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Episode 16 Transcript
Welcome to the get-rich, slow podcast. This is the stuff we and our expert guests wish we knew a decade ago to get the most out of our financial life will provide you with insight into wealth-building activities and practices that can expand your net worth exponentially. Get insight from top professionals who will reveal how to build wealth the long way, work smarter, not harder, and identify your financial blind spots with over 25 plus years of experience as licensed real estate professionals and a long track record of winning for their clients. Robin and Adrian will teach you what it takes to be an everyday real estate millionaire.
Hello, future millionaires, and welcome back to the get-rich, slow Podcast. I’m here with my co-host, Robert Delavan. Good afternoon. How is everybody? Out III, and this is Adrian Schermer. Today, we’re gonna dive right into it and talk about an important topic how to price your home for sale. And Rob, obviously, you are the lead here for knowledge, I probably only know enough to get myself in trouble. So let me be the idiot here. Let me ask you the stupid questions that may be boiling in people’s brains. And let’s find out how do we homes are very different than other things. There’s some overlap with, you know, other items that you might sell, right. But real estate especially is almost always the most expensive thing that any person will buy in their lifetime. So pricing correctly and tapping into the psychology of your buyers is a huge part of picking the right place to intro. And we see people use all different kinds of strategies right out in the market. Some of them seem very clever, and they actually just shoot you in the foot. And then other ones seem kind of hamfisted. But they’re actually, I guess, a more honest approach. But Rob, why don’t you give me a layman’s intro to how me as someone who might be coming to you to sell a house is going to get this done. So I’m basically where I want to start is the concept of we’re in a seller’s market right now. Now I’m talking about my expertise is coming from the Portland metro area. So let’s get these disclaimers out of the way, right? different markets are different in different parts of the country. But across the country, the general statistics are there’s a whole lot more buyers than there are sellers. Do we’ve talked about that before we’ll continue to talk about it as things change. The main driver in this buyer or the seller’s market, excuse me, is the fact that interest rates are so much lower. So therefore monthly payments are so much lower and easier to manage for the same price of home. So yeah, and I will make a pit stop here, I think we should do a quick aside to talk about, wow, for example, Portland’s a hot market, if you have a
home that could be financed with conventional financing, it’s a great family home. You know, if you’re right in that target market for people with with 2.5 nuclear family, children, you know, the whole nine year, you are easier to sell than the guy who has a log cabin in the middle of the city. Right, right, we’re talking, we’re gonna be using some averages here, right. But there is this is something that the whole country is experiencing right now is an inventory shortage. It’s just really compounded for us. So we can be a great example of how the extremes of this system work. So I’m going to talk about a specific property that I listed, I won’t use addresses or that sort of thing today, but it’s in a suburb of Portland, it’s in a subdivision, there’s hundreds of similar homes around it, very easy to comp out. And one of the assumptions that I’m going to make for the purpose of brevity and just keeping things easy to digest and understand is that there’s an appraised value here, and we were able to zero in on appraised value is what is actually worthwhile worth to a bank. And yep, the appraised value in this scenario was, and this home was three bedroom, two and a half bath 22 2300 square feet, very typical of what you’d find in a Portland suburb, built in the last 20 years, very nicely finished. A few things maybe you would do to it to upgrade over time, but it’s not completely out of date. And frankly, it’s moving ready. So with all of these, when you’re saying appraised value that why what is the appraised value is I’m going to try to use as many I’m not an appraiser, not a licensed appraiser. I can’t say that the bank would appraise it for exactly x. But I can say an appraised value or a market value is based on past sales and trying to use as many of the rules that appraiser appraisers use such as staying a mile or less for comparable properties.
