Welcome to the Beverly Hills Real Estate blog.
Monday, Monday, the new week begins here. The heat wave that griped SoCal for the last few days is gone. Cooler today - the low 80's for downtown LA-which is a nice positive way to begin the week.
Here's a interesting article sent to us via Broker Agent News that deals with the delema many agents find themselves in when on listing appointments. Seemst the seller always has a different view of a property' worth.
By: Paul Pastore
A house is only worth what a buyer is willing to pay, regardless of the seller's inflated expectation. The seller's role is to make any decisions, not tell the agent what to do, and what the property is worth.
Recently, I went on a listing appointment. The executor of the estate was a family friend. His mother had passed away and left a house on 5 acres. There were three separate parcel of land that could be split. The recent estate appraisal was around $600,000. The seller felt the property was worth 1.8 million!
The property was built in 1961 and had functional obsolescence. The seller felt it was "one of a kind". The property was on a dirt road. The seller felt "it was in the best part of town". The property had some views. The seller felt it was "comparable to a mountaintop lot that recently sold". The kitchen was dated. The seller felt it would give the buyer the opportunity to expand the house. The lot had horse privileges but no equestrian set-up. The seller felt the buyer could easily blade the sloping lot. There was a shingle roof. Most newer properties in the area had tile roofs. The seller felt all roofs were the same.
A family friend told the seller what he wanted to hear. A local 'hungry' Realtor confirmed the rumor. A banker told his client it was worth 1.5 million without supplying any 'comps'. A part-time, out of the area, real estate relative concurred with the banker's speculative assumption. And, a doctor told the seller if the property didn't sell at 1.8 million, he should increase the price! Welcome to realty ranchette.
Most people feel they are younger than their age. Many people feel they weigh less than their bathroom scale would indicate if they ever hopped on board. Why get a physical when you feel fine? It seems everybody is an expert on raising kids and putting a price tag on their "reality ranchette".
A "rachette" is defined in the dictionary as a small ranch.
Our take on that article s this: When you are summoned or a listing appointment - do your homework. Our job is to sell real estate, not advertise over priced properties that don't sell. Be honest with yourself and client about pricing.
If you could use honest evaluation of our property or want to pay a fair price for a new home, we're here to help at www.patandmelody.com
Have a cool(er) Monday! Beverly Hills Real Estate Blog.