September 2016, Week 1 Geo Market Analysis Graphs

Ratio List to Sale
Anderson: Week 1 – 0; Cottonwood: Week 1 – 0.2; Shasta Multiple Listing Service: Week 1 – 0.53
Avg List
Anderson: Week 1 – $419,231; Cottonwood: Week 1 – $443,647; Shasta Multiple Listing Service: Week 1 – $416,400
DOM
Anderson: Week 1 – 125; Cottonwood: Week 1 – 97; Shasta Multiple Listing Service: Week 1 – 117
Avg Sales
Anderson: Week 1 – $164,500; Cottonwood: Week 1 – $225,000; Shasta Multiple Listing Service: Week 1 – $241,745
Avg List to Sale
Anderson: Week 1 – 39%; Cottonwood: Week 1 – 51%; Shasta Multiple Listing Service: Week 1 – 58%

Underpricing

There are many agent’s out there who brag about receiving “multiple offers” on their listings, how the are able to get homes sold for over asking price, and/or they were able to get a home sold within a few days on placing this property on the market.

These facts all sound enticing from a Seller’s standpoint, but there is something that should be questioned (especially if such activity does not fit with the current real estate market) – were these homes underpriced?

If it is a “hopping” market and properties are just flying off the shelf, then such activities (as described above) are to be expected, from ANY AGENT.

If it is a slow market, with low buyer activity and extended list days on the market, then I would really start to question those select agent who are claiming these “attributes”.

Underpricing a home means that the seller looses out on selling their property for its “true” market value and not receiving top dollar for their home – which also means money is lost out for the seller; it is also unethical for agents to “underprice” a home. Agents take a pledge to protect, along with promote, their clients interests; and one of those interests is being honest with the seller.

This is why so many recommend that sellers talk to more than one agent – at least three. Ask that each comes up with a WRITTEN Comparative Market Analysis (CMA) for the property. Look closely at the CMA and the comparable properties being used. To not be afraidĀ  to ask questions, such as how the agent came up with the recommend home value and why the agent chose the comparables being used.

The biggest and most important advice that I could give you, is to plain and simply go with your “gut instinct”! What is your “gut” telling you about what is being presented? How comfortable do you feel around that agent? A comfortable, trustworthy relationship is key in having a successful, business partnership because that is what you are establishing – a partnership.