Sold in 2 days? So Glad!

By
Real Estate Agent with Coldwell Banker Residential

A recently featured post posited that if a property sells in 2 days in multiple offers that the listing agent has not done their seller any favours.  In fact the writer suggests that if it had happened to him, he would feel ashamed.

He goes on to mention that the listing agent, and the stager were celebrating their skills, but he doesn't believe that.  He believes that if it got multiple offers that quickly, it must have been underpriced. (So conversely, if it takes 365 days to sell, we priced it well??)

This is an issue that pops up with some frequency.  Sellers often second-guess us when this happens (heck they will often even ask for a commission rebate because it sold so fast, we didn't have to do much work... right?).  Sometimes we even second-guess ourselves.

I contend that if a property sells quickly, then we did out jobs very well.  We priced it appropriately for a quick sale (after, of course, consulting with our seller and deeming that's what they wanted), and we did our jobs so well, that, oh, I don't know.. maybe we deserve a bonus?

Just kidding about the bonus, but I certainly don't feel that we deserve a reduction in pay, after doing exactly what we said we'd do... attracting a qualified buyer, for the most money, in the least amount of time.

Now, I suppose that a case might be made if you priced a home at $200,000, and in the first couple of days there was a feeding frenzy of a dozen offers, and the price was pushed up to $275,000, that we underpriced the property.  But I don't think that's what we're talking about.

In my market, at least, it's hard to underprice a property.  Because if it's truly underpriced, you will have that feeding frenzy, and the price will clearly be pushed back up where it belongs.  Market value, except in isolated incidents, will find it's own level.

Ships in a harbour will rise and fall at the same level, regardless of their size.

- 3

Posted by

 ALAN MAY, Realtor®
Specializing in Evanston Real Estate and North Shore Real Estate

Coldwell Banker Residential Real Estate, 2929 Central Street, Evanston, IL 60201
847.425.3779      Cell: 847.924.3313      Email: Almay@aol.com

Evanston Real Estate & North Shore Real Estate
Licensed in Illinois

   

Do not copy the content of this blog, without first contacting the author for permission. 
Reblogging IS allowed. All other use is strictly prohibited without express permission from me.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Groups:
"Whacked"!!!
Realtors®
REALTOR LIFE
Diary of a Realtor
Dedicated Bloggers
Tags:
sold in 2 days

Anonymous
Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,293,904
Carla Muss-Jacobs, Principal Broker/Owner
BuyersAgentPortland.com | (503) 810-7192 Portland Metro Exclusive Buyers Agent | 100% Buyer Representation ~ 100% o... - Portland, OR
Buyer Focused ~ Buyer Results

Since it was a local Portland real estate transaction that apparently sparked the post, which you nicely counter, I can attest that the market here is not swinging buyers' market anymore.  Good properties, good locations and conditions WILL sell.  It doesn't surprise me. 

Mar 11, 2012 11:32 AM #72
Ambassador
1,556,744
Gary Woltal
Keller Williams Realty - Flower Mound, TX
Assoc. Broker Realtor SFR Dallas Ft. Worth

One could surmise Alan the price is too low or it was just the PERFECT house with the right buyers to come along with condition/amenities/location all planets lined up. People rationalize too much about what sells homes. Most often it is correct price and the market. Timing can be irrelevant of WHEN.

Mar 11, 2012 01:25 PM #73
Ambassador
995,929
Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Richie - ain't no confusion here.

Justin - exactly the question...since 2 days is clearly too fast... where is the cut-off where you've done your job properly... 2 weeks, 2 months, 6 months?

Carla - I hadn't paid any attention to "where" the original post took place... 'cause it almost doesn't matter.  Properly priced properties (say that 3 times fast) will sell quickly.

Gary - there are many facets that go into that sale.

Mar 11, 2012 02:03 PM #74
Rainmaker
160,681
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

"Satar - so, what is the acceptable period of time, in your mind,.. a week, two weeks, a month... when if it goes into multiple offers that it's NOT underpriced?  Where do you draw that line?"

Usually a property on the high end of perceived value does not enter into a multiple offer situation. If it does, then naturally the demand drives up the value of the property. Simple logic dictates that if a property receives multiple offers at, near or above asking price within a few days, then that property is not priced correctly to represent current value. This is true regardless of your local market area, recent comps or an appraisal of the property.

 

Mar 11, 2012 07:30 PM #75
Ambassador
1,341,405
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Selling Daytona paradise for heavenly good prices

Alan - I am not ashamed for being ashamed (LOL). And no, it was about Maureen's blog, it was the title of the blog, it was the idea that if the property is sold in the first few days in a multiple offers situation, it is great. Sure, but I question that it is great for the Seller.

I am working with investors, and I hunt those lowball properties that generate a lot of hype and offers in the first few days. In our area these are usually REOs."regular" sales rarely get multiple offers, and when they get, check whether it is a local agent, or someone from Orlando.

I buy them for my investors, and usually go higher than the asking price.

Call it a well priced home, if you like, but the reason my investors are buying them is because they flip them.

no, they refuse to keep them, to rent them. They buy and try to sell in 4-6 months. Of course, for profit.

So, consider the price they paid, then add the cost of selling, and then the difference is what the Seller did not receive.

While could.

P.S. Love this idea of properties' prices being "ciorrected" by the market. Why would then anyone need an agent? Just put any property there for $10 and then expect that the bidding would "correct" it to $200K.

Crazy?

You bet

Buit it would be a logical condlusion

Oh, yes, I forgot. Folks do not like logic

;-)

Mar 12, 2012 01:06 AM #76
Ambassador
1,697,601
Margaret Rome, Baltimore Maryland
HomeRome Realty - Baltimore, MD
Sell Your Home With Margaret Rome

I love it when a buyer's agent knows the inventory, knows their clients and shows and sells one of my listings. If it happens quickly..that is just perfect.

