This morning I hosted the Broker Tour for the home featured on my previous posting. In this crazy market where there are only 55 residential properties for sale in a community of over 73,000 I was expecting a big turnout even though the property is over $1,000,000. And I was not disappointed. About 35 agents, 4 with clients, and 6 more showing this weekend.
What did surprise me was that the only ones who thought the price was out of line were some of the agents who say they specialize in the neighborhood. This is not an unusual event. I have been guilty of it myself. Some "Specialists" focus so much on their small territory that they don't look at the big picture and how it impacts that little area. As a result they can get out of touch.
And when we see a market shift like we have started to see … the impact is quick and usually universal. If prices are going up at 24% / year … 2% / month and a home gets priced 10% higher than the last comparable 4 months ago, that means it's listed within 2% of value right now … wait a month and it will likely sell … and if there are 10 people that want it now it will probably sell pretty quick.
The takeaway for everyone, whether agent, broker or client is simple: be aware of what is actually happening in the market place and figure out how to get ahead of it. You do that and if you are a buyer you will get your dream house. If you are a seller you'll get your price. And if you are an agent you will have some happy clients.