2021 BOISE IDAHO REAL ESTATE BLOG
Objective of this Blog Main Meridian Homes for Sale

The objective of my blog is to do what the name of this website implies - build credibility!

Anyone with a base understanding of statistics knows that if the researcher wants to bias data, they can be very selective in their sample to prove about anything.  My objective is look at the raw data as supplied by the Intermountain MLS and turn it into usable unbiased results.

I am very open-minded, so if the readers of this blog want me to address certain aspects in future blogs, I would be glad to if the topic would pertain to this site.

I look forward to continuously adding content to this site!

Sincerely,

Jim Paulson, CRS, ePro, GRI

Owner / Broker - Progressive Realty Corporation

 
Posted by Jim Paulson at 4/6/2007 3:40:00 PM
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Comments (7)
Re:Objective of this Blog
I currently have a house for sale by owner. I am kicking around the idea of a realtor. I have talked to three or four. They all seem to have different ideas on pricing. The house appraised for 550,000.00 One realtor said 529,000.00, the second said 499,000.00 and the third said 459,000.00. I dont see any houses selling in this particular sub. arrowrock ranch. But all three seem to think they can sell the house. seems to me they just want to get the listing and let someone else sell it and reap the commision. what is the best method to base a price on?
Posted by on 4/10/2007 4:35 PM
Re:Objective of this Blog
I can really appreciate the confusion of why so many different answers to the same question. I commend you for shopping around and comparing results!
Your subdivision is very unique and therefore it is easy to draw different conclusions to the question of what is the home worth. I would be glad to review your specific situation personally at your convenience to show you how each individual might have come to their conclusion so we can determine which is closest to the right answer. However, keep in mind that he simple answer is that"your home is worth whatever a "ready willing and able buyer is willing to pay". My job would be to determine the value based on the number of buyers in the price range of your home that are in the market in your area and then to create a custom marketing plan to reach those buyers!
I happen to be pretty familiar with your subdivision due to the fact that one of my "buyer agents" has been holding open houses in your subdivision for most of last year. As you know, there are lots in your subdivision that are half acre and some full acre which probably is causing some of the reason for the spread in values. Some may have only looked at resale homes instead of comparing the new homes and the ones that may still be built in phase #2! Some agents put way too much value on price per sq. ft. To me that is like buying "Artwork" by the pound!
When I value a home, I take a four step process: 1) Approach it like an appraiser, so that when it does sell, I know I won't have a problem getting it financed by the bank; 2) Approach it like an informed buyer, based on what is offered for sale similar to yours (same age, quality, style, location). Based on that, why is it the best choice and value?; 3) Approach it like a relocating buyer, if I know they can spend roughly $500,000, what are the complete available choices to them (currently there are 317 homes in Ada County for sale priced from $450,000 - $550,000) plus the opportunity to have a home custom built in that price range if they have 4-6 moths to wait; 4) I look at "Absorption Rates"! In your subdivision, there were 10 sales reported in the Multiple Listing Service for the past year; however, there are currently 14 homes offered for sale (plus yours)! At that rate, it took 1.2 months to "absorb" each home thereby requiring 16.8 months at this rate to absorb the 14 homes offered for sale (not 113 days as the MLS statistics imply)! Many agents don't consider this as they don't really study statistics. The reason for the big difference (504 days vs. 113) is had your home been listed by another agency and then you hired me to sell it, the market time starts all over again. If you cancel and relist with the same agent, it also starts all over again, so the statistics only show the numbers based on the most current listing period of each home (unless the agent adjusts the parameters).
I look at homes as if I was marketing puppies. Currently, there are 14 properties in the "litter". If we stage the home properly, market it to the right buyers, price it competitively, it will be the pick of the litter and sell quickly! If it takes the rest of the homes an additional year to sell, you won't care, you will have already comfortably settled in your next home (which of course I would be honored to assist with as well)!
Posted by Jim Paulson on 4/14/2007 12:31 PM
Re:Objective of this Blog
Jim, thank you for your terrific explanation and process for fully determining a properties value. So many people rely solely on 'comps' that they fail to take into account TRUE market conditions. We, as agents and brokers have a responsibility to educate ourselves with reliable information and pass that knowledge on to the public to make wise and informed real estate decisions. I'm glad to know you are one of those agents.
-Burma Naylor, Mountain Realty
Posted by on 7/2/2007 8:20 PM
Re:Objective of this Blog
Your welcome Burma!

