2 Identical Properties – 2 Different Prices – What Happened?
Two identical properties in the same neighborhood. One sold for $800,000 and the other for $889,000,… $89,000 more, only a matter of 25 days apart. How does it happen?
There were two identical properties in a lovely community. One sold after being 286 days on the market for much less than a 100% comparable home 8 doors up on the same street. It sold 25 days later later with a different agent after being 112 days on the market.
The properties were exactly the same, the floorplans were the same, identical quality, condition, maintenance, and were in the same location. The difference in the sale price was close to $90,000, about a 12% difference in price for the same property.
Why does one house sell for $800,000, while another house, identical in every way, brings in $889,000? It just doesn’t make sense. The truth is, similar homes sell for varying prices all the time. It takes place all across the country. It happens in markets large and small.
SURELY THERE MUST BE SOME REASON
These houses do not sell for more money by accident. No magic trick helped one seller get a better deal than the other. On the contrary, higher sales prices are the direct result of careful planning and execution. However, there are a few secret strategies deployed by experienced agents. It all comes down to marketing.
When most people think of a real estate agent, they think of someone that works with buyers and sellers of homes and the general perception is that all realtors are alike. And for most purposes this definition is accurate, especially in the lower priced real estate mass market (residential properties up to approx. $350k). However, there are areas of specialization in the real estate field, including agents that work mostly in the upper mid and high-end luxury property market.
Understanding these distinctions is important when you are looking to buy or sell a home. You want someone working for you that can accomplish your goals. The saying “jack of all trades and master of none” can apply to the real estate industry.
If you are selling a home, look for a specialist that really understands the market segment of your property. If you are buying a home, look for a skilled buyer’s agent that is very familiar and specialized in the type of property you like to buy.
There are more fundamental differences between real estate practitioners. The area of specialization isn’t the only differentiator. Considering how much money may be on the line when you are buying or selling a home, you want to know that the realtor you hire is best equipped to do what you need done.
Over the years I have seen numerous home owners, sellers and buyers, who do not understand the radical differences between the expertise and skills a real estate agent should possess. This leads to mistakes choosing the right realtor for the job.
SIMPLY ASSUMING THAT ALL AGENTS ARE COMPETENT ENOUGH FOR YOUR SPECIFIC NEEDS CAN BE A COSTLY MISTAKE.
Comprehensive sales & marketing skills are required. Unfortunately, many real estate practitioners don’t really understand what true marketing really entails. Most talk about listings, yard signs, listing advertising, presenting the property in multiple media channels, open houses, etc. That’s not marketing,… those activities are simply promotional. Marketing is much more complex and comprehensive experiences and skills are required to master the art of marketing.
The other important differentiator is Sales & Negotiation. Again, there is a wide misconception that it all comes down to negotiate a sale or purchase based on simple back-and forth haggling to reach a final agreement. The truth is, negotiation starts with sales techniques. Somebody without comprehensive sales experiences will never be a good negotiator. Applying professional sales and buying techniques are building the foundation for a successful final negotiation.
PICK THE RIGHT AGENT FOR YOUR NEEDS
Select somebody with a strong understanding of Sales, Marketing, Buying and Negotiations. Unfortunately, determining the difference can be difficult. It’s often better to go into business with someone you don’t know personally. Very frequently sellers and buyers will enlist the help of a friend or relative who happens to work in real estate. Generally, experts caution that hiring a friend or family member as your real estate agent could backfire. Always look for somebody who is really specialized and very good at what they do. Most often you will find the better choice outside your current network of friends and relatives.
Michael Turwitt has long represented buyers and sellers in the purchase of fine properties and high value assets. Specialized in extraordinary quality homes and luxury property, Michael Turwitt enables clients to successfully navigate the complex North East Florida – First Coast Real Estate Market. For more information, visit www.turwitt.com