Let me listing their features because I can talk about that too. Right
What an appraisal is because we’re talking about a financial appraisal when an appraiser comes out to your house, they are trying I go a step further actually route my experience six months, ideally even three months if they can, they want the freshest sales in your locality, distances a little more weighted, you know, right to go one mile six properties that are pretty damn close to what you’re trying to run into value for one mile or less is the general rule. If they have to go over a mile, you have to explain why they exactly and relevant because a mile is a huge distance in real estate. Right? Exactly. Well, it’s a whole lot hundreds, maybe 1000s of
buildings between right and spot another by a mile. Right. So a mile or less, ideally, like a 10th of a mile, you know, in in a subdivision, you can do that, you know, the one block over, you know, a quarter, whatever it is, and then obviously, they want the sales, they can go back six months. Yep. Technically, they can go back a year, if they go back any farther or differ from that they also have to explain why they did there wasn’t any other comps, that sort of thing. Right? The explanation usually is literally options one through five, we’re only the ones that sold, you know that exact fit the bill here, I added six and also I’m gonna barely even give six any intention, it’s gonna have much less weight in this comparison. Right? So at the end of the day, they’re coming at as close as possible with with close sales that are as similar as possible. And with same features, generally speaking, same age, they go out play some myths to while we’re in this corner, sure can adjust for
well, they can adjust for closure. They understand that there’s a foreclosure a bank short sale, there is a myth that exists Oh, that the House foreclosed across the street and my property value dropped? No, it did not not in a real way. There’s no at this point in the industry, the data is there. Everybody knows when it’s a foreclosure. And no one would practically say, well, that foreclosure sold for this much, right? Yeah, all the copper pipes missing and the windows are blown out. But right, we think your house is worth the same. That’s just not how, you know, that’s not a risk that you stand out there. And the general rule of thumb, like an entire city, they write the general rule of thumb in our market is foreclosures are going to sell somewhere between 80 and 90% of market value, typically, based on the fact that their condition is poor, and you have to deal with banks and whatever else, you know, it’s not as straightforward of a transaction.
So making an assumption that this particular home that we listed recently, and this was just in the last few weeks, was we felt that we were valuing the property as as close as possible as a as an appraiser would, for around 620. It was basically between 615 and 625. And I tell my dad, it’s a lot of what’s up, you guys are the best valuation outside of
an actual appraisal, which you pay, you know, north of 678 100 1000 bucks for depending on property. When I have a client call me and say, hey, I want to refinance, I’m not quite sure what my house is worth. This is what some website online says that it’s worth I go, that’s really cool. But especially if there’s not a bunch of recently sold homes around you. That website is an aggregated data robot that cannot estimate call your realtor before you go and spend a grand or 600 bucks or whatever it is on an appraisal, and then find out that your house wasn’t really worth that much. And you can’t do the terms that you want it to anymore. Right. And that’s, that’s an equity chess, exactly. And we do that all day long for our clients, for past clients for potential future clients. We’re sending out these opinions of value on Laura’s CMA, comparative comparative market analysis.
In this instance, we zeroed in on 620. And the question on this episode is, how would we price? And what strategy would we use? And of course, you know, we’re taking, you know, on our side, we sell, you know, give or take at homes or so a year. So within my group, so we’re pretty much you know, we’re doing enough volume that we know, and I would say that, you know, we’re the experts in the area on that. There’s other Oh, my gosh, I mean, how many? How many CMAs are you doing? Behind the scenes, though? Because that’s we’re in a market where people are doing, you know, maybe a dozen offers is not that uncommon. So you guys are evaluating on a weekly basis? Oh, yeah, we’re doing we’re doing double digits, double digits a week, you know. So there’s, there’s a lot of CMAs that are going out. We’re pricing these properties all the time. So we’re steeped in this, and it’s fun in a future episode where I want to bring up we’re going to bring up the data for a property, maybe we can use mine as an example. Rob, I’ll throw myself on the gauntlet here, and we’ll do some it’ll be more visual. It’d be something that would be worth hitting up to YouTube to see how this process is actually done in the background. That’ll be fun to do. I always when clients come in
In my office here, oftentimes they start asking me about their home. And I’ll be like, well, let’s figure it out. And we’ll literally go through it in five or 10 minutes about, you know, just the pros and cons of the home the condition, different things. And then okay, what’s your competition? What’s, what sold recently? And it’s like, oh, okay, well, this is pretty straightforward. So, you’re always so casual about it, too. You’re like, and that’s this percent factor. And I’m just like, What, uh, hold on, let me take some notes here. And and then it’s different for every market too. So it’s, you couldn’t just ship Rob over to Chicago and then go, Hey, what’s this garage worth? I don’t know. What’s the garage worth in Chicago? It’s something different than it is in Portland some way different than it is in the middle of the desert somewhere, you know, where there’s land of plenty. So it’s funny you ask that question, but knowledge for new builders just to answer it a little nugget here for our for our listening audience pleasure. Typically, every garage Bay, especially a third garage Bay, in a home in the Portland metro area is worth about 20 to $30,000.
