Brock's newsletter | NOVEMBER 10, 2023
There is some sort of weird etiquette in the real estate industry that you don’t lowball people on their houses - you don't want to
Sellers don't seem to understand this.
They tell us “There's no harm pricing high - buyers will just offer under!" Except they don't. Which is why we spend oodles of time, using market stats and graphs, convincing sellers not to overprice their houses.
It gets frustrating on the buyer side too. We see countless buyers going through headache and heartache piling-on (20-30 offers deep!) on the nice, well-priced homes.
While passing on the houses, that they
think they didn't like.
But what they didn't like was not the
, it was the
The entire experience of looking at a house is through the
prism of price.
This is what we tell sellers when they ask for “feedback” on showings. Feedback is pointless.
Because the rule of thumb for any feedback is….you have to add “for the price” at the end to get the truth.
“Too small” …for the price.
“Too close to the freeway” …for the price.
“Needed too much work” …for the price.
There's a price at which 100% of buyers who see a house, like it.
Example is yours truly as a new agent being clever and listing a house for $1.
The LA Times headline:
Three Bedrooms, One Bath -- One Dollar
(in case you're wondering,
it sold for market price, $475,000, with a million offers).
At that price, 100% of buyers liked it.
On the other hand, there's a price at which 0% of buyers like a house.
**Amazingly, that's half the homes on the MLS right now. They are slightly overpriced and just sitting there.**
So buyers, here's your strategy - go ahead and OFFEND SELLERS. But here are the rules.
The home must be sitting on the market for 30 days or more.
There's little point lowballing a well-priced home. How do you know it's well-priced? Your agent should be able to tell you if a home is going to be competitive before writing an offer, and if it's competitive, write over list, not under.
If the price is low, the rest of the offer needs to be solid.
The seller won't take a haircut on price if your terms are garbage, so keep your inspection periods short, offer clean, and make sure it's well-presented.
And overall, just don't write stupidly low offers. Waste of time.
But if a house is sitting at $2.5 million, after 30-45 days…offer $2.3M. You'll probably get it. No one else is doing that. Buyers - there is opportunity for slightly overpriced houses. The market will correct a price UP efficiently and accurately. It generally won't correct a price DOWN.
Get offensive and get your house.
This Weekend's Must-See Open Houses
Want us to join you? Reply to set up a private showing!
4401 San Andreas Ave, Mt. Washington
- The Mary Jane Leland Residence. A 1951 2/2 midcentury on an oversized private promontory of 18,000 sf+ - Listed at $1,299,000 - Open Sunday 2-4pm
8515 Walnut Dr, Laurel Canyon
- 1925 Spanish with oodles of romance and charm. Gated and hedged for privacy and security - Listed at $1,695,000 - Open Sunday 1-4pm
5698 Holly Oak Dr, Los Feliz
- Redone head-to-toe by Rubin Studio, and she's magic - Listed at $4,495,000 - Open Sunday 1-4pm
Until next Friday,
-Brock & Lori
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Reduce your property taxes
- if you've bought in the last three years, appeal your assessment. You have nothing to lose - deadline is end of this month!
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The Gorgeous Homes We're Selling…
2500 N Commonwealth, Los Feliz
5 BED | 6 BATH
4,121 SQ. FT. | .38 ACRES
LISTED for $5,995,000
4882 Wiota Street,
3 BED | 2 BATH
1,624 SQ. FT.
LISTED for $985,000
* Represent Buyer
656 Laveta Terrace, Angelino Heights
4 BED | 4 BATH FOURPLEX
3,429 SQ. FT.
SOLD FOR $1,825,000
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3020 Sunset Boulevard
Los Angeles, CA 90026, United States
Brock and Lori Harris Real Estate Team
Keller Williams Los Feliz DRE#01430290 | Brock Harris DRE#01328996 | Lori Harris DRE#02132297