This is another installment in continuation of a series of blog posts where I compare selling the same model by different agents and getting different results. This is part 4 of the series of case studies. The incorrect belief out there is that homes sell themselves in a hot market. Agents make no difference in the final pricing. The results of these 4 case studies say something else.
Here are the previous three posts and case studies listed above. It is very rare to have all of the conditions and tight time connections co-existing to be able to study multiple transactions of the same model under almost identical conditions. But we were lucky enough to be able to identify and track such occasions.
The model is in the Autumnvale HOA community in Berryessa area of San Jose.
3 beds 3 baths 1536 sq. ft. of living space spread over 3 levels
all had 2 car tandem garage
all were recently updated, so no unit had significant advantage
all went into contract within the same 60 days period
all were staged for marketing
all were on market for 7 days or less
None were on the market at same time. All three listings were evenly matched and outfitted.
There is another unit which sold later for more than these units. But that one cannot be used for comparison as it is more than 200 feet larger, has an additional 1/2 bath and a side-by-side garage. A completely different model and layout. Apples and Orange.
Generally, the units that sell later tend to sell for higher prices. Especially in a tight market like now, where multiple offers are the norm. The buyers who do not win, go out and bid more aggressively on the next unit that hits the market. The buyers are literally stacked and waiting on the next unit to hit the market. The situation was like that here.
The first unit sold for $1,275M. This agent set the new baseline from which the next listing would benefit. So the next listing would logically get a higher price than the first.
The second unit indeed closed higher at $1.350M (mine). Again, this new baseline would help the upcoming listing benefit by pushing buyers to be more aggressive and also helping with the appraisal value to justify the offer price.
The third unit rather than closing higher as expected, brought down the appraisal value in the community by $50K. Now this would be the new baseline price for appraisals. Not only did this agent impact their own sellers, but everyone else who would be selling thereafter, until someone else brings up the appraisal value in the community.
Given that all three units were identical in layout and size as well as all being updated recently and all in contract within 7 days on market. All the listings had multiple offers as well. Everything else was nearly identical.The only differences were the negotiation skills and experiences of the listing agents. Even distance wise, the three units were within 50 feet of each other. Truly apple to apple comparison.
In today's hot market, getting a record price can happen accidentally. A great agent doesn't do it accidentally, but has a system in place to do it repeatedly and consistently. The four case studies above, located in different communities with different types of properties reveal when a system is in place, results can be predictable when the strongest negotiator is on the job. Who you hire to sell your home does matter in the end to you and your neighbors.
Agents can try to explain away why their units got $50K and $75K less for the identical units. In the end, sellers are not interested in reasons/excuses. All they care about or remember is: how much more I got than my neighbor. Nothing else will be remembered in the long run. Making a wise decision can mean the difference ,in this case, ranging from $50-$75K.