It’s just what it is. Yeah. Now of course, you got to have the footprint to cover it and all that sort of thing. So sure.
Development being garage. Rouse house. That’s why minds this way. Right? Exactly. That’s the maximum bang for buck dollar use per rep for land. Yep, put the house on top and garage on the bottom. Yeah. Um, so in this in this instance, we went to the client came to us, hey, we want you guys to help me sell the house. And we were actually in the process of already helping them buy another home. And they said, Hey, what’s it worth? What do you think we should do? And we’ve gone through this whole process with them on the buy side, which was tough. And we know it’s a seller’s market, we want to make sure that we sell it quickly. They wanted to sell in one weekend, rather than price at the top, and let it sit for a few weeks.
Dealing with showings and they have family and kids and just being displaced for getting the house ready, show ready all of those things. Yeah. So with all of that said in its oversimplifying, but you know, we want to try to do this in 15 minutes or less. We jump in and we say okay, we think it will appraise at 620. That’s the target value. Obviously, we want to position ourselves strategy strategize in such a way that we’re pricing the home, and making sure that it’s showing that it’s in condition that will drive that price up. And in this market. I think through negotiation, being strategic and frankly, leveraging on my team’s education, training and experience, we can get somewhere around 3% above market, which is not uncommon. Now I could charge you know, we could list the house. Okay, right at 620. And, you know, 3% above that would be you know, roughly 640, right? And we’d be in a situation where, okay, we got 3% over, but how long would that take? Would we be able to pick offers, you know, different things like that. So what we decided to do just to take you through it, and just interrupt me and ask me why questions, Adrian, because I’m just gonna, I’m gonna rip through so we listed it at 599. Nine, rather than at appraisal value. Then we
we got multiple offers. We ended up with five or six, I want to say, over the first weekend, we sent the client to the coast. They went to the Oregon coast for the weekend. Or actually, they might have been out of town at a wedding or you know, something like that. So they got out of the house. We did wide open showings. Nonstop. We had over
actually not quite 20 showings, but we were close. And by Monday, we went live on a Thursday and by Monday, we had five or six offers in hand. Actually, it was five. And
we then proceeded on Monday to go through the process of working with those offers to see if they would improve against each other. And we ended up at 641,000 in one week and was less than close to what’s interesting, right? Rob? Why did you start at such a low number? Why not just start at 614 Okay, so we could have started at 640 or 625 or frankly 650. If we did that, given the heat of the market.
It may or may not have gotten into contract the house was very turnkey, but it would have most likely only appraised for around 626 25. Well if I have
if I have one offer and it’s for 641 and the appraisal comes in at 620. Then this is after inspections this is after we’ve gone through almost a closed appraisal come
Then at 620, now the buyer can walk away because the appraisal came in low. And that’s how standard transactions in the state of Oregon in most other states are put together in that if it appraises low. There’s what’s called an appraisal contingency or financing contingency which appraisal is part of that. And everybody can renegotiate at that point. So we’re at 641, and appraises at 620. We do our darndest to negotiate back and forth. But basically, our house isn’t worth what our buyers saying it’s worth. And we end up conceding down to maybe 625 or 630. Yeah, but if I have five offers, and they’re all competing against each other, every single four of the five, let me double check here. Yes, four of the five. All put in, that they would do a concession for an appraisal shortfall. Yep. So if it appraised for 10k or 15k or 20k? Less, they would make up that difference in downpayment. Yep. So this deserves repeating. If this house if I offered to buy this house at 640, and I am offering a $10,000 appraisal shortfall contingency, right? But it appraises at 620. Let’s add another layer to the onion. That means that yes, we are more than my 10,000 over. But now it’s up to me in the seller to negotiate that 10,000 I’ve already put 10,000 over appraised value on the table. I already said I was in for that. So I may just take it at 630. And that seems like pretty reasonable. If everybody’s on the on board, I said I was gonna buy for 10 over appraisal. Or we might end up somewhere in the middle like 635. Because, yeah, it is You better believe maybe paying for next year’s price exam really want that home. And you better believe that we’re going to negotiate that, that $10,000 difference, whatever it is. But if there was no appraisal premium, now we’re probably let’s say we do meet in the middle, so to speak, which is not always, you know, something that I would assume?
I would actually say that meeting in the middle for our clients is kind of a cop out. We want to do better than that. Sure. And
this conversation too, right? Exactly. So you know, we go from 640, it appraises for 620. And with no appraisal premium. Now we got to negotiate well, what if that buyer and it’s only one buyer? What if they don’t have any extra cash to bring down? Yeah, they basically say sorry, guys, we can only do 620. Otherwise, we have to walk because this is you know, they’ve leveraged every dollar they possibly can just to get the downpayment, together and closing costs and everything else. So now I’m beholden to that, and my seller is going to get a worse deal, a worse net to them than they would have otherwise. Now the flip side of that is I go in at
six 600. And I get all those frustrated buyers who could go up to 650. But they’ve missed out multiple times. And they know that this house is only going to appraise for 620. Because their brokers hopefully are smart and savvy and know the neighborhood and they’re going to tell their client Yes, this will probably appraise for 510 15, maybe 20,000 less, if we end up at 640. Because they think they’re looking at the exact same comps as we are. And they’re saying it’ll probably appraise out at about 620. Well, with that said, if I have four or five people competition, and this is the key, four or five different offers, competition, two or more generally means 3% over appraised value. Yeah. Is the actual market value now yeah. So if there’s competition versus not so three personal other factors with standing right, exactly. We also have a factor here where I just wanted to get aside for this because I keep hearing people balk at the idea of like 100,000 over listing which you know, is often partially because home is under listed to bring attention even though like way that’s a violation of the Oregon administration illustrative rule.
For Lent, for real estate, it’s it’s just common enough and it’s hard to catch someone doing that unless they’re doing it to an observed degree. But you know,
value is a tricky thing right? To truly determine value is we’re already talking about how we do it in a scientific and as
unbiased a way as possible. But at the end of the day, if you’ve got the corner lot if you got the mayor’s house if you’ve got you know, the the one house on the block that in the wintertime you’ve got a view through a set of trees that loses their leaves. These are things that don’t have value on an appraisal. You cannot compare them because you’re the only house in the neighborhood that has this you
feature where I gotta get my kid in the school district understand that there are buyers out there that are motivated by things that are outside of the way that we can evaluate a home’s value. And even though a school district is a good one, right school district can literally drive values, you know, your homes in an area could be worth $10,000 More each, because the school is so good, which is why that’s a whole nother rabbit hole. But
you know, it’s it’s a matter of desire and the knowledge that these things will eventually be worth that much money. I don’t it sounds so weird sometimes to say it doesn’t matter what you pay for a house. But there are lots of reasons why it doesn’t within reason, and especially if it’s going to be your forever home. I don’t care. Yeah, if I have them? Well, I need to do that. I obviously, I’d like to pay less, but I care more. I don’t not care, I care more about that being my house that I get to stay forever. And it’s there’s a huge emotional and psychological component at work here. Right? Especially as you get into houses that aren’t just sort of like the other house, that’s one or two homes down, I can just wait for another house to go for sale in this general area. Versus this is spectacular. This is the only mega lot in the area. And that’s and that’s the piece where so where we’re pricing. So we decided at six to be at 600. Right. And you alluded to this, we did not price it at 550. I don’t need 20 offers to negotiate against each other. I don’t need to waste people’s time. I’m not here trying to torture them. Right. Terrible strategy. I see it all the time. That’s ridiculous. If someone tells me they’ve got 3040 offers, I almost sometimes feel like I don’t know if that’s Brad, you’re saying that? Like it’s a good thing? And I don’t know that it is I think that means you’ve done something wrong. There’s there shouldn’t be that many people interested in the same property that rapidly unless
what you’ve underpriced it, right. I mean, well, I wants to generate that level of entertainment. Well, and that’s the piece and that is a decent strategy for certain properties that would otherwise be a struggle, let’s say a property that’s on a busy road, next to a freeway or something like that. Yes, sir. uppers I see that a lot with the fixer uppers, right? They’re kind of just like this is the open bid. Exactly, exactly. And it’s like an auction. And there is an element to the auction of what we did here, too. But it was basically being very open and transparent. And I won’t, you know, bore the audience completely with all of the conversations we had with those five offers, but it was basically being very transparent, and leveraging them against each other in a respectful way. They all know exactly what upfront with your expectations. And we actually take that one step further, just as a as a company, you know, with myself as the head, I actually generally disclose what numbers we expect it to be in, and where we’re at, and what they’re going to have to do to beat it. And other brokers really appreciate that. Because the old school way of, of talk of basically having a closed bid envelope system, or a closed bid auction, which is in essence saying, Hey, bring us your best, you don’t know where you need to be. What we’re trying to avoid is that buyer who got second place, who said Amen, it went for 10k, over what we offered, and I would have paid 11 all day long. So Rick’s a little every time I hear that it happens all the time. And if we just had more friends paid more, well, exactly. would have paid more.
Maybe that’s the case. But yeah, but people will eventually self select out and just say, oh, man, I can’t go over that. 640 And then I got the guy that saying 641. And okay, you know, there’s there’s the winner, but what are the terms? So, so what one of the other pieces I wanted to make sure is our general goal is to be within 5% of the final sales price, just so that we’re not wasting people’s time unless it was a total dump that we’re trying to run just as a total pure auction. But that’s a different scenario. This was a move in ready very nice, staged beautiful home ready to go at the top of its particular price point in the market. So the question becomes is, why didn’t I listed at 650, which was kind of the bottom end of what, what it would have been priced at as an appraisal value. And why didn’t I listen at 630 Hoping that somebody’s going to come in? And oh, you know, we’ll get that 625 person? Well, the reason is very simple. So I’m going to actually turn this question around you to you, when people ask you to get pre approved, generally speaking, are you approving them for 605? Or are you approving them for six for 625? For 656 75? Seven, so on.
