At Home in Upland: It Should Not Be A Surprise..... IF We Have Prepped Our Buyer Well.

It Should Not Be A Surprise..... IF We Have Prepped Our Buyer Well.

It Should Not Be A Surprise.....

IF We Have Prepped Our Buyer Well.

By Brad Rachielles

You may know by now that I watch the LOCAL real estate numbers closely. One of the very interesting statistics is the ratio between the asking price and the selling price. Taken as an average, this number speaks to the market condition. In a seller's market, (as my Local Market is with only 2.4 months of inventory) we can look for that ratio to be high, often seeing the selling prices exceeding the asking price.

It is hard to generalize here. Even in a strong seller's market, it doesn't always happen that the winning price is above asking. Consider: Is the Listing price above market value? In what condition is the home? How well is the home being marketed? How well does the home show?

Last month, our Local selling prices were at 99.0% of asking price. This is an average. and, clearly, the seller who presents a well prepared home at reasonable price stands a better chance of getting the price that they want.

Factor in the REALTOR who suggests offering the home below market value to catch attention and elicits a bidding war........  That is another post all by itself.

With this in mind, it is natural for the sellers and the buyers to ask.... How often ARE homes sold for above asking price? The California Association of REALTORS® (CAR) has provided us with the answer for our state in a very graphic form.

Infographic from CAR

Inventory is low now but trending upwardly. Home affordability is high right now, but buyers need to consider that this index has dropped some in the last year plus, and interest rates are hovering / bouncing between 4.35 and 4.5%. The spring selling season is now open so buyers and agents, do your due diligence. After all.....

It Should Not Be A Surprise..... If we have Prepped Our Buyers Well.

Did you like what you Read?

 THANK YOU!

It's All About YOU!             Brad Rachielles, REALTOR, CDPE, GREEN, Upland, CA. 

CalBRE# 01489453
 

 

Brad Rachielles, REALTOR, CDPE, GREEN 

Helping Inland Empire Buyers and Sellers with their Real Estate needs in the Communities of: Upland, Rancho Cucamonga, Fontana, Claremont, Ontario, Chino, Chino Hills, Pomona and La Verne, CA.

CDPE Certified Distressed Property Expert, Brad Rachielles, Real EstateCall Me at 909-816-7333 

Web Page: http://www.BradRachielles.com

e-Mail: bradrachielles@dslextreme.com

 

Comment balloon 40 commentsBrad Rachielles • April 22 2014 08:47AM

Comments

Homes in my area of Loudoun County are selling for about 98% of list.

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) over 3 years ago

Lenn,

Thanks for sharing. I really appreciate learning what the world is like outside of my service area. I KNOW that you also keep a close watch on the numbers..... AS WE ALL SHOULD. Thank you again!

Posted by Brad Rachielles, REALTOR, CDPE, Upland, CA (CENTURY 21 Peak, Ca BRE# 01489453) over 3 years ago

We just announced today that we have another home in pending at full asking price.  The Albuquerque market is keeping us running full force Brad. 

Posted by John McCormack, AlbuquerqueHomes.com, Albuquerque Homes Realty (Albuquerque Homes Realty * www.AlbuquerqueHomes.com) over 3 years ago

John,

First, congratrs to you and your seller on the full price Pending. Sometime, If you think of it, I'd like to hear the ratio between asking and selling prices in your area.

Posted by Brad Rachielles, REALTOR, CDPE, Upland, CA (CENTURY 21 Peak, Ca BRE# 01489453) over 3 years ago

Hi John, great graphics on this market trend. Thanks for the post.

Posted by Les & Sarah Oswald, Broker, Realtor and Investor (Eastvale Team Realty & Property Mgmt) over 3 years ago

Hello Oswalds,

Thanks for stopping in.

Posted by Brad Rachielles, REALTOR, CDPE, Upland, CA (CENTURY 21 Peak, Ca BRE# 01489453) over 3 years ago

So this is how the bubbles are made . . . 50% over list.  Really?!?  WOW.  Appraisers need to keep a lid on it.

Posted by Carla Muss-Jacobs, Principal Broker (503) 810-7192, Buyer Focused ~ Buyer Results (BuyersAgentPortland.com | Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% of the Time) over 3 years ago

There's a little wrinkle to the asking versus selling price story. Our MLS in Seattle reports the difference between listing and selling price. That listing price is the price at the time the property received and offer (that was accepted). What they do NOT report, and what is more meaningful in all cases where the listing price has been reduced, is the difference between the original listing price and the selling price. Thus, a home that reportedly sold, let's say for 2 percent above list, may actually have sold for 1 percent below the original listing price because the seller had reduced the price along the way.

Posted by Gerhard Ade, Real Estate with Confidence (RSVP Real Estate) over 3 years ago

 

Hi Brad. There are way too many factors involved to make the statistical generalizations fit most individual cases. Trying to can be dangerous. That said, there's no getting around using statistical information as guidelines and for planning.
Bruce

 

Posted by Bruce Kunz, REALTOR®, Brick & Howell NJ Homes for Sale (C21 Solid Gold Realty, Brick, NJ, 732-920-2100) over 3 years ago

Setting expectations is always a good idea!! That way no one has unrealistic goals.

Posted by Jill Saddler, Draper Utah Real Estate Professional - 25 years+! over 3 years ago

I think it's important that agents not only know their market, but can interpret the data correctly. Only when they do both can they inform their buyers or sellers appropriately.

Posted by Tom White, Franklin Homes Realty LLC, Franklin TN (Franklin Homes Realty LLC (615) 495-0752 or www.FranklinHomesRealty.com) over 3 years ago

It's all about statistics, but buyers need to know one thing:  You snooze, you lose. 

Posted by Jeanne Gregory, The most important home I sell is YOURS! (RE/MAX Southwest) over 3 years ago

Carla - Clarification: 50% of the sold homes were over the listing price by some number...... if only $1. They are not saying that homes were selling for 50% over asking price.... That Would be a bubble.

Gerhart - EXCELLENT comment. Our MLS works the same way. It wouldn't surprise me if this was a standard model for setting up an MLS proceedure. Our listings do retain the original listing price.... somewhere in the listing. I'd bet that this infographic is based on the list price at acceptance.

Bruce - Just as your body temperature does not tell the doctor what the problem is.... it is an indicator to indicate that something is different. Thanks.

Jill - Thanks for sharing.

Tom - You are absolutely on point. I am truly surprised at how many don't know what the numbers really mean. Thank you.

Jeanne - I've also heard it said that clients don't care how much you know, until they know how much you care.

 

Posted by Brad Rachielles, REALTOR, CDPE, Upland, CA (CENTURY 21 Peak, Ca BRE# 01489453) over 3 years ago

Knowing the stats in a market really helps in pricing properly and moving real estate quickly.

Posted by Jeff Jensen (The Federal Savings Bank/Lending in 50 states) over 3 years ago

In our are the homes sales are about 96% of asking price. Usually investor properties seem to be over asking price.

Posted by Bill Reddington, Destin Florida Real Estate (Re/max Southern Realty) over 3 years ago

This is a very interesting post and I think this is a good statistic to be on top of in each market we serve.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) over 3 years ago

Brad, it's all about the numbers and what they show!  It's certainly an interesting post.  If you prep your buyers well, they'll be ready when the time comes!

Posted by Jack O'Neal (Conway Real Estate) over 3 years ago
It's the SAT prep of real estate life without a doubt! Love and light, Laura
Posted by Laura Cerrano, Certified Feng Shui Expert, Speaker & Researcher (Feng Shui Manhattan Long Island) over 3 years ago

Thank you for sharing the statistics. It sounds like a seller's market.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 3 years ago

I have always had the opinion that if someone wants something..they should go get it including upping the price. This post compliments and makes that point well...

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) over 3 years ago

Thats a very interesting statistic, something Id show my buyers on our first discussion, so they know what they are getting themselves into.  

Posted by Morgan Evans, LICENSED REAL ESTATE SALESPERSON (Douglas Elliman Real Estate) over 3 years ago

Jeff - Absolutely agree.

Bill - Might I just guess that your area is moving much closer to a "buyers market?".... or, am I all wet?

Joan - Definitely.

Jack - Many don't understand that you have to know the numbers and what they mean in order to make good decisions. Thanks Sir.

 

 

Posted by Brad Rachielles, REALTOR, CDPE, Upland, CA (CENTURY 21 Peak, Ca BRE# 01489453) over 3 years ago

Laura - Thank you

Gita - Appreciate your taking the time to comment.

Richie - You're great for stopping by. Absolutely!

Morgan - Adds importance to the argument against loballing offers in this market if the property is well presentede and reasonably priced.

Posted by Brad Rachielles, REALTOR, CDPE, Upland, CA (CENTURY 21 Peak, Ca BRE# 01489453) over 3 years ago

What a great graph to show the state of the market in California.  Having this data will tell folks up front what kind of offer to make with these housing market stats.

Posted by Jan Green, HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN (Value Added Service, 602-620-2699) over 3 years ago

Wow, 50% over asking. I haven't seen numbers like that before. I guess it would be good to be a seller in California right now.

Posted by Tammie White, Broker, Franklin TN Homes for Sale (Franklin Homes Realty LLC) over 3 years ago

Kind of proves that sellers don't have to worry about under-pricing their homes...

Posted by Richard and Beth Witt, Long Island Cash Home Buyer 516-330-6940 (Long Island Cash Home Buyer) over 3 years ago

Thank you Jan. Your comment is appreciated.

Tammie - No, No, No....... you misunderstand. That is not that sales prices are 50% over asking...... It IS that 50% of the closed sales were over the asking price, and that could have been any number over..... even just $1.

