Comments on: Are you still living in a Bubble? http://www.goodlifeteam.com/future-of-real-estate/are-you-still-living-in-a-bubble/ Thu, 26 Jan 2012 21:31:45 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Christopher http://www.goodlifeteam.com/future-of-real-estate/are-you-still-living-in-a-bubble/#comment-77 Christopher Wed, 13 Jan 2010 23:16:36 +0000 http://www.goodlifeteam.com/blog/?p=33#comment-77 I live in California where all sales prices are disclosed to the county and reported in real time to the market. You guys are a non-disclosure state. So, you don't publish your recent sales readily. I should be able to go to the internet and see all the recent sales without talking to a realtor. (I may talk to a realtor later but fist I like to do my own analysis) People in Austin are always reporting "list prices" or "number of homes sold" or sales to list price rations. Those are all helpful measures but nothing like "price per sq foot - SOLD". That's the real market price and sellers need to be confronted with that in real time. Kudos to the Goodlife Team for presenting as much data as they can in your state. (I'd like to see rolling 12 month periods for 7 years by zip code to take the seasonality out of the numbers) I live in California where all sales prices are disclosed to the county and reported in real time to the market. You guys are a non-disclosure state. So, you don’t publish your recent sales readily. I should be able to go to the internet and see all the recent sales without talking to a realtor. (I may talk to a realtor later but fist I like to do my own analysis)

People in Austin are always reporting “list prices” or “number of homes sold” or sales to list price rations. Those are all helpful measures but nothing like “price per sq foot – SOLD”. That’s the real market price and sellers need to be confronted with that in real time.

Kudos to the Goodlife Team for presenting as much data as they can in your state. (I’d like to see rolling 12 month periods for 7 years by zip code to take the seasonality out of the numbers)

]]> By: Krisstina Wise http://www.goodlifeteam.com/future-of-real-estate/are-you-still-living-in-a-bubble/#comment-76 Krisstina Wise Tue, 09 Dec 2008 11:38:55 +0000 http://www.goodlifeteam.com/blog/?p=33#comment-76 John, Thank you for your comment. What I can say from over 10 years of experience as one of the top real estate agents in Austin, is that buyers always look for value. In a declining market they look for a ‘deal’. I agree with you, I don’t think it is as black and white as purchasing a stock (the analogy was to make a point) … but one thing is true … buyers will not pay more than the market says that the house is worth – and a good buyer’s agent will always make sure of that. A good listing agent will bring forth the ‘real’ market value of a home and produce a seller pricing strategy in order to maximize a seller’s return. Regarding commissions … from my experience, I haven’t noticed that commissions all that often affect the price that sellers place on their home. In other words, a seller typically chooses to price their home for the same price despite the commission rate charged. The commission rate affects the net profit/loss a seller realizes not the list price. For instance, if you have two sellers who have a home with a market value of $250,000 but one is charged a rate of 5% and the other 6%, they both will list their home for $250,000. They don’t use the lower commission to produce a price advantage. For that reason, I did not talk about commissions in my article regarding seller pricing theory. On a commission note however, we at The GoodLife (any many other agents I am aware of) have flexible commission structures, depending on the relationship with the seller, the specific situation, the list price, etc. John, Thank you for your comment. What I can say from over 10 years of experience as one of the top real estate agents in Austin, is that buyers always look for value. In a declining market they look for a ‘deal’. I agree with you, I don’t think it is as black and white as purchasing a stock (the analogy was to make a point) … but one thing is true … buyers will not pay more than the market says that the house is worth – and a good buyer’s agent will always make sure of that. A good listing agent will bring forth the ‘real’ market value of a home and produce a seller pricing strategy in order to maximize a seller’s return.

Regarding commissions … from my experience, I haven’t noticed that commissions all that often affect the price that sellers place on their home. In other words, a seller typically chooses to price their home for the same price despite the commission rate charged. The commission rate affects the net profit/loss a seller realizes not the list price. For instance, if you have two sellers who have a home with a market value of $250,000 but one is charged a rate of 5% and the other 6%, they both will list their home for $250,000. They don’t use the lower commission to produce a price advantage. For that reason, I did not talk about commissions in my article regarding seller pricing theory. On a commission note however, we at The GoodLife (any many other agents I am aware of) have flexible commission structures, depending on the relationship with the seller, the specific situation, the list price, etc.

]]> By: John http://www.goodlifeteam.com/future-of-real-estate/are-you-still-living-in-a-bubble/#comment-75 John Tue, 09 Dec 2008 11:35:18 +0000 http://www.goodlifeteam.com/blog/?p=33#comment-75 I will have to take exception to your article… I really don’t think that a home is an investment like the stock market… I won’t get into any details, but I do have arguments with your premise… Of course, there are also stock brokers that work at a discount and for fixed fees…. Now that’s an idea that you sure don’t hear being espoused by realtors… I will have to take exception to your article… I really don’t think that a home is an investment like the stock market… I won’t get into any details, but I do have arguments with your premise… Of course, there are also stock brokers that work at a discount and for fixed fees…. Now that’s an idea that you sure don’t hear being espoused by realtors…

]]> By: George Sears McGee http://www.goodlifeteam.com/future-of-real-estate/are-you-still-living-in-a-bubble/#comment-74 George Sears McGee Sat, 29 Nov 2008 18:17:39 +0000 http://www.goodlifeteam.com/blog/?p=33#comment-74 Could not have said this better myself, Krisstina. We, as Realtors, are often the basis of the problem, afraid to speak the truth for fear of not "believing" in the value our clients, in the selling mode, seem to demand. The truth always emerges. And the truth must begin with us. Could not have said this better myself, Krisstina.

We, as Realtors, are often the basis of the problem, afraid to speak the truth for fear of not “believing” in the value our clients, in the selling mode, seem to demand.

The truth always emerges.
And the truth must begin with us.

]]> By: Sue Adler http://www.goodlifeteam.com/future-of-real-estate/are-you-still-living-in-a-bubble/#comment-73 Sue Adler Sat, 29 Nov 2008 00:21:17 +0000 http://www.goodlifeteam.com/blog/?p=33#comment-73 Krisstina, I absolutely LOVE how you phrased the “are you still living in a bubble” article! Happy Thanksgiving and congrats to you in advance on your successful new endeavor! ~Sue Adler Krisstina, I absolutely LOVE how you phrased the “are you still living in a bubble” article! Happy Thanksgiving and congrats to you in advance on your successful new endeavor!

~Sue Adler

]]> By: Doug Stewart http://www.goodlifeteam.com/future-of-real-estate/are-you-still-living-in-a-bubble/#comment-72 Doug Stewart Wed, 26 Nov 2008 19:48:34 +0000 http://www.goodlifeteam.com/blog/?p=33#comment-72 Very well said and all prudent sellers should take heed or take their homes off the market. It is time to wake up and stop wasting a realtors time and marketing dollars as well as a potential buyers time. Donald Trump did not get rich by selling the house he lived in and neither will you. Listen to the market and set the price competitively and you may very well make a profit, just not enough to retire to the Bahamas! Doug Stewart, Senior Associate The GoodLife Team Very well said and all prudent sellers should take heed or take their homes off the market. It is time to wake up and stop wasting a realtors time and marketing dollars as well as a potential buyers time. Donald Trump did not get rich by selling the house he lived in and neither will you. Listen to the market and set the price competitively and you may very well make a profit, just not enough to retire to the Bahamas!
Doug Stewart,
Senior Associate
The GoodLife Team

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