Welcome to San Diego Blog | August 29, 2013
San Diego Condo Listings
I don’t know if it’s a vibe I give off, or the clothes I wear. There must be a look that makes people recognize a Realtor. On an elevator or walking through the lobby of a Downtown San Diego Condo building, almost daily a homeowner will ask “what do you think my condo is worth?”
As the market suffered through the recession, often times the question was asked with the unfortunate understanding that the owners were upside down in value. Recently though, as values have increased, the question is an invitation to discuss listing their condo.
At this point we address the really important questions that are really being asked:
- How much will you sell my condo for?
- How long is it going to take to sell it?
- What are you going to do to get the most money for us?
A long term relationship that began with this conversation resulted in a listing and sale at San Diego Renaissance Condos. It’s a noteworthy example of a client outcome that met all of their objectives.
Selling Renaissance San Diego Condo
To optimize the sale price of a home or condo, evaluating and correctly establishing the “initial market position” is simply the most important element. An effective realtor will present all of the data available to assist in getting the home (or condo) on the market at the right price.
The idea that putting a home on the market at a significantly higher price, with the hope of receiving an over market offer or having a stronger negotiating position is self defeating. As the best buyers and agents see the property at the time of its listing, it often serves only to benchmark the value in appropriately priced competitors.
On the other hand, I feel it’s my responsibility to achieve the highest possible price for sellers. To do this, there is significant data to present.
Determiners of “Initial Market Position”
Market Absorption Rates provide important data for the strength of segments of the real estate market. Market absortion is a statistical analysis of the market’s “velocity” for various segments. It’s a function of the number of homes available and the number sold. Ultimately, this determines the “days of supply.”
The Renaissance Downtown Condo, was priced at $759,000. There was a 105 “day’s supply” of homes at this price point–indictating a “seller’s market.” (180 day’s supply is said to be balanced). It was an aggressive listing price, ranging from 8-15% above recent comps.
However, we felt that we could add value to the property based on views. The home was also beautifully furnished and immaculately presented. Even in a highrise Downtown San Diego Condo building, don’t underestimate curb appeal! The best looking condo on the market is just like having the best home on the block. Particularly in a seller’s market.
Negotiation and Acceptance
My office provides a clear advantage in buying or selling a condo in Renaissance. The presence that I enjoy on the main floor allows us to post flyers and open house signs daily to generate interest in the condo. I also accompany every showing–so Renaissance sellers have a clear advantage from our proximity.
Within the first week, we had generated two offers. Both were based on the recent comps, which we considered to be undervalued. In fact, those recent sales had accepted offers within the first week. Although tempting to accept an offer quickly, we believed that the statistics and evaluation we had done prior to listing was valid and justified waiting.
After only 28 days we negotiated a sale at approximately 98% of the asking price. This seller had an understanding the initial market position for their home had to be based on objective information that was supplied to them. It couldn’t merely be based on “what we need to get out of it,” or what they would like to get.
It also requires patience. This was an excellent outcome for the clients. They’d be happy to discuss their experience with you!
Please contact David Manes, Downtown San Diego Realtor at firstname.lastname@example.org, or 858.432.3203 if you’d like to start a conversation about San Diego Real Estate.