How Big a Price Reduction? If an otherwise well-staged, well-marketed home isn’t selling after a reasonable interval on the market, a price reduction is invariably indicated. How big? It all depends on how overpriced the home appears to be. Toss Out the CMA Once a home is actually on the market, interest from prospective Buyers...Read More
“East is East and West is West” From experience, here are two good rules of real estate negotiation: Rule #1. Never argue the “comp’s” with the other side. A comp, or comparable sold property, is a similar, nearby home that has sold recently. To determine fair market value, Realtors and appraisers alike typically look for...Read More
Mispriced Properties: Exhibit A Where: 46xx 1st Ave. South in Minneapolis What: Bank-owned (foreclosure) 3 BR/2 BA 1917 stucco home with 2,000 square feet. How (much): asking price — $72,900; sold price — $130,000 When: listed — 4/19/2009; closed –8/18/2009 In my post yesterday (Seller’s Motivation: Is it Relevant?”), I made the case that the...Read More
The Art of Doing Comp’s I’m working on an assignment for a client now that’s proving devilishly difficult: identify the premium associated with a home on a small, metro lake so that it can be priced appropriately for sale. The lake in question isn’t Lake Minnetonka, Lake of the Isles, or other “marquee” name. Rather,...Read More
The Goldilocks Approach to Appraisals Just like Goldilocks preferred the porridge that was neither too hot nor too cold, appraisers like to see a home that prices in the middle of its peer group. In appraiser lingo, such a home is said to “bracket.” In plain English, that means it’s priced more than a slightly...Read More
