Pricing Real Estate Accurately

Real Estate Practices: A Call for Change and Reformation

The world of real estate, like any other industry, has its complexities, and its solutions often require a change in practices to ensure all parties involved are satisfied. This discussion uncovers one key issue: the way properties are priced and the impact it has on home sellers and potential buyers. It's time for agents and regulatory bodies to rethink this practice to redefine the market and protect both personal space and property.

Stepping up of Regulatory Measures

Ever since the government stepped in last year the goal has been to protect the public. A commendable move, but there's a persistent issue that's frequently overlooked. It revolves around the way offers are being made and the prices tagged on these offers. 

Off the Hook Offers: A Vulnerable Trend

What we are seeing now are multiple offers ranging from 70 to even 100, which shakes up the real estate market. So how can we fix this situation? The answer is that we need agents to price competitively, at or just slightly below market value.

A Case Study: The House of 115 Showings

Here's an interesting scenario. Recently, a house was in the news with an astounding 115 showings. Imagine you're a seller with a family, with a child going to school, and you're targeting maximum exposure and top dollar. The inconvenience of having over 115 people filtering through your home, using your utilities and space over just a week seems wrong. 

From speaking to agents who had high levels of showing activity, the experiences were far from pleasant. There were breakages, careless people leaving doors open, and testing the garage door opener leading to malfunctions.

The Urgent Need for Real Estate Reform

These scenarios don't serve the seller well. It endangers the home, invades the personal space, and doesn’t guarantee a favorable sale. What we need is an industry-wide change, a reform in the way agents price properties—because not only does it inconvenience the sellers, it also makes it harder on the buyers. 

Diving Deep Into the Issue: High Traffic Doesn’t Mean High Returns

There’s no good reason to drive 130 potential buyers through a house. Although high traffic ostensibly creates competition, a good chunk of these offers can be dismissed as mere bluffs. From speaking to agents and studying the data, around a quarter to a half of these offers end up being non-competitive and hence, rejected. 

Focusing on the Right Price Range: A Step in the Right Direction

The logical solution, then, would be to concentrate on the right price range. With competitive pricing, we can create an environment with multiple offers, which would serve the seller better. 

Quality over Quantity: The Ideal Approach

In reality, getting to the desired number does not require a hundred offers but rather two or three well-thought-out proposals. Instead of bringing in people who can’t afford the home, haven’t written an offer before, don’t have trained agents, or are likely to mishandle your property, it would be better to channel effort into attracting the right buyers.

Conclusion: A Win-Win for Sellers and Buyers 

A change is required in how properties are priced to protect sellers from unnecessary inconveniences. This change would also keep away non-serious buyers, creating a win-win situation for all parties involved. This isn’t just about maintaining professionalism in real estate transactions, but also about treating homes with the respect they deserve.

 

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