Home Selling in 91423>Question Details

Blair Thomps…, Real Estate Pro in Los Angeles, CA

When talking with the standard seller, is it a fair statement that for them it is essentially a "sellers market" (excepting of course?

Asked by Blair Thompson, Los Angeles, CA Wed Apr 11, 2012

value)? Working with a standard seller in determining a value. There are almost no standard sales on the market for a "good" house. Can I put a premium on their listing price and still be in the right ballpark?

Help the community by answering this question:

Answers

12
BEST ANSWER
Hi Blair,

In essence, it is a sellers market due to the very low inventory. As we have recently seen, standard sales are valued by buyers, and they will often bid up the house. The main issue with pricing at a premium will be the comparables. If you can support your listing price, and believe it will appraise, then you should be in the clear. Of course, the seller can insist on the sale being non contingent on the appraisal.

Best,

Charise Mitchell
2 votes Thank Flag Link Wed Apr 11, 2012
Indeed it is a great market for standard sellers, not a lof of competition!

____________________
Help with Any Real Estate Transaction - Buy or Sell

Call me 424-777-9377 - FREE CONSULTATION!



Should you have any questions - please feel free to call me Toll Free: 1-855-TRUST-55 (1-855-878-7855) ext. 777.



Sergey Fednov

President - Realtor®
- Trust Sale Realty -

Residential & Commercial Real Estate
_______________________________
Toll Free: 1-855-TRUST-55
Toll Free: 1-855-878-7855
Phone: 424-777-9377
Fax: 310-356-4925
http://www.TrustSale.com
http://www.TrustSaleRealty.com
- We Hire CA Licensed Real Estate Agents -
Lic# 01896869
2 votes Thank Flag Link Wed Apr 18, 2012
Blair,
Buyers will pay a premium for a clean, move in ready house that provides a full disclosure and won't be tied up for months waiting for a short sale answer. The question is, how much of a premium? I think you discuss this with your seller and consider trying something 10% to 15% above the distressed properties.
Make certain your marketing indicates this is a house that is sharp, move in ready, can close in 30 days etc. I wouldn't include any distressed verbiage like "not a short sale,” to many buyers skim the remarks and will just see short sale and move on.
1 vote Thank Flag Link Wed Apr 11, 2012
Hello Blair,

In a way, it's a great market for sellers considering the price points are the highest they've been in years and inventory is still low, but considering the interest rates are said to rise to about 5% by CNBC and other reputable resources I could argue it is a buyer's market at around 4% interest rates.

I have sold a standard home where there were distressed properties surrounding the property for over standard sale prices as some buyers don't want to wait for a short sale and need their home right away.

Seller's markets and buyer's markets are not something I go by in whether or not to sell as I see more often than not that individual's needs exceeds the current market.

Hope this helps.

Best,

JoAnna Selby
JohnHart Real Estate Redefined
15125 Ventura Blvd
Sherman Oaks, CA 91403
888.965.6161 Fax
818.447.1024 Direct
JoAnna@VenturaBlvdRealty.com
http://www.VenturaBlvdRealty.com
BRE#01894146
0 votes Thank Flag Link Mon May 4, 2015
You can put whatever price you want on the property but if it is overpriced, you will know within the first 2 weeks. The activity will be low. I always go by the comps in the area give or take a percent or two for condition. If you price it right the first time, there will be multiple offers and more than likely the final sales price will be higher than list price. We are a long way from 2012 but I think every case is unique to the property and the area market at the time.

All the best,

Alex Montelongo/Broker
Coldwell Banker Star Realty
562-810-7387 Cell
BRE Lic #01456982
0 votes Thank Flag Link Tue Mar 17, 2015
It is definitely a "seller's market" right now, inventory is still pretty low.

Please let me know if you have any other real estate-related questions!

Alex Khalilifard | Realtor - General Contractor
BRE License #: 01937591
Listing and Selling Agent
RE/MAX
Alex@TopHomesLA.com
Direct: 818.925.8088
http://www.TopHomesLA.com
0 votes Thank Flag Link Mon Mar 16, 2015
Yes you are right, with low inventory the balls in the seller's court,.Putting a premium on it will always help its just a matter of whether you think it is worth it or not to do so. Although there is really no need to pay a premium for the asking price is what they were requesting, but if you are competing with other buyers you will either need to pay a premium to compete of pay them in cash.
Web Reference: http://privatelending.org/
0 votes Thank Flag Link Fri Dec 6, 2013
If the neighborhood's prevalent sales are distressed sales, but there was at least one "normal" sale,
try to figure the distressed to normal ratio by dividing the normally priced house into the typical distressed property value. Then price your house as the avg distressed property and multiply it by the normal to distressed ratio. In other words, the premium you mentioned in your question, is measurable and you are on the right track.

The appraisal will then be supported by non-distressed sale adjustment.

Thank you in advance.

Irina Karan
CDPE
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Wed Apr 11, 2012
Blair,
Interesting question. Right now, true, there is less inventory on the market. At about this time last year there was about 20% more homes for sale. That includes SFR and condo's. Sherman Oaks tends to be a market that has a higher percentage of "good" homes. So, I am not sure that I would say there are no standard sales in that area for "good" homes. Most sellers really believe their home is much better than every other home out there.

I also would not agree that it is a "seller's market". Even with inventory down, banks are putting more foreclosures on the market and there are plenty of short sales coming this year. With interest rates at historic lows, I would tell sellers that it is a buyer's market and that they need to price and advertise accordingly. Anyone that pushes the idea that it is a seller's market is just trying to get a listing and are not reflecting reality. We probably won't have a true seller's market for a couple of years at least.

If a house is clean, staged correctly, marketed correctly and priced right, it will bring top dollar. The seller may just have to be a little patient.

Tommy Lee
DRE #01723594 SFC (Short Sale & Foreclosure Certified)
Premier Service® Professional
tommy.lee@dilbeck.com
323-821-2292
говорю порусскии
0 votes Thank Flag Link Wed Apr 11, 2012
Yes, its fair to advise your seller that it is a sellers market, BUT that the properties that are selling quickly and most in multiple offers are priced right and many a little under value to generate the buz.
Good luck!
0 votes Thank Flag Link Wed Apr 11, 2012
Appraised value is everything in a financed sale. As Charise accurately points out, the seller can refuse to accept offers with an appraisal contingency, but that's not a realistic approach most of the time. A standard sale in a sea of REO and SS comps is the perfect situation in which to bring in an appraiser to consult with you and the client regarding a supportable value.
0 votes Thank Flag Link Wed Apr 11, 2012
You can always list it high making sure the sellers understand that the price is determined by what a buyer will pay and if you not getting offers it means the home is over-priced. Reductions in the list price can be built into the listing agreement. If you haven't gotten an offer in the first two weeks, reduce the price. Repeat every two weeks until an offer is received.
0 votes Thank Flag Link Wed Apr 11, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer