Housing Market Circular Reasoning The reason more upper bracket homes aren’t selling . . . is because more upper bracket homes aren’t selling. Huh? Once a deal is struck, the lender’s appraiser seeks to substantiate the value of the collateral — the home being sold — by looking to other, similar homes that have sold...Read More
Real Estate’s “Heisenberg Uncertainty Principle” The observer influences the thing observed. –Heisenberg uncertainty principle It seems self-explanatory, but as a principle, I don’t price other Realtors’ listings. The issue usually comes up when I do a listing presentation — essentially, a job interview for Realtors. In the course of interviewing Realtors, homeowners (and prospective Sellers)...Read More
“Serious” vs. “Non-Serious” Home Sellers Men are like taxis. The theory is that when a man is ready for, or open to, the possibility of a relationship he turns his taxi light on. If you happen to be the girl that hails the cab (him) while the light is on, you’ve got a possibility of...Read More
“Active’s” Loom Larger in Pricing Decisions Realtors and Appraisers alike rely on “Comp’s” — comparable sold properties — to estimate fair market value for any given home. By definition, a Comp is similar in style, condition, and size as the “subject property” (the one you’re trying to price); is physically nearby; and has sold in...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
