Comments on: YES!!!!!!!! The Valuation Tool is Working! http://raincityguide.com/2007/05/11/yes-the-valuation-tool-is-working/ Seattle's Leading Resource for Real Estate Information Sun, 08 Nov 2009 01:47:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: ARDELL http://raincityguide.com/2007/05/11/yes-the-valuation-tool-is-working/#comment-133861 ARDELL Fri, 11 May 2007 18:06:20 +0000 http://raincityguide.com/2007/05/11/yes-the-valuation-tool-is-working/#comment-133861 P.S. The reason this is an important exercise is when a property is "New on Market", we have to quickly determine if a buyer should make an offer, what that offer should be, or should they wait for a price reduction. You can't do that as quickly as a client needs you to do that, if you need the market to tell you into the future, what the price should be. If you have to wait for multiple offers to say "this house is worth at least asking price", then your client gets into a bidding war. Some of the best values equals "Early bird gets the worm". So jumping on undervalued properties is an artform. One of our agents had a client interested in a property that was difficult to value. I RAN over and WALKED out. The asking price was too far away from value to make an offer. Other considerations of course. Yes, it was a good house for the client, but it was overpriced by $75,000 to $100,000 which was more than 10% of asking price. Time to hang back a bit and get the client's current property ready to list. Not time to make an offer. Step 2 after seeing a house is not always "make an offer" and I can't know what Step 2 is until I see the house. So far her home is almost ready to list and the target house is still not sold. By the time we make that offer, the seller will be moving down from asking price mentally. Best time to make an offer is just BEFORE they do the price reduction. P.S. The reason this is an important exercise is when a property is “New on Market”, we have to quickly determine if a buyer should make an offer, what that offer should be, or should they wait for a price reduction. You can’t do that as quickly as a client needs you to do that, if you need the market to tell you into the future, what the price should be. If you have to wait for multiple offers to say “this house is worth at least asking price”, then your client gets into a bidding war. Some of the best values equals “Early bird gets the worm”. So jumping on undervalued properties is an artform.

One of our agents had a client interested in a property that was difficult to value. I RAN over and WALKED out. The asking price was too far away from value to make an offer. Other considerations of course. Yes, it was a good house for the client, but it was overpriced by $75,000 to $100,000 which was more than 10% of asking price. Time to hang back a bit and get the client’s current property ready to list. Not time to make an offer.

Step 2 after seeing a house is not always “make an offer” and I can’t know what Step 2 is until I see the house. So far her home is almost ready to list and the target house is still not sold. By the time we make that offer, the seller will be moving down from asking price mentally. Best time to make an offer is just BEFORE they do the price reduction.

]]>