53 Kingsbury Place
It was very nice to meet with you and Alex. The house is truly amazing.
The challenge of course is the oversupply of inventory.
We will be discussing the following market criteria:
Per our conversation, it is my opinion that ALL the homes are priced above market value at the moment based on the excessive inventory.
Most of the properties are remarkable, however 11 Active and 0 Under contract, 60% selling in about 2 weeks or less, about 50% selling over list price. It is a bit of a “wild pricing guessing game” by the listing agents.
PENT UP DEMAND
While there is an oversupply of exceptional housing, I am very confident there are buyers waiting to purchase a home on your street. This is very clear from the amount sold in 2 weeks or less and the percentage selling at or above asking price.
Like I shared with Jim Campbell, there is evidence that buyers exist simply by looking at the data. Not the complaints of the agents.
Agents fall back on the statement, “there are no buyers” when they cannot convince the seller to reduce the price. Agents preach marketing, when in reality they know marketing is of no use whatsoever if their listing is overpriced. A hard thing for a seller to grasp, however most “marketing is smoke and mirrors” as evidenced by all the brands taking hundreds of days to eventually not sell.
Did agent marketing fail at such a high rate or was the price of each property not in line based on the buyers opinions? I go back to 11 to 0. Where are the marketing strategists? All the effort to find “the right buyer?” (smoke and mirrors)
Every product must be priced right for the market they are in. If there were 15 for sale in the immediate area, yet 45 under contract, you could raise your price.
Presently, there is a pretty large oversupply. The luxury market is going through a price correction.
After reviewing the data and brainstorming with Cammy, I would recommend a price shift.
I believe the “contemporary” wording and pictures can be presented so that you acquire more showings.
The yard will be an issue for some, but when you look closely at the last 2 years of sales, I believe there is enough evidence that “this size lot sells.”
As I mentioned, my job is to create a paper trail to be ready for contract negotiations. And to stay away from “comps and price per square foot.” That is an argument neither agent can win. Parties simply agree to disagree.
I have been working on and will continue to have the data in place that “eliminates objections” such as purchasing on the higher end of the area. Or backyards like this are hard to resell. Those are negotiation tactics.
The goal is to obtain “the next buyer in the market” without under pricing and getting multiple offers. If they occurs, we did this wrong. I do not want multiple offers.
Your last asking price was $1,395,000. In the end, the construction cost of the garage is where the financial loss will occur. It is probably the nicest garage I have ever seen, however that is part of the challenge in recouping the investment.
If I were doing this analysis for a relocation company, I would suggest a list price of $1,350,000.
There is a strong possibility it will be a relocation buyer. However, the “Move Up” buyer list I provided you could provide your buyer. There are approximately 30 of those buyers in the market right now. That was another healthy sign. I have included this link to our marketing page. It has been the program that I have used for many years to “find the agent that has the buyer.”
While we have many methods to “find the buyer”, the SMART PR program is designed to network with agents that have a reason to have a buyer right now.
I would recommend a payout of 2.5% to the buyer’s agent. (You could do 2.25% like the other sellers, I would recommend paying out the highest in a market with an oversupply of housing).
Our listing side is just 1%. Thus the maximum would be 3.5%.
If we obtain the buyer via relocation, and there is not other agent involved, the maximum the fee would be is 2.25%.
If we obtain the buyer from online web marketing, we would prescreen them, however we would ask you to meet the buyer at the home, and if they purchased it, the total fee would only be 1%. (If this is going to occur, it would be in the first week or so).
Each week we would review your online HITS in order to track buyer and agent viewership for your home.
The MLS is truly far more impactful than all of the websites put together. It is where the highly motivated buyers do their home searches. Zillow and other sites are important to our program, however the analytics at MLS are extremely important to track each week.
My hope of course is to be the agent chosen to serve you for this project. If you choose our firm, we would email you the service agreement which always contains a 30 day cancelation agreement.
We will then schedule the photographer. The turntime to have the property live in the MLS is usually 2-3 business days.
I am very optimistic that we can accomplish your goal. We have the expertise and hope you choose our program.