No matter what zodiac sign you were born under, bring your most honorable self to bear in your real estate transactions.
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A personal story of one real estate agent's battles and triumphs in the competitive Bay Area real estate market, it seeks to illuminate and humanize the real-life ups and downs of homeownership.
Happy Lunar New Year! It is the year of the dragon. According to my online research (which I researched extensively), Dragons are powerful, endlessly energetic, vibrant, goal-oriented yet idealistic, romantic and visionary leaders. . They know exactly who they are and have the keenest sense of “self” of his 12 zodiac signs in Chinese astrology. The Dragon is an honest character, despises hypocritical or dishonorable acts, and has a high pride of self-respect that is matched by wisdom, generosity, vitality, and talent.
Not a bad description for someone born under this dynamic zodiac sign.
I am not usually influenced by zodiac signs (Chinese or otherwise), but I definitely attribute to the idea that our actions should be free of hypocrisy, wise and generous. (Amen.) If most of us lived according to that spirit, the world would actually be a much better place.
Un-dragon-like behavior
It's the spring market, and with it comes new buyers experiencing for the first time just how cutthroat the world of real estate can be. On the other hand, it is the listing agent's job to take advantage of the property's interest rate in order to obtain the highest price on the best terms for the seller. Conversely, it is the buyer's agent who must evaluate the property, manage disclosures, and figure out the best way forward in an uncertain world.
While it is true that both parties have conflicting interests, ultimately the most uncontroversial deals occur when both parties perceive the deal to be a “win-win.” This is difficult to achieve when things are incredibly one-sided, as they have been for years past, or when list prices are completely fictitious.
Looking to the post-pandemic market. Rising interest rates, coupled with fewer available buyers in the market, are suppressing out-of-control bidding practices. Therefore, sellers should adjust their expectations accordingly. nevertheless . . . Not all agents operate from the same set of principles or the same moral code, nor are they legally obligated to do so. In other words, not all real estate agents are created equal.
The concept of a “strategically priced” home is difficult to understand, but our experience is that higher sales prices are achieved when homes are priced to attract multiple offers. is common. That being said, even if it's not a fire-breathing dragon, there's something about the popular “bait and switch” structure that seems very disingenuous.
To be clear, setting prices 10-15% lower to generate strong interest is standard in our territory and has been accepted practice for the past 10+ years. However, pricing 40-50% below what the home will ultimately trade for is misleading and frankly not honest.
While you can't always predict how much a property will appreciate, there are reasonable spreads that you can and should expect based on careful analysis of nearby “like” sales. . . And in some cases, buyers legitimately show up to an open house thinking the property is within their reach, only to find out that the expected sales price is far beyond their budget. . . It's just not good.
In fact, pricing far below a home's intrinsic value is when your listing agent shouts about the end result, like, “My properties typically trade for 40-50% above list price.” It is a marketing strategy that makes it possible. Of course they do. You started the property hundreds of thousands of dollars less than the seller would actually accept.
Given that trust doesn't come easily, especially when high-intensity stressors are involved (such as selling a home), why rush away from concepts like honesty and integrity in order to build your own nest egg? Does it need to be handled? (There is no ego in the transaction.) Whether representing the buyer or the seller, our duty is to carefully guide each party.
So let's take a cue from Puff (the magical dragon) and try to be honest and kind to each other. Let's agree to be fair and above all be truthful and transparent. The public, not to mention your colleagues, deserve no less.
Shall I help you?
Julie Gardner & Sarah Abel | Compass Real Estate
Real estate agents as well as consultants in all areas of home and housing are here to educate, research, research and refer. . . That means you can expect us to look after your home as if it were our own. Anyone who knows us knows that we take great care of our homes.
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