I believe that the core competency needed by real estate agents in today’s market is expertise in pricing. I want to be able to educate my clients on the market realities so as not to enable unrealistic expectations. Too many agents overprice according to what used to work in the bygone appreciating market days with lower inventories. In today’s flat or depreciating market with high inventories, if a Seller overprices what they most likely are doing is losing value and losing time.
I use multiple methodologies in arriving at a recommended value. A few weeks ago I posted a summary highlighting the 3 major pricing considerations I use: 1) historic pricing based on past sales; 2) price point management based on Buyer pricing categories; and 3) key competition in existing inventory.
However, since earlier this year, another way that I am able to look at pricing is through a program exclusively available to the Wells Group in this area called Focus 1st. With this program, I can generate graphs that show a Seller, based on current market statistics, what the odds are of selling their property. I truly believe that Focus 1st, coupled with the other methodologies that I use in pricing, has been instrumental in helping me arrive at an optimum recommended price for my Sellers, and more importantly, instrumental in helping educate Sellers of a best price to list if they want their property to sell in today’s market.
Obviously, sometimes this pricing process is painful and I am not unmindful or unsympathetic of all of the facts and circumstances that may motivate a Seller to list a property for sale. However, my job as a real estate professional is to tell my clients the truth about what the market statistics are telling us. The market place, not me, is in the driver’s seat, and unfortunately, the market does not care what a Seller needs to make in order to break even and does not care if a Seller paid more for a property than it can now be valued if it is to attract a real buyer given today’s competition.
As I indicated, the Wells Group has had the exclusive right in southwest Colorado to use Focus 1st since earlier this year. If you are interested in seeing an example of how these graphics look please give me a call. I would be happy to prepare a sample Focus 1st presentation for your review.
Take care and as always, never hesitate to contact me or anyone on my Team with any questions.
If you have any questions, please do not hesitate to call me. You can reach me, Don Ricedorff, at The Wells Group 970-375-7014, don@frontier.net, or at my website at durangorealproperty.com.
Don Ricedorff is a licensed real estate broker in the State of Colorado, with 18+ years of experience, and he resides in Durango Colorado.He has numerous real estate designations, which have provided him with an unparalleled education to assist his clients. The designations include:
CRS, Certified Residential Specialist
CRB, Certified Residential Broker
CCIM, Certified Commercial Investment Member
CDPE, Certified Distressed Property Expert
ABR, Accredited Buyer Representation
GRI, Graduate of Realtor Institute
RSPS, Resort and Second Home Property Specialist
CIPS, Certified International Property Specialist
SRES, Senior Real Estate Specialist
He is also an active volunteer in the community and his church. His highest aspiration is spending time with his wife, Janet, and his three children Kelly, Katie, and Kyle. His other interests include playing tennis, fly fishing, hiking, boating, and water skiing.
1 comment:
Yes - pricing is really critical even before. With real estates being a large industry not only in the US, but all over the world, there is no doubt that showing clients of a perfect price for them without compromising real expectations and situations needs expertise. The success of real estate comes only when a good pricing is made. In most cases, real estate courses educating individuals need to focus on this vital part of marketing.
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