I am shocked as I look at some of the listings and the prices associated with them. I have called a few agents to see how they justify their price because my client stumbled across their home and like it, but the price appears out of line. The response sometimes is "That is what the seller would like." I have never seen that "adjustment" made on an appraisal. Sentimental value does not convey!

It is a good idea to make sure that your agent can rationalize your price to the potential buyers but also to the appraisers when it sells. There is nothing worse than buying home and moving out of your existing home, getting ready to close, and then finding out you have appraisal issues.

Make sure the objective of listing your home(s) is to actively sell YOUR property, not just generate buyer leads to the agent/agency! One method of marketing is the "bait and switch". Make sure your agent/agency understands the objective of a "Seller Representation Agreement" is to represent the "seller" not to just generate leads for them to sell other properties from!
Posted by on 7/3/2007 1:57 PM
Re:Objective of this Blog
I am a broker and the website above was one of the first two and I think the only one of those two that had MLS available to the public in Boise. We really have always been buyer oriented looking for buyers because unless you are in a market like 2005-2006 people often want to sell for prices that are not realistic. But NOT always. There are two sides. As an agent of a seller the right thing is to get the most gain possible. Many agents are dying for listings and concentrate on getting listings and hoping somebody, anybody brings a buyer before the listing runs out. They do whatever the seller wants to get the listing. The other side of the coin is to price the house so LOW that it will compell someone to buy. If the agent presents his opinion in this light that is fine. What I teach my agents to do with potential sellers is to give them all recent sold similar homes in their area including days on the market and other information; and all like homes for sale. Then they see the range. The time it took to sell and how long homes are on the market. You Market Value is what the seller will let the home go for and the a buyer is willing to pay. That simple. The difficulty is that in this market buyers think it is a buyers market and are going to offer low even if you are priced below the probable market. So the only way you can make a good choice is to have the information. A definite price given by an agent is a guess! You have to have a range and decide if you want to list at a selling compelling price, or wait until a buyer who is willing to pay a little more because he just likes your house more than the competition.
Posted by on 9/12/2007 11:46 AM
Re:Objective of this Blog
By the way. The blog above was from Jon Gosche www.BoiseRealtyStore.com and my email is gosche@cableone.net. This blog makes it appear that that information is going to be included but then posts as anonymous.
Jon Gosche
Posted by on 9/12/2007 11:49 AM
Re:Objective of this Blog
Jon, thanks for your comments. By the way, if you want your posts to not show "anonymous", just log in as a user and it will post your name.

I agree that there are potentially different objectives of how to price a home, so getting competitive feedback prior to lisitng is great. I have known agents that will take any listing at any price because it may generate buyers in that area and/or price range. With that logic, I question the agents integrity since they are supposed to be "representing the seller".

On the buyer side, your agent should always run a property history report and comps to determine how much to offer and substantiate the logic when presenting an offer. I am amazed when I do this and can't come close to the listing price so I call the other agent to see what I missed, only to hear "That is what the seller wanted to list for".

I too tell my clients that pricing is a range, not an exact. If they are willing to sell it cheap enough, don't bother listing, I will just buy it! If they are too high up on the range, I recommend my competitors to list it instead so I can use up all their advertising budget and time, not mine. If the sellers are realistic, we go forward as a team!
Posted by Jim Paulson on 9/13/2007 11:02 AM
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