townhouse for Sale!
- Get all flyers, brochures and property highlights and upgrades sheet done. Making a flyer and brochure attractive along with pertinent information about the property to hand out gives a personal touch. I take notes during my first interview and walk through of the property. I ask questions about any highlights, upgrades and so forth so I can make an additional sheet going room to room to hand out as well.
Open Houses may not work in your area but they sure do in our market! Our Hawaii Open Houses ARE the Sunday event and when using this ‘technique' along with the right pricing.... I've had 20-50 people attending at that first showing and Open House.
This Mililani Townhouse for Sale! was aggressively priced at $369,000.
We record tomorrow morning at an offering AND appraised price OVER the listing price.
....I'll let you know the sales price after we record in the morning :)
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Celeste "Sally" Cheeseman is a Realtor-Associate with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves all Hawaii Home Buyers and Sellers on the island of Oahu (Honolulu County) including all Hawaii Military Relocating to Hawaii, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents.
Website: www.hawaiihomesmarket.com
This is a great post.. It is so important that sellerl follow all of these tips. They often find when they don't, their property linders on the market for a long time.
Sally- I so agree, it has been really tough here too! Nestor is always right on the money, yet, lately, he says that there are times where he is not even exactly sure. There are some neighborhoods we have a listing in where nothing has sold in over a year. What is the BPO agent going to do, where will he or she go? We have to always second guess them and be prepared with great comps, but there are places where there are no comps and no comps even near by!
Joan: I'm just happy when they're willing to listen....and when they do...and find out it does work...they're VERY happy. :)
Katerina: No kidding! In some areas the same thing is happening. In Mililani Mauka we have pricing according to rim lots/increments/styles in increments and so forth. It's just outrageous! In the townhouse arena it's one short sale closes and whacks everything out...then another closes and prices are back to where they used to be....almost :)
Woo Hoo! A great check list and a wonderful advisory to share with your clients, and mine too! In our arsenal of tools should always be the writings and advisory of others. If a cleint is ever resistenat to our best advise, deferring to a third person ( one of our ActiveRain members) works really well.
Hi William! Yup...and that's a fact! I love to learn from others here too... more than you know...I've learned much from you my dear friend!
Sally,
Congratulations on being able to capture the momentum of your local market!
Steve
Sally, great information here. This will work in all markets, not just HI. This a great place to learn...
Pricing in unstable markets in always tough. There are many agents that follow some of the same open house guidelines in my area such as no showings until the 1st open house.
If you are going with an open house this is great..going to use it! The first showing at the the first public open house..with a good price, that is a winning strategy! Thanks!
This is great information for any market right now - our market is in flux due to the oil spill, even though it is NOT near our shores here in the Clearwater area.
WOW! I have so been there! It is crucial to list with an agent like you WOO HOO (I rhymed haha) who understands on getting top dollar yet the pitfalls of declining potential. You must price AHEAD of the market is correct!
Sally in some of the neighborhoods around here comps have been hard to fine, and Underwriters have been questioning Appraisals. Multi Family properties have been particularly challenging at times.
Here in Houston, Texas we also have houses in areas that are hard to price. Especially if there's a lot of foreclosures & only a few non-foreclosures. Appraisers do use the foreclosures in their appraisal report to determine the appraisal value.
I like the tip about the 'first open house'! I will have to try that suggestion next time I have a listing.
Sally--I find this very interesting:
I think you have a great idea here but we could not do this without withholding from the MLS. Our mls contract indicates that the seller have their home on the market and available for any MLS agent to show. It would have to be listed as "temporarily not available to sell" if the seller is not accepting showings yet. When we do this, it doesn't feed into realtor.com or any other IDX sites so it is not fully marketed either.
Great idea if it works in your market as it helps the seller have time to prepare as those first showings are often the best ones!
Excellent post, as always, Sally. And I believe strongly in open houses too. I guess some people don't like them, but if done correctly, they can bring in lots of potential buyers. And I have sold the house I held open to buyers who came to an open house. I like broker opens too.
Sally, I like your tip about marketing the property and announcing that the first showing will be at the open house.
Terri: We have to specifically have it in our listing agreement...it's under special terms.
Sally - that is a fabulous list for your "Strategic Marketing Plan" ... I bet the customer likes to see this in writing.
This is a great Marketing Plan, thank you for sharing