I’m approving them for a payment really, if I’m honest. I mean, that’s the kind of flip of it. But yeah, generally there’s there’s a soft range. The lazy way to do it is to
Just cut a little off the top so that you don’t have to deal with a difficult underwriting as a loan officer, and then go, you’re only approved for 550. Instead of going, these are actually feasible if it’s got the right tax, the right insurance, all that stuff. So I don’t mean to answer that question with a question. But yeah, you’re right. I mean, usually it’s a bigger, rounder number that we’re loading up to, in the weeks, we call that the quartile, right? And 90 plus percent of all searches are at 600. And they’re not looking, you know, if their cap is 600. They’re not looking at that house that 601. Yeah, especially on that price bucket. I call it redline clients. What’s the most I can afford? Right? That’s a loaded question. But let’s talk about how much it costs to own a house. Most of that happens. And I would say quartiles a great way to put it the lower quartile or maybe even lower 15% of the purchase price that I see. Right? So what happens is, so we’re trying to build out, okay, a buyer profile here. And the buyer that pays the most has missed out on two or three homes. Okay, already, so they’re frustrated. This is the human element, right? And they can afford 650, you know, that payment of 3500 a month, right? including taxes and insurance and all that sort of thing. But they really want to stay under 3000. Right. So they’re at 600,000 is as high as they want to go as a typical just general rule. Well, if we were at 601, that 600,000 cap buyer isn’t going to see this house, right? We know that there’s a frustrated buyer out there that’s going to reach out to their Adrian, right? And is he going to say, oh, man, we just we’ve missed out two or three times, check out this address, know this house, and here’s the taxes and all this sort of thing is going to go for, you know, around 626 30. That’s the appraised but we think it might be 636 40. What do you think? And you’re saying, Well, you know, it’s a stretch to go to 650. But you could do it? Yeah, so now they’re coming back. And they’re being aggressive, because at the end of the day, they can afford 3300 bucks a month. And, you know, that’s just their thing, they can do it, they maybe don’t want to, but they want to stretch, if I’m honest, most people realize that there is room there too, right. And so the psychology is, is if I was at 615, or 620, people at 600 aren’t going to see it, right. And it’s not going to necessarily like in this particular case, 625 was would have been where we would have put it like in a middle middle of the road list price. And a very aggressive low end was 600. And then a very like, and let’s see, you know, hoping a prayer would be 650. And what would happen is at 626, anybody under 625, is probably not going to look at it, even if they could afford it because most people could afford slightly over. So they’re expecting this this because this is not non normative, right? Like, if you see a house at 599, you can be pretty sure you’re not going to offer 599 and buy that house, when you talk about someone with that even short term experience I’ve made an offer to any agent worth their salt, who’s representing those person is going to be like, by the way, right now, stuffs a little crazy. And these are the expectations. You know, if I go buy a new car off the lot, when it’s just arrived off the showroom as a new model, you’re probably going to pay MSRP you’re not going to get a discount on the hair hot, new shiny item, you’re not gonna get the latest iPhone on sale. Same concepts here, you know, we have demand driven market expectations are set that people are paying a little bit more than what that initial price is. Right? The bid is, is assumed. Right? So the the last, the last piece that I’ll leave you guys with is this concept of there’s, you want to be the best price and product as a home for sale in your category. Right? And we’ve already defined our categories as 600-620-5650. So on the corner, these buckets and in that neighborhood, right? So we want to be the best house. Absolute Best house at versus the competition. So if we were to listed at 640 or 650, right? We would have been okay, it was an average home, you know, out of 10 It would have been you know number five or six because it was in great shape, but not one or two versus at six 600 For sure it was the best house by far versus the houses that are at 585 90. This home was was way better. Just as a feel like you walk in you’re just like, oh my gosh, this could you know, this is incredible. The other 10 homes that I just saw don’t even compare. Yeah, versus that same home at 640.
You know, you’re competing against 650 homes, and it’s not the best house, that’s maybe number four, or number five, whatever it is. So the idea is priced at a point and we were aggressive, we were at six, we probably could have gotten somewhat similar results at 625, but probably or 624, nine, but probably not quite as good with the appraisal premiums. So what we ended up with was a 20k appraisal premium, which was awesome. And two competing offers, and they ended up right at 640 and 641. Yeah, and everybody else was driving up to like 636 35. And then the final number of two, we’re right at 646 41. We ended up at 641. And with the appraisal premiums with a short inspection time and a quick close, how many of the offers had appraisal premiums?
