A Tale of Two Houses
Tuesday, May 19th, 2009
This is a real estate story about 2 houses located somewhere in West Chester, Mason or Fairfield.
The story begins when I turn into a real estate “handicapper” when I add a newly listed property to my private tracking sheet. While friends track their stock portfolios or watch the Preakness, privately I’m betting on the sale prices of certain homes. I randomly select a few to follow and based on neighborhood stats, pricing and condition- then the tracking begins2
2 of the 10 properties I am currently following have strong similarities:
- both sold in the last 3 years
- neither owner upgraded (no new kitchens, bathrooms)
- both began the current listing on the market 15%-20% overpriced
- Open houses have been held almost weekly at both properties
And last week the similarity on pricing ended when one of the properties reduced their asking price by 7%. Sunday’s open house had lots of traffic. The 2nd property is waiting for the market to inflate to their price and their open house didn’t attract anybody. (Because the properties are in areas where I have several past clients- they help keep track of activity- very unscientific- but pretty reliable).
Well timed price reductions combined with a strategic open house can help fuel interest in the property. Of course, the right price at the time of listing sells even faster.
Based on past data, I am betting that property#1 sells with 45 days at 4%-5% less than the current asking price. Property # 2 will be on the market for a minimum of 180 days and sell for 20%-23% less than the current asking price.
Buyers also make mental notes about properties- and if they have keyed in on a particular neighborhood -they can tell you all about the prices and how long it has been on the market.
Real Estate with a short listing history have a better chance of selling for a higher price.
For better results when selling- know the market and understand that buyers are pretty well informed.
Related Article: What do Buyer’s Know?