Margaret

Mar 12, 2012 03:22 AM #77
Ambassador
995,929
Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Satar - that didn't answer the question I asked.  Did it?

Jon - folks do like logic, but i don't see any in your argument.  Sorry.  You might-should-wanna read this one.

Margaret - it sure does.

Mar 12, 2012 05:34 AM #78
Rainmaker
285,956
Marilyn Harrell
ReMax Riverhaven - Beaverton, MI
Wixom Lake - Beaverton MI

Excellent points you make! I agree.

Mar 12, 2012 10:55 AM #79
Rainmaker
591,130
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Allen,

You may well be right! You've got my vote.

Jon,

You might be too!

The problem is that Jon doesn't present enough information to reach a logical conclusion! His arguments are true and his conclusion logical only if the seller doesn't need a quick sale!

In the era of short sales, foreclosers and slow markets, sales price can be of very little importance to some if not many sellers. Jon, may well know much more than he's present us with, but to assume that sale price is more important than a quick sale with out further information is fallacy.

And, I still think the world of Jon!

Bill

Mar 12, 2012 12:08 PM #80
Ambassador
995,929
Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Marilyn - I do what I can.

William J. Archambault, Jr. - I have no problem with Jon... and I don't think he's having a problem with me... I'm not taking this personally (and I hope that he's not either)... we just have a divergence of opinion.

Mar 12, 2012 01:31 PM #81
Ambassador
578,029
Gayle Rich-Boxman Fishhawk Lake Realtor (503)755-2905
Vernonia Realty - Vernonia, OR
"Your Gateway to the Lake" Birkenfeld Oregon

Alan~oh, too quick, too slow--eyeyeeyeyey--no matter WHAT you do...someone will have an OPINION about it...you know what they say...opinions are like a**h**es, everyone's got one! Sheesh, can't we just be HAPPY that things are moving??

Mar 12, 2012 08:41 PM #82
Rainmaker
160,681
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

"Satar - that didn't answer the question I asked.  Did it?"

I thought it did. I stated that "Usually a property on the high end of perceived value does not enter into a multiple offer situation." Meaning that a property usually doesn't enter into a multi-offer situation if it was over priced based on the value of the property. In other words, your question is invalid as to what time frame does a multi-offer situation constitute a market value transaction. I even went further to state that should such an event to occur, then "... naturally the demand drives up the value of the property". So, if you have a property sitting on the market for two months, and all of sudden, in June (when schools are out), you have 2-3 offers at, near or above asking price, then the value of the property has increased. So, the logical conclusion is that if you have a multiple offer situation within a few days of the listing, then the property is under-priced to begin with. Anytime after, should such an event happen, must be seen on a case by case basis as to the logic behind the change in the statement.

The argument of Jon's blog is that if there is a "feeding frenzy" to begin with, then the property wasn't priced correctly to begin with. His argument is correct, regardless of recent comps, your local market and even if you price it above appraised value. Does that make sense?

Mar 12, 2012 08:53 PM #83
Ambassador
995,929
Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Gayle - ... everyone has one, and they all stink!

Satar - Sorry, the logic behind your argument is specious at best....  so, let's try this again... what time frame is acceptable (and let's be clear... I'm looking for a number... a number of days or weeks.... 5 days... a week.... 2 weeks.... 3 weeks... a month?) how long must an agent wait until you would consider it an acceptable period of time... so they could state they hadn't "underpriced" the home?

Neither you, nor Jon allowed for a "case-by-case" basis on the 2-day sale with multiple offers... merely a broad stroke "it's overpriced"... so, sorry... a case-by-case basis for a longer sale isn't allowed either.  What's the time frame?

Mar 13, 2012 05:40 AM #84
Rainmaker
160,681
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Your proposition is incorrect. That's what I am trying to explain to you. However, to play along on your level of understanding, I would assume that anytime you enter into a multi-offer situation in which the offers are at, near or above current listing price, then the property is underpriced.

Mar 13, 2012 10:46 PM #85
Ambassador
995,929
Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Satar - "my level of understanding"... very nice...

It's not a lack of understanding... it's that I disagree with you.

Mar 14, 2012 05:49 AM #86
Rainmaker
160,681
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

It meant in no way any disrespect as I agree that there are disagreements between two people and I thought we were already past that acknowledgement. ;)

 

Mar 14, 2012 01:30 PM #87
Ambassador
995,929
Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Satar - I'll have to accept your word on that.

Mar 14, 2012 07:31 PM #88
Rainmaker
160,681
Satar Naghshineh
Satar - Amiri Property and Financial Services Corp. - Irvine, CA

Thank you and I apologize if you took it to mean something different. The "level" was the change of my response to the logical fallacy of your complex question.

 

Mar 14, 2012 08:52 PM #89
Anonymous
Anonymous
Catherine Lewis-Brown

As a stager, when I stage homes I do it with two ultimate goals in mind:  getting the seller the most money possible, and selling it in the shortest amount of time!

I'd say a job well done :)

Mar 24, 2012 12:18 AM #90
Ambassador
995,929
Alan May
Coldwell Banker Residential - Evanston, IL
Evanston & Northshore of Chicago real estate

Catherine - I'd say so, too.

Mar 24, 2012 07:00 AM #91
Anonymous
Post a Comment
Spam prevention
Show All Comments
Ambassador
995,929

Alan May

Evanston & Northshore of Chicago real estate
Ask me a question
*
*
*
Spam prevention

Additional Information