I want to say four out of the five. Okay. So everybody knew the fifth law understood what’s going on that it was it was a, let’s say maybe an immature agent didn’t really know what was going on. And yeah, frankly can take an aside for the unrepresented too by the way, this is why it’s so hard to be unrepresented. I don’t want to it’s tough, because I don’t want to necessarily steer people from you know, away from it is a bit of a personal choice, but I really don’t believe in it. And I see people do it all the time. And this is like one of the first layers of that is just this concept of like you there’s it’s not fair to you. Sure, well, I mean, this already for years, are still really chewing on these concepts we’re talking about. And we’ll continue to touch on this a bit as we move forward. But I’m glad that we spent one episode here doing this because there is a lot this is, this is great data for anyone who wants to understand why homes are worth what they’re worth or how pricing works. This sounds like something like we’re talking about half a million dollar homes, which in a lot of places is a luxury property. Guys, this is in Portland, you have to understand relative to the bar, this is an average home. And for that reason, and for lots of other ones, this applies to your town where there’s a $300,000 home average, we’re talking about a $300,000. Home, this is not that different from that as long as there’s demand, demand 3% Does it’s not that much. Right, relative to the full size of the house. Right? If we flipped the demand curve, and there were sellers, you know, hoping someone makes an offer, would we be what what kind of percentage? Could we expect them for under x? Well, yeah, if there’s no competition, yeah, our market is, is currently selling for right at about 100% of list price, on average. Versus if there’s competition, it’s generally selling for about three, like 103%. So that’s, that’s kind of the numbers that varies.
And that sort of thing. But here’s the thing, at the end of the day, if you do this process, right, and you allow us to, to, you know, run our proven system of pricing, and negotiating accordingly. Yeah, at the end of the day, $40,000 premium, which really was more like a $20,000 premium ended up being you know, so it wasn’t a 6% premium was really more like a 3% premium. But, you know, 641 versus 600, or 620 versus 640. That’s that value that if we’re allowed to run with it.
Edge, you know, leveraging, you know, everything that we bring in our expertise, we can drive it up. And the sad thing is, is that client that got the of that green agent buyer’s agent, yeah, they’ll never really know. Yeah, because the system, not them. It’s their representation, probably exactly Butch portion of it. But that bite, there’s not a feedback loop for that. No, there isn’t. And that buyer never will really know that they were never in the running. For that home ever. It’s really one of most fascinating. It’s really an interesting industry. Yeah, exactly. And I know some bridge burner agents that I mean, I’ll hear about offers coming in, and people are like, I don’t wanna work with this person. And they can’t tell the seller don’t take this offer because of that, but it takes the tiniest drop of doubt in your water, you know, to go, This doesn’t taste right. I’m good. So here’s, here’s the thing I actually with competition like this right, I will disagree with you, Adrian, because there are agents in the Portland metro area that when they come across, we will say hey, if it’s to your benefit, you know, the client, obviously will work with them will work with whoever to the benefit or client we have legal fiducial absolute ability, but what we will tell them is based on my experience dealing with them in the past on this one, and this one, this one, everything else being the same or regular. I will say let’s pick this agent over this agent because this one has a great reputation. And this one, you know, frankly, they’ll you know, cut off their nose to spite their face or right and unethical in the past are they
I have a terrible reputation, different things like that. And frankly, if I if I have history there, I don’t see anything wrong. In fact, I think I’m legally fiduciary obligated to you are that information, you’re not crap talking if you if you provide real personal first hand experience exactly, it doesn’t take too long to figure out who’s doing a great job and who’s you know, maybe just like, a reputation for being difficult just to be difficult or, you know, doesn’t represent their own clients interests very well. Those are bad things for everybody who’s involved, they are there. So anyway, so let’s, let’s just wrap this up with pricing. It’s not an exact science, but you want to be aggressive with your price, considering the product, you want to know your homework. As far as what it’s going to appraise for, or have done your homework. You want to know exactly what your competition is going to be based on your price point. And then you also want to know what the trending of the market is, and how it’s likely to affect. The last piece that I’ll just leave you with is there are times especially as markets change, or seasons change, that sort of thing. Will you have to be willing to pivot? Because at the end of the day, and I say this all the time, I’m never so arrogant as an individual listing agent for an individual property to say that my home makes the market or drives the market. Yeah, we have to react to the market. We are one small sliver of the market. But I’m never so arrogant as to say we drive it. The market drives us and we need to be reactive to it. So Yep.
Absolutely. There’s a next crunch on here. Thanks for joining our attempt at brevity. We’ll we’ll catch you next time on the get rich slow podcasts. Good luck out there future millionaires. Awesome. Thank you.
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