Real estate pricing in San Diego has become a minefield , much as it has for home buyers and home sellers in the volatile markets that plague most of the world’s real estate today .
As real estate markets shift, the old comparable sales model for offers and pricing may no longer be quite as valid as they once were–and could in fact be dangerous. If sellers overprice their properties–based on prior sales that may have occurred some time ago–they run the risk of having their homes go unsold.
On the other hand, if buyers use the same CMA tools to arrive at an offer for a San Diego home, they run the risk of overpaying–or unsuccessfully bidding too low.
What I am beginning to see is more verbal interaction between agents. We are verbally sharing information about properties and sales before that data ever hits the tax records. This is information we can use to help guide our clients through these dangerous times. Someone who needs to sell a property cannot afford to deal with faulty dated information or an uninformed agent. To do so could result in a home that doesn’t sell and languishes on the market for months. Using the same outdated information, buyers run similar risks of potentially overpaying for a property–or not knowing if a home is fairly priced in today’s market.
1. Real estate agents need to be consultative in their approach with clients, and remain closely in touch with one another. As real estate professionals, we need to share with each other what is happening in area markets, in local markets. in neighborhood markets. This is information our clients need.
2. Online valuation tools are perhaps even less valid than they were six months ago. Zillow does a good job in reporting history via public records, but more current information is demanded. Old information can be deadly–but that is all they have to report.
3. I am finding buyers more ready to purchase if they trust their Realtor is digging out the information that is truly needed to craft an offer. More agents are calling each other about pending sales, seeking pricing guidance for both buyers and sellers. This is good and serves our clients well.
Real Estate 2.0 may be all about online interactivity between clients, agents, lenders, stagers and other real estate service providers, but some old school tools come in handy as well. Key among those are gossip and whispers. If a seller in a neighborhood is capitulating in pricing, that is important information for both buying and selling clients. Tax records are useless in this circumstance, and so are the online valuation tools that use them.
It is difficult for all when real estate markets go about their periodic shifts. These are the times when knowledge, experience and sure footing are required of the real estate professional. And by the time the valuation software tools catch onto what is happening, the markets may be quietly shifting again.