This week we share a snippet of a real estate situation and how we can help clients achieve their goals. We also featured 9 amazing new listings to hit the market, ranging from a well priced oceanfront home to some solid middle market options and a rare very large oceanfront condo in the village. Check them out below.

MARKET DYNAMICS

Having sold real estate for decades has provided us an interesting perspective into the psychology of buyers, sellers and what drives a market. Everyone approaches valuations and negotiations differently and our job is to facilitate that process and help the parties bridge the gap.

Some people really like to negotiate through several rounds; others like to just get straight to the bottom line. Knowing how to gauge situations and what questions to ask when showing homes—for both buyers and sellers—allows us to formulate a strategy for approaching a negotiation.

One example: If a property is listed for 90 days at $3,999,000 but is worth $3,500,000 many buyers won't consider it. They don't want to offend a seller, think it's overpriced and don't believe the seller will be reasonable. They may think someone else might pay more so they decide to "watch it" or "keep an eye on it and wait for the seller to lower the price. So they do nothing. After all there is a $500,000 difference, almost 13%!!

Meanwhile, the listing agent knows the property is priced high, but the seller has real reasons to sell (health, relocation, financial). It's just a matter of time so he let's the seller work through the proces. The seller knows it's overpriced but tells the agent, "Bring me an offer then I will be willing to see how low I will go."

He doesn't want to lower the price because deep down he is worried that if he lists it at $3,500,000 and doesn't get that price then he might have to go lower. But if he had a real and serious buyer then he might consider a lower price.

So we have "THE STANDOFF" no one does anything and time ticks by and nothing happens.

Then Ryan & Tracie show up. We know the market and we know the true value within reason. We show the property and ask the listing agent many probing but subtle questions. We research the seller. We know if this is someone who will sell eventually at some price or if he is a take-it-or-leave-it seller who truly won't budge.

Then we write an offer where it should really be. We have many ways we present and negotiate that I won't share here. This is the experience, soft skills, people skills and true negotiation. Sometimes the process takes a while to play out.

But then it sells for $3,550,000 and everyone is happy. Except for the buyers sitting on the sidelines "watching it" waiting for the seller to drop the price and then having to compete with other buyers. They see it sell and say, "I would have paid that". But they didn't. Don't be that guy "watching it" - real estate is not a spectator endeavor.

Conversely, there are times when a home lists at $3,999,000 and we know it will sell for over $4,200,000. That is a whole different approach and strategy. How do we rise above the other offers, and how do we appeal to the seller and their agent?

Every situation is different, yet experience, approach and reputation dramatically impact a client's outcome.
If you have worked with us, you know we are direct and transparent regarding the process, our opinions, and our advice.

Let's talk and see how we can help you wherever you are in the process of buying or selling.

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.
​

7863 Girard Ave. Suite 208, La Jolla, CA 92037
​Unsubscribe · Preferences​