Richard & Beth - I might worry about pricing if the home is not well presented and market values are not observed.

 

Posted by Brad Rachielles, REALTOR, CDPE, Upland, CA (CENTURY 21 Peak, Ca BRE# 01489453) over 3 years ago

This was a good infographic.  I put it out myself yesterday.  Thanks for the post.

Posted by Gene Riemenschneider, Turning Houses into Homes (Home Point Real Estate) over 3 years ago

Gene........Great Minds.....

Posted by Brad Rachielles, REALTOR, CDPE, Upland, CA (CENTURY 21 Peak, Ca BRE# 01489453) over 3 years ago

Wow you as a group are doing an amazing job.  That is almost impossible.

Posted by Jeff Jensen (The Federal Savings Bank/Lending in 50 states) over 3 years ago

Our Market is not that strong....yet, but we'll get there soon!

Posted by Travis "the SOLD man" Parker; Associate Broker, email: Travis@theSOLDman.me / cell: 334-494-7846 (Team Linda Simmons, Enterprise, AL 36330) over 3 years ago

Many homes in Dallas are selling over the asking price.  Most would fall in the 10% or less range.  Appraisals have not caught up with sales' prices.  Cash buyers still want to know that they are not over paying, so many are paying for an appraisal.

Posted by Sharon Parisi, Dallas Homes (United Real Estate Dallas ) over 3 years ago

Respectfully, those illustrations don't represent why almost 50% of homes sold closed above the asking price. Many agents simply listed homes at lower prices to attract buyers and let the market determine the sell price as you stated, so IMO, it's irrelevant.

Posted by Kimo Jarrett, Pro Lifestyle Solutions (WikiWiki Realty) over 3 years ago

Jeff, Not really a function of the Realtor actions as a lack of inventory. Last year, it was common th have less than 2.0 months of inventory and pent-up demand high. An extreme sellers market.

Travis - Actually, Active Listings are down, Pendings just starting to grow, and closed salesalso down.

Sharon, You have a handle on your market. Thanks for sharing.

Kimo - Your right about the reasons why. The value in this graph is that the same tactics were likely used over several years . The same anomolies were likely present in each year and this is a huge sample. Looking at it from a Macro standpoint actually seems to work. Looking at it from a Micro analysis (trying to pick out minor variations) does not work as you say. Thanks Kimo.

Posted by Brad Rachielles, REALTOR, CDPE, Upland, CA (CENTURY 21 Peak, Ca BRE# 01489453) over 3 years ago

Hi Brad, I'm heading out in a bit to preview a home that just popped on the market. I have to call my out-of-area clients with a full report - and we'll write up a full price offer if it's a fit. That's the way it's going right now...if I suspect multiple offers, we'll do an escalation clause based upon comps and the buyer's comfort level.

Posted by Debb Janes EcoBroker and Bernie Stea JD, REALTORS® in Clark County, WA (ViewHomes of Clark County - Nature As Neighbors) over 3 years ago

Good luck Debb. You just got to stay in there when there are several possibly interested. Your out of town client has a great Realtor working for them.

Posted by Brad Rachielles, REALTOR, CDPE, Upland, CA (CENTURY 21 Peak, Ca BRE# 01489453) over 3 years ago

Brad - Great job utilizing the infographic to explain how often homes were sold over asking price. Living in AZ, I am a little surprised at how much better CA is doing in regards to real estate. Right now, in Chandler, AZ, we have a ton of inventory, and homes are taking a long time to sell (well under asking price).

Posted by Troy Erickson, Your Chandler, Ahwatukee, and East Valley Realtor (Diverse Solutions Realty www.ChandlerRealEstate.weebly.com) over 3 years ago

Troy,

Thanks for sharing. The infographic is for the whole state of CA. Let me say that usually, SoCal is nothing like northern California statistically, and my little 10 community service area is nothing like LA statistically. It might help if I shared a brief synopsis of what I look at each month for single family residences only in my service area around Upland, CA. This is just a little part of a very large spreadsheet that I do to start each mon

Oops.... My effort to clip and paste didn't work. Let me know if you would have interest in a PDF copy and I will gladly send via e-mail.

 

Posted by Brad Rachielles, REALTOR, CDPE, Upland, CA (CENTURY 21 Peak, Ca BRE# 01489453) over 3 years ago

Brad, great post! It is same thing in the Austin market too! Almost every home I've put an offer on recently has seen multiple offers and many have sold to cash buyers.

Posted by Jordan Gouger, Helping you to achieve your housing goals! (Keller Williams Realty Inc.) over 3 years ago

Brad - This is an excellent post about what's happening in your market, which is very similar to ours. Home buyers need to be prepared to pay full price or even above.

Posted by Michelle Gibson, REALTOR (Hansen Real Estate Group Inc. ) over 3 years